Watts Water Technologies Inc (WTS) 2025 Q2 法說會逐字稿

Thank you for standing by. Hello, and welcome to Watts Water Technologies second-quarter 2025 earnings conference call. Please note that this call is being recorded.

感謝您的支持。您好，歡迎您參加 Watts Water Technologies 2025 年第二季財報電話會議。請注意，本次通話正在錄音。

I would now like to turn the call over to Diane McClintock, Senior Vice President, FP&A and Investor Relations. Please go ahead.

現在，我想將電話轉給 FP&A 和投資者關係高級副總裁 Diane McClintock。請繼續。

Thank you, and good morning, everyone. Welcome to our second quarter earnings conference call. Joining me today are Bob Pagano, President and CEO; Shashank Patel, our former CFO; and Ryan Lada, our new CFO. During today's call, Bob will provide an overview of the second quarter, an operational update and an update on our outlook for 2025. Shashank will discuss the details of our second quarter performance and provide our outlook for the third quarter and for the full year.

謝謝大家，早安。歡迎參加我們的第二季財報電話會議。今天與我一起出席的還有總裁兼執行長 Bob Pagano、我們的前財務長 Shashank Patel 和我們的新財務長 Ryan Lada。在今天的電話會議中，鮑勃將概述第二季度的情況、營運更新以及我們對 2025 年的展望。Shashank 將討論我們第二季業績的細節，並提供我們對第三季和全年的展望。

Following our remarks, we will address questions related to the information covered during the call. Today's webcast is accompanied by a presentation, which can be found in the Investor Relations section of our website. We will reference this presentation throughout our prepared remarks. Any reference to non-GAAP financial information is reconciled in the appendix to this presentation.

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。今天的網路廣播附有演示文稿，可在我們網站的投資者關係部分找到。我們將在準備好的演講中引用此演講。任何對非 GAAP 財務資訊的引用均在本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. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially. For information concerning these risks, see Watts' publicly available filings with the SEC. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

我想提醒大家，在這次電話會議中，我們可能會發表一些構成前瞻性陳述的評論。這些聲明受到許多風險和不確定性的影響，可能導致實際結果大不相同。有關這些風險的信息，請參閱 Watts 向美國證券交易委員會 (SEC) 提交的公開文件。無論是由於新資訊、未來事件或其他原因，本公司均不承擔更新或修改任何前瞻性陳述的義務。

With that, I will 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. Before beginning our second quarter overview, I'd like to take a moment to express my gratitude to Shashank Patel as this will be his last earnings call with Watts. I'm grateful for his seven years of impactful leadership.

謝謝你，黛安，大家早安。在開始我們的第二季度概述之前，我想花點時間向 Shashank Patel 表示感謝，因為這將是他與 Watts 的最後一次財報電話會議。我感謝他七年來卓有成效的領導。

He has been a tremendous asset to the entire Watts team and has been a key strategic adviser to me. I wish him all the best in his retirement. Over the next two months, Shashank will help support the transition to our new CFO. On that note, I'm excited to welcome our new CFO, Ryan Lada, to his first earnings call with Watts.

他對整個 Watts 團隊來說是一筆龐大的財富，也是我的重要策略顧問。我祝他退休後一切順利。在接下來的兩個月裡，Shashank 將幫助我們向新任財務長過渡。就此而言，我很高興歡迎我們的新任財務長 Ryan Lada 與 Watts 一起參加他的第一次財報電話會議。

Ryan, would you like to say a few words?

瑞安，你想說幾句話嗎？

Thank you, Bob, and good morning, everyone. I'm excited to be part of Watts and contribute to its continued success. I had the opportunity to attend the Board meeting shortly after joining Watts, and I was able to spend time with the Board members and the leadership team. I was incredibly impressed with the talent, engagement and high-performance culture, and I'm thrilled to be part of the team.

謝謝你，鮑勃，大家早安。我很高興成為 Watts 的一員並為它的持續成功做出貢獻。加入 Watts 後不久，我有機會參加董事會會議，並有機會與董事會成員和領導團隊共度時光。我對他們的才華、參與度和高績效文化印象深刻，我很高興能成為團隊的一員。

Over the next few months, I will focus on getting up to speed and plan to spend time traveling to our sites to learn about the operations and the team. I look forward to working with the investment community and contributing to Watts continued growth and long-term value creation.

在接下來的幾個月裡，我將專注於加快速度，並計劃花時間前往我們的站點了解營運和團隊。我期待與投資界合作，為 Watts 的持續成長和長期價值創造做出貢獻。

With that, I will turn the call back to Bob.

說完這些，我就把電話轉回給鮑伯。

Thank you, Ryan, and welcome to the team. Now please turn to slide 3, and I'll provide an overview of the second quarter. Our second quarter results were better than expected with record sales, operating income and earnings per share. Our performance is a direct result of the commitment and strong execution of the entire Watts team and their dedication to serving our customers amid a challenging environment.

謝謝你，瑞安，歡迎加入團隊。現在請翻到投影片 3，我將概述第二季的情況。我們第二季的業績優於預期，銷售額、營業收入和每股盈餘均創歷史新高。我們的表現直接歸功於整個 Watts 團隊的承諾和強大的執行力，以及他們在充滿挑戰的環境中致力於服務客戶的精神。

Organic sales increased 6% in the quarter with favorable price, volume and pull-forward demand more than offsetting continued weakness in Europe. We also benefited from incremental sales from our I-CON and EasyWater acquisitions and favorable foreign exchange movements.

本季有機銷售額成長 6%，有利的價格、銷售和提前需求足以抵消歐洲持續的疲軟。我們也受益於 I-CON 和 EasyWater 收購帶來的增量銷售額以及有利的外匯走勢。

Adjusted operating margin of 21.6% exceeded expectations due to favorable price-cost dynamic, volume leverage, productivity and cost containment. Our balance sheet remains strong and provides ample capacity to support flexibility in our capital allocation strategy.

由於有利的價格成本動態、產量槓桿、生產力和成本控制，調整後的營業利潤率為 21.6%，超出預期。我們的資產負債表依然強勁，並有足夠的能力支持我們資本配置策略的靈活性。

From an operations perspective, we continue to take proactive steps to mitigate the impact of tariffs through our pricing and supply chain strategies. The tariff environment remains fluid. But as of today, our global direct tariff impact in 2025 is estimated to be approximately $40 million.

從營運角度來看，我們繼續採取積極措施，透過定價和供應鏈策略減輕關稅的影響。關稅環境依然不穩定。但截至今天，我們對 2025 年全球直接關稅的影響估計約為 4,000 萬美元。

We have a proven track record of successfully navigating through inflationary periods and are confident in our ability to maintain a favorable price-cost outcome. In line with our strategic approach to M&A, in June, we acquired the assets of EasyWater, a company that engineers and manufactures innovative water conditioning and filtration solutions that serve residential, commercial and industrial markets.

我們擁有成功度過通貨膨脹時期的良好記錄，並且有信心我們能夠保持有利的價格成本結果。按照我們的併購策略方針，我們於 6 月收購了 EasyWater 的資產，該公司專門設計和製造創新的水調節和過濾解決方案，服務於住宅、商業和工業市場。

EasyWater's custom solutions will complement our existing water quality portfolio. We expect EasyWater to contribute approximately $5 million in sales and be neutral to adjusted EPS in 2025 after factoring in normal purchase accounting adjustments.

EasyWater 的客製化解決方案將補充我們現有的水質產品組合。我們預計，在考慮正常購買會計調整後，EasyWater 將貢獻約 500 萬美元的銷售額，並且對 2025 年的調整後每股收益保持中立。

The integrations of Bradley, Josam, I-CON and EasyWater are progressing well and synergy realization is tracking ahead of our original estimates. The rollout of our Nexa Intelligent Water management solution is gaining traction, and we continue to build scale. We've had numerous successful installations, including the luxury multifamily condominium, hotels and in the commercial real estate portfolio, where Nexa provided remote monitoring, issue identification and replacement component revenue.

Bradley、Josam、I-CON 和 EasyWater 的整合進展順利，協同效應的實現超出了我們最初的預期。我們的 Nexa 智慧水管理解決方案的推出正在獲得關注，並且我們將繼續擴大規模。我們已經有許多成功的安裝項目，包括豪華多戶型公寓、飯店和商業房地產組合，其中 Nexa 提供遠端監控、問題識別和更換組件收入。

Importantly, we are partnering with customers to help them make the most of the Nexa platform through data-driven insights and comprehensive solutions for their water management challenges. We view Nexa as one of the most promising long-term opportunities, and we'll continue to leverage our differentiated capabilities and expertise to build scale and drive growth.

重要的是，我們正在與客戶合作，透過數據驅動的洞察力和全面的解決方案幫助他們充分利用 Nexa 平台來應對他們的水管理挑戰。我們認為 Nexa 是最有前景的長期機會之一，我們將繼續利用我們的差異化能力和專業知識來擴大規模並推動成長。

Nexa is delivering measurable savings and quick payback cycles for our customers within our targeted verticals, which include hospitality, multifamily and property management companies. Nexa's momentum is building slowly, but we expect continued expansion and growth in the coming years.

Nexa 為我們目標垂直領域的客戶提供可衡量的節省和快速的投資回報週期，其中包括飯店、多戶住宅和物業管理公司。Nexa 的發展勢頭正在緩慢增強，但我們預計未來幾年將繼續擴張和成長。

Now an update on our outlook for the remainder of the year. Due to our strong first half and our expectations for the third quarter, we are increasing our full year sales and margin outlook. Tariff-related price increases, foreign exchange movements, strong data center growth and our EasyWater acquisition are all favorable relative to the outlook we provided in May.

現在更新我們對今年剩餘時間的展望。由於我們上半年的強勁表現以及對第三季的預期，我們提高了全年銷售額和利潤率的預期。與我們 5 月提供的展望相比，與關稅相關的價格上漲、外匯變動、資料中心的強勁成長以及我們對 EasyWater 的收購都是有利的。

However, some uncertainty still remains around the impact of tariffs, including the effect on global GDP. As a reminder, GDP is a proxy for our repair and replacement business, which represents approximately 60% of our total revenue.

然而，關稅的影響仍存在一些不確定性，包括對全球 GDP 的影響。提醒一下，GDP 代表我們的維修和更換業務，約占我們總收入的 60%。

Now please turn to slide 4 for an update on our sustainability journey. In early June, we published our 2024 sustainability report, which highlights the accomplishments and progress we've made within our four sustainability pillars, footprint, handprint, social responsibility and corporate governance.

現在請翻到投影片 4，了解我們的永續發展歷程的最新進展。6月初，我們發布了2024年永續發展報告，重點介紹了我們在四大永續發展支柱——足跡、手印、社會責任和公司治理方面的成就和進展。

We are confident that our triple play of solutions addressing safety and regulation, energy efficiency and water conservation enable our customers to manage operational pressures, comply with evolving regulations and meaningfully advance their sustainability initiatives.

我們相信，我們針對安全和法規、能源效率和節水的三重解決方案使我們的客戶能夠管理營運壓力、遵守不斷變化的法規並切實推進他們的永續發展計畫。

We continue to make progress towards our long-term goals, including an absolute carbon emissions reduction target, which will help advance our sustainability mission while improving our operations. I'm proud of the progress our global teams have made and invite you to read more about it in our sustainability report, which can be found on our Investor Relations website.

我們繼續朝著我們的長期目標前進，包括絕對碳減排目標，這將有助於推進我們的永續發展使命，同時改善我們的營運。我為我們的全球團隊所取得的進步感到自豪，並邀請您閱讀我們的永續發展報告以了解更多相關內容，該報告可在我們投資者關係網站上找到。

With that, let me turn the call over to Shashank, who will address our second quarter results and our third quarter and full year outlook. Shashank?

接下來，我將把電話轉給 Shashank，他將介紹我們的第二季業績以及第三季和全年展望。沙尚克？

Thank you, Bob, and good morning, everyone. Please turn to slide 5, which highlights our second quarter results. Sales of $644 million were a record for Watts and were up 8% on a reported basis and 6% on an organic basis. Strong organic growth in the Americas more than offset declines in APMEA and Europe. Americas organic sales were up 10% and reported sales were up 11%, both better than expected, driven by price, volume and pull-forward demand.

謝謝你，鮑勃，大家早安。請翻到投影片 5，其中重點介紹了我們的第二季業績。6.44 億美元的銷售額創下了 Watts 的最高紀錄，報告成長率為 8%，有機成長率為 6%。美洲地區強勁的有機成長足以抵消亞太、中東和非洲地區以及歐洲地區的下滑。受價格、銷售和前期需求的推動，美洲有機銷售額成長 10%，報告銷售額成長 11%，均優於預期。

Sales from the I-CON acquisition added $7 million. EasyWater sales were immaterial in the quarter. Impact from our 80/20 actions in the Americas were limited with approximately $1 million of eliminated product sales as a result of strategies aimed at improving profitability.

收購 I-CON 帶來的銷售額增加了 700 萬美元。EasyWater 本季的銷售額不大。由於實施旨在提高獲利能力的策略，我們在美洲實施的 80/20 行動的影響有限，產品銷售額減少了約 100 萬美元。

Europe organic sales were down 8% and reported sales were down 3%, with organic declines across all geographies due to continuing OEM and market weakness. Reported sales benefited from favorable foreign exchange.

歐洲有機銷售額下降 8%，報告銷售額下降 3%，由於 OEM 和市場持續疲軟，所有地區的有機銷售額均出現下滑。報告的銷售額受益於有利的外匯匯率。

APMEA sales decreased 1% on an organic basis and 3% on a reported basis. Growth in Australia, New Zealand and the Middle East was more than offset by a decline in China due to project timing. Compared to the prior year, adjusted EBITDA of $153 million increased 22% and adjusted EBITDA margin of 23.8% increased 280 basis points.

APMEA 銷售額有機下降 1%，報告下降 3%。由於專案時間安排的原因，澳洲、紐西蘭和中東地區的成長被中國地區的下滑所抵消。與前一年相比，調整後的 EBITDA 為 1.53 億美元，成長 22%，調整後的 EBITDA 利潤率為 23.8%，增加了 280 個基點。

Adjusted operating income of $139 million also increased 24% and adjusted operating margin of 21.6% was up 280 basis points and is a record for Watts. Adjusted EBITDA and operating income benefited from favorable price-cost dynamic, volume leverage in the Americas, productivity and cost containment, which more than offset inflation, volume deleverage in Europe and investments.

調整後的營業收入為 1.39 億美元，成長了 24%，調整後的營業利潤率為 21.6%，上漲了 280 個基點，創下了 Watts 的最高紀錄。調整後的 EBITDA 和營業收入受益於有利的價格成本動態、美洲的銷售槓桿、生產力和成本控制，這些都超過了通貨膨脹、歐洲的銷售去槓桿和投資。

Americas segment margin increased 290 basis points to 27.2%. Europe segment margins increased by 170 basis points to 11.7% and APMEA segment margin was flat to prior year period at 18.9%. Adjusted earnings per share of $3.09 increased 26% versus last year, with contributions driven by operations, acquisitions, foreign exchange and reduced interest expense. The adjusted effective tax rate in the quarter was 25.2%, which was flat compared to the second quarter of 2024.

美洲分部利潤率增加 290 個基點，達到 27.2%。歐洲分部的利潤率增加了 170 個基點，達到 11.7%，而 APMEA 分部的利潤率與去年同期持平，為 18.9%。調整後每股收益為 3.09 美元，較去年同期成長 26%，主要得益於營運、收購、外匯和利息支出減少。本季調整後有效稅率為25.2%，與2024年第二季持平。

For GAAP purposes, we incurred $3.8 million of pretax acquisition costs and restructuring charges related to the exit of a facility in France and other actions within Europe. Our free cash flow year-to-date through the second quarter was $105 million compared to $120 million last year.

按照 GAAP 規定，我們因退出法國一家工廠和在歐洲採取其他行動而產生了 380 萬美元的稅前收購成本和重組費用。截至第二季度，我們的自由現金流為 1.05 億美元，而去年同期為 1.2 億美元。

The cash flow decrease was primarily due to working capital timing and increased CapEx. We expect sequential improvement in our free cash flow and are on track to achieve our full year goal of free cash flow conversion greater than or equal to 100% of net income. The balance sheet remains strong and provides us with ample flexibility.

現金流減少主要是因為營運資本時間和資本支出增加。我們預計自由現金流將持續改善，並有望實現全年自由現金流轉換率大於或等於淨收入 100% 的目標。資產負債表依然強勁，為我們提供了充足的彈性。

Our net debt to capitalization ratio at quarter end was negative 10%, and our net leverage is negative 0.4. Our solid cash flow and healthy balance sheet continue to give us capital allocation optionality.

本季末，我們的淨負債與資本比率為-10%，淨槓桿比率為-0.4。穩健的現金流量和健康的資產負債表繼續為我們提供靈活的資本配置選擇。

Now on slide 6, let's review our assumptions about our third quarter and full year outlook. We are increasing our full year sales and margin outlook due to our strong first half, incremental price, favorable foreign exchange, strength in data centers and our acquisition of EasyWater, which will be included in our Americas segment.

現在在第 6 張投影片上，讓我們回顧一下我們對第三季和全年展望的假設。由於上半年業績強勁、價格上漲、外匯有利、資料中心實力增強以及對 EasyWater 的收購（EasyWater 將併入我們的美洲分部），我們上調了全年銷售額和利潤率預期。

We now expect organic sales growth of flat to up 3%, a 2 point increase to the midpoint from our previous outlook. Our reported sales growth is expected to be up 2% to 5%, a 3 point increase from our previous outlook. We expect incremental revenue from our EasyWater acquisition and favorable foreign exchange movements, which are listed by region in the appendix.

我們現在預計有機銷售額成長率將持平至 3%，比我們先前的預測中位數高出 2 個百分點。我們報告的銷售額預計將成長 2% 至 5%，比我們先前的預測高出 3 個百分點。我們預計 EasyWater 收購將帶來增量收入，且外匯走勢有利，附錄中按地區列出了這些收入。

Regionally, we expect the Americas sales growth to be better and Europe to be slightly worse compared to our previous outlook. We are increasing our full year adjusted EBITDA margin outlook to a range of up 60 basis points to up 120 basis points, an increase of 30 basis points to the midpoint of our previous outlook.

從地區來看，我們預期美洲的銷售成長會比我們先前的預測更好，而歐洲的銷售成長會略差。我們將全年調整後 EBITDA 利潤率預期上調至 60 個基點至 120 個基點之間，較先前預期中位數增加 30 個基點。

We are also increasing our full year adjusted operating margin expansion to a range of up 50 basis points to up 110 basis points, an increase of 50 basis points to the midpoint of our previous outlook.

我們還將全年調整後的營業利潤率增幅提高至 50 個基點至 110 個基點之間，比我們先前預測的中點高出 50 個基點。

Our updated outlook includes $40 million of estimated direct tariff costs, as previously mentioned by Bob. This is based on the tariffs in effect as of today, which includes copper tariffs as currently defined. Our free cash flow expectation remains in line with our previous outlook as we expect to deliver free cash flow conversion of greater than or equal to 100% of net income in 2025.

正如鮑勃之前提到的，我們最新的展望包括 4000 萬美元的預計直接關稅成本。這是基於截至今天生效的關稅，其中包括目前定義的銅關稅。我們的自由現金流預期與先前的展望一致，因為我們預期 2025 年的自由現金流轉換率將大於或等於淨收入的 100%。

Next, a few items to consider for the third quarter. On an organic basis, we expect sales growth of 2% to 5%. Regionally, we expect mid-single-digit growth in the Americas and low single-digit growth in APMEA, partly offset by high single-digit decline in Europe.

接下來，我們來考慮一下第三季需要考慮的幾個事項。從有機成長來看，我們預計銷售額將成長 2% 至 5%。從地區來看，我們預計美洲地區將實現中等個位數成長，亞太、中東和非洲地區將實現低個位數成長，但歐洲地區將出現高個位數下滑，這將部分抵消這一成長。

The Americas growth is sequentially lower than the second quarter due to the pull-forward demand previously discussed. We expect approximately $8 million in incremental sales in the Americas from acquisitions.

由於先前討論過的提前需求，美洲地區的成長季低於第二季。我們預計，透過收購，美洲地區的銷售額將增加約 800 萬美元。

We estimate that foreign exchange in the quarter will be a tailwind of approximately $4 million, and our assumptions by region are listed in the appendix. We expect our 80/20 actions in the third quarter to be an estimated $2 million of product exits primarily within the Americas.

我們估計本季的外匯將帶來約 400 萬美元的順風，我們按地區劃分的假設列於附錄中。我們預計第三季我們的 80/20 行動將主要在美洲地區實現約 200 萬美元的產品退出。

Third quarter EBITDA margin is expected to be in the range of 19.7% to 20.3% or up 20 to 80 basis points. Operating margin should be in the range of 17.1% to 17.7% or flat to up 60 basis points. We expect that price and volume leverage in the Americas and APMEA will more than offset continued volume deleverage in Europe.

預計第三季 EBITDA 利潤率將在 19.7% 至 20.3% 之間，或上漲 20 至 80 個基點。營業利益率應在 17.1% 至 17.7% 之間，或持平至上漲 60 個基點。我們預計，美洲和亞太、中東和非洲地區的價格和數量槓桿將超過歐洲持續的數量去槓桿。

The sequential decline in margins is due primarily to the nonrecurring price/cost favorability in the second quarter as the impact of tariffs rolls into expense plus normal seasonality. Other key inputs for the third quarter and the full year can be found in the appendix.

利潤率的連續下降主要是由於第二季非經常性價格/成本優惠，因為關稅的影響計入費用加上正常的季節性。第三季和全年的其他關鍵資訊可以在附錄中找到。

Before I turn the call over to Bob, I would like to express my gratitude to the entire Watts team for the opportunities I've had over the last seven years. I've also enjoyed working with you, the investor and analyst community and wish you the best in the years to come.

在我將電話轉給鮑伯之前，我想對整個瓦茨團隊表示感謝，感謝他們在過去七年裡給我的機會。我也很高興與你們、投資者和分析師社群合作，並祝福你們在未來的歲月裡一切順利。

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

說完這些，我將把電話轉回給鮑勃，然後再進入問答環節。鮑伯？

Thanks, Shashank. On slide 7, I'd like to summarize our discussion before we address your questions. Our second quarter performance was better than we anticipated with record sales, operating income and earnings per share due to strong performance in our Americas region, which benefited from price realization, favorable price-cost dynamic and volume leverage.

謝謝，Shashank。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。我們第二季的業績好於預期，銷售額、營業收入和每股盈餘均創歷史新高，這得益於美洲地區的強勁表現，這得益於價格實現、有利的價格成本動態和數量槓桿。

We continue to execute well amid an uncertain trade environment and expect that price, our expansive US footprint and global supply chain will enable us to navigate the current backdrop effectively. As a result of our strong first half performance and third quarter expectations, we are increasing our full year sales and margin outlook.

在不確定的貿易環境中，我們繼續表現良好，並預期價格、我們廣泛的美國業務和全球供應鏈將使我們能夠有效地應對當前的背景。由於我們上半年的強勁表現和第三季的預期，我們提高了全年銷售額和利潤率的預期。

Our balance sheet remains strong and provides ample flexibility to support our capital allocation priorities, including M&A, factory automation, investment in new product development and our digital strategy and returning capital to shareholders via share buybacks and dividends. I'm confident in our team's ability to execute despite the uncertain environment and continue to create durable long-term value for our shareholders.

我們的資產負債表仍然強勁，並提供了充足的靈活性來支持我們的資本配置重點，包括併購、工廠自動化、新產品開發和數位策略投資以及透過股票回購和股息向股東返還資本。儘管環境不確定，我相信我們的團隊有能力執行並繼續為股東創造持久的長期價值。

With that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions) Ryan Connors, Northcoast Research.

（操作員指示）Ryan Connors，Northcoast Research。

Good morning. Good morning. Congratulations, Shashank and welcome Ryan. So my first question was just you mentioned in the press release, in addition to the other things here, this idea of a dynamic of a pull forward in the quarter. Is there any quantification you can put on that in terms of the impact of volume of that pull-forward effect you mentioned in the press release?

早安.早安.恭喜 Shashank，歡迎 Ryan。所以我的第一個問題就是您在新聞稿中提到的，除了這裡的其他內容之外，還有關於本季提前推進的動態的想法。就您在新聞稿中提到的前拉效應的影響而言，您能對此進行量化嗎？

Yeah. Ryan, it was approximately $20 million of sales pull forward pre-price increase that we shipped in the quarter.

是的。瑞安，我們本季的出貨量比漲價前增加了約 2,000 萬美元。

Okay. And then in terms of the price increase, you cite the favorable price cost. You mentioned the $40 million headwind. But can you just kind of dive in a little deeper into the price dynamics? Obviously, you got lots of different products, lots of different magnitudes of price increases.

好的。然後就價格上漲而言，您提到了優惠的價格成本。您提到了 4000 萬美元的逆風。但您能否更深入了解價格動態呢？顯然，你有很多不同的產品，價格上漲幅度也有很大差異。

The copper tariffs are kind of brand new. I mean, what's the dynamic in terms of pricing? Have you accomplished what you need to do? Are there certain products that are leading or lagging on that? Just any deep dive you can give us on the pricing dynamics would be helpful.

銅關稅是全新的。我的意思是，定價方面的動態是怎麼樣的呢？你已經完成你需要做的事情了嗎？有哪些產品在這方面處於領先或落後？只要您能為我們提供關於定價動態的深入分析，就會很有幫助。

Yeah. So specifically, in the second quarter, we talked about price-cost favorability, and that's where we implemented price increases, but based on having lower cost inventory, we had some favorability, approximately $6 million.

是的。具體來說，在第二季度，我們討論了價格成本優惠，這就是我們實施價格上漲的地方，但基於成本較低的庫存，我們獲得了一些優惠，約為 600 萬美元。

The price increases we've announced, you're right, there's been multiple rounds of tariffs. So they have staggered between the March 31 date all the way to the June 2 date, and they're in the range of 5% to 15% of price increases. We'll see the full realization of those in the second half.

我們已經宣布了價格上漲，你說得對，已經有多輪關稅了。因此，從 3 月 31 日一直到 6 月 2 日，價格漲幅都在 5% 到 15% 之間。我們將在下半年看到這些目標的全面實現。

Yeah. And Ryan, as you know, we're constantly analyzing our cost inputs, especially with the recently announced tariffs and are looking for all options, including price increases in the future. So like we've done in the past. So we'll update you on our pricing as we roll into the next quarter.

是的。瑞安，如你所知，我們一直在分析我們的成本投入，特別是最近宣布的關稅，並正在尋找所有選擇，包括未來的價格上漲。就像我們過去所做的那樣。因此，我們將在進入下一季時向您更新我們的定價資訊。

And then lastly, just on the gross margin, I mean, really impressive to see a number above 50%. What should we be thinking about intermediate term kind of run rate? I mean, obviously, that might be a little elevated here, but you've made strides in terms of internal improvement and other things. So what should be kind of the -- what do you consider a base normalized level for the company over the intermediate term?

最後，就毛利率而言，看到 50% 以上的數字確實令人印象深刻。我們該如何考慮中期運行率？我的意思是，顯然，這可能有點高，但你們在內部改進和其他方面已經取得了長足的進步。那麼，您認為公司中期的基本正常化程度應該是什麼？

So that 50% certainly benefited from about 100 basis points on the price/cost dynamic I talked about, which was onetime, right? And it also benefited to a certain extent from volume leverage. We got significant volume leverage in the second quarter.

因此，我所說的 50% 肯定受益於價格/成本動態的約 100 個基點，這是一次性的，對嗎？且某種程度上也受惠於成交量槓桿。我們在第二季度獲得了顯著的銷售槓桿。

So as you recall, prior year, we're in that 47% margin range. The goal this year was to get to that 48% level as part of our continuous improvement priorities, productivity driven primarily, as you noted. So going forward, I think in that 48% range.

所以大家還記得，去年我們的利潤率處於 47% 的範圍內。正如您所說，今年的目標是達到 48% 的水平，這是我們持續改進的重點，主要以生產力為驅動。因此，展望未來，我認為這個範圍在 48% 左右。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Good morning, everyone. Shashank, congratulations on getting Bob to finally let you retire and Ryan, welcome to the team. I guess I'll ask first about the competitive positioning and the footprint, your more domestic footprint and the advantage that gives you. Obviously, evolving, I'm sure customers are talking about those kinds of things.

大家早安。Shashank，恭喜 Bob 最終讓你退役，Ryan，歡迎加入球隊。我想我首先會問一下競爭定位和足跡，你們在國內的足跡以及給你們帶來的優勢。顯然，隨著情況的發展，我確信客戶正在談論這些事情。

But any update you can give us on what kind of benefit you think you'll see -- you'll be able to realize from that versus particularly some of the smaller competitors who maybe source a lot more out of China or other places internationally. Just how you think you can use that to gain market share?

但是，您能否向我們提供任何最新消息，說明您認為您將從中獲得什麼樣的好處——與一些規模較小的競爭對手相比，您將能夠從中獲得什麼好處，這些競爭對手可能從中國或其他國際地區採購更多產品。您認為如何利用它來獲得市場份額？

Well, listen, Nathan, we always believe that our overall strategy of -- basically producing products in the countries we sell is a positive strategy, especially in this uncertain market environment where the tariffs keep on changing.

好吧，聽著，內森，我們始終相信，我們的整體策略——基本上在我們銷售的國家生產產品——是一個積極的策略，特別是在這個關稅不斷變化的不確定的市場環境中。

So just that uncertainty it has helped. But certainly, we do source, as we indicated, globally to diversify our product and our production capabilities. But again, we believe it's a positive for us in this current environment, and we'll continue to capitalize on that going forward.

所以正是這種不確定性就起到了幫助作用。但當然，正如我們所指出的，我們確實在全球範圍內進行採購，以實現產品和生產能力的多樣化。但我們再次相信，在當前環境下，這對我們來說是積極的，我們將繼續利用這一點。

Do you think there are any opportunities to maybe manufacture more domestically? I mean you did say you source globally. It certainly does seem that there's going to be some level of tariffs that are permanent here. And just how you think about the breakpoints of whether you would continue to source internationally for some of the products or whether you would reshore some of that production for yourself?

您認為是否有機會在國內實現更多生產？我的意思是你確實說過你在全球範圍內採購。看起來確實會存在某種程度的永久性關稅。您如何考慮是否繼續從國際上採購部分產品，或是否將部分生產轉移回國內？

Yeah. I think our supply chain teams and our manufacturing teams are constantly looking at that. And where it makes financial sense to bring it here, we'll do that. I think we talked on the last call that we have capacity by adding third shifts in most of our locations.

是的。我認為我們的供應鏈團隊和製造團隊一直在關注這一點。只要在財務上合理，我們就會這麼做。我想我們在上次電話會議上談到，透過在大多數地點增加第三班次，我們有能力滿足需求。

So we're open to those ideas and just looking at overall what the competitive opportunities are by country, by place, et cetera. So again, constantly evolving, but we have a great supply chain team, and they're doing a great job in this environment.

因此，我們對這些想法持開放態度，並且只是從整體上審視各個國家、各個地區等的競爭機會。所以，我們繼續不斷發展，但我們擁有一支優秀的供應鏈團隊，他們在這種環境下做得很好。

And I guess I'll just ask one on the European business, I guess, with the focus on the heat pump market in Germany. I think the belief was that, that was kind of going to bottom out midyear, destocking it might be done midyear. It sounds like maybe that's not the case. So just an update on your expectations there?

我想我只想問一個關於歐洲業務的問題，重點是德國的熱泵市場。我認為人們的信念是，這將在年中觸底，去庫存也可能會在年中完成。聽起來也許事實並非如此。那麼，您能更新一下您的期望嗎？

Yeah. From a heat pump perspective, for the most part, we're starting to see it. It varies by each one of the customers based on their distribution channels and inventory. But like we thought, that has come down, the destocking has come down. And we're believing Q3 is probably the end of that.

是的。從熱泵的角度來看，在很大程度上，我們開始看到它。根據每個客戶的分銷管道和庫存，它有所不同。但正如我們想像的那樣，這一數字已經下降，去庫存化已經下降。我們相信第三季可能就是這一進程的結束。

However, it's just the general construction market is soft in Europe, and it continues to be. And as you know, I'm cautious on Europe. I always have been. And until I start seeing the order rates pick up, we're going to continue to be cautious.

然而，歐洲整體建築市場疲軟，而且這種狀況仍在持續。如你所知，我對歐洲持謹慎態度。我一直都是這樣。在我看到訂單率上升之前，我們將繼續保持謹慎。

Jeff Hammond, KeyBanc.

傑夫·哈蒙德，KeyBanc。

Hey, good morning, everyone. Congrats to Shashank. Ryan, welcome aboard. Bob, good to still have you with us. I want to go back to the tariffs. So I think you originally said $60 million and most of it or maybe $50 million of the $60 million was China.

嘿，大家早安。恭喜 Shashank。瑞安，歡迎加入。鮑勃，很高興你仍然和我們在一起。我想回到關稅問題上。所以我認為你最初說的是 6000 萬美元，其中大部分或可能是 5000 萬美元來自中國。

I know we had a big reset there. So I would have thought that, that number would have gone down more. I think you said $40 million is the new baseline. So maybe just walk me through the puts and takes in that $60 million to $40 million change.

我知道我們在那裡進行了一次大的重置。所以我原本以為這個數字還會進一步下降。我認為您說的是 4000 萬美元是新的基準。所以也許可以向我介紹一下從 6000 萬美元到 4000 萬美元的變化。

Yeah. So you're right. The China tariff did come down significantly. But since that happened, there's been other tariffs, including copper tariffs. Tariffs on Europe are now set at 15%. So there's been quite a bit of change. And so we factored all of that change into coming up with the $40 million from the previous $60 million number on direct cost.

是的。所以你是對的。中國關稅確實大幅下降。但自那以後，又出現了其他關稅，包括銅關稅。目前對歐洲的關稅定為15%。因此發生了相當大的變化。因此，我們將所有這些變化都考慮在內，將直接成本從先前的 6,000 萬美元減少到 4,000 萬美元。

Okay. And then is there a way to quantify what price you got in the quarter and what you think you get for price in the second half?

好的。那麼有沒有辦法量化您在本季度獲得的價格以及您認為下半年獲得的價格？

Yeah. So in the quarter across Watts, our price realization was approximately 3%. If you recall, in Q1, it was 1%. So it stepped up to 3%. Our expectation is with the full impact of price realization in the second half, we're probably going to be in the mid-single digits.

是的。因此，在瓦茨本季，我們的價格實現率約為 3%。如果你還記得的話，在第一季度，這個數字是 1%。因此其漲幅升至3%。我們的預期是，隨著下半年價格實現的全面影響，我們的銷售額可能會達到個位數的中間值。

Okay. And this pull forward I assume it all comes out of 3Q?

好的。我認為這種提前是完全從第三季開始的嗎？

Yeah. That's our current assumption, yeah.

是的。是的，這是我們目前的假設。

And then just last one. It sounds like all your deals are integrating well. Can you just maybe talk about what's going better and whether it's cost, margin improvement, revenue synergies, where the upside surprises are, that would be great.

接下來是最後一個。聽起來你們所有的交易都整合得很順利。您能否談談哪些方面進展順利，包括成本、利潤率提高、收入綜效，以及哪些方面有意外驚喜，那就太好了。

Yeah. I think it's across the Board and each one of them is different. But the nice thing is all four of them are green, which we track, as you know, judiciously on a monthly basis and stuff. So costs are certainly the key focus. And as you know, we're doing the 80/20 on most of these businesses.

是的。我認為這是全面的，而且每個人都是不同的。但令人高興的是，這四個都是綠色的，正如你所知，我們每月都會明智地追蹤這一點。因此成本肯定是關注的重點。如你所知，我們對大多數此類業務實施 80/20 的比例。

And so, the top line is important, but we are seeing synergies definitely on the top line, but we're also -- as Shashank earlier said, we continue to look at making money. And so, we don't want -- we're getting rid of some of the bad business that we've had in the past.

因此，營收很重要，但我們確實看到了營收上的協同效應，但正如 Shashank 之前所說，我們也持續關注賺錢。所以，我們不想——我們正在擺脫過去的一些不良業務。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Hey, good morning, everyone. It's Pez on for Mike and Shashank, congratulations. I want to take a moment just to circle back on the 80/20 comments. Bob, should we consider most of the 80/20 actions that are being discussed going on in the acquired businesses? Or is there a chunk of that going on in some of the legacy business as well?

嘿，大家早安。恭喜 Mike 和 Shashank 獲得 Pez 糖果。我想花一點時間回顧 80/20 的評論。鮑勃，我們是否應該考慮在收購的企業中正在討論的大多數 80/20 行動？或者說，在一些傳統業務中也存在著類似的情況？

It's constantly going on. For the most part, we continue to talk about big ones that -- especially with some of the acquisitions that we've pointed out, that's the biggest pieces. But we're always doing 80/20, right? We don't necessarily call it 80/20, but it's the conceptual concept that we go through our organization and are always evaluating that. So again, my team knows that our goal is to drive profitable growth.

這件事一直持續發生。在大多數情況下，我們繼續談論大事——特別是我們指出的一些收購，那是最大的部分。但我們總是在做 80/20，對嗎？我們不一定稱之為 80/20，但這是我們整個組織都在討論的概念，並且一直在對其進行評估。所以，我的團隊再次強調，我們的目標是推動獲利成長。

Right. All right. That's helpful. And then we're two years post Bradley close. Are there areas where you've been able to maybe step on the gas in terms of investments where maybe the previous ownership had -- maybe not identified opportunities as well as you had? And then additionally, are you seeing Bradley as an opportunity to be another platform to bolt on future acquisitions?

正確的。好的。這很有幫助。布拉德利離職兩年後。在投資方面，您是否能夠在以前的所有者可能沒有像您一樣發現機會的領域加大力度？另外，您是否將布拉德利視為一個機會，可以成為另一個未來收購的平台？

Yeah. So the answer is yes. We've been investing capital to lean out the organization, streamline the business and invest in new product development. So we had the fortunate opportunity to have our Board there on Monday and Tuesday of this week, and the Board got to see firsthand all the improvements and the great strides the teams are making.

是的。所以答案是肯定的。我們一直在投入資金來精簡組織、簡化業務並投資新產品開發。因此，我們很榮幸在本週一和週二讓董事會來到這裡，並親眼目睹了團隊所取得的所有改進和巨大進步。

And yes, Bradley has been front of the wall. I think it's a nice start, and we purchased I-CON as we talked about before. So that continues to expand our front-of-the-wall capabilities. So nice platform, doing exactly what we thought it was, and we're ahead of schedule on our integration and synergies.

是的，布拉德利已經站在牆前了。我認為這是一個好的開始，我們購買了 I-CON，正如我們之前談到的。這樣就繼續擴大了我們的牆前能力。非常好的平台，它完全按照我們的想法運行，而且我們的整合和協同效應也提前完成了計劃。

Awesome. And last one for me. Bob, some really helpful comments on the Nexa platform. Obviously, some encouraging opportunities with the luxury condos and hospitality. Maybe talk a little bit about how you're approaching the targeted verticals.

驚人的。對我來說這是最後一個。鮑勃，關於 Nexa 平台的一些評論真的很有幫助。顯然，豪華公寓和酒店業帶來了一些令人鼓舞的機會。也許可以稍微談談您如何接近目標垂直市場。

Is it kind of going pilot programs in certain verticals and then looking to expand? Maybe just provide us a little bit more color about how you're thinking about expanding the offering for Nexa and the approach to go-to-market?

這是否是在某些垂直領域進行試點，然後尋求擴展？也許您可以向我們提供更多關於您如何考慮擴大 Nexa 的產品範圍以及進入市場的方法的資訊？

Yeah. So we're leveraging our complete sales force, whether we have some direct capabilities, strategic accounts and leveraging distribution. The process is a long process. It's a long sell process where we pilot and then the pilot -- they get to look at it for a while, then they have to put it in their budget. And then once they put it in their budget, they go forward. So it could be anyways from a year to two-year selling cycle. So it takes a while to get this.

是的。因此，我們正在利用我們完整的銷售隊伍，無論我們是否擁有一些直接能力、策略帳戶和槓桿分銷。這個過程是一個漫長的過程。這是一個漫長的銷售過程，我們先進行試點，然後讓他們觀察一段時間，然後才將其納入預算。一旦他們將其納入預算，他們就會繼續前進。因此，銷售週期可能是一年到兩年。因此需要花一些時間來獲得它。

But we're happy to say that every installation has been a great success, and we're seeing the benefit of all. So again, it continues to move forward. It's never as fast as I would want it to be, but it's moving in the right direction.

但我們很高興地說，每次安裝都取得了巨大的成功，並且我們看到了所有安裝的好處。因此，它又繼續向前發展。它從來沒有像我希望的那樣快，但它正朝著正確的方向發展。

And I think we've also talked about that we're migrating all our previously smart and connected products that had individual apps into the Nexa platform. So it's all centered on one overall application for all the Watch products. So for the most part, that will be done by the end of the year and early into next year.

我想我們也討論過，我們正在將所有以前帶有單獨應用程式的智慧連網產品遷移到 Nexa 平台。因此，所有 Watch 產品都集中在一個整體應用程式上。因此，大部分工作將在今年年底或明年年初完成。

Awesome. I know I said that was my last question, but I'm going to follow up on one of your points there. As we get further down the road and as you run more and more pilots would you expect -- and I'm not talking about necessarily this year, next year, maybe not even the year after that.

驚人的。我知道我說過這是我的最後一個問題，但我將跟進你的一個觀點。隨著我們不斷前行，隨著你們開展越來越多的試點，你們會期待──我指的不一定是今年、明年，甚至可能不是後年。

But would you expect the sales time on Nexa to shorten as proof points build and your ability to demonstrate returns to customers, kind of your Rolodex of wins and pilots gets bigger, would you expect that sales cycle to slow? Or is that just more of how the customers are able to integrate the technology into their current assets?

但是，隨著證明點的建立和您向客戶展示回報的能力、您的勝利和試點的 Rolodex 變得越來越大，您是否預計 Nexa 的銷售時間會縮短，您是否預計銷售週期會變慢？或者這只是客戶如何將技術融入他們現有的資產中？

We would expect it to grow, but certainly, you raised the concern again. But yes, the answer is we expect it to accelerate as more people have it and really realize the benefit. And I think this property group is when we get that fully installed by the end of this year, that would be a great asset for people to see and understand how to manage their portfolios across the US.

我們預計它會成長，但當然，你再次提出了擔憂。但答案是肯定的，我們預計隨著越來越多的人擁有它並真正實現其好處，這一進程將會加速。我認為，當我們在今年年底前全面安裝這個房地產集團時，這將是一筆巨大的財富，讓人們了解並了解如何管理他們在美國的投資組合。

Andrew Krill, Deutsche Bank.

德意志銀行的安德魯·克里爾。

Thanks. Good morning, everyone. Congrats again, Shashank, and welcome, Ryan. I want to go back to the 3Q margin guidance as it implies a very steep about 400 basis points or so sequential decline in the EBIT margin. I know 2Q is an elevated starting point to compare it against.

謝謝。大家早安。再次恭喜你，Shashank，歡迎你，Ryan。我想回到第三季的利潤率指引，因為它意味著息稅前利潤率將連續大幅下降約 400 個基點。我知道 2Q 是一個與之比較的較高起點。

But just can you talk through, again, like any of the moving pieces here? Like was it really all pull forward and price cost related? Or was some of this more structural? And I thought that could have persisted more into the back half. So maybe just touch on that and like if there's any conservatism at play, please?

但是您能否再說一遍這裡的任何活動部分？就像它真的全都向前推進並且與價格成本有關嗎？或者其中一些是更具結構性的？我認為這股勢頭可能會持續到後半段。所以也許只是談談這一點，看看是否存在任何保守主義在起作用，好嗎？

Yeah. So Andrew, there's three pieces of that, right? First was the price-cost dynamic, which I quantified at approximately $6 million. So that's about 100 basis points. The second element is usually is the typical seasonality we see between Q2 to Q3, which is about 170 basis points.

是的。那麼安德魯，這有三個部分，對嗎？首先是價格成本動態，我將其量化為大約 600 萬美元。這大約是 100 個基點。第二個因素通常是我們在第二季到第三季之間看到的典型季節性，約 170 個基點。

And then the balance is basically volume deleverage, right? So certainly, the volume in Q2 volume growth is higher than the volume growth in Q3, especially when you strip out price. So it's those three elements that contribute to that approximately 400 basis point decline in op income margins.

那麼平衡基本上就是數量去槓桿，對嗎？因此，第二季的銷售成長肯定高於第三季的銷售成長，尤其是當你剔除價格因素時。因此，這三個因素導致營業利潤率下降約 400 個基點。

Okay. Great. That's helpful. And then for sales in the back half, can you maybe speak to what you're assuming for end market demand? The price clearly, I think, is going up. So do you have any cushion for volume destruction related to that? Or are you assuming more kind of a status quo current run rate?

好的。偉大的。這很有幫助。那麼對於下半年的銷售情況，您能否談談您對終端市場需求的假設？我認為價格顯然正在上漲。那麼，你們對於與此相關的產量破壞有什麼緩衝嗎？或者您假設當前的運行率處於現狀水平？

Yeah. So for the most part, there's still a lot of uncertainty, especially in the far back, the fourth quarter, in particular. But we're basically the same -- the markets haven't changed significantly. If anything, residential is down a little bit more than we expected. But overall, we had to pull forward.

是的。因此，在大多數情況下，仍然存在許多不確定性，尤其是在後半段，尤其是在第四季度。但我們基本上還是一樣——市場沒有重大變化。無論如何，住宅價格的下降幅度比我們預期的要大一些。但總體來說，我們必須向前邁進。

That's going to play out against Q3 and then the markets will continue. And we're having strength in data centers. That's been a great win for the team this year, and we're continuing to see the benefit going forward. So we'll see what Q4 looks like when it's there, but we're going to watch what the markets do, how the reaction to these recent tariffs and some of the uncertainty, how it unplays out in the market.

這將對第三季產生影響，然後市場將繼續運作。我們在資料中心領域實力雄厚。這對球隊今年來說是一次偉大的勝利，我們將繼續看到它帶來的好處。因此，我們將拭​​目以待第四季度的情況，但我們將關注市場趨勢、對近期關稅和一些不確定性的反應以及市場將如何發展。

Joe Giordano, TD Cowen.

喬·喬達諾（Joe Giordano），TD Cowen。

Hey, guys. Good morning. Shashank, just that $6 million on the price cost, like I just want to make sure I understand, that's just you're getting the price capture plus what you're selling is just flowing through inventory that was acquired at a lower price point that didn't include the tariffs. Is that what we're -- and then that ultimately goes away. Is that what we're talking about?

嘿，大家好。早安.Shashank，只是那 600 萬美元的價格成本，就像我只是想確保我理解的那樣，那隻是你獲得的價格捕獲加上你銷售的只是流經以較低價格點獲得的庫存，不包括關稅。這就是我們所處的——然後它最終會消失。這就是我們正在談論的嗎？

Absolutely, that's correct.

絕對正確。

Okay. Great. On data center, like how large do you think that's going to be now this year? You mentioned it a couple of times already this call.

好的。偉大的。關於資料中心，您認為今年的規模會有多大？您在這次通話中已經提到過幾次了。

Yeah. We're not going to give the specifics. But as we've talked about in the past, last year it was about 2% of sales, and I would say it's growing high double-digits at this point in time. So again, it's offsetting the residential softness we're seeing in the market, and the team is doing a great job to continue to grow in that area. So nice story.

是的。我們不會透露具體細節。但正如我們過去談到的，去年它約佔銷售額的 2%，我想說，目前它正在以兩位數的速度成長。因此，這再次抵消了我們在市場上看到的住宅疲軟現象，團隊正在出色地完成該領域的持續成長。多麼美好的故事。

Yeah. That makes sense. And last for me on Nexa, what is like the pay terms on this? Is this like a subscription base? And what is it based on?

是的。這很有道理。最後，關於 Nexa，我的付款條件是怎麼樣的？這就像訂閱基礎嗎？它是基於什麼？

Yeah. So there's a cost for installation of the various products, and we're flexible with the customer based on what OpEx or how they want to do it inside. They want to pay by the month, we'll incorporate the cost inside of it.

是的。因此，安裝各種產品都需要成本，並且我們會根據客戶的營運支出或他們希望如何在內部進行安裝來靈活地滿足客戶的要求。他們想按月付款，我們會將費用包含在內。

And yes, it does have a future annual fee that we charge to customers to continue to monitor and measure and keep the upgrades in the system and have access to our experts. So yes, it's the combination of both of those.

是的，我們確實會向客戶收取未來的年費，以便他們可以繼續監控和測量並保持系統升級，並能夠聯繫到我們的專家。是的，這是兩者的結合。

How big do you think your whole like software type revenue base is now?

您認為現在整個軟體類型的收入基礎有多大？

Yeah. We don't provide that information, but it's certainly growing. It's small, right? But it's growing -- growing high percentage basis on a low number, but we'll continue to grow it. And when it gets big enough, we'll begin talking about that. But we're accelerating that, and we believe Nexa is one of the best platforms to do that with.

是的。我們沒有提供該信息，但它肯定在增長。很小吧？但它正在成長——在較低數字的基礎上實現高百分比成長，但我們會繼續成長。當它變得足夠大時，我們就會開始談論它。但我們正在加速這一進程，我們相信 Nexa 是實現這一目標的最佳平台之一。

Brian Lee, Goldman Sachs.

高盛的 Brian Lee。

Hey, everyone, This is Nick Cash on for Brian Lee. Just kind of a question going into, again, the end of the year. I mean, we've had pull forward kind of expecting a step down in margins heading into 3Q and then probably another one heading into 4Q.

大家好，我是 Brian Lee 的 Nick Cash。這又是一個即將進入年底的問題。我的意思是，我們預計第三季利潤率會下降，而第四季利潤率可能還會再次下降。

But do you guys have any additional shipping days in 4Q that you expect to see and realize some incremental volume? Or just kind of talk to the puts and takes that you're expecting in the back half of the year on margins?

但是，你們預計第四季會有額外的運輸天數，從而實現一些增量嗎？或只是談談您預計今年下半年的利潤率變化？

There's a couple of days impact in Q4. If you recall, in Q1, we talked about lower shipping days. We picked those up at the back end of the year.

第四季會產生幾天的影響。如果您還記得的話，在第一季度，我們討論了較短的運輸天數。我們在年底就拿到這些了。

Okay. But then I guess, I think the guide implies another step down in adjusted operating margins in, what, 4Q. Is that mostly due to, again, additional volume deleveraging off of 3Q in the Americas segment?

好的。但我想，該指南暗示第四季調整後的營業利潤率將再次下降。這是否主要歸因於美洲地區第三季銷售的進一步去槓桿？

Yeah, that's correct. Yes. The volumes in Q4 are lower than Q3. So you had volume deleverage that's impacting margins in Q4.

是的，沒錯。是的。第四季的交易量低於第三季。因此，批量去槓桿對第四季的利潤率產生了影響。

There are no further questions. That concludes the question-and-answer session. I will now turn the call back to Bob Pagano for closing remarks.

沒有其他問題了。問答環節到此結束。現在我將把電話轉回給鮑伯·帕加諾，請他作結束語。

Thank you for taking the time to join us today. We appreciate your continued interest in Watts and look forward to speaking with you again during our third quarter earnings call in early November. Have a great day and stay safe.

感謝您今天抽出時間來參加我們的活動。我們感謝您對 Watts 的持續關注，並期待在 11 月初的第三季財報電話會議上再次與您交談。祝您有個愉快的一天並注意安全。

The meeting has now concluded. Thank you all for joining. You may now disconnect.

會議現已結束。感謝大家的加入。您現在可以斷開連線。