Watts Water Technologies Inc (WTS) 2024 Q4 法說會逐字稿

Welcome to Watts Water Technologies Incorporated 4th quarter and full year 2024 earnings call.

歡迎參加 Watts Water Technologies Incorporated 2024 年第四季和全年財報電話會議。

At the end of the presentation, we will open the line for questions.

演示結束後，我們將開放提問熱線。

I will now turn the call over to Diane McClintock, Senior Vice President, FP&A and Investor relations.

現在我將把電話轉給 FP&A 和投資者關係高級副總裁 Diane McClintock。

Thank you and good morning everyone.

謝謝大家，早安。

Welcome to our fourth quarter and full year 2024 earnings conference call.

歡迎參加我們的 2024 年第四季和全年財報電話會議。

Joining me today are Bob Pagano, President and CEO, and Shashank Patel, our CFO.

今天與我一起出席的有總裁兼執行長 Bob Pagano 和財務長 Shashank Patel。

During today's call, Bob will provide an overview of 2024, as well as an update on our expectations for 2025.

在今天的電話會議中，鮑伯將概述 2024 年的情況，並更新我們對 2025 年的期望。

Shashank will discuss the details of our fourth quarter and full year financial results and provide our outlook for the first quarter and full year 2025.

Shashank 將討論我們第四季度和全年財務業績的細節，並提供我們對 2025 年第一季和全年的展望。

Following our remarks, we will address questions related to the information covered during the call.

在我們發言之後，我們將解答與通話中涉及的資訊相關的問題。

Today's webcast is accompanied by a presentation, which can be found in the investor relations section of our website.

今天的網路廣播附有一份演示文稿，可以在我們網站的投資者關係部分找到。

We will reference this presentation throughout our prepared remarks.

我們將在準備好的演講中引用此演講。

Any reference to non-GAAP financial information is reconciled in the appendix to the presentation.

任何對非 GAAP 財務資訊的引用均在簡報的附錄中進行了核對。

I'd like to remind everyone that during this call we may be making certain comments that constitute forward-looking statements.

我想提醒大家，在本次電話會議中我們可能會發表一些構成前瞻性陳述的評論。

These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially.

這些聲明受到多種風險和不確定因素的影響，可能導致實際結果有重大差異。

For information concerning these risks, please see Watts's publicly available filings with the SEC.

有關這些風險的信息，請參閱 Watts 向美國證券交易委員會提交的公開文件。

The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

無論由於新資訊、未來事件或其他原因，本公司都不承擔更新或修改任何前瞻性陳述的義務。

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

說完這些，我會把電話轉給鮑伯。

Thank you, Diane, and good morning, everyone.

謝謝你，黛安，大家早安。

Please turn to Slide 3, and I'll provide a recap of 2024 and an overview of the key drivers for our 2025 outlook. 2024 was a momentous year for us, marking the 150th anniversary of the company and another year of record performance.

請翻到投影片 3，我將回顧 2024 年的情況並概述 2025 年展望的關鍵驅動因素。 2024年對我們來說是意義重大的一年，標誌著公司成立150週年，也是另一個創紀錄的一年。

I'd like to start by thanking the entire Watts Water team for their tremendous contributions to these results.

首先，我要感謝整個 Watts Water 團隊為這些成果做出的巨大貢獻。

We finished the year with a solid quarter that exceeded our expectations, including record 4th quarter adjusted operating margin and adjusted EPS.

我們以超出預期的穩健表現結束了這一財年，包括創紀錄的第四季度調整後營業利潤率和調整後每股收益。

We drove record full year sales, operating income, earnings per share, and free cash flow.

我們實現了全年銷售額、營業收入、每股盈餘和自由現金流的創紀錄水準。

Organic sales decreased by 1%, largely driven by weakness in Europe, and adjusted EPS increased by 7%.

有機銷售額下降 1%，主要受歐洲市場疲軟影響，調整後每股盈餘成長 7%。

Adjusted operating margin decreased only 10 basis points versus the prior year, despite 60 basis points of acquisition dilution, significant volume de leveraged from weakness in Europe, and incremental investments in our long-term strategy.

儘管收購稀釋了 60 個基點、歐洲業務疲軟導致銷量大幅下降以及我們對長期策略的投資不斷增加，調整後的營業利潤率僅比去年下降了 10 個基點。

We generated record free cash flow of $332 million, an increase of 18% with a conversion rate of 114%, well above our expectations.

我們創造了創紀錄的 3.32 億美元自由現金流，成長 18%，轉換率為 114%，遠遠超出我們的預期。

Our balance sheet remains strong and provides us with the flexibility to continue investing for the future.

我們的資產負債表依然強勁，為我們繼續投資未來提供了靈活性。

Strategic M&A, high return investments, competitive dividends, and stable share buybacks remain our top capital allocation priorities.

策略性併購、高回報投資、有競爭力的股息以及穩定的股票回購仍然是我們最優先的資本配置重點。

Moving to operations.

轉向營運。

Over the course of 2024, we were able to drive significant productivity savings through investments in automation, our focus on lean initiatives both inside and outside the factory walls, leveraging the One Watts Performance System and selective restructuring actions.

在 2024 年期間，我們透過投資自動化、專注於工廠內外的精實計畫、利用 One Watts 績效系統和選擇性重整行動，顯著提高了生產力。

These savings enabled us to mitigate the dilutive impact of acquisitions and the impact of European volume D leverage on our operating margins.

這些節省使我們能夠減輕收購的稀釋影響以及歐洲 D 量槓桿對我們的營業利潤率的影響。

We expect to continue investing to enhance productivity in our factories and drive margin expansion.

我們希望繼續投資以提高工廠的生產力並推動利潤率的擴大。

As previously announced, we closed on our acquisition of Icon Systems on January 2, 2025.

如前所述，我們於 2025 年 1 月 2 日完成對 Icon Systems 的收購。

Icon is a leading provider of innovative plumbing and water management solutions.

Icon 是創新管道和水管理解決方案的領先供應商。

This strategic acquisition will expand our digital offerings and provide growth opportunities in the correctional facilities niche of the institutional market.

此次策略性收購將擴大我們的數位產品範圍，並為機構市場中的懲教設施領域提供成長機會。

Integration is underway and progressing well.

整合正在進行中，並且進展順利。

We expect Ion to be modestly accreted to adjusted EPS in 2025 after factoring in incremental interest expense and normal purchase accounting adjustments.

我們預計，在考慮增量利息支出和正常購買會計調整後，Ion 的調整後每股盈餘將在 2025 年適度增加。

Last week, our board authorized a restructuring program involving the exit from a manufacturing facility in France.

上週，我們的董事會批准了一項重組計劃，涉及退出法國的一家製造工廠。

We'll be moving the production from this plant to existing plants in France and other locations.

我們將把生產從該工廠轉移到法國和其他地區的現有工廠。

This action will help to simplify our manufacturing structure and provide incremental productivity.

此舉將有助於簡化我們的製造結構並提高生產力。

The majority of the expected costs for this program will be recorded in the first quarter.

該計劃的預計成本大部分將在第一季記錄。

Full year run rate savings should be realized in 2026.

全年運轉率節省應在 2026 年實現。

Shashank will provide more financial details on this in a moment.

Shashank 稍後將提供更多財務細節。

As discussed in our last earnings call, we introduced our new intelligent water management solution, Nexa.

正如我們在上次財報電話會議上所討論的那樣，我們推出了新的智慧水管理解決方案 Nexa。

We continue to work multiple go to market strategies, and the pipeline is growing nicely.

我們持續實施多種行銷策略，且通路正在順利成長。

Feedback from customers has been positive, with concrete results of value creation from risk mitigation, reduced water consumption, and improved occupant comfort.

客戶的回饋是正面的，透過降低風險、減少用水量和提高居住舒適度，創造了具體的價值。

We look forward to continued scaling of our ecosystem of digital solutions in 2025.

我們期待在 2025 年繼續擴大我們的數位解決方案生態系統。

As part of our One Watts Performance System, we regularly assess our portfolio and phase out low performing products under our 80/20 model.

作為我們「一瓦性能係統」的一部分，我們定期評估我們的產品組合，並根據我們的 80/20 模型逐步淘汰性能低下的產品。

As part of this process, we have identified approximately $10 million to $15 million of sales.

作為這一過程的一部分，我們確定了約 1000 萬至 1500 萬美元的銷售額。

We expect to eliminate over the course of 2025, a significant portion coming from our integration of Bradley.

我們預計在 2025 年期間將消除來自 Bradley 整合的大部分損失。

We expect these actions will be margin accretive in 2025.

我們預計這些措施將在 2025 年增加利潤。

Now, an overview of the drivers for our outlook for 2025.

現在，讓我們來概述一下 2025 年展望的驅動因素。

We believe that price as well as repair and replacement activity will continue to drive growth in 2025.

我們相信，價格以及維修和更換活動將在 2025 年繼續推動成長。

Global GDP, a proxy for our repair and replacement business, has slowed but remains positive in our key end markets.

全球 GDP（衡量我們維修和更換業務的指標）已經放緩，但在我們主要的終端市場仍然保持正成長。

In the Americas, non-residential new construction indicators are mixed.

在美洲，非住宅新建築指標好壞參半。

The ABI remains below 50, implying a slower 2025.

ABI 仍低於 50，這意味著 2025 年經濟成長將會放緩。

The Dodge Momentum Index is slightly more positive, suggesting growth in non-residential products will continue into 2025, primarily supported by strength in institutional and mega projects, including data centers.

道奇動量指數略微更為積極，顯示非住宅產品的成長將持續到 2025 年，主要得益於機構和大型計畫（包括資料中心）的強勁成長。

However, we believe growth in institutional mega projects will be partly offset by more challenged sub verticals, including offices, retail, warehouses, and recreation.

然而，我們認為，機構大型專案的成長將被更具挑戰性的子垂直產業（包括辦公室、零售、倉庫和娛樂）部分抵消。

For residential new construction, we expect single family will be flat to slightly up.

對於新建住宅而言，我們預計獨棟住宅數量將持平或略有上漲。

Multi-family permits were in decline for most of 2024.

2024 年大部分時間，多戶住宅許可證數量有下降趨勢。

With interest rates remaining elevated, we expect multi-family starts to decline double digits throughout 2025.

由於利率持續處於高位，我們預計 2025 年多戶型住宅開工率將出現兩位數的下降。

As a reminder, multi-family new construction accounts for less than 10% of our total sales.

提醒一下，多戶型新建住宅占我們總銷售額的不到 10%。

With the uncertainty surrounding the direction of inflation and policy under the new US administration, we expect interest rates to remain higher for longer, which may delay construction projects.

由於新美國政府的通膨和政策走向存在不確定性，我們預計利率將在較長時間內維持在高位，這可能會推遲建設項目。

We expect Europe residential and non-residential new construction to remain weak.

我們預計歐洲住宅和非住宅新建築將保持疲軟。

In addition, we expect the heat pump destocking that has unfavorably impacted our OEM partners in Germany and Italy to continue in the first half of 2025.

此外，我們預計，對我們在德國和義大利的 OEM 合作夥伴產生不利影響的熱泵去庫存現象將在 2025 年上半年持續下去。

The reduced volume will have a more significant impact on earnings due to our higher fixed cost base in Europe.

由於我們在歐洲的固定成本基礎較高，因此產量減少將對收益產生更大的影響。

In addition to the planned closure of the manufacturing site in France, we implemented headcount restructuring actions in the 4th quarter that will help reduce the impact of volume deleveraging.

除了計劃關閉法國製造工廠外，我們還在第四季度實施了員工重組措施，這將有助於減少產量去槓桿的影響。

Europe's sales represent approximately 20% of our business.

歐洲的銷售額約占我們業務的20%。

We expect growth in the Asia Pacific region with stronger growth in China data centers and in the Middle East with modest growth in Australia and New Zealand.

我們預計亞太地區將出現成長，其中中國資料中心將出現更強勁的成長；中東地區將出現成長，其中澳洲和紐西蘭將出現溫和的成長。

We continue to monitor US policy uncertainty, including potential tariffs and geopolitical uncertainty in the Middle East and Europe.

我們繼續關注美國政策的不確定性，包括潛在的關稅以及中東和歐洲的地緣政治不確定性。

We expect to proactively address any direct or indirect impacts to our customers and supply chain.

我們希望積極解決對我們的客戶和供應鏈的任何直接或間接的影響。

With that, let me turn the call over to Shashank, who will address our results for the 4th quarter and full year and offer our outlook for Q1 in the full year 2025.

說完這些，讓我將電話轉給 Shashank，他將介紹我們第四季和全年的業績，並對 2025 年全年第一季做出展望。

Shashank.

沙申克。

Thank you, Bob, and good morning everyone.

謝謝你，鮑勃，大家早安。

Please now turn to Slide 4, which highlights our 4th quarter results.

現在請轉到投影片 4，投影片重點介紹了我們第四季的業績。

Sales of $540 million were down 1% on a reported basis and down 5% organically.

銷售額為 5.4 億美元，報告期間下降 1%，有機下降 5%。

As previously discussed, we had fewer shipping days in the 4th quarter, which unfavorably impacted our sales by approximately 5% across all regions.

如前所述，第四季度我們的運輸天數減少，這對我們所有地區的銷售額產生了約 5% 的不利影響。

America's organic sales were down 3% and reported sales were up 3%.

美國的有機銷售額下降了 3%，而報告銷售額增加了 3%。

This was better than expected, particularly with the reduced shipping days.

這比預期的要好，特別是在運輸天數減少的情況下。

Some of this favorability was a result of several large projects, shipping earlier than expected.

這個有利因素部分源自於幾個大型專案的交付早於預期。

Sales from our Joe Salmon Bradley acquisitions added $23 million.

我們收購 Joe Salmon Bradley 帶來的銷售額增加了 2,300 萬美元。

Europe organic and reported sales were down 15% with declines across all geographies due to few shipping days, heat pump destocking at our OEM partners in Germany and Italy, and weakness in new construction markets triggering some destocking in the wholesale channel.

歐洲有機銷售額和報告銷售額下降 15%，所有地區均出現下降，原因是運輸天數較少、德國和義大利 OEM 合作夥伴的熱泵庫存減少，以及新建築市場的疲軟引發批發管道的部分庫存減少。

APMEA delivered 3% organic growth, while reported sales growth of 4% was favorably impacted by 1% from foreign exchange movements.

APMEA 實現了 3% 的有機成長，而報告的 4% 的銷售額成長受到 1% 的外匯變動的正面影響。

Double digit growth in China and the Middle East was partly offset by declines in Australia and New Zealand, primly driven by fewer shipping days.

中國和中東地區的兩位數成長被澳洲和紐西蘭的下滑部分抵消，這主要歸因於運輸天數的減少。

Compared to the prior year, adjusted EBITDA of $104 million increased 6%, and adjusted EBITDA margins of 19.3% increased 140 basis points.

與前一年相比，調整後的 EBITDA 為 1.04 億美元，成長 6%，調整後的 EBITDA 利潤率為 19.3%，增加了 140 個基點。

Adjusted operating profit of $91 million increased 5%, and adjusted operating margins of 16.8% was up 100 basis points.

調整後營業利潤為 9,100 萬美元，成長 5%，調整後營業利益率為 16.8%，上升 100 個基點。

Adjusted EBITDA and operating income benefited from price, productivity, favorable mix and cost controls, which more than offset inflation, volume de leverage, investments, and acquisition dilution.

調整後的 EBITDA 和營業收入受益於價格、生產力、有利的產品組合和成本控制，這些都足以抵消通貨膨脹、槓桿率、投資和收購稀釋的影響。

America's segment margins increased to 160 basis points to 21.8%.

美國分部的利潤率增加160個基點，達到21.8%。

Europe segment margins decreased by 480 basis points to 10.2%, and APMEA segment margins increased 480 basis points to 17.5%.

歐洲分部利潤率下降 480 個基點至 10.2%，APMEA 分部利潤率增加 480 個基點至 17.5%。

Adjusted earnings per share of $2.05 increased 4% versus last year with benefits from acquisition, operational contribution and reduced interest expense more than offsetting incremental tax expense.

調整後每股盈餘為 2.05 美元，較去年同期成長 4%，收購、營運貢獻和利息支出減少帶來的收益超過了增量稅費。

The adjusted effective tax rate in the quarter was 24.6%, up 230 basis points compared to the fourth quarter of 2023, primarily due to the recognition of additional R&D credits in the fourth quarter of 2023.

本季調整後的有效稅率為 24.6%，較 2023 年第四季上升 230 個基點，主要由於 2023 年第四季確認了額外的研發抵免。

Moving to the full year results, please turn to Slide 5.

關於全年業績，請參閱投影片 5。

As Bob mentioned, we delivered record operating results for 2024.

正如鮑伯所說，我們在 2024 年實現了創紀錄的營運表現。

Sales were $2.25 billion up 10% on a reported basis and down 1% organically.

銷售額為 22.5 億美元，報告期內成長 10%，有機下降 1%。

The organic decline was finally driven by the challenging year in Europe.

有機下滑最終是由於歐洲面臨的挑戰。

Acquisitions accounted for 11% or $215 million of incremental sales.

收購佔增量銷售額的 11%，即 2.15 億美元。

Globally, foreign exchange had an immaterial impact.

從全球來看，外匯的影響並不顯著。

Adjusted EBITDA $454 million increased 11%, and adjusted EBITDA margin of 20.1% increased 20 basis points.

調整後 EBITDA 為 4.54 億美元，成長 11%，調整後 EBITDA 利潤率為 20.1%，增加了 20 個基點。

Adjusted operating income of $400 million increased 9% and adjusted operating margins of 17.7% decreased 10 basis points.

調整後營業收入 4 億美元，成長 9%，調整後營業利益率為 17.7%，下降 10 個基點。

As Bob noted, adjusted operating margin decreased only 10 basis points versus the prior year, despite 60 basis points of acquisition dilution, and significant volume de leverage from weakness in Europe.

正如鮑伯所指出的，儘管收購稀釋了 60 個基點，且歐洲市場疲軟導致槓桿率大幅下降，但調整後的營業利潤率僅比去年下降了 10 個基點。

Similarly, the American segment margin was unfavorably impacted by 140 basis points of acquisition dilution.

同樣，美國業務利潤率也因收購稀釋140個基點而受到不利影響。

Excluding acquisitions, the America's core business operating margin was up 100 basis points, and APMEA was up 170 basis points, a very strong performance by both teams.

不計收購，美洲核心業務營業利潤率上漲 100 個基點，APMEA 上漲 170 個基點，兩個團隊的表現都非常強勁。

Adjusted EPS of $8.86 increased by $0.59 or 7% versus the prior year.

調整後每股收益為 8.86 美元，較前一年增加 0.59 美元，即 7%。

Benefits from acquisition, operational contribution, and reduced interest expense more than upset incremental tax expense.

收購、營運貢獻和減少的利息支出帶來的收益超過了增量稅費。

For GAAP purposes we incurred after-tax charges of $16.1 million in restructuring and acquisition related costs.

依照 GAAP 規定，我們因重組和收購相關費用而產生了 1,610 萬美元的稅後費用。

These charges were partly offset by $10.3 million of non-recurring gains on the sale of assets, the settlement of the terminated Bradley pension plan, and other investment gains.

這些費用被出售資產、終止的布拉德利退休金計劃的結算和其他投資收益所產生的 1,030 萬美元非經常性收益部分抵消。

Free cash flow for the full year was $332 million and 18% increase compared to 2023 and was a company record.

全年自由現金流為 3.32 億美元，較 2023 年成長 18%，創下公司最高紀錄。

The increase was driven by higher net income, improved working capital, and cash flow generated by acquisitions.

成長的動力來自於淨收入的增加、營運資本的改善、收購所產生的現金流。

Our 2024, free cash flow conversion was 114%.

我們的 2024 年自由現金流轉換率為 114%。

We returned $73 million to shareholders in the form of dividends and share repurchases in 2024 and increased our annual dividend return by 20%.

我們在 2024 年以股利和股票回購的形式向股東返還了 7,300 萬美元，並將年度股利回報率提高了 20%。

Our net debt to capitalization ratio at year end was negative 13% compared to negative 4% at year end 2023.

我們年底的淨負債資本化比率為負 13%，而 2023 年底為負 4%。

Our net leverage ratio at the year end is negative 0.4%.

我們年末的淨槓桿率為負0.4%。

A balance sheet continues to be in excellent shape and provides substantial flexibility to fund our capital allocation priorities.

資產負債表繼續保持良好狀況並為我們的資本配置重點提供資金提供了相當大的靈活性。

Now on Slide 6, let's review our outlook for the full year 2025 and our expectations for the first quarter of 2025.

現在在第 6 張投影片上，讓我們回顧一下我們對 2025 年全年的展望以及對 2025 年第一季的期望。

Our 2025 outlook reflects the market factors previously discussed by Bob.

我們對 2025 年的展望反映了鮑伯之前討論過的市場因素。

Starting with the full year assumptions on both a reported basis and organic basis, we expect sales to range between down 3% to up 2%.

從報告基礎和有機基礎上的全年假設開始，我們預計銷售額將在下降 3% 至成長 2% 之間。

Regional expectations are as follows.

區域預期如下。

America's from down 3% to up 3%, Europe from down 8% to down 2%, and APMEA from flat to up 5%.

美洲從下降 3% 轉為成長 3%，歐洲從下降 8% 轉為下降 2%，亞太、中東和非洲 (APMEA) 從持平轉為成長 5%。

In addition, we expect approximately $25 million of incremental sales in the Americas from acquisitions to be offset by the impact of 80/20 product rationalization of between $10 million and $0.15 million dollars and the unfavorable impact of foreign exchange across all regions, which equates to a decrease of $28 million in sales and $0.11 per share in EPS versus the prior year.

此外，我們預計美洲地區因收購而增加的約 2500 萬美元的銷售額將受到 1000 萬美元至 15 萬美元的 80/20 產品合理化影響以及所有地區外匯的不利影響所抵消，這相當於銷售額與上年相比減少 2800 萬美元，每股收益減少 0.11 美元。

Adjusted EBITDA margin is expected to be in the range of 20.4% to 21% or up 30 basis points to 90 basis points.

調整後的 EBITDA 利潤率預計在 20.4% 至 21% 之間，或上漲 30 個基點至 90 個基點。

Adjusted operating margins should be in the range of 17.7% to 18.3% or flat to up 60 basis points.

調整後的營業利潤率應在 17.7% 至 18.3% 之間，或持平至上漲 60 個基點。

From a regional perspective, the America's segment margin is expected to be flat to up 60 basis points.

從區域來看，美洲地區的利潤率預計將持平至上漲 60 個基點。

We anticipate the segment margin in Europe will be down 30 basis points to up 30 basis points, and APMEA will be flat to up 60 basis points.

我們預計歐洲分部的利潤率將下降 30 個基點至上升 30 個基點，而 APMEA 地區的利潤率將持平至上升 60 個基點。

We expect the margin improvement to be driven by price, productivity, and restructuring savings, which will more than offset inflation and volume de leverage.

我們預期利潤率的提高將受到價格、生產力和重組節約的推動，這將足以抵消通貨膨脹和數量去槓桿的影響。

As Bob mentioned, we have completed negotiations to exit a facility in France.

正如鮑伯所提到的，我們已經完成了退出法國工廠的談判。

Total pre-tax exit costs are estimated to be approximately $22 million.

預計稅前退出總成本約 2,200 萬美元。

We will record a majority of the cost in the first quarter and provide more detail during our first quarter earnings goal.

我們將在第一季記錄大部分成本，並在第一季獲利目標期間提供更多詳細資訊。

Most of the costs are severance-related and are expected to be incurred in 2025.

大部分成本與遣散費有關，預計將在 2025 年發生。

Full year pre-tax run rate savings are estimated to be $3 million which should be fully realized in 2026.

全年稅前運轉率節省預計為 300 萬美元，應於 2026 年全部實現。

We expect about $1.5 million in savings this year, largely in the second half.

我們預計今年將節省約 150 萬美元，主要集中在下半年。

We expect to deliver free cash flow conversion of greater than or equal to 100% of net income in 2025.

我們預計2025年的自由現金流轉換率將大於或等於淨收入的100％。

Finally, a few items to consider for Q1.

最後，第一季需要考慮的幾點事項。

On a reported and organic basis, they expect sales to decrease between 3% and 7%.

根據報告和有機基礎，他們預計銷售額將下降 3% 至 7%。

Regionally, we expect a low to mid single digit decline in the Americas, and a high single to low double digit decline in Europe, partly offset by APMEA, which is expected to be flat.

從地區來看，我們預計美洲地區將出現低至中等個位數的降幅，歐洲地區將出現高個位數至低兩位數的降幅，但亞太、中東和非洲地區預計將持平，從而部分抵消了這一降幅。

Based on the calendarization in 2025, we'll have fewer shipping days in the first quarter versus last year, which will unfavorably impact sales by approximately 3%.

根據 2025 年的日曆，我們第一季的運輸天數將比去年減少，這將對銷售額產生約 3% 的不利影響。

We also expect Europe to remain weak as heat pump destocking is expected to continue at least through the first quarter.

我們也預期歐洲將繼續保持疲軟，因為熱泵去庫存預計至少會持續到第一季。

We expect approximately $5 million of incremental sales in the Americas from acquisitions to be offset by the unfavorable impact of foreign exchange across all regions, which equates to a decrease of $7 million in sales and $0.03 per share in EPS versus the prior year.

我們預計，美洲地區因收購而增加的約 500 萬美元的銷售額將被所有地區外匯的不利影響所抵消，這相當於與上年相比銷售額減少 700 萬美元，每股收益減少 0.03 美元。

We do not expect a significant impact from our 80/20 actions in the first quarter.

我們預計第一季的 80/20 行動不會產生重大影響。

First quarter even margin is expected to be in the range of 19.4% to 20% or down 60 basis points to 120 basis points.

預計第一季的平均值利潤率將在 19.4% 至 20% 之間，或下降 60 個基點至 120 個基點。

Operating margins should be in the range of 16.9% to 17.5% or down 70 basis points to 130 basis points.

營業利益率應在 16.9% 至 17.5% 之間，或下降 70 個基點至 130 個基點。

This is probably due to the volume de leverage impact of your shipping days and continuing European weakness.

這可能是由於您的運輸天數和歐洲持續的疲軟帶來的量去槓桿影響。

Other key inputs for the first quarter in the full year can be found in the appendix.

全年第一季的其他關鍵數據請參閱附錄。

With that, I'll turn the call back over to Bob before moving to Q&A.

說完這些，我會將電話轉回給鮑勃，然後再進入問答環節。

Bob.

鮑伯。

Thanks, Shashank.

謝謝，Shashank。

On Slide 7, I'd like to summarize our discussion before we address your questions.

在第 7 張投影片上，我想在回答您的問題之前總結我們的討論。

We delivered a strong 2024 performance with record sales, operating income, EPS, and free cash flow.

我們在 2024 年取得了強勁的業績，銷售額、營業收入、每股盈餘和自由現金流都創下了歷史新高。

While we expect mixed global markets in 2025, our portfolio is agnostic to end markets, and our teams will pivot to the growing sub verticals.

雖然我們預計 2025 年全球市場將呈現混合格局，但我們的投資組合與終端市場無關，我們的團隊將轉向不斷成長的細分垂直市場。

Our business model, which includes a large repair and replacement component, provides a durable base that drives a steady revenue and cash flow stream.

我們的商業模式包括大型維修和更換零件，為推動穩定的收入和現金流提供了持久的基礎。

We continue to invest in our digital strategy, including the recent introductions of Nexa.

我們繼續投資我們的數位策略，包括最近推出的 Nexa。

We look forward to growing this solution to expand our suite of offerings for our customers.

我們期待發展該解決方案，以擴大我們為客戶提供的產品套件。

We believe our highly experienced team is well positioned to proactively navigate current market conditions by controlling costs and driving productivity through our One Watt's performance system while capturing our fair share of demand and positioning us to capitalize on long-term secular trends.

我們相信，我們經驗豐富的團隊完全有能力透過我們的 One Watt 績效系統控製成本、提高生產力，積極主動地應對當前的市場狀況，同時抓住我們應有的需求份額，並使我們能夠利用長期趨勢。

Our balance sheet continues to be strong after our strategic acquisition of Icon and provides an ample flexibility to support our balanced capital allocation priorities.

在我們對 Icon 進行策略性收購後，我們的資產負債表繼續保持強勁，並提供了充足的靈活性來支持我們平衡的資本配置重點。

Our acquisition pipeline remains active and will continue to pursue attractive opportunities to expand our solutions, geographic presence, and growth.

我們的收購管道仍然活躍，並將繼續尋求有吸引力的機會來擴展我們的解決方案、地理覆蓋範圍和成長。

With that operator, please open the lines for questions.

請與那位接線生聯繫，以便我們解答疑問。

Thank you, ladies and gentlemen, we will now begin our question and answer session.

謝謝女士們、先生們，我們現在開始問答環節。

(Operator Instructions).

（操作員指令）。

Andrew Krill with Deutsche Bank.

德意志銀行的安德魯‧克里爾 (Andrew Krill)。

Hi, thanks.

嗨，謝謝。

Good morning, everyone.

大家早安。

I want to ask on the 80/20 actions which I believe are new for the company, to do the math, it's like they're about a point of a sales drag for the company this year, which seems relatively normal with 80/20.

我想問一下 80/20 行動，我認為這對公司來說是新鮮事，算一下，好像今年這對公司的銷售造成了一定程度的拖累，這對於 80/20 來說似乎相對正常。

So can you touch on the margin profile of what you're exiting?

那麼您能談談您退出的利潤狀況嗎？

Is it fair for us to assume, these could be break even margin businesses.

我們是否可以合理地假設，這些可能是損益兩平的業務。

And do you expect this, the sales drag to be done in 2025, or, could this, dynamic happen again in 2026?

您預計銷售拖累現象會在 2025 年消失嗎？

Thanks.

謝謝。

Oh, good morning, Andrew.

哦，早上好，安德魯。

Yeah, so 80/20 has been part of the One Watts performance system since I got here 11 years ago.

是的，自從我 11 年前來到這裡以來，80/20 就一直是 One Watts 績效系統的一部分。

So if you remember, we exited about $175 million in undifferentiated products.

如果你還記得的話，我們退出了價值約 1.75 億美元的無差異產品。

So it's in our arsenal of tools that we use.

所以它就在我們使用的工具庫中。

We called this out specifically because Bradley was a larger acquisition.

我們特別指出這一點是因為布拉德利是一項較大的收購。

It's a mid-size acquisition, and part of our overall process when we do acquisitions is to really look at their profile and a focus on improving margins and eliminating, products that don't, make a lot of money for us or have low margins.

這是一場中型收購，我們進行收購時的整體流程之一就是認真審視公司的狀況，重點是提高利潤率，淘汰那些不能為我們帶來大量利潤或利潤率較低的產品。

So that's all we're trying to do is call that out.

所以，我們要做的是將此問題指出來。

These are niche accessory type products and that we're just exiting because it doesn't make sense to do it.

這些都是小眾配件類型的產品，我們之所以退出是因為做這些產品沒有意義。

So they're basically break even products.

所以它們基本上是損益平衡產品。

There's probably another incremental $5 million or $6 million of Bradley that moves into next year, but we called it out just because it was a bigger item this year.

布拉德利明年可能還會再增加 500 萬或 600 萬美元，但我們之所以提到這一點，只是因為這是今年的一項較大開支。

Okay, great, that's helpful.

好的，太好了，這很有幫助。

And then, just on the, I think not in pair remarks some sales shifted a bit earlier in for you.

然後，只是，我認為不是在成對的評論中，一些銷售對您來說已經轉移得有點早了。

I just piece size that and which segments, that impacted.

我只是細分一下大小以及受影響的部分。

Thanks.

謝謝。

Yeah, it's probably in the Americas, Its Shashank, it's probably in the Americas and it was some project pull-ins we had in our, commercial business on the boiler side, approximately $4 million is what was pulled in.

是的，它可能在美洲，是 Shashank，它可能在美洲，這是我們在鍋爐方面的商業業務中的一些項目收入，大約是 400 萬美元。

Nathan Jones with Steel.

內森瓊斯 (Nathan Jones) 與 Steel 合作。

Good morning, everyone.

大家早安。

Good morning.

早安.

I guess I'll start with the topic du jour, with the US administration imposing 25% tariffs on aluminum and steel.

我想我先從目前的話題開始，即美國政府對鋁和鋼鐵徵收 25% 的關稅。

Watts has had, a very good track record in inflationary periods over the last several years of being able to pass inflation through to customers.

在過去幾年的通貨膨脹時期，沃茨在將通貨膨脹轉嫁給客戶方面有著非常好的記錄。

Maybe we're in a little bit, weaker demand environment now.

或許我們現在處在的需求環境稍微弱一些。

So, I mean, just any color you can give us on what your exposure is to those tariffs, how you would plan on dealing with them, and whether or not you think the market is in a position to bear cost increases, not just from you guys, but, across suppliers.

所以，我的意思是，您能否向我們詳細介紹一下您對這些關稅的影響，您計劃如何應對這些關稅，以及您是否認為市場有能力承受成本上漲，不僅僅是來自您的成本上漲，還包括來自所有供應商的成本上漲。

Well, Nathan, it's always top of mind for us to stay in front of these type of tariffs, etc. And we'll continue to do that.

嗯，內森，我們始終把關注點放在防範此類關稅等方面。

We will be raising prices as soon as, we see these and we'll be passing them on.

一旦我們發現這些情況，就會提高價格，並將其傳達出去。

Certainly we don't know the implications of on the construction industry related to tariffs if that eventually slows things down or not, but I think we'll continue with our track record.

當然，我們不知道關稅對建築業有何影響，也不知道這是否最終會減緩建築業的發展，但我認為我們會繼續保持我們的既定記錄。

We'll continue to push and offset those costs.

我們將繼續努力並抵消這些成本。

So it would be your intention that you would fully offset any tariff impact with price.

因此，您的意圖是透過價格完全抵消關稅影響。

Yes.

是的。

Okay, cool.

好的，很酷。

That's the answer I was looking for.

這就是我所尋找的答案。

I guess maybe on the on the product rationalization side at Bradley.

我想也許是布拉德利的產品合理化方面。

I'm hoping that you could give us a little bit more color on how you're using 80/20.

我希望您能向我們詳細介紹如何使用 80/20。

I mean, you guys have, as you said, Bob, you've been using these tools for, 10 years, but this is the first time you actually called out 80/20.

我的意思是，正如你所說，鮑勃，你們已經使用這些工具 10 年了，但這是你第一次真正呼籲 80/20。

And attributed, lost products out to it or product exits to it.

並將其歸因於，丟失的產品或產品退出。

Is this something that you're, a tool that you're looking to use more over the next few years?

這是您希望在未來幾年內更多地使用的工具嗎？

Or is this just, maybe it's just because it was $15 million this year, it was it warranted calling out?

或者只是因為今年的金額達到了 1500 萬美元，所以才有必要呼籲？

Yeah, I think it was a latter.

是的，我認為是後者。

It was just a bigger amount, and we inherited some backlog from Bradley that went through and stuff that on a go forward basis weren't going to do it.

這只是金額較大而已，而且我們從布拉德利繼承了一些已經完成的積壓工作，而這些東西在繼續進行的基礎上是不會做的。

We're also looking deeply inside of Europe right now, given the market conditions and re-looking at that in our product portfolio as well as our footprint, as we always do.

考慮到市場狀況，我們現在也深入研究歐洲內部，並像往常一樣重新審視我們的產品組合和足跡。

So as we take advantage of opportunities where see it when there's sound volume, we continue to look at optimizing as discussed in the closure of this recent France facility.

因此，當我們利用聲音量大的機會時，我們會繼續考慮優化，正如最近關閉法國工廠時所討論的那樣。

So we're always looking, we're always improving, always looking at 80/20 and profitability by customer and channel all the time.

因此，我們始終在尋找，始終在改進，始終關注 80/20 以及客戶和通路的獲利能力。

So it was just a bigger number, and I thought it was important to call that out, and you'll probably see more work inside of Europe as we head into 2026.

所以這只是一個更大的數字，我認為指出這一點很重要，當我們進入 2026 年時，你可能會看到歐洲內部有更多的工作。

And then maybe just one on Icon.

然後可能只有一個 Icon。

You talked about that, adding to the digital capabilities of the company.

您談到了這一點，增強了公司的數位化能力。

But it sounds like a pretty niche and market going into correctional facilities.

但這聽起來像是懲教設施領域的一個相當不錯的利基市場。

Any information you can give us on, valuation, of the business, and then how you think you can leverage Icon's technology into the rest of the portfolio.

您可以向我們提供有關業務估值的任何信息，以及您認為如何將 Icon 的技術運用到其餘投資組合中。

Thanks.

謝謝。

Yeah, I mean, we've agreed not to discuss the purchase price, but I can tell you, it's EBITDA neutral for the company.

是的，我的意思是，我們已經同意不討論購買價格，但我可以告訴你，這對公司的 EBITDA 來說是中性的。

It's clearly less than nine multiple we paid on it, so it's a good acquisition.

它的價格顯然比我們支付的價格低了九倍，所以這是一個很好的收購。

We really like Icon because it's a growing market.

我們非常喜歡 Icon，因為它是一個不斷成長的市場。

It's a niche market, but they have controls on the front of the wall products, and that's something we're very interested, we could leverage through our Nexus system.

這是一個利基市場，但他們對牆壁產品的正面有控制，這是我們非常感興趣的東西，我們可以透過我們的 Nexus 系統來利用它。

So that was the appeal to us.

這就是對我們有吸引力的地方。

It's a growing market and a profitable market.

這是一個不斷成長的市場，也是一個有利可圖的市場。

So it's a nice acquisition.

所以這是一個不錯的收購。

Thanks for taking my questions.

感謝您回答我的問題。

Thank you.

謝謝。

Brian Blair with Oppenheimer.

奧本海默公司的布萊恩·布萊爾。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning everyone.

大家早安。

Good morning.

早安.

I wanted to circle back to, Bradley and Joseph, and maybe offer a little more of an update on, integration there, how the how P&L contribution is tracking.

我想回到布拉德利和約瑟夫的話題，也許可以提供更多關於整合的最新消息，以及損益貢獻的追蹤方式。

Relative to deal model.

相對於交易模型。

And if you're willing to disclose, you, you'd said this, accessory type products kind of break even, but are you willing to know which product line specifically you're, exiting via 80/20 this year.

如果您願意透露的話，您說過配件類型的產品可以實現收支平衡，但是您是否願意知道今年您具體將通過 80/20 退出哪條產品線。

Yeah, so the acquisitions are going really well.

是的，收購進展非常順利。

They exceeded both exceeded our profit in synergy targets this year, which is great, and the teams are off to a good start.

他們今年的協同利潤目標都超出了我們的預期，這很好，團隊有了一個很好的開始。

If we get into the very details, it's non-core safety products, lockers and accessories, basically.

如果我們深入細節，它基本上是非核心安全產品、儲物櫃和配件。

So those are niches, not all lockers, just a portion of the lockers of items.

所以那些是利基，不是所有的置物櫃，只是一部分物品收納櫃。

So those are the niches that we're looking at, but clearly a focus on growing profitability is our focus.

這些都是我們正在關注的利基市場，但顯然提高獲利能力才是我們的重點。

Understood, appreciate the detail and it would be great to hear more on the roll out of Nexus, the opportunity to view the dashboard in person yesterday, it's that's actually quite impressive.

明白了，很感謝您提供的細節，如果能聽到有關 Nexus 推出的更多消息就太好了，昨天有機會親自查看了儀表板，這確實令人印象深刻。

Just curious how that impacts your digital strategy now what you're hearing from customers and obviously the early stages of the roll out, any results you can speak to in terms of, value add on the customer side and then.

我只是好奇這對您的數位策略有何影響，現在您從客戶那裡聽到了什麼，顯然在推出的早期階段，您可以談談在客戶方面增加的價值方面的任何結果。

Perhaps remind us of your, run rates as revenue and how, Nexus should influence that going forward.

也許可以提醒我們您的運行率作為收入，以及 Nexus 將如何影響未來的發展。

Yeah, we're really excited about Nexa and I'm glad you had the opportunity to take a look at it.

是的，我們對 Nexa 感到非常興奮，我很高興您有機會看看它。

It's early stages.

目前還處於早期階段。

We just launched it in August.

我們八月剛推出它。

A lot of trials out there, but many savings from customers, in hospitality.

儘管進行了許多嘗試，但在酒店業中卻為顧客節省了許多成本。

If you go on our website, you can see the customer testimonials and case studies.

如果您造訪我們的網站，您可以看到客戶推薦和案例研究。

But like any new product, people got to test it.

但與任何新產品一樣，人們必須對其進行測試。

They've got to try it.

他們必須嘗試一下。

They got to appreciate it.

他們必須對此表示讚賞。

But what's even more important about this product, it protects our core products.

但該產品更重要的是，它保護了我們的核心產品。

And as we've been driving this smart and connected initiative for a long time, and all of our products are going to be integrated by the end of this year into the Nexa platform.

我們長期致力於推動這項智慧互聯計劃，今年年底前我們所有的產品都將整合到 Nexa 平台中。

So we continue to add scale capabilities and I haven't heard one customer that has disliked it, so where our track record is really good and we're looking forward to scaling it.

因此，我們繼續增加擴展功能，我還沒有聽說有哪個客戶不喜歡它，所以我們的業績記錄非常好，我們期待著擴展它。

I appreciate that.

我很感激。

And then just to ask again what is current sales revenue for your team.

然後再問一下你們團隊目前的銷售收入是多少。

It's not a lot at this point in time.

目前來說還不是很多。

It's a growing part of our business, our leak detection group has some of that, some of our other products, but it's negligible, and we'll be trying to continue to grow that leveraging the Nexa platform.

這是我們業務中不斷成長的一部分，我們的洩漏檢測小組擁有一些此類產品和一些其他產品，但可以忽略不計，我們將嘗試利用 Nexa 平台繼續發展這項業務。

Okay, understood thanks again.

好的，明白了，再次感謝。

Thank you.

謝謝。

Mike Halloran with Baird.

麥克·哈洛倫和貝爾德。

Hey, good morning, everyone.

嘿，大家早安。

Morning, Mike.

早上好，麥克。

So just, on the demand outlook, and that nothing seems overly surprising there, so it's kind of a twofold question.

因此，就需求前景而言，似乎沒有什麼太令人驚訝的事情，所以這是一個雙重問題。

One, is the thought process changed much in the last, quarter 90 plus days here, and then secondarily, what are you hearing from the channel?

第一，在過去的 90 多天裡，我們的思考過程是否發生了很大的變化？

Is the channel saying something similar, more or less optimistic, and any signs that some of those distressed markets from the channel perspective might see a little bit more of a turn at some point this year.

頻道是否表達了類似的、或多或少樂觀的看法，以及是否有跡象表明，從通路角度來看，一些陷入困境的市場可能會在今年某個時候出現一些好轉。

I think generally as we saw in the last quarter, it's carried through to the fourth quarter and probably into January.

我認為，正如我們在上個季度看到的那樣，這種趨勢會持續到第四季度，甚至可能持續到明年 1 月。

I think as uncertainty in the market pauses new construction, so there's been a bunch of uncertainty recently, but I think in general there's optimism.

我認為，由於市場不確定性導致新建築暫停，所以最近出現了很多不確定性，但我認為總體上還是樂觀的。

At this point in time, there's some, the multi-family, it's going to take a while for that to come back we saw that really hit us in the second half of the year and as we said, we're going to see that at the beginning of the year. institutional is still strong we're monitoring that, driving that, but, Mike, I would say it's kind of same, there's some optimism at the recent the ashtray show, there's some optimism in the commercial markets, but let's see, let's watch how interest rates go, and we'll follow through on that.

目前，對於一些多戶住宅來說，這種情況需要一段時間才能恢復，我們看到這在下半年對我們造成了很大打擊，正如我們所說的，我們將在年初看到這種情況。機構實力依然強勁，我們正在監控並推動這一點，但是，麥克，我想說的是，最近的煙灰缸秀上有一些樂觀情緒，商業市場上有一些樂觀情緒，但讓我們看看，讓我們觀察利率如何變動，我們將跟進這一點。

Thanks for that and then just thoughts on the, on the European margins and you know once you get through the restructuring piece here and once the mix normalizes a little bit with the heat pump side and some of the OEM pressure.

謝謝您，然後只是考慮歐洲的利潤率，您知道，一旦您完成了這裡的重組部分，並且一旦混合物與熱泵方面以及一些 OEM 壓力稍微正常化。

How should we think about the sustainable the sustainable margin range?

我們應該如何考慮可持續的利潤範圍？

For that region, is this getting back to kind of that historical range?

對於該地區來說，這是否回到了歷史範圍？

Are the pressure points that would keep you below these restructuring moves help maybe nudge you above just kind of a generic thought process, please.

這些壓力點是否會讓您低於這些重組舉措的水平，也許會推動您超越一種一般的思維過程，拜託。

Yeah, so the margins in Europe, as has been, have been lower than the US, primarily because we have more of an OEM channel there.

是的，歐洲的利潤率一直低於美國，主要是因為我們在那裡有更多的 OEM 管道。

So it's going to be lower.

因此它會更低。

Our goal and drive is to get it back up to where it was pre all this decreasing.

我們的目標和動力是讓它恢復到下降之前的水平。

So we'll continue to do that and the team's focus on that.

因此我們會繼續這樣做，團隊也會繼續關注這一點。

We'll be adjusting our footprint, as we talked about with France, and we closed a facility a couple of years ago in France.

我們將調整我們的足跡，正如我們與法國談論的那樣，幾年前我們關閉了法國的一家工廠。

So, we're continuing to go after that fixed cost base, as it's very costly, high payback, but our teams are working it real hard and we get a little volume behind us, we'll start seeing some margin drop through.

因此，我們將繼續追求固定成本基礎，因為它的成本非常高，回報率也很高，但我們的團隊正在非常努力地工作，而且我們獲得了一些銷量，我們將開始看到利潤率下降。

So teams focused on that and we'll be watching closely on that.

因此團隊重點關注這一點，我們將密切關注這一點。

Appreciate it.

非常感謝。

Thanks, Bob.

謝謝，鮑伯。

Thank you.

謝謝。

Jeff Hammond with Key Bank Capital Markets.

Key Bank Capital Markets 的 Jeff Hammond。

Hey, good morning guys.

嘿，大家早安。

This is David Tarantino on for Jeff, good morning, David.

我是傑夫的大衛·塔倫提諾，早安，大衛。

Sticking with the margin line, could you just walk us through the puts and takes on the company level margin line, particularly given looks like volumes are expected to be down at the midpoint, what are the key buckets driving the improvement, this year?

堅持利潤線，您能否向我們介紹一下公司層面利潤線的利弊，特別是考慮到預計交易量將在中點下降，今年推動改善的關鍵因素是什麼？

Yeah, so it's a combination of, there's a little bit of price in there, right?

是的，所以這是一個綜合因素，裡面有一點價格，對嗎？

So we announced price increases, in January, February, March, so those price increases are baked in productivity is another big piece of it.

因此，我們在一月、二月和三月宣布了價格上漲，這些價格上漲與生產力有關，這是另一個重要原因。

And as in productivity, it's a global sourcing savings.

就生產力而言，這是一種全球採購節省。

It's we did quite a bit of restructuring last year.

我們去年做了相當多的重組。

It's, productivity in the factories outside the factories.

這是工廠外工廠的生產力。

It's a combination of all of that, and that obviously pays for the incremental investments as well as inflation and the net result, and we do have volume de leverage at the midpoint, slight volume de leverage compared to last year.

這是所有這些因素的結合，顯然這筆錢用於支付增量投資以及通貨膨脹和淨結果，而且我們確實在中間點有槓桿率下降，與去年相比槓桿率下降幅度較小。

And with all of that is what's driving the net margin expansion.

所有這些都是推動淨利潤擴張的因素。

Okay, great, thanks for and then maybe to get a bit more color on your it gives us surprised by the degree of remaining pressure coming into 2025.

好的，太好了，謝謝你，然後也許為了更詳細地介紹一下，我們對 2025 年剩餘壓力的程度感到驚訝。

So maybe could you walk us through what are the puts and takes here, how we should we expect the implied weakness to progress through the year.

所以也許您可以向我們介紹這裡的利弊，以及我們應該如何預期隱含的疲軟趨勢將在今年繼續發展。

Yeah, at least for the first half we believe heat pump destocking will continue.

是的，至少在上半年我們相信熱泵去庫存將會持續下去。

It's just not a lot of new constructions happening right now given the uncertainty in the marketplace with the war and funding of the war, etc. So I think, we're, the first half will be.

由於戰爭和戰爭資金等因素為市場帶來了不確定性，目前新的建設項目並不多。

Probably the most challenged, and we'll be looking to pick it up in the second half.

這可能是最具挑戰性的，我們希望在下半場有所突破。

But as I'm usually cautious on Europe, so we're going in with low assumptions so we can make sure our cost structure is in place and we'll take any upside with volume if it happens, but we're not planning on it at this point.

但由於我通常對歐洲持謹慎態度，因此我們採用較低的假設，以確保我們的成本結構到位，並且如果發生這種情況，我們將承擔任何產量上漲的風險，但我們目前還沒有計劃。

And as you see, the full year guy, the midpoint minus 5, most of that minus 5, as Bob said, is happening in the first half.

正如您所看到的，全年來看，中點減 5，正如鮑勃所說，大部分減 5 都發生在上半年。

Q1 is, the midpoint is.

Q1 是，中點是。

Like 10%, so second half we do get easier comps with the big declines we had in second half last year.

例如 10%，所以下半年我們確實可以更容易取得年比數據，因為去年下半年我們出現了大幅下滑。

Okay great thanks for the color guys.

好的，非常感謝你們這些色彩愛好者。

Thank you.

謝謝。

Joe Giordano with TD Cowen.

TD Cowen 公司的 Joe Giordano 。

Hi, good morning.

嗨，早安。

This is Zena for Joe Giordano.

這是 Joe Giordano 的 Zena。

I want to touch on tariffs again.

我想再談談關稅問題。

Good morning.

早安.

Just want to touch on tariffs again.

我只是想再談一談關稅問題。

If we see a scenario of reciprocal tariffs in Europe, does that impact your competitive positioning at all?

如果我們看到歐洲出現互惠關稅的情況，這會對您的競爭地位產生影響嗎？

I'm assuming that's not the case since you manufactured there as well, but if you could comment on that.

我認為情況並非如此，因為你們也在那裡生產，但你能對此發表評論嗎？

Yeah, for the most part, our model is manufacturing where we sell.

是的，大多數情況下，我們的模式是在銷售的地方製造。

Certainly like in North America, we do get some components from China, but in Europe for the most part we are manufacturing in the Europe base.

當然，就像在北美一樣，我們確實從中國獲得一些零件，但在歐洲，我們大部分都是在歐洲基地進行製造。

So if there are tariffs on imports from the US, it'll the impact will be minimal.

因此，如果對從美國進口的產品徵收關稅，其影響將是微不足道的。

Got it thank you.

明白了，謝謝。

That's very helpful and you mentioned the correctional facilities niche is a is a growing niche that will be an attractive one and obviously I understand that the fundamentals of that market will be unique, but is there anything specific from a water product standpoint that is that that is unique in that market, that would you would want to call out?

這非常有幫助，您提到懲教設施市場是一個正在成長的市場，並且將是一個有吸引力的市場，顯然我明白這個市場的基本面將是獨一無二的，但是從水產品的角度來看，這個市場有什麼獨特之處嗎？

I think it's just a refurbishment.

我認為這只是一次翻新。

Many of these facilities are very old, so their plumbing system inside of the cells need to be refurbished, and it's a unique specialized product from a safety point of view that's in there.

許多這樣的設施都非常老舊，所以監室內的管道系統需要翻新，從安全的角度來看，這是一種獨特的專用產品。

So a lot of renovation in that market.

因此該市場進行了大量翻新。

Appreciate it thank you so much.

非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

Nick cash with Goldman Sachs.

尼克卡什 (Nick Cash) 與高盛合作。

Hi, yes, this is, Nick Cash on from Brian Lee.

大家好，我是 Brian Lee 的 Nick Cash。

Can you all hear me?

你們聽得到我的聲音嗎？

Yeah, good morning.

是的，早安。

Hey, good morning,

嘿，早安，

Just wanted to touch back on, the icon acquisition just to I guess a small question, one is that going to be, I guess going through wholesale distribution channel and to, if it is or if not, is there any other, I know you mentioned you know nexus, but, are there any other crossing opportunities there?

我只是想回過頭來談談圖標獲取，我想問一個小問題，一個是，我想是通過批發分銷渠道，如果是或者不是，還有其他的嗎，我知道你提到過你知道 nexus，但是，那裡還有其他交叉機會嗎？

Thank you.

謝謝。

It's primarily a direct customer model.

它主要是一種直接客戶模式。

There are opportunities to leverage some of their products through the Bradley rep channels, and we're evaluating that at this point in time.

我們有機會透過 Bradley 代表管道利用他們的一些產品，目前正在對此進行評估。

So small synergies, but on the sales side, but mainly cost synergies leveraging our global sourcing and capabilities.

因此，綜效很小，但在銷售方面，主要是利用我們的全球採購和能力實現的成本綜效。

Awesome thank you.

非常好謝謝。

Thank you.

謝謝。

(Operator Instructions).

（操作員指令）。

As there are no further questions at this time, I would like to turn the call over to Bob Pagano for closing remarks.

由於目前沒有其他問題，我想將電話轉給鮑勃·帕加諾 (Bob Pagano) 作結束語。

Thank you for taking the time to join us today.

感謝您今天抽出時間參加我們的活動。

We appreciate your continued interest in Watts, and we look forward to speaking with you again in May to discuss our first quartear results.

感謝您對 Watts 的持續關注，我們期待在五月再次與您交談，討論我們的第一季業績。

Have a good day and stay safe.

祝您有美好的一天並注意安全。

That concludes today's conference call.

今天的電話會議到此結束。

Thank you for joining.

感謝您的加入。

You may now disconnect.

您現在可以斷開連線。