賽莱默 (XYL) 2024 Q1 法說會逐字稿

Welcome to Xylem's First Quarter 2024 Results Conference Call. (Operator Instructions). Please note, this event is being recorded.

歡迎參加賽萊默 2024 年第一季業績電話會議。 （操作員說明）。請注意，此事件正在被記錄。

I would now like to turn the conference over to Andrea van der Berg, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資人關係副總裁 Andrea van der Berg。請繼續。

Thank you, operator. Good morning, everyone, and welcome to Xylem's First Quarter 2024 Earnings Call. With me today are Chief Executive Officer, Matthew Pine; and Chief Financial Officer, Bill Grogan. They will provide their perspective on Xylem's first quarter 2024 results and discuss the second quarter and full year outlook.

謝謝你，接線生。大家早安，歡迎參加賽萊默 2024 年第一季財報電話會議。今天與我在一起的有執行長馬修派恩 (Matthew Pine)；和財務長比爾·格羅根。他們將提供對賽萊默 2024 年第一季業績的看法，並討論第二季和全年的前景。

Following our prepared remarks, we will address questions related to the information covered on the call. I'll ask that you please keep to 1 question and a follow-up and then return to the queue. As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website. A replay of today's call will be available until midnight May 9. Additionally, the call will be available for playback via the Investors section of our website under the heading Investor Events.

在我們準備好的發言之後，我們將回答與電話會議所涵蓋資訊相關的問題。我會請您保留 1 個問題和後續問題，然後返回佇列。謹此提醒，本次電話會議和我們的網路廣播均附有幻燈片演示文稿，可在我們網站的投資者部分查看。今天的電話會議重播將持續到 5 月 9 日午夜。

Please turn to Slide 2. We will make some forward-looking statements on today's call, including references to future events or developments that we anticipate will or may occur in the future. These statements are subject to future risks and uncertainties, such as those factors described in Xylem's most recent annual report on Form 10-K and in subsequent reports filed with the SEC. Please note that the company undertakes no obligation to update any forward-looking statements publicly to reflect subsequent events or circumstances, and actual events or results could differ materially from those anticipated.

請參閱投影片 2。 我們將在今天的電話會議上發表一些前瞻性聲明，包括提及我們預計將來將會或可能發生的未來事件或發展。這些聲明受到未來風險和不確定性的影響，例如賽萊默最新的 10-K 表年度報告以及隨後向 SEC 提交的報告中描述的因素。請注意，本公司沒有義務公開更新任何前瞻性陳述以反映後續事件或情況，實際事件或結果可能與預期有重大差異。

Please turn to Slide 3. We have provided you with a summary of our key performance metrics, including both GAAP and non-GAAP metrics with references to prior year segment metrics being made on a comparative basis, reflecting the change in segment as of the beginning of the year. For purposes of today's call, all references will be on an organic and/or adjusted basis, unless otherwise indicated. And non-GAAP financials have been reconciled for you and are included in the Appendix section of the presentation. Now please turn to Slide 4, and I'll turn the call over to our CEO, Matthew Pine.

請參閱投影片 3。 。就今天的電話會議而言，除非另有說明，所有參考資料都將基於有機和/或調整的基礎。非 GAAP 財務數據已為您進行了核對，並包含在簡報的附錄部分中。現在請翻到幻燈片 4，我會將電話轉給我們的執行長 Matthew Pine。

Thanks, Andrea. Good morning, everyone, and thank you for joining us today. The Xylem team delivered a very strong first quarter, outperforming expectations on all metrics. The team drove high single-digit organic revenue growth, reflecting a healthy balance of both volume and price. And the team also expanded adjusted EBITDA margin almost 300 basis points. And without outperformance, we delivered EPS growth of 14%.

謝謝，安德里亞。大家早安，感謝您今天加入我們。賽萊默團隊第一季的表現非常強勁，所有指標都超出了預期。該團隊推動了高個位數的有機收入成長，反映出銷售和價格的健康平衡。該團隊還將調整後的 EBITDA 利潤率擴大了近 300 個基點。在沒有表現出色的情況下，我們的每股盈餘成長了 14%。

The story is pretty straightforward. We have strong commercial and operational momentum with resilient underlying demand in the majority of our segments and end markets. I want to thank all our teams for doing a great job. But I want to highlight 2 teams in particular, Measurement & Control Solutions and Water Solutions and Services. In both segments, focused effort paid off in really outstanding numbers. In MCS, organic revenue grew more than 20% and margins are up over 500 basis points year-over-year. And in its first quarter as a combined segment, WSS stayed focused on serving our customers and delivered both the highest orders growth of all segments and made a significant contribution to Xylem's overall margin mix.

這個故事非常簡單。我們擁有強勁的商業和營運勢頭，大多數細分市場和終端市場的潛在需求都有彈性。我要感謝我們所有團隊的出色工作。但我想特別強調兩個團隊：測量與控制解決方案以及水解決方案和服務。在這兩個領域，專注的努力都獲得了非常出色的回報。在 MCS，有機收入年增超過 20%，利潤率年增超過 500 個基點。作為一個合併部門，WSS 在第一季始終專注於為客戶提供服務，實現了所有部門中最高的訂單成長，並為賽萊默的整體利潤組合做出了重大貢獻。

In addition to operational and commercial performance, the first quarter also reflected continued momentum on integration synergies with Evoqua. We saw a very solid Q1 run rate on cost capture, and we're confident in how we're tracking both on revenue and cost synergies. On the basis of our momentum, the team's disciplined performance and continuing resilient demand, we're raising our full year guidance for both revenue and margin and lifting our EPS guidance $0.08 from the midpoint.

除了營運和商業績效外，第一季還反映出與 Evoqua 整合協同效應的持續勢頭。我們在第一季的成本捕獲方面看到了非常穩定的運行率，並且我們對如何追蹤收入和成本協同效應充滿信心。基於我們的勢頭、團隊嚴謹的表現和持續的彈性需求，我們上調了全年收入和利潤率指引，並將每股收益指引從中位數上調了 0.08 美元。

As we look forward, operationally, we're focused on maximizing value from every additional incremental volume we deliver. The team's impressive first quarter margin performance reflects our increasing operational discipline. We're driving simplification across our business, doing the few things that matter most even more efficiently.

展望未來，在營運方面，我們專注於從我們交付的每一個額外增量中實現價值最大化。該團隊令人印象深刻的第一季利潤率表現反映了我們不斷加強的營運紀律。我們正在推動整個業務的簡化，更有效率地完成少數最重要的事情。

To solve water, we have to simplify water both for our customers and for ourselves. Strategically, our demand outlook continues to be supported by secular trends that are set to continue across economic cycles. As the headlines reflect, we're seeing an increasingly water-challenged world. And just as with energy, the water economy is intertwined with every part of business and life.

為了解決水資源問題，我們必須為我們的客戶和我們自己簡化水資源。從戰略上講，我們的需求前景繼續受到將在整個經濟週期中持續的長期趨勢的支持。正如頭條新聞所反映的那樣，我們看到了一個日益面臨水資源挑戰的世界。正如能源一樣，水經濟與商業和生活的各個層面交織在一起。

So as water security becomes pressing, we'll continue to see increasing demand for the solutions that can help make companies and communities more water secure, and Xylem's platform of capabilities is uniquely positioned to meet this demand. We recently announced we'll be hosting our Investor Day on May 30 to take place both virtually and here at our headquarters in Washington. We're looking forward to the opportunity to provide updates on our strategic outlook, long-term growth and financial framework and our 2030 sustainability goals. And with that, I'll hand it over to Bill to cover the quarter's results, our financial position and our outlook in more detail. Bill?

因此，隨著水安全變得緊迫，我們將繼續看到對有助於提高公司和社區用水安全的解決方案的需求不斷增長，而賽萊默的功能平台具有獨特的優勢來滿足這一需求。我們最近宣布將於 5 月 30 日在華盛頓總部舉辦投資者日活動。我們期待有機會提供有關我們的策略前景、長期成長和財務框架以及 2030 年永續發展目標的最新資訊。接下來，我將把它交給比爾，更詳細地介紹本季的業績、我們的財務狀況和我們的前景。帳單？

Thanks, Matthew. Please turn to Slide 5. Q1 was an excellent start to the year, exceeding expectations across revenue, margin and earnings per share. I want to echo Matthew's thanks to all of our teams for remaining focused and turning in an outstanding quarter. We continue to see resilient demand with our backlog increasing 4% to $5.3 billion. Organic orders grew 3% in the quarter with book-to-bill above 1, supported by strength across developed markets, particularly in WSS.

謝謝，馬修。請參閱幻燈片 5。我想表達馬修對我們所有團隊的感謝，感謝他們保持專注並在這個季度取得了出色的成績。我們繼續看到需求的彈性，我們的積壓訂單增加了 4%，達到 53 億美元。在已開發市場（尤其是 WSS）實力的支撐下，本季有機訂單成長了 3%，訂單出貨比超過 1。

Total revenues grew 40%, and organic revenues rose 7%, exceeding our guidance and a healthy combination of volume and price. Our performance was led by M&CS and WSS and we saw growth in all regions, led by double-digit growth in the U.S. EBITDA margin was 19.2%, up 290 basis points from the prior year, with productivity savings, strong volume, price and mix more than offsetting inflation and investments. This reflects incrementals of 26% on a consolidated basis and 57% on an organic basis.

總收入增長了 40%，有機收入增長了 7%，超出了我們的指導，數量和價格的健康組合。我們的業績以M&CS 和WSS 為主導，我們在所有地區都實現了增長，其中美國EBITDA 利潤率為19.2%，比上年增長290 個基點，實現了兩位數的增長，生產力節省，銷量、價格和組合強勁不僅僅是抵消通貨膨脹和投資。這反映了合併基礎上 26% 的增量和有機基礎上 57% 的增量。

Our EPS in the quarter was $0.90, above the high end of our guide by $0.05, up 14% over the prior year. Our balance sheet remains healthy with ample liquidity to support capital deployment. We started the year with free cash flow conversion of 9%. This represents significant improvement versus typical seasonality of negative Q1 free cash flow conversion. This year, we delivered higher net income, offset slightly by increased CapEx.

本季我們的每股收益為 0.90 美元，比我們的指導上限高出 0.05 美元，比上年增長 14%。我們的資產負債表保持健康，流動性充足，支援資本部署。今年伊始，我們的自由現金流轉換率為 9%。與第一季負自由現金流轉換的典型季節性相比，這代表了顯著改善。今年，我們實現了更高的淨利潤，但被資本支出的增加略有抵消。

Please turn to Slide 6. Measurement & Control Solutions had a great quarter and exceeded our expectations. Orders grew 3% on continued smart metering demand. Backlog rose to $2.2 billion, up 6% organically and book-to-bill came in slightly under 1 due to greater backlog conversion. M&CS revenue was up 22%, driven by smart metering demand and backlog execution. We finished the quarter with EBITDA margins of 22.7%, up 550 basis points versus the prior year and up 440 basis points sequentially. Margin expansion was driven by productivity, higher volume and price and favorable mix more than offsetting inflation.

請參閱投影片 6。由於智慧電錶需求持續成長，訂單成長了 3%。積壓訂單增至 22 億美元，有機成長 6%，由於積壓訂單轉換率提高，訂單出貨比略低於 1。在智慧計量需求和積壓執行的推動下，M&CS 收入成長了 22%。本季結束時，我們的 EBITDA 利潤率為 22.7%，比上年同期成長 550 個基點，比上一季成長 440 個基點。利潤率擴張是由生產力、銷售和價格上漲以及有利的組合推動的，而不僅僅是抵消通貨膨脹。

In Water Infrastructure, orders grew 6% in the quarter, led by robust transport demand. Revenue exceeded our expectations with total growth of 40% and organic growth of 6%, driven by healthy demand across all regions and applications. EBITDA margin for the segment was up 320 basis points driven by productivity, mix, volume and price offsetting inflation. In Applied Water, although orders declined versus a year ago, book-to-bill was greater than 1, reflective of a few large project wins. Revenues were down 4%, in line with our expectations against strong growth in the first quarter last year, primarily driven by a decline in developed markets.

在水務基礎設施領域，在強勁的運輸需求的帶動下，本季訂單成長了 6%。在所有地區和應用的健康需求的推動下，收入超出了我們的預期，總成長 40%，有機成長 6%。在生產力、產品組合、數量和價格抵銷通膨的推動下，該部門的 EBITDA 利潤率增加了 320 個基點。在Applied Water，雖然訂單較一年前有所下降，但訂單出貨比大於1，反映出一些大型項目的中標。營收下降 4%，符合我們對去年第一季強勁成長的預期，主要是由於已開發市場的下滑。

Segment EBITDA margin declined 380 basis points year-over-year, an unfavorable mix, higher inflation and volume declines, partly offset by productivity savings.

部門 EBITDA 利潤率年減 380 個基點，這是一個不利的組合，通膨上升和銷售下降，但部分被生產力節省所抵消。

Wrapping up with water solutions and services. Orders grew 7% organically led by dewatering and 19% on a pro forma basis with book-to-bill well above 1 in the quarter, driven by a large order for a 20-year outsourced water contract, but even excluding that large order, pro forma demand increased. Organic revenue was up 6%, while pro forma revenue increased 9%, with healthy growth across most of the businesses. Adjusted EBITDA margin was strong at 22.3%, driven by favorable mix in volume and price and productivity.

總結水務解決方案和服務。在脫水業務的推動下，訂單有機成長了7%，在20 年期外包水合約大訂單的推動下，本季訂單出貨比遠高於1，預計訂單成長了19%，但即使不包括該大訂單，預計需求增加。有機收入成長了 6%，預計收入成長了 9%，大多數業務都實現了健康成長。受銷售、價格和生產力有利組合的推動，調整後 EBITDA 利潤率高達 22.3%。

The outperformance across WSS is a great reflection of our team staying focused on what matters, serving our customers throughout this integration and resegmentation.

WSS 的出色表現很好地反映了我們的團隊始終專注於重要的事情，並在整個整合和重新細分過程中為客戶提供服務。

Now let's turn to Slide 7 for our updated full year and second quarter guidance. Given our first quarter outperformance and both commercial and operational momentum, we are raising our full year guidance. We are increasing our revenue guide to approximately $8.5 billion. This reflects an additional point of growth versus prior guidance. That will put total revenue growth at 15% to 16% and organic revenue growth at 4% to 6%. We are confident about driving further margin expansion with operational productivity and are raising our EBITDA margin guidance to about 20%. That represents 110 basis points of expansion versus the prior year driven by higher volume, productivity, including cost synergies and price offsetting inflation. Our updated EPS guidance of $4.10 to $4.25 reflects an increase of $0.08 at the midpoint.

現在讓我們轉向幻燈片 7，了解更新後的全年和第二季指導。鑑於我們第一季的優異表現以及商業和營運勢頭，我們正在提高全年指引。我們正在將收入指南提高至約 85 億美元。這反映了與先前指導相比的額外增長點。這將使總收入成長 15% 至 16%，有機收入成長 4% 至 6%。我們有信心透過營運生產力進一步推動利潤率擴張，並將 EBITDA 利潤率指引提高至 20% 左右。這意味著與前一年相比，擴張了 110 個基點，這是由於產量和生產率提高，包括成本協同效應和價格抵消通膨。我們更新後的每股盈餘指引為 4.10 美元至 4.25 美元，反映出中點增加了 0.08 美元。

We continue to expect around $100 million of exit rate cost synergies in 2024. And free cash flow conversion for the year is still expected to be 115% of net income. The full year outlook at the segment levels remain largely unchanged from our comments in February.

我們繼續預期 2024 年退出率成本綜效約為 1 億美元。各細分市場的全年展望與我們 2 月的評論基本保持不變。

For the second quarter, we anticipate total revenue growth will be 23% to 25% on a reported basis and 5% to 7% organically. We expect second quarter EBITDA margin to be approximately 20%, up 90 basis points, driven by higher volumes, continued price realization and productivity gains. This yields second quarter EPS of $1 to $1.05.

對於第二季度，我們預計報告基礎上的總收入成長將為 23% 至 25%，有機成長為 5% 至 7%。我們預計，在產量增加、價格持續實現和生產力提高的推動下，第二季 EBITDA 利潤率將約為 20%，成長 90 個基點。這使得第二季度每股收益為 1 美元至 1.05 美元。

We came into 2024 at a healthy pace, and we've had a strong start to the year, building further momentum. Our diversified portfolio positions us well to address our customers' evolving needs, and we anticipate healthy demand across most end markets and applications. While we are closely monitoring the macro environment, including inflation, higher interest rates for longer, a strengthening dollar and geopolitical uncertainty, our overall outlook for the year remains positive.

我們以健康的步伐邁入 2024 年，今年開局強勁，勢頭進一步增強。我們多元化的產品組合使我們能夠很好地滿足客戶不斷變化的需求，我們預計大多數終端市場和應用都有健康的需求。雖然我們正在密切關注宏觀環境，包括通膨、較長時間的利率上升、美元走強和地緣政治不確定性，但我們對今年的整體前景仍然樂觀。

With that, please turn to Slide 8, and I'll turn the call back over to Matthew for closing comments.

接下來，請前往投影片 8，我會將電話轉回給 Matthew，以徵求結束意見。

Thanks, Bill. Two things I want to mention before we close. First, it's been such a privilege in my first 100 days as CEO to spend time with so many Xylem colleagues around the world. You can see they're doing fantastic work, and it's evident in today's results. And our integration progress is a great indicator of how smoothly the Xylem and Evoqua teams have come together. As a combined company, there is so much potential for growth and impact, especially as we pivot to even stronger execution of our strategy.

謝謝，比爾。結束前我想提兩件事。首先，在擔任執行長的頭 100 天裡，我很榮幸能夠與世界各地的賽萊默同事共度時光。您可以看到他們做得非常出色，這在今天的結果中顯而易見。我們的整合進度是 Xylem 和 Evoqua 團隊合作順利程度的重要指標。作為一家合併後的公司，成長和影響的潛力巨大，特別是當我們轉向更強有力地執行我們的策略時。

To achieve our potential, we're being very intentional about the culture we're building. Specifically, we're creating a culture centered on behaviors that drive empowerment, accountability and innovation. We call it our high-impact culture, and it's the heart of our how, how we are creating the next phase of Xylem's growth and impact. Of course, culture change takes time, and it starts with myself and the leadership team.

為了發揮我們的潛力，我們非常注重我們正在建立的文化。具體來說，我們正在創造一種以推動賦權、問責和創新行為為中心的文化。我們稱之為高影響力文化，它是我們如何、如何創造賽萊默下一階段的成長和影響力的核心。當然，文化變革需要時間，這要從我自己和領導團隊開始。

So it's incredibly energizing to see the cultural alignment already coming to life in our town halls and business reviews at all levels in the organization. We'll talk a bit more about how we're fostering our high-impact culture when we gather together for Investor Day at the end of May. Lastly, on Investor Day, we'll also be launching our 2023 sustainability report. We're very proud of what we've achieved and even more motivated by the work ahead. In this year's report, we'll be introducing our combined company goals for the first time, setting our ambition for impact through 2030. Given how fundamental sustainability is to Xylem's business model, I invite you to give it as much attention as you give our financial results. And as always, we welcome your feedback. And with that, I'll turn it over to the operator to lead us through Q&A.

因此，看到我們的市政廳和組織各個層級的業務審查中已經實現了文化一致性，真是令人振奮。當我們在五月底的投資者日聚會時，我們將更多地討論如何培養我們的高影響力文化。最後，在投資者日，我們也將發布 2023 年永續發展報告。我們對所取得的成就感到非常自豪，並且對未來的工作更加充滿動力。在今年的報告中，我們將首次介紹我們的公司綜合目標，設定我們在2030 年實現影響力的雄心壯志。關註一樣關注它。一如既往，我們歡迎您提供回饋。然後，我會將其交給操作員來引導我們進行問答。

(Operator Instructions) The first question comes from Deane Dray with RBC Capital Markets.

（操作員說明）第一個問題來自 RBC 資本市場的 Deane Dray。

Maybe we can start with the Evoqua integration and just lots of focus here on the potential revenue synergies, the rollout of the European business. Just any color there in terms of what the potential is on some new outsourcing contracts? And then also, can you just -- any color on that large outsourced contract. That would be helpful too.

也許我們可以從 Evoqua 整合開始，專注於潛在的收入綜效和歐洲業務的推出。就一些新的外包合約的潛力而言，有什麼顏色嗎？然後，你可以——大型外包合約上的任何顏色嗎？那也會有幫助的。

Yes, I can start us off, Deane. I'll have Bill cover the big win that we had in our newest WSS segment on the long-term build, own, operate contract. But maybe just broadly on Evoqua integration update, it's really hard to believe that we closed about a year ago. We -- just to remind everybody, we closed that in what I call record time, announced in January, closed in May of last year. And I would characterize this as great momentum. Obviously, we've got an Investor Day coming up in about 4 weeks. And we're going to have some real tangible proof points to the progress that the teams are making.

是的，我可以開始了，迪恩。我將請 Bill 介紹我們在最新的 WSS 部分中在長期構建、擁有和運營合約方面取得的重大勝利。但也許只是在 Evoqua 整合更新方面，很難相信我們在一年前就關閉了。我們——只是為了提醒大家，我們在我所說的創紀錄的時間內關閉了它，在一月份宣布，並在去年五月關閉。我認為這是巨大的動力。顯然，大約 4 週後我們將迎來投資者日。我們將有一些真正切實的證據來證明團隊正在取得的進展。

Just briefly, cost synergies are tracking well to meet the $100 million run rate that we've talked about in our '24 plan. And Deane, on revenue synergies, we're ramping. That was the last thing that we were able to really focus on. Obviously, on the cost side, you can do a lot of work before the close. You can't gun jump on the revenue synergies before closing. But the teams have really ramped up. And again, we're going to have some nice proof points to share in a few weeks here in D.C., but I don't want to steal the team's thunder there. But great momentum. And you're going to get examples across 3 of our 4 segments of those revenue synergies.

簡而言之，成本協同效應進展順利，可以滿足我們在 24 小時計畫中討論的 1 億美元運行率。迪恩，在所得綜效方面，我們正在加強力道。這是我們能夠真正關注的最後一件事。顯然，在成本方面，你可以在成交前做很多工作。在交易結束之前，你不能對收入綜效提出質疑。但球隊確實已經加強了。再說一遍，幾週後我們將在華盛頓分享一些很好的證據，但我不想搶了團隊的風頭。但勢頭強勁。您將獲得這些收入協同效應的 4 個部分中的 3 個部分的範例。

And maybe specifically on international expansion to your point. We are making really, I'd say, quicker progress on the capital side of that. But we're starting to build momentum on the services side. We've got 3 or 4 large scale projects that we're working in the Americas that are kind of outside the U.S., and we've got some work that we're starting to investigate in probe in Europe. And so that's always been the longer part of our tail of the synergy. But I just -- I'm really happy with the momentum that the teams are making.

也許特別是在國際擴張方面。我想說，我們在資本方面確實取得了更快的進展。但我們開始在服務方面建立動力。我們在美洲開展了 3 或 4 個大型項目，這些項目在美國以外，我們已經開始在歐洲進行一些調查工作。因此，這一直是我們協同效應中較長的部分。但我只是——我對球隊所取得的勢頭感到非常滿意。

Maybe just 1 other comment before I hand it to Bill. You've seen in the quarter 1 results, we have not been slowed by integration. And that's an important point to make. This can be very distracting. And specifically with our WSS segment, where we recently did what I call a reverse integration with dewatering and assessment services, you can just see the outstanding results that the team posted in Q1 and more to come. So Bill, maybe?

在我把它交給比爾之前，也許還有另一個評​​論。您已經在第一季的業績中看到，我們並沒有因整合而放慢速度。這是需要強調的重要一點。這可能會非常分散注意力。特別是在我們的 WSS 部門，我們最近做了我所說的與脫水和評估服務的反向集成，您可以看到團隊在第一季度發布的出色結果以及未來的更多結果。那麼比爾，也許吧？

Yes. And Deane, maybe just to that project. I mean, great win by the team. It's a $100-plus million 20-year outsourced water project to support a large hydrogen plant investment with 1 of our key customers. Obviously, there's an upfront revenue recognition over the first 18 months, and it's about 1/3 of it and the balance will be recognized over the next 20 years.

是的。迪恩，也許只是為了那個計畫。我的意思是，球隊取得了偉大的勝利。這是一個耗資 1 億多萬美元、為期 20 年的外包水項目，旨在支持我們與一位主要客戶的大型氫工廠投資。顯然，前 18 個月有預先確認的收入，大約是其中的 1/3，餘額將在未來 20 年確認。

So excited about that. Sticky recurring revenue that, that project will provide. The team has got a really strong funnel of large opportunities that continue to work through, and we look to see continued wins as we progress through the year.

對此感到非常興奮。該項目將提供的黏性經常性收入。團隊擁有一個非常強大的漏斗，其中包含繼續努力的巨大機會，我們希望在這一年的進步中看到持續的勝利。

That's all really good to hear. And just as a second question, and I'm not asking to front run anything about the analyst meeting that's coming up. But just there's an expectation that there's portfolio optimization coming, there's margin improvement that will be targeted. And I would just want to get a sense of -- I know that's going to be very inward looking at the 4 walls of the company. But what about the growth algorithm. Just during this period, are you still focused on M&A? Are you looking at new opportunities? And I just don't want to miss any of that growth upside during this period of kind of portfolio optimization?

聽到這些真是太好了。正如第二個問題一樣，我並不是要求搶先報道即將舉行的分析師會議的任何內容。但只要有投資組合優化即將到來的預期，就會有針對性地提高利潤率。我只是想了解一下——我知道，觀察公司的四面牆會讓人非常內向。但是成長演算法呢？就在這個時期，您還專注於併購嗎？您正在尋找新的機會嗎？我只是不想錯過這段投資組合優化期間的任何成長空間？

No, it's a great question, and you pretty much hit on 3 of my key messages that I'll be taking up in the Investor Day with me. Look, we're extremely focused on executing on the platform that's been built over the past decade, especially over the past year with the acquisition of Evoqua to drive above-market growth. I mean that's our mantra. This is our #1 execution priority in our goal deployment process this year, and it will be in the future years. And it's really obviously bolstered by the Evoqua synergies.

不，這是一個很好的問題，您幾乎觸及了我將在投資者日與我一起討論的 3 個關鍵訊息。看，我們非常專注於在過去十年建立的平台上執行，特別是在過去一年收購 Evoqua 以推動高於市場的成長。我的意思是這是我們的座右銘。這是我們今年和未來幾年目標部署過程中的第一要務。很明顯，Evoqua 的協同效應增強了這一點。

Look, Q1 is 1 data point with our new leadership team in place here. But look, we're up 6% in volume and 1% in price. And I think that's a good beginning of what we're building here on the top line, and I'm super proud of our team's top line mindset. It's not a secret. I've been very vocal about our operating leverage and so of our investors, quite frankly. And so we want to make sure that we're driving profitable growth in expanding our margins. And again, Q1 is a good example of that. We're at roughly 60% almost incrementals on a pro forma basis.

看，第一季是我們新領導團隊就位的 1 個數據點。但你看，我們的銷量成長了 6%，價格成長了 1%。我認為這是我們在營收方面建立的良好開端，我對我們團隊的營收心態感到非常自豪。這不是秘密。坦白說，我對我們的營運槓桿以及我們的投資者一直非常直言不諱。因此，我們希望確保透過擴大利潤來推動獲利成長。 Q1 就是一個很好的例子。按預計，我們的增幅約為 60%。

And the thing Deane, I would leave you with, when we talk about some of the inward focus, it's really about we have to simplify our business to grow our business. And we're doing both. And so that's really the mantra and the focus. And from a capital deployment standpoint, we'll get into more into that here in a few weeks, but we're going to be focused on high-growth markets with accretive margin and we're going to be more consistent in our capital deployment. And we've just wrapped up some value mapping work that's going to inform where those opportunities are. So we look forward, and the team looks forward to sharing that with you and others here in a few weeks.

迪恩，我想留給您的一點是，當我們談論一些內部焦點時，實際上我們必須簡化我們的業務以發展我們的業務。我們兩者都在做。這確實是口號和焦點。從資本部署的角度來看，我們將在幾週內對此進行更多討論，但我們將專注於具有增值利潤的高成長市場，並且我們將在資本部署方面更加一致。我們剛剛完成了一些價值映射工作，該工作將告訴您這些機會在哪裡。因此，我們期待著，團隊也期待在幾週內與您和其他人分享這一點。

The next question comes from Mike Halloran with Baird.

下一個問題來自 Mike Halloran 和 Baird。

So a couple here. First, maybe just taking a step back here, you've been (inaudible) year-to-date 100-plus days, Bill, you've been there, what, 6, 7 months now. What are the initial impressions as far as the momentum you're seeing, how the messaging you 2 are pushing through are starting to sink into the culture, sink in to the people? And what kind of impressions do you have so far?

所以這裡有一對。首先，也許只是退後一步，今年迄今你已經（聽不清楚）100多天了，比爾，你已經在那裡了，什麼，現在有6、7個月了。就您所看到的勢頭而言，您的初步印像是什麼？到目前為止，您有什麼印象？

No, that's a great question. I did mention that in my opening remarks about the first 100 days. We -- not this me, but we as a team feel good about where we are. And we believe we've got -- we had good momentum coming into 2024. We believe now we're continuing to build on that momentum that you've seen in Q1. We're executing on a great platform, which I just teed up with Deane here. I'd say we did not have a cold start, right? We didn't start this January 1 and figure out how to start turning the crank.

不，這是一個很好的問題。我在開場白中確實提到了前 100 天的情況。我們——不是我，而是我們作為一個團隊對我們所處的位置感到滿意。我們相信，進入 2024 年，我們將保持良好的勢頭。我們正在一個很棒的平台上執行，我剛剛在這裡與迪恩一起建立了這個平台。我想說我們沒有冷啟動，對吧？我們並沒有從今年 1 月 1 日開始就弄清楚如何開始轉動曲柄。

With [COO] last year, having the opportunity to kind of refine the strategic priorities is a part of our strategy session with the Board. And those themes were really around value capture from our Evoqua transaction. Simplification, not only in service of margins, but growth, which I just mentioned to Deane. And we're deploying that more systematically through the business through goal deployment. I'm really proud of what I'm seeing when I'm out and about with the teams, and scaling services. So that, I'm pleased to see the progress there.

去年與[首席營運長]一起，有機會完善策略優先事項是我們與董事會舉行策略會議的一部分。這些主題實際上是圍繞著我們 Evoqua 交易的價值獲取。簡化不僅是為了利潤，也是為了成長，我剛剛向迪恩提到這一點。我們正在透過目標部署在整個業務中更有系統地部署這一點。當我與團隊一起外出並擴展服務時，我對所看到的一切感到非常自豪。因此，我很高興看到那裡的進展。

Obviously, I'm pleased to see the progress on our Evoqua integration, both economically and the results we're seeing. But culturally, the teams are coming together and working fantastically, and we're seeing, obviously, momentum there.

顯然，我很高興看到 Evoqua 整合所取得的進展，無論是經濟上還是我們所看到的結果。但在文化上，團隊正在齊心協力並出色地工作，我們顯然看到了那裡的動力。

I think the last thing that's most important to me is the how because you can have all these objectives and strategies and things you want to go do, but if you don't have the right culture, then it's hard to execute consistently. And so the work we're doing on our high-impact culture, our how, it started last year with our senior leadership team probably about a year ago this time. And we just engaged our top 150 in the organization at the end of last year coming into '24. And we're seeing great alignment. I've spent a lot of time on the road the past 100 days globally. And I'm really pleased about where we are, but it's a long journey. We have a lot of work to do ahead of us. But with that focus and intention, I believe we can achieve great things. So look, I'm happy where we are. We're not satisfied, but I think we're off to a good start.

我認為對我來說最重要的最後一件事是如何執行，因為你可以擁有所有這些目標和策略以及你想做的事情，但如果你沒有正確的文化，那麼就很難一致地執行。因此，我們在高影響力文化方面所做的工作，我們的方式，是從去年我們的高階領導團隊開始的，可能大約一年前的這個時候。去年年底，我們剛在 24 世紀末招募了組織中的前 150 名員工。我們看到了巨大的一致性。過去 100 天，我在全球各地的路上度過了很多時間。我對我們所處的位置感到非常高興，但這是一個漫長的旅程。我們還有很多工作要做。但有了這種專注和意圖，我相信我們能夠取得偉大的成就。所以看，我很高興我們現在的處境。我們並不滿意，但我認為我們有了一個好的開始。

And then kind of a broad question on underlying dynamics in orders. One, kind of twofold here. One, can you give the pro forma organic overall orders for the company or give some sort of proxy for it? And then second, if I listen to the messaging here, it feels like not a lot has changed in terms of what you're seeing from an end market perspective across the various segments. I'd like to just understand if there are any notable puts and takes that have either inflected more so or less so than you thought in the quarter or from a trend line perspective?

然後是關於訂單的潛在動態的廣泛問題。一，這裡有雙重意義。第一，您能否為公司提供預期的有機整體訂單或為其提供某種代理？其次，如果我聽一下這裡的訊息，感覺從各個細分市場的終端市場角度來看，你所看到的情況並沒有太大變化。我想知道是否有任何值得注意的看跌期權和看跌期權的變化比您在本季度或從趨勢線角度想像的更多或更少？

Maybe I'll let Bill open up on your orders question, I'll give us some commentary and color on the markets.

也許我會讓比爾談談你的訂單問題，我會給我們一些關於市場的評論和看法。

Yes. So obviously, organic was reported at 3%. The pro forma organic was 7%, so more than 2x that.

是的。顯然，有機含量為 3%。預計有機率為 7%，是這個數字的 2 倍以上。

Yes. So good momentum on orders in Q1. The book-to-bill was greater than 1 and backlog up 4%. And not a lot has changed. Demand remains healthy, Mike, in the majority of our end markets. And it's supported by a lot of the favorable drivers that we've been talking about around the secular trends. Government funding is trickling in globally across different parts of our coverage still a lot of resiliency in municipalities or utilities, OpEx and CapEx for that matter. I know that there's been questions about with rates, especially in the U.S. and in Europe with that slowdown, we're not seeing any slowdown. And you've seen with our results in the WSS segment this quarter, the durability of that business model. And I'm really proud of the M&CS team with their backlog conversion. We continue to win orders, though, and our orders are up year-over-year, and we've got good momentum there.

是的。第一季訂單動能良好。訂單出貨比大於 1，積壓訂單增加 4%。並沒有太大改變。麥克，我們大多數終端市場的需求仍然保持健康。它得到了我們一直在談論的長期趨勢的許多有利驅動因素的支持。政府資金正在全球範圍內不斷流入我們覆蓋範圍的不同部分，市政當局或公用事業、營運支出和資本支出仍然具有很大的彈性。我知道人們對利率有疑問，特別是在美國和歐洲，隨著經濟放緩，我們沒有看到任何放緩。您已經從我們本季 WSS 細分市場的業績中看到了該業務模式的持久性。我對 M&CS 團隊的積壓訂單轉換感到非常自豪。不過，我們繼續贏得訂單，而且我們的訂單逐年增加，我們在那裡有良好的勢頭。

So I think a lot of what we talked about is said the same. The watch areas continue to be applied water. It largely was what we expected. We got a better second half comp, and we're working on some things in the business that I think we'll continue to improve performance there. Yes, so I think that would be my commentary on where we are right now from a demand point of view.

所以我認為我們談論的很多內容都是一樣的。監視區域繼續噴水。這很大程度上符合我們的預期。我們下半年的表現更好，我們正在進行業務中的一些工作，我認為我們將繼續提高那裡的表現。是的，所以我認為這將是我從需求角度對我們目前狀況的評論。

The next question comes from Scott Davis with Melius Research.

下一個問題來自 Melius Research 的 Scott Davis。

Congrats on the -- getting through the first 100 days and having a good quarter here. Big picture, Matthew, when you see a synergy target after a deal like yours, I have to wonder, is it input or output, meaning are you trying to find $100 million in synergies? Or is it a natural output of the actions that are taken integration-wise, that's a little theoretical, but I guess somewhat kind of the -- the second derivative of the question is, is that if those synergies track above the [100] , will you likely be more likely to invest that back into the business or show it on the margin line?

恭喜您度過了前 100 天，並在此度過了愉快的季度。從大局來看，馬修，當你在像你這樣的交易後看到協同目標時，我不得不想，這是輸入還是輸出，這意味著你想找到 1 億美元的協同效應嗎？或者它是採取整合方式採取的行動的自然輸出，這有點理論化，但我想有點像——問題的二階導數是，如果這些協同作用高於 [100] ，您是否更有可能將其重新投資到業務或將其顯示在利潤線上？

Yes. If you're referring to the cost synergies as a part of the Evoqua transaction?

是的。如果您指的是 Evoqua 交易中的成本綜效？

Yes.

是的。

Yes. So look, we did announce $140 million when we did the deal. So it is a little bit more than $100 million. Look, we're running to a target much higher than 140. And we're going to land the plane for sure at 140, and we're going to make sure that we put that upside probably somewhat to the bottom line, but also somewhat investing in growth. It's probably a mixed bag of whatever the overage would be -- would kind of fall half to the bottom line and half the top line growth. It's easy when you do these deals to look at cost synergies and they're on paper and they look like, okay, they're easy to do, they're procurement, back office, they're lift and shift factories. It looks pretty straightforward, but there's a lot of work that goes into this and a lot of tracking. And I'm really impressed, Scott, of the capability that we have built through this transaction. And that's only going to help us as we go forward and deploy more capital in the future.

是的。所以看，我們在完成交易時確實宣布了 1.4 億美元。所以這個數字略高於 1 億美元。看，我們正在朝著遠高於 140 的目標邁進。 。無論超額情況如何，這可能是一個混合體——一半會下降到底線，一半會下降到頂線增長。當你進行這些交易時，很容易考慮成本協同效應，而且它們都寫在紙上，看起來很容易，它們是採購、後台辦公室，它們是直接搬遷的工廠。它看起來非常簡單，但需要做大量的工作和大量的追蹤。斯科特，我們透過這筆交易建立的能力給我留下了深刻的印象。這只會幫助我們前進並在未來部署更多資本。

So I think we're tracking well, we're going to deliver above [140], and we're going to use that to help continue to expand margins, but also to fuel growth in the future.

所以我認為我們追蹤得很好，我們將實現[140]以上的目標，我們將利用它來幫助繼續擴大利潤率，同時也推動未來的成長。

That makes sense. And the second question, I'd probably only get an opportunity to ask this once when you get a newer CEO. But when you think about the buckets of where Xylem is historically perhaps over invested or under invested or over loved or under loved, what stands out to you as areas of perhaps improvement that you'd like to see. I mean, you mentioned the cultural changes and some of the operational rigor. But if you could be more specific around -- around maybe some areas where you feel like you guys could use a little bit more love or the (inaudible)?

這就說得通了。第二個問題，當你有新的執行長時，我可能只有一次機會問這個問題。但是，當您考慮賽萊默歷史上可能過度投資或投資不足、過度喜愛或不夠喜愛的領域時，您會發現哪些方面對您來說是您希望看到的可能改進的領域。我的意思是，您提到了文化變革和一些營運嚴格性。但如果你能更具體一點——也許在一些你覺得你們需要更多愛的領域或（聽不清楚）？

Yes. I think you hit the first one. It's culturally, and I think we're making good progress there. But you've heard me talk about simplify water. I think that's what it boils down to. Over the years as we've built this incredible platform, we have had some complexity conspired against us to some extent. And you can see a little bit of that in our margin profile. So it's not that we're going to be like super inwardly focused, but we do have to focus inwards so we can better serve our customers and our colleagues. And that's where we're focused. It's just making it simple to do business internally at Xylem as well as for our customers, so customer-backed mentality. 80/20 is one tool to do that. There's other tools that we're leveraging.

是的。我認為你擊中了第一個。這是文化方面的，我認為我們在這方面取得了良好的進展。但你已經聽過我談論簡化水。我想這就是歸根結底的原因。多年來，當我們建立這個令人難以置信的平台時，我們在某種程度上遇到了一些複雜性對我們不利的情況。您可以在我們的保證金概況中看到這一點。所以，這並不是說我們會變得超級專注於內心，但我們確實必須專注於內心，這樣我們才能更好地為我們的客戶和同事服務。這就是我們關注的重點。這只是讓賽萊默內部以及我們的客戶開展業務變得簡單，因此客戶支援的心態。 80/20 是實現這一目標的一種工具。我們正在利用其他工具。

But I think putting this finer focus on what I would call the commercial execution of our business, which has probably been the area that we haven't focused enough around customers and product SKUs and things of that nature really just to simplify the business is the mantra, and I think it's going to pay big dividends for us going forward.

但我認為，將更精細的重點放在我所說的業務的商業執行上，這可能是我們沒有足夠關注客戶和產品 SKU 以及這種性質的事情的領域，實際上只是為了簡化業務。這將為我們的未來帶來巨大的紅利。

Super helpful. Thank you, Matthew. We'll see you all in a few weeks.

超有幫助。謝謝你，馬修。幾週後我們就會見到大家。

The next question comes from Andy Kaplowitz with Citigroup.

下一個問題來自花旗集團的安迪·卡普洛維茨。

Matt, I know you mentioned you continue to watch Applied Water. I think you did say that you won a couple of larger projects there that led to book-to-bill over 1 time. So maybe what does that say about the market? Is it like you thought, better than you thought, worse than you thought? How would you sort of characterize what's going on there?

馬特，我知道你提到你會繼續看《Applied Water》。我想你確實說過你在那裡贏得了幾個較大的項目，這些項目導致訂單出貨比增加了一倍以上。那麼這對市場來說可能意味著什麼？是不是像你想像的那樣，比你想的好，比你想像的更差？您如何描述那裡正在發生的事情？

Yes. I'd say it's largely what we thought. If you look at the prior Q1s, we're up 10% in each 1 of those. So it's a tough compare. But it's our most cyclical segment, we do continue to expect low single-digit decline this year. It's kind of in line with what we planned. We did, to your point, have good Q1 orders performance. There were a few larger projects in that, that are a little bit out in the future. So it's not something that's book and ship. It's more of future projects. But we do continue to see soft markets, especially in Europe and emerging markets is where our orders were down. Obviously, we're watching developed markets as well, but obviously, Europe plays into that. But our really weakness in Q1 was emerging markets and in Europe for Applied Water.

是的。我想說這很大程度上是我們的想法。如果你看看之前的第一季度，我們每季度都成長了 10%。所以這是一個艱難的比較。但這是我們最具週期性的部分，我們仍然預計今年將出現低個位數的下降。這有點符合我們的計劃。就您而言，我們確實擁有良好的第一季訂單表現。其中有一些較大的項目，這些項目在未來會有點過時。所以這不是書本和運送的東西。更多的是未來的項目。但我們確實繼續看到疲軟的市場，特別是在歐洲和新興市場，這是我們訂單下降的地方。顯然，我們也在關注已開發市場，但顯然，歐洲也參與其中。但我們第一季真正的弱點是新興市場和歐洲的 Applied Water。

The comps continue in Q2 to be difficult, and we're closely monitoring the funnel, and leading indicators on Applied Water. But look, we feel good about the business long term. It's just a little bit of a headwind in the first half. It will resolve itself in the second half. And we've got a lot of initiatives in place to reduce complexity and redeploy that effort in growth, and we feel confident about that going forward.

第二季的比較仍然很困難，我們正在密切監視漏斗和應用水的領先指標。但看，我們對這項業務的長期發展感覺良好。只是上半場有點逆風。下半年這個問題就會自行解決。我們已經採取了很多措施來降低複雜性並重新部署成長方面的努力，我們對此充滿信心。

Helpful. And then obviously, it was expected, but can you talk a little bit more about how the new EPA rules regarding PFAS affect Xylem. Did they change the time line at all when PFAS may be impactful? Or is it just kind of slow and steady wins the race for how to think about your impact?

有幫助。顯然，這是預料之中的，但您能多談談 EPA 關於 PFAS 的新規則如何影響賽萊默嗎？當 PFAS 可能產生影響時，他們是否改變了時間線？或只是緩慢而穩定地贏得瞭如何思考你的影響力的競賽？

Yes, it's the latter. It's slow, steady race. Look, we're glad to see the rule be final. Now we have some clarity on the rules of the road, the time line. Look, I'm really proud of our teams in providing clarity just 24 hours after the final rule on LinkedIn Live that really shows that we're customer-centric, we're focused. We're being a leader in the space to educate our customers. But again, to your point, this is a long journey. It will take time for the impacted utilities to comply. They've had 3 years for testing, 5 for PFAS removal, and that's a little bit longer than we initially anticipated in terms of when they need to be compliant. And we're really well positioned today and ready to partner with utilities on PFAS and other emerging contaminants for that matter.

是的，是後者。這是緩慢而穩定的比賽。看，我們很高興看到該規則是最終的。現在我們對道路規則和時間線有了一些清晰的認識。看，我為我們的團隊感到非常自豪，他們在 LinkedIn Live 上發布最終規則後僅 24 小時就提供了清晰的信息，這真正表明我們以客戶為中心，我們專注。我們正在成為教育客戶領域的領導者。但同樣，就你而言，這是一個漫長的旅程。受影響的公用事業公司需要一段時間才能遵守規定。他們有 3 年時間進行測試，5 年時間進行 PFAS 移除，這比我們最初預期的合規時間要長一些。今天，我們確實處於有利位置，並準備與公用事業公司在 PFAS 和其他新興污染物方面合作。

One thing I don't know a lot of people -- if a lot of people know this, we have over 80 PFAS installations that we've done over the years, and we have long-standing relationships and really a differentiated offering through our service capabilities for our customers. And maybe the last thing I'd say also is we do continue to work on destruction technology. Obviously, the capture technologies out there, it's commercially viable, but there's still work to do when you capture the PFAS, how you destroy it. And so we've got a lot of great work going on with our combined company now and our Innovation Labs team to get after that solution.

我不知道很多人知道的一件事 - 如果很多人知道這一點，我們多年來已經安裝了 80 多個 PFAS，並且我們擁有長期的合作關係，並且透過我們的為我們的客戶提供服務的能力。也許我要說的最後一件事是我們確實繼續致力於破壞科技的研究。顯然，現有的捕獲技術在商業上是可行的，但是當您捕獲 PFAS 以及如何銷毀它時，仍然有工作要做。因此，我們現在與合併後的公司和我們的創新實驗室團隊正在進行大量出色的工作，以尋求該解決方案。

The next question comes from Bryan Blair with Oppenheimer.

下一個問題來自布萊恩布萊爾和奧本海默。

Great to drill down on M&CS margin performance, kind of eye-catching step up in profitability there. Maybe offer some finer points on the drivers, seem kind of broad-based in terms of productivity, volume price mix in the quarter? And whether there's anything that we should consider one-time-ish that benefited results? And then lastly on that front, is it still the expectation that margin will improve sequentially throughout the year.

很高興深入了解 M&CS 的利潤率表現，那裡的盈利能力取得了引人注目的進步。也許可以提供一些有關驅動因素的更詳細的觀點，在本季度的生產力、銷售價格組合方面似乎基礎廣泛？我們是否應該考慮一次性有利於結果的事情？最後，在這方面，是否仍預期利潤率將在全年中連續改善。

Yes. No, Bryan, I'll take that one. I'd say (inaudible) team delivered an outstanding quarter. Obviously, EBITDA margin is up 550 basis points with almost 50% incrementals. That team has been on a journey over the last few quarters, dealing with some pretty significant external challenges relative to the supply chain. And then internal challenges to ramp up production levels that they haven't been able to realize historically to deliver for their customers to make up for that past due backlog. They drove significant labor and material productivity to drive efficiencies to increase our output. They went out with incremental pricing, price cost negative for a while. They're back to price material cost positive. It took restructuring actions to address some underperforming parts of the business just to build a stronger financial foundation that they're now leveraging extremely well with this incremental volume.

是的。不，布萊恩，我想要那個。我想說（聽不清楚）團隊交付了一個出色的季度。顯然，EBITDA 利潤率成長了 550 個基點，增幅接近 50%。該團隊在過去幾季中一直在努力應對與供應鏈相關的一些相當重大的外部挑戰。然後是內部挑戰，以提高生產水平，這是他們過去無法實現的，為客戶提供服務，以彌補逾期的積壓。他們大大提高了勞動力和物質生產力，從而提高了效率，從而增加了我們的產量。他們採取增量定價，價格成本在一段時間內為負值。他們又回到了積極的材料成本定價。他們採取了重組行動來解決業務中一些表現不佳的部分，只是為了建立更強大的財務基礎，他們現在可以很好地利用這一增量。

The first quarter was a bit higher than our original expectations as I did see a little bit better mix towards North American water meters. We think that mix holds plus or minus here in the second quarter, but do see some unfavorable mix impacts in the back half as some lower-margin projects, especially in the energy space ship and that mix normalizes a bit. But we're really encouraged with the teams on momentum that they'll exit the year at record margins. They've started their 80/20 initiatives. So they're just in that phase, which I think will produce additional tailwinds as we exit the year. So really happy with their performance. I think it's -- we probably won't see as big of a step up as we progress through the year. It's probably more normalized now. It's just the strength there in the first quarter, but volumes will slightly sequentially increase as we go through the balance of the year.

第一季的業績比我們最初的預期要高一些，因為我確實看到北美水錶的組合有所改善。我們認為第二季的混合會保持正負，但確實會在後半段看到一些不利的混合影響，因為一些利潤率較低的項目，特別是在能源太空船中，並且混合稍微正常化。但我們對這些團隊的動力感到非常鼓舞，他們將以創紀錄的利潤結束這一年。他們已經開始了 80/20 計劃。所以他們正處於這個階段，我認為這將在今年結束時產生額外的推動力。對他們的表現非常滿意。我認為，隨著今年的進展，我們可能不會看到那麼大的進步。現在可能更加正常化了。這只是第一季的強勁表現，但隨著今年剩餘時間的推移，銷量將略有增加。

Okay. Very helpful detail and encouraging trends. Matthew, you mentioned that government money is starting to trickle in. And you touched on the outlook for PFAS and your team's positioning there. It would be great to hear just updated perspective on [IIJA] related growth opportunities overall. You've been pretty consistent in tempering expectations to date, understandably so, given the phasing of the rollout, but we have seen some acceleration in obligations and outlays, front-end reads are certainly very encouraging. And looking at the categories of funding and ultimate spend, I would have to assume that your team is going to participate in just about everything.

好的。非常有用的細節和令人鼓舞的趨勢。馬修，你提到政府資金開始流入。很高興聽到 [IIJA] 相關成長機會的最新觀點。到目前為止，您在調整期望方面一直相當一致，這是可以理解的，考慮到推出的階段性，但我們看到義務和支出有所加速，前端閱讀肯定非常令人鼓舞。考慮到資金和最終支出的類別，我必須假設您的團隊將參與幾乎所有事情。

So curious how your views are evolving there and how we should think about the forward opportunity?

很好奇您的觀點是如何演變的以及我們應該如何考慮未來的機會？

Yes. I wish I could turn and stick on that hose nozzle and make it go a little faster, but look, it's -- I've been pretty consistent about this, whether it's in the U.S. or other markets, U.K., in Europe, with their funding. It's just going to be a slow drift and it's going to drip in and really help support our market growth over the next 3 to 5 years. And so that's how we continue to look at it. We don't have a big jump in our long-range plan in terms of incentives or subsidies that are coming in. So it's just going to trickle in and be kind of a layer on top of the market growth. And that's how we look at it.

是的。我希望我可以轉動並粘上那個軟管噴嘴，讓它走得更快一點，但是看，我對此一直非常一致，無論是在美國還是其他市場，英國，歐洲，他們的資金。這將是一個緩慢的過程，並且會逐漸滲透並真正有助於支持我們未來 3 到 5 年的市場成長。這就是我們繼續看待它的方式。在我們的長期計劃中，在激勵措施或補貼方面，我們沒有大幅躍進。我們就是這樣看待它的。

The next question comes from Nathan Jones with Stifel.

下一個問題來自 Nathan Jones 和 Stifel。

I wanted to pick up on 1 of Bill's comments and something I know I've talked to Matthew about before, which was the anticipation that in the future price will offset inflation. Several years ago, it had been Xylem's target for price plus productivity to offset inflation. So there's a significant change there. So just looking for some color on how you look to go about implementing that and what you think will give to Xylem the entitlement to be, I guess, a little more aggressive with price versus inflation than it has been historically?

我想了解比爾的其中一條評論以及我知道我之前與馬修談論過的事情，那就是對未來價格將抵消通貨膨脹的預期。幾年前，賽萊默的目標是透過物價加生產率來抵銷通膨。所以那裡發生了重大變化。因此，您只是想了解您打算如何實施該計劃，以及您認為賽萊默將有權在價格與通膨方面比歷史上更積極一些？

Yes. I think, obviously, price capture has been a focus with rising inflation. We're going to talk more about that at the end of the month, just a new approach to strategic pricing. I mean, I think for us, it's really -- we're looking to offset our material inflation with price and then let productivity handle the balance of indirect and SG&A inflation and fund our investments. I think the teams have got the operational productivity down, and now it's for us just to continue to refine and our process relative to value capture for the products that we offer to our customers.

是的。我認為，顯然，價格捕獲一直是通膨上升的焦點。我們將在月底多討論這個問題，只是一種新的策略定價方法。我的意思是，我認為對我們來說，我們確實希望用價格來抵消物質通膨，然後讓生產力處理間接通膨和一般行政管理通膨的平衡，並為我們的投資提供資金。我認為團隊的營運生產力已經下降，現在我們只需繼續完善與我們為客戶提供的產品的價值獲取相關的流程。

We were price cost positive. We're looking to really manage that spread going forward, and that's really the target of the teams.

我們的價格成本是正面的。我們希望真正管理好這種傳播，這確實是團隊的目標。

I guess my follow-up question for Matthew. You talked about government funding kind of trickling in. There's I think, an increased focus in Europe on non-revenue water, big increases in the focus for that in the next [half] cycle and parts of Western Europe and Southern Europe after the 2022 drought. Can you talk about if there's any material opportunities from that increased focus on non-revenue water for Xylem's business over the next several years?

我想我要問馬修的後續問題。您談到政府資金正在慢慢流入。您能否談談未來幾年賽萊默業務對無收益水的更多關注是否會帶來任何實質機會？

Yes, I do. I think first with our Idrica platform is a great entree into that. There's a lot of opportunities to leverage the Idrica platform to help visualize that data through AMI systems. So that's a big focus area that we're working with utilities on across Europe and across the globe, but especially Europe. And you're right, there's a lot of funding in Europe and in the U.K. with the AMP cycle in the U.K. on non-revenue water. And also, there's a lot of focus on analytical instrumentation, especially out in the environment where they're holding polluters liable for contaminated water. So we see a great opportunity on smart metering and analytical instrumentation in that region with an overlay of our Idrica partnership and platform.

是的，我願意。我認為首先我們的 Idrica 平台是一個很好的切入點。有很多機會利用 Idrica 平台透過 AMI 系統幫助視覺化資料。因此，這是我們與歐洲和全球各地（尤其是歐洲）公用事業公司合作的一個重點領域。你是對的，歐洲和英國有大量資金用於英國的無收益水 AMP 循環。此外，分析儀器也受到許多關注，尤其是在環境中，他們要求污染者對受污染的水負責。因此，透過我們的 Idrica 合作夥伴關係和平台，我們看到了該地區智慧計量和分析儀器的巨大機會。

The next question comes from Joe Giordano with TD Cowen.

下一個問題來自 Joe Giordano 和 TD Cowen。

So on PFAS, I know we talked a lot about it, but can you maybe just talk us through exactly where you're exposed on that? And if there's capabilities that you don't currently have maybe like sampling or destruction that you're currently exploring either internally or maybe through acquisition?

關於 PFAS，我知道我們討論了很多，但您能否具體告訴我們您在哪些方面接觸到了該問題？如果您目前沒有某些功能（例如採樣或銷毀），您目前正在內部或透過收購進行探索？

Yes. So -- we're -- obviously, we have the technology to capture through our acquisition with Evoqua coming together at Xylem. And we have over 80 PFAS installations to date. Actually, we just had 1 written up in Newsweek, I believe it was Newsweek a month or so ago up in Maine, where we were capturing PFAS from a well that they had dug to serve the increasing population. So we've got proven technology on the capture side. Where the innovation needs to happen and get to commercial liabilities on destruction. And then sensing, we can sense and bring it to a lab and get the sensing part of PFAS, but need to get sensors that can be in real-time flow. So those are the areas on destruction and real-time sensing whether it's innovation needed and our teams are working on that through our innovation labs. And with the 2 teams coming together from a legacy of Xylem and Evoqua, we believe that we can move faster and obviously spend less money getting there.

是的。因此，很明顯，我們透過收購 Evoqua 並在 Xylem 合併，擁有了可以捕捉的技術。到目前為止，我們已經安裝了 80 多個 PFAS。事實上，我們剛剛在《新聞周刊》上寫了一篇文章，我相信是大約一個月前在緬因州的《新聞周刊》，我們在那裡從他們為了服務不斷增加的人口而挖的一口井中捕獲了PFAS。因此，我們在捕獲方面擁有經過驗證的技術。需要進行創新並在破壞時承擔商業責任的地方。然後是感測，我們可以感測並將其帶到實驗室並獲得PFAS的感測部分，但需要獲得可以即時流動的感測器。這些是破壞和即時感知是否需要創新的領域，我們的團隊正在透過我們的創新實驗室致力於這方面的工作。憑藉 Xylem 和 Evoqua 傳統的兩支團隊匯聚在一起，我們相信我們可以更快地前進，並且顯然可以花更少的錢實現這一目標。

And then the last question, I guess, is 1 I never really thought I'd be talking to you guys about, but we're getting questions about Xylem is like a data center play now on the water side. So can you maybe explain the opportunity set in front of you, either on the power side as we have to ramp up generation capabilities to support a huge buildout or we're like in the buildings themselves on the data center side, how that opportunity kind of scales for you?

我想最後一個問題是 1 我從來沒有真正想過我會和你們談論這個問題，但我們收到了有關賽萊默的問題，就像現在在水邊的數據中心一樣。那麼，您能否解釋一下擺在您面前的機會，無論是在電力方面，因為我們必須提高發電能力以支持巨大的擴建，或者我們就像在數據中心方面的建築物本身一樣，這種機會是怎樣的適合你的秤？

Yes. I mean, look, on the power side, we're excited. It's one of our high-growth verticals. You heard Bill talk about the big win, $130 million build on operate win in hydrogen. And so we see that energy mix shift driving lots of opportunity for us. Specific to data centers, I do think it is a growth opportunity. We're starting to see it. Actually, one of our examples. I won't steal the thunder here at Investor Day coming up in a few weeks is about the data center, where we have synergy win there. But it's currently a small part of our revenue, probably less than $50 million.

是的。我的意思是，看，在電力方面，我們很興奮。這是我們高成長的垂直產業之一。你聽到比爾談到了這一重大勝利，即在氫氣運營勝利的基礎上獲得了 1.3 億美元的勝利。因此，我們看到能源結構的轉變為我們帶來了許多機會。具體到資料中心，我確實認為這是一個成長機會。我們開始看到它。實際上，這是我們的例子之一。我不會在幾週後即將舉行的投資者日上搶風頭，這是關於數據中心的，我們在那裡取得了協同效應。但目前它只占我們收入的一小部分，可能不到 5,000 萬美元。

Data centers do need a significant amount of water for cooling and many of them are being built in water-stressed areas, putting a lot of pressure on water resources. So we have a lot of solutions to help them from comprehensive treatment solutions to enable reuse. We've got obviously outsourced services for water management to help as well. So we do believe it's going to be an opportunity for us. It's probably not like maybe some of the other coverage that you folks have, but it definitely will be a tailwind.

資料中心確實需要大量的水來冷卻，而且許多資料中心都建在缺水地區，對水資源造成很大壓力。所以我們有很多解決方案來幫助他們從綜合處理解決方案中再利用。顯然，我們也提供了水管理外包服務來提供協助。所以我們相信這對我們來說將是一個機會。它可能不像你們所擁有的其他一些報道，但它肯定會是一個順風車。

This concludes our question-and-answer session. I would like to turn the conference back over to Matthew Pine for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給馬修·派恩（Matthew Pine）發表閉幕詞。

Well, we'll wrap it up there. Thank you for your questions, and thanks to everyone who joined today. We hope to see many of you either in person or online at Xylem's Investor Day on May 30. And we look forward to sharing further insights into our priorities and strategic direction then. Until then, all the best.

好吧，我們就到此為止。感謝您提出問題，也感謝今天加入的所有人。我們希望在 5 月 30 日的賽萊默投資者日現場或在線見到你們中的許多人。在那之前，一切順利。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。