賽莱默 (XYL) 2024 Q4 法說會逐字稿

Welcome to Xylem's fourth quarter and full year 2024 results conference call.

歡迎參加Xylem 2024年第四季和全年業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Keith Buettner, Vice President of Investor Relations and FP&A.

現在，我想將會議交給投資者關係和 FP&A 副總裁 Keith Buettner。

Please go ahead.

請繼續。

Thank you, operator.

謝謝您，接線生。

Good morning, everyone, and welcome to Xylem's fourth quarter 2024 earnings call.

大家早安，歡迎參加 Xylem 2024 年第四季財報電話會議。

With me today are Chief Executive Officer, Matthew Pine, and Chief Financial Officer, Bill Grogan.

今天與我一起的有首席執行官馬修·派恩 (Matthew Pine) 和首席財務官比爾·格羅根 (Bill Grogan)。

They will provide their perspective on Xylem's fourth quarter and full year 2024 results and discuss the first quarter and full year 2025 outlook.

他們將提供對賽萊默 2024 年第四季和全年業績的看法，並討論 2025 年第一季和全年展望。

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

在我們準備好發言之後，我們將解答與電話會議中涉及的資訊相關的問題。

I'll ask that you please keep to one question and a follow-up and then return to the queue.

我請您只問一個問題和一個後續問題，然後返回隊列。

As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website.

提醒一下，本次電話會議和我們的網路廣播均附有幻燈片演示，可在我們網站的「投資者」部分查閱。

A replay of today's call will be available until midnight, February 18, and will be available for playback via the Investors section of our website under the heading Investor Events.

今天的電話會議重播將持續到 2 月 18 日午夜，您可透過我們網站的「投資者」部分下的「投資者活動」標題進行重播。

Please turn to slide 2.

請翻到投影片 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.

我們將在今天的電話會議上做出一些前瞻性陳述，包括對我們預計將來或可能發生的未來事件或發展的提及。

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 subsequent reports filed with the SEC.

這些聲明受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美國證券交易委員會提交的報告中所述的因素。

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.

請注意，本公司不承擔公開更新任何前瞻性聲明以反映後續事件或情況的義務，實際事件或結果可能與預期有重大差異。

Please turn to slide 3.

請翻到幻燈片 3。

We have provided you with a summary of key performance metrics, including both GAAP and non-GAAP metrics, with references to the prior year segment metrics being made on a comparative basis, reflecting the change in segments as of the beginning of the year.

我們為您提供了關鍵績效指標的摘要，包括 GAAP 和非 GAAP 指標，並參考上一年分部指標進行比較，反映了截至年初的分部變化。

For the 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.

為了今天的電話會議的目的，除非另有說明，所有引用都將以有機和/或調整後的基礎為基礎，並且非 GAAP 財務數據已為您核對並包含在演示文稿的附錄部分。

Now please turn to slide 4, and I'll turn the call over to our CEO, Matthew Pine.

現在請翻到幻燈片 4，我將把電話轉給我們的執行長 Matthew Pine。

Thank you, Keith.

謝謝你，基斯。

Good morning, everyone, and thank you for joining us today.

大家早安，感謝大家今天的參與。

The results we released earlier today reflect a strong fourth quarter finish to a record-breaking 2024.

我們今天早些時候發布的結果反映出 2024 年第四季的強勁收官，創下了創紀錄的成績。

In a year of transition and significant transformation for Xylem, the team served our customers and communities with discipline and delivered on our commitments and the results show their impact.

在賽萊默經歷轉型和重大變革的一年裡，團隊嚴守紀律，為客戶和社區提供服務，履行承諾，結果顯示了其影響力。

Full year revenue, EBITDA margins and EPS all set new benchmarks for us.

全年營收、EBITDA 利潤率和每股盈餘為我們設定了新的基準。

Revenue grew 6%, we expanded EBITDA margins 170 basis points and EPS was up double digits for the year.

營收成長了 6%，EBITDA 利潤率提高了 170 個基點，全年每股收益實現了兩位數成長。

The team's operating discipline was apparent across all segments, and the integration of Evoqua is delivering cost synergies significantly faster than expected.

團隊的營運紀律在所有部門都顯而易見，而 Evoqua 的整合帶來的成本綜效遠快於預期。

In a moment, I'll ask Bill to drill down on the fourth quarter, but the headline numbers reflect a big finish to a big year.

稍後我會請比爾深入討論第四季度的情況，但總體數字反映出這一年取得了圓滿的成績。

The team executed well on resilient underlying demand, with all segments delivering Q4 orders growth of mid-single digits or better that has given us great pace coming into the new year.

該團隊在強勁的潛在需求方面表現出色，所有部門在第四季度的訂單量均實現了中等個位數或更高的成長，這為我們在新的一年裡取得了良好的進展。

We anticipate demand will continue to be healthy overall through 2025 despite uncertain dynamics in a few end markets and regions.

儘管一些終端市場和地區存在不確定的動態，但我們預計到 2025 年，整體需求仍將保持健康。

The team is doing a great job managing what we can control and is committed to the transformation of Xylem we began in 2024, enabling us to improve focus, increase our speed, and drive accountable execution.

團隊在管理我們可以控制的事情方面做得非常出色，並致力於我們在 2024 年開始的 Xylem 轉型，這使我們能夠提高專注度、提高速度並推動負責任的執行。

The transformation is behind our 8-K filing last week, which follows through on our discussion at Investor Day when we indicated our intent to simplify Xylem's operating model.

此次轉型是我們上週提交的 8-K 文件背後的原因，該文件遵循了我們在投資者日的討論，當時我們表示了簡化賽萊默營運模式的意圖。

We're moving from a matrix to a structure with a single access or segments.

我們正在從矩陣轉向具有單一存取或段的結構。

The plan streamlines our organization, which will strengthen our competitive positioning, enable us to better serve our customers.

該計劃精簡了我們的組織，這將增強我們的競爭地位，使我們能夠更好地服務客戶。

We've also taken several targeted capital deployment actions since our last earnings call, all aimed at optimizing our portfolio for growth and profitability.

自上次收益電話會議以來，我們也採取了多項有針對性的資本配置行動，旨在優化我們的投資組合，實現成長和獲利。

In December, we increased our stake in Idrica to a majority ownership and management control of the technology platform at the heart of Xylem Veu, which is a strategic growth priority for us as utilities continue to digitize.

12 月，我們增加了 Idrica 的股份，從而擁有了多數股權以及對 Xylem Veu 核心技術平台的管理控制權，隨著公用事業繼續數位化，這成為我們的策略成長重點。

We also acquired a few tuck-ins to enhance our offerings in water solutions and services, and water infrastructure.

我們也收購了一些企業，以增強我們在水解決方案和服務以及水基礎設施方面的產品。

Finally, just last month, we signed a definitive agreement to divest a noncore business that came with the acquisition of Evoqua and represents about 1% of revenue.

最後，就在上個月，我們簽署了一項最終協議，剝離收購 Evoqua 所帶來的約佔收入 1% 的非核心業務。

As our 2024 performance indicates, transforming our operating model has energized the enterprise, and that's reflected in the 2025 guidance we issued earlier today, which is in line with delivering the long-term framework we committed to you last May.

正如我們 2024 年的業績所表明的那樣，轉變我們的營運模式為企業注入了活力，這反映在我們今天早些時候發布的 2025 年指引中，這符合我們去年 5 月向您承諾的長期框架。

Before we go into more detail on that full year outlook, I'm going to ask Bill to unpack the team's fourth quarter performance, which provides the foundation for our momentum into 2025.

在我們詳細討論全年展望之前，我想請比爾分析球隊第四季的表現，這為我們進入 2025 年的發展勢頭奠定了基礎。

Bill?

帳單？

Thanks, Matthew.

謝謝，馬修。

Please turn to slide 5.

請翻到投影片 5。

As Matthew mentioned, we are very pleased with the strong finish to 2024.

正如馬修所說，我們對 2024 年的強勁收官感到非常高興。

The team stayed focused and consistently delivered throughout the year, exceeding on our expectations, delivering record revenue, EBITDA, and earnings per share for the fourth quarter and the full year.

團隊全年保持專注並持續交付，超出了我們的預期，在第四季度和全年實現了創紀錄的收入、EBITDA 和每股收益。

Demand remains positive, with our ending backlog of $5.1 billion essentially flat from the prior year, driven by progress executing an MCS on their past due backlog, but offset in part by growth across the other three segments.

需求依然保持正成長，期末積壓訂單量為 51 億美元，與上年基本持平，這得益於其逾期積壓訂單的 MCS 執行進展，但被其他三個部門的增長部分抵消。

Our book-to-bill ratio was near 1 in the quarter and exceeded 1 in the year.

我們的訂單出貨比在本季接近1，今年則超過了1。

Orders were healthy, up 7% in the quarter, driven by strong performance across all segments, with water infrastructure leading the way with 10% orders growth.

訂單狀況良好，本季增長 7%，這得益於所有部門的強勁表現，其中水基礎設施部門的訂單增長了 10%，位居榜首。

Revenue growth was robust, up 7% in the quarter despite a challenging comp of 9% growth in the same period last year.

營收成長強勁，儘管去年同期的增幅為 9%，但面臨挑戰，本季營收仍成長 7%。

The team's operational discipline delivered quarterly EBITDA margin of 21%, up 140 basis points from the prior year.

該團隊的營運紀律使季度 EBITDA 利潤率達到 21%，比上年增長了 140 個基點。

This improvement was driven by productivity, price, and volume more than offsetting inflation and investments.

這種改善主要是由生產力、價格和產量推動的，遠遠超過了通貨膨脹和投資。

We also achieved a record EPS of $1.18, surpassing the midpoint of our guidance by $0.05 and marking a 19% increase over the prior year.

我們的每股盈餘還達到了創紀錄的 1.18 美元，超出我們預期的中位數 0.05 美元，比前一年增長了 19%。

Our balance sheet remains in great shape with net debt to adjusted EBITDA at 0.5 times.

我們的資產負債表依然狀況良好，淨負債與調整後 EBITDA 的比率為 0.5 倍。

Year-to-date free cash flow increased by 29% from the prior year.

年初至今的自由現金流較前一年增加了29%。

The conversion rate of 116% was driven by higher net income, offset by higher net working capital and increased CapEx.

116% 的轉換率是由更高的淨收入推動的，但被更高的淨營運資本和增加的資本支出所抵消。

Working capital efficiency in the quarter was negatively impacted by timing of sales, but our overall performance for the year was strong.

本季的營運資本效率受到銷售時機的負面影響，但我們全年的整體業績強勁。

Let's turn to slide 6.

我們翻到第 6 張投影片。

In measurement and control solutions, we continue to convert the backlog, though total MCS backlog remained at roughly $1.9 billion, in line with the prior quarter.

在測量和控制解決方案方面，我們繼續轉換積壓訂單，儘管 MCS 總積壓訂單仍保持在約 19 億美元，與上一季持平。

This is a 13% organic decrease from the prior year, driven by smart metering conversion.

由於智慧計量轉換，這比去年下降了 13%。

Orders were up 6%, driven by smart metering and analytics demand.

受智慧計量和分析需求的推動，訂單增加了 6%。

Revenue was up 6%, again, driven by smart metering demand and backlog execution.

收入再次成長了 6%，這主要得益於智慧計量需求和積壓訂單的執行。

EBITDA margin of 17.1% was 120 basis points lower than prior year, driven by mix, inflation, and investments more than offsetting productivity, price and volume.

EBITDA 利潤率為 17.1%，比上年低 120 個基點，原因是產品組合、通貨膨脹和投資超過了生產力、價格和數量的影響。

As expected, there was a sequential margin headwind for mix in the quarter as energy meters accounted for a larger portion of sales.

如預期，由於電錶在銷售額中所佔的比例較大，本季產品組合的利潤率持續下滑。

In water infrastructure, orders were up 10% in the quarter, with strong demand in transport.

在水利基礎設施方面，本季訂單成長了 10%，運輸需求強勁。

Revenue increased 8%, driven by treatment and transport demand across most regions.

受大多數地區的治療和運輸需求推動，收入增加了 8%。

EBITDA margin for water infrastructure was up an outstanding 360 basis points.

水利基礎設施的 EBITDA 利潤率大幅上升了 360 個基點。

Productivity, price, mix, and volume more than offset inflation and investments.

生產力、價格、產品組合和產量足以抵消通貨膨脹和投資。

In applied water, orders were up 5% and book-to-bill was roughly 1, lifted by large project wins in the US and strength in Europe.

在應用水領域，由於在美國贏得大型項目以及歐洲的強勁表現，訂單量上漲了 5%，訂單出貨比約為 1。

As expected, revenues were essentially flat to prior year, primarily driven by softness in emerging markets.

如預期，營收與去年基本持平，主要受新興市場疲軟的影響。

Segment EBITDA margin increased 60 basis points year-over-year.

分部 EBITDA 利潤率年增 60 個基點。

Productivity, mix, and price more than offset higher inflation, lower volumes and other costs.

生產力、產品組合和價格足以抵消較高的通貨膨脹、較低的產量和其他成本。

Finally, water solutions and services saw robust demand with orders increasing 8%, driven by strength in capital projects and dewatering.

最後，受資本項目和排水業務強勁成長的推動，水解決方案和服務需求強勁，訂單成長了 8%。

Revenue growth was up strong at 11%, with strength in capital projects, dewatering and services.

營收成長強勁，達到 11%，主要得益於資本項目、排水和服務方面的強勁成長。

Growth was also fueled by projects coming online faster than anticipated as we entered the quarter.

進入本季度，專案上線速度快於預期也推動了成長。

Segment EBITDA margins was 22.8%, up 10 basis points versus prior year, driven by productivity, price, and volume, more than offsetting inflation, investments and mix.

分部 EBITDA 利潤率為 22.8%，較上年上升 10 個基點，這得益於生產力、價格和銷售的成長，超過了通貨膨脹、投資和產品組合的影響。

Now let's turn to slide 7 for our 2025 segment outlook.

現在我們翻到第 7 張投影片來了解 2025 年細分市場的展望。

Before I go through our overall guidance, I want to highlight that we have not factored in any impact for the recently enacted tariffs by the US administration.

在介紹我們的總體指導之前，我想強調一下，我們沒有考慮美國政府最近實施的關稅的任何影響。

At this time, we do not believe that they will have a material impact on our full year 2025 results, but it is obviously a fluid situation, and we will update our guidance accordingly as we learn more.

目前，我們認為它們不會對我們 2025 年全年業績產生重大影響，但這顯然是一個不穩定的情況，我們將在了解更多信息後相應地更新我們的指引。

Heading into 2025, our markets remain positive, and our teams are delivering on our commitment to simplify Xylem, focus on our customers and expand margins.

展望 2025 年，我們的市場依然保持樂觀，我們的團隊正在履行簡化賽萊默、專注於客戶和擴大利潤的承諾。

We are providing full year organic revenue guidance for the segments that is largely in line with our long-term framework.

我們為各部門提供的全年有機收入指引與我們的長期框架基本一致。

In MCS, we expect growth of high single digits.

在 MCS 方面，我們預期成長率將達到高個位數。

We are seeing some pockets of softness in Europe, but overall demand is still healthy and our pipeline is strong.

我們看到歐洲出現了一些疲軟現象，但整體需求仍然健康，我們的管道也很強勁。

Our expectation is energy meters will drive a majority of the growth in 2025 and water meters will grow low single digits.

我們預計，到 2025 年，能源表將推動大部分成長，而水錶將實現低個位數成長。

We expect to see sequential revenue improvements throughout the year, supported by our backlog and easier comps.

我們預計，在積壓訂單和更容易的同店銷售的支持下，全年收入將持續成長。

In water infrastructure, we expect growth of mid-single digits.

在水利基礎設施方面，我們預期成長率將達到中等個位數。

We anticipate resilient OpEx demand due to the mission-critical nature of our applications and solid CapEx demand.

由於我們的應用程式的關鍵任務性質和穩定的資本支出需求，我們預計營運支出需求將具有彈性。

Healthy utility end markets across most regions, Evoqua synergies and price capture will drive strong growth in the year.

大多數地區的公用事業終端市場健康狀況良好、Evoqua 協同效應和價格佔領將推動今年的強勁成長。

However, as expected, we will see headwinds from 80/20 actions as we simplify water infrastructure's offerings, and we do expect weakness in China's utility market.

然而，正如預期的那樣，隨著我們簡化水基礎設施的服務，我們將看到80/20行動帶來的阻力，我們確實預計中國公用事業市場將會疲軟。

In applied water, we expect modest growth of low single digits.

在應用水領域，我們預期會出現低個位數的溫和成長。

We see growth across developed markets, particularly in the US, with large projects coming online and a general recovery in their end markets.

我們看到已開發市場，特別是美國，都在成長，大型專案正在上線，終端市場也普遍復甦。

Growth will be offset in applied water as well by 80/20 actions as we exit unprofitable businesses.

隨著我們退出無利可圖的業務，用水量的成長也將透過 80/20 行動來抵銷。

WSS growth is expected to be mid-single digits, driven by strength in outsourced water projects and solid demand in dewatering.

受外包水務專案強勁成長和脫水需求的推動，WSS 預計將實現中等個位數成長。

This segment is supported by a $1 billion backlog and strong funnel activity across all of their businesses.

該部門由 10 億美元的積壓訂單和所有業務的強勁渠道活動支撐。

Now let's turn to slide 8 for our full year 2025 and Q1 guidance.

現在讓我們翻到第 8 張投影片，了解我們的 2025 年全年和第一季指引。

The growth outlook by segment translates to full year revenue of $8.6 billion to $8.7 billion, resulting in revenue growth of 0% to 2% and organic revenue growth of 3% to 4%.

各部門的成長前景預計全年營收為 86 億美元至 87 億美元，營收成長 0% 至 2%，有機收入成長 3% 至 4%。

This is on the low end of our long-term framework due to the 80/20 actions we are taking across our segments.

由於我們在各部門採取了 80/20 的行動，因此這是我們長期框架的低端。

There will be a larger impact in early phases of implementation.

在實施的早期階段，影響將更大。

EBITDA margin is expected to be 21.3% to 21.8%.

EBITDA 利潤率預計為 21.3% 至 21.8%。

This represents 70 to 120 basis points of expansion versus the prior year, driven by productivity and price more than offsetting inflation in our investments in the business.

與前一年相比，這意味著增長了 70 到 120 個基點，這得益於生產力和價格的推動，而這超過了我們在該業務上的投資所抵消的通貨膨脹。

We will also benefit from our simplification efforts, which helped to mitigate mix pressure from MCS.

我們還將受益於我們的簡化努力，這有助於減輕來自 MCS 的混合壓力。

This yields an EPS range of $4.50 to $4.70, up 8% at the midpoint over the prior year.

這使得每股收益範圍達到 4.50 美元至 4.70 美元，比上年中位數成長 8%。

FX will be a meaningful headwind in the year, and excluding those impacts, EPS growth would be double digits at the midpoint.

外匯將成為今年的重大阻力，排除這些影響，每股收益中位數成長率將達到兩位數。

As a reminder, we are committed to low double-digit free cash flow margin in our long-term financial framework.

提醒一下，我們致力於在長期財務框架中實現低兩位數的自由現金流利潤率。

However, cash flow will be impacted in 2025 by our recently announced restructuring actions that may drop us slightly below our long-term goals.

然而，我們最近宣布的重組行動將對 2025 年的現金流產生影響，這可能會使我們的長期目標略低於預期。

Drilling down in the first quarter.

深入研究第一季的情況。

We anticipate revenue growth will be in the 0% to 2% range on a reported basis and 1% to 2% organically.

我們預計報告收入成長率將在 0% 至 2% 之間，有機成長率將在 1% 至 2% 之間。

We expect first quarter EBITDA margin to be approximately 19.5% to 20%, up 30 to 80 basis points, driven by higher volumes, price realization, and productivity gains as well as impacts from our simplification efforts.

我們預計第一季 EBITDA 利潤率約為 19.5% 至 20%，上漲 30 至 80 個基點，這得益於銷量增加、價格實現和生產力提高以及我們簡化工作的影響。

We do want to note that MCS EBITDA margin will be down year-over-year, driven by the energy and water mix we highlighted earlier, but will be up sequentially from Q4.

我們確實要指出的是，受我們先前強調的能源和水結構的影響，MCS EBITDA 利潤率將比去年同期下降，但從第四季開始將環比上升。

This yields first quarter EPS of $0.93 to $0.98. We are entering the year with momentum and in a position of strength.

這意味著第一季的每股收益為 0.93 美元至 0.98 美元。我們正以強勁的勢頭和強大的實力邁入新的一年。

Our balanced outlook reflects our strong commercial position, the durability of our portfolio, and benefits for our simplification efforts.

我們的平衡展望反映了我們強大的商業地位、我們產品組合的持久性以及我們簡化努力的好處。

While we also continue to monitor broader market conditions and volatility, including potential new or additional tariffs and fluctuations in FX.

同時，我們也將繼續監測更廣泛的市場狀況和波動，包括潛在的新的或額外的關稅和外匯波動。

Regarding tariffs.

關於關稅。

We are ready to take additional price actions as needed to offset any increases and take cost actions to mitigate the impact on our margins.

我們準備好根據需要採取額外的價格行動來抵消任何上漲，並採取成本行動來減輕對我們利潤的影響。

Overall, our expectations for the year remain positive as we build on our strong momentum.

總體而言，由於我們保持了強勁的發展勢頭，我們對今年的預期仍然是積極的。

With that, please turn to slide 9, and I'll turn the call back over to Matthew for closing comments.

說完這些，請翻到第 9 張投影片，我將把發言權交還給馬修，請他作結束語。

Thanks, Bill.

謝謝，比爾。

We spend a lot more time looking forward than back, but the full year results do offer a moment for reflection and appreciation.

我們花更多的時間展望未來而不是回顧過去，但全年業績確實為我們提供了一個反思和欣賞的時刻。

We had a smooth leadership transition coming into 2024, and then we spent the year digging in and frankly, getting a lot more done.

2024 年，我們的領導層順利過渡，之後我們花了一年時間深入研究，坦白說，完成了更多工作。

The results tell a great story, but not the whole story.

研究結果雖然精彩，但並非全部。

What we've accomplished in just one year is a huge credit to our colleagues around the world.

我們在短短一年內所取得的成就對於世界各地的同事來說是一個巨大的榮譽。

They delivered for our customers, at the same time, doing the difficult work of deep change.

他們為我們的客戶提供服務，同時完成深度變革的艱鉅工作。

I really appreciate how the team has leaned in and embraced our transformation as an energizing challenge.

我真的很感激團隊如何傾力投入並將我們的轉型視為一項充滿活力的挑戰。

Earlier, I spoke about simplification and taking complexity out of our structure.

之前，我談到了簡化和消除結構複雜性。

That work on structure goes hand-in-hand with refining our operating model more broadly, sharpening our high-impact culture, streamlining our processes and systems, and optimizing our portfolio with targeted capital deployment.

結構工作與更廣泛地改進我們的營運模式、強化我們的高影響力文化、簡化我們的流程和系統以及透過有針對性的資本配置優化我們的投資組合相輔相成。

At the same time, we've amplified our commitments on sustainability, raising the bar again with our 2030 sustainability targets.

同時，我們擴大了對永續發展的承諾，並透過 2030 年永續發展目標再次提高了標準。

And in 2024 alone, the team responded to more than 40 water-related disasters, serving communities in times of crisis from India to Spain, to the Carolinas to Brazil.

僅在 2024 年，該團隊就應對了 40 多起與水有關的災害，為從印度到西班牙、從卡羅來納州到巴西的危機時期的社區提供服務。

Together, the team is transforming Xylem to be better positioned to fulfill on our purpose, to empower our customers and communities to build a more water-secure world.

我們的團隊正在共同努力，改變賽萊默，使其能夠更好地實現我們的目標，幫助我們的客戶和社區建立一個水資源更安全的世界。

In 2025, our transformation initiatives will improve our profitability, further optimize our portfolio and make it easier for customers to do business with Xylem.

2025年，我們的轉型舉措將提高我們的獲利能力，進一步優化我們的產品組合，並使客戶更容易與賽萊默開展業務。

We know this kind of transformation takes time and may not happen in a straight line, but we've made a great start, we have an outstanding team, the right strategy, and privileged positions in attractive markets.

我們知道這種轉變需要時間，而且可能不會一蹴而就，但我們已經取得了良好的開端，我們擁有優秀的團隊、正確的策略和在有吸引力的市場中的優勢地位。

Building on the progress we made in 2024, we're looking ahead to a strong 2025 in delivering on our long-term commitment to profitable growth and sustainable value creation.

基於我們在 2024 年取得的進展，我們期待在 2025 年取得強勁進展，履行我們對獲利成長和永續價值創造的長期承諾。

With that, operator, I'll turn the call back over to you for questions.

接線員，接下來我將把電話轉回給您，以便您回答問題。

(Operator Instructions)

（操作員指令）

Deane Dray, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Deane Dray。

Thank you.

謝謝。

Good morning, everyone.

大家早安。

Maybe we can start with the restructuring announcement.

也許我們可以從重組公告開始。

And just based upon your Analyst Day last year, you knew that there was -- this was a next step coming.

僅根據您去年的分析師日，您就知道這是下一步。

And maybe it would be helpful if you kind of gave more color on the plan.

如果您能更詳細地闡述該計劃，也許會有所幫助。

Is it all SG&A?

這些都是銷售、一般及行政費用嗎？

It seems like it's headcount, what's the mix between North America, outside of North America, and maybe some payback expectations?

這看起來像是員工總數，北美和北美以外的比例是怎麼樣的，也許還有一些回報預期？

Yeah, I'll start this off, and I'll let Bill get into some of those details in terms of the timing and geography and things of that nature.

是的，我先開始，然後讓比爾講講時間、地理等方面的細節。

But I just want to say these actions, however necessary, mean that value colleagues sort of leaving Xylem and we don't take that lightly.

但我只想說，無論這些行動多麼必要，都意味著有價值的同事離開Xylem，我們對此深感憂慮。

We're going to make sure we have ensure a smooth transition and that colleagues are treated respectfully and fairly.

我們將確保順利過渡並且同事受到尊重和公平對待。

So I want to start there.

所以我想從那裡開始。

To your point, Deane, the plan is consistent with our '24 Investor Day in May, really about taking complexity out of our business, which includes not only simplifying our structure, but really the implementation of 80/20.

正如您所說，Deane，該計劃與我們 5 月份的「24 個投資者日」計劃一致，實際上是為了消除業務的複雜性，這不僅包括簡化我們的結構，而且實際上包括實施 80/20。

It's a little bit of both in terms of the 8-K filing, the structure and the bottoms up we've done from the initial 80/20 work.

就 8-K 文件、結構以及我們從最初的 80/20 工作中完成的自下而上工作而言，兩者都有一點。

We are focused on reducing that complexity, making it easier for our colleagues to do their job, but also making it easier for our customers to do business with us.

我們致力於降低這種複雜性，使我們的同事更容易完成工作，同時也使我們的客戶更容易與我們開展業務。

And we've already seen here in the back half of '24 and as we enter '25, the organization is moving much faster.

我們已經看到，在24年下半年以及進入25年時，該組織的進展速度要快得多。

They're definitely more focused, and we have much more end-to-end accountability.

他們確實更加專注，而且我們擁有更多的端到端責任。

Maybe one other point I would call out is this is in service of growth.

也許我想指出的另一點是，這是為了促進成長。

And at the same time we're doing this work, it does allow us to redeploy our resources and our effort across the business to focus on customers.

在我們進行這項工作的同時，它確實使我們能夠重新部署整個業務的資源和精力，以專注於客戶。

And in many cases, through 80/20, we have been moving some of our B customers to channel partners that can better serve them and be more efficient.

在許多情況下，透過80/20，我們將一些B類客戶轉移到可以更好地為他們服務、提高效率的通路夥伴。

So the majority of the workforce reductions are expected to be complete in 2025, with some of them moving into 2026 subject to local laws.

因此，預計大部分裁員將在 2025 年完成，部分裁員將根據當地法律延長至 2026 年。

But maybe I'll pause there and let Bill give you a little bit more color on some of the numbers.

但也許我會在這裡暫停一下，讓比爾給你更詳細地解釋一些數字。

Yeah.

是的。

And just to level set everyone, for those who didn't see it.

對於那些沒有看到的人來說，只是為了讓每個人都保持水平。

As we highlighted in our 8-K last week, we expect to incur total pretax charges of approximately $95 million to $115 million.

正如我們上週在 8-K 報告中所強調的那樣，我們預計總稅前費用約為 9500 萬至 1.15 億美元。

We incurred some initial costs in Q4, but the bulk of the remaining expense will be realized in 2025 and early '26.

我們在第四季度產生了一些初始成本，但剩餘費用的大部分將在 2025 年和 2026 年初實現。

We expect to realize about $130 million of net benefits for the program over the next two years, with about $75 million of the benefit coming in 2025.

我們預計該計劃將在未來兩年內實現約 1.3 億美元的淨收益，其中約 7,500 萬美元的收益將在 2025 年實現。

Timing of the benefits will be more back half weighted as we work through the labor negotiations and different processes around the globe, as Matthew mentioned.

正如馬修所提到的，隨著我們在全球範圍內進行勞資談判和不同進程，福利的發放時間將更多地受到後半部分的重視。

So I think of it as kind of 30% first half, 70% second half.

所以我認為上半部佔 30%，下半部佔 70%。

Again, these actions are going to impact all of our segments and corporate functions with water infrastructure and applied water having the two largest impacts in Europe, probably the most impacted region.

再次，這些行動將影響我們所有的部門和公司職能，其中水基礎設施和應用水對歐洲的影響最大，可能是受影響最嚴重的地區。

The plan impacts a little bit less than 10% of our workforce and is mostly concentrated in SG&A.

該計劃對我們不到 10％ 的員工產生了影響，主要集中在銷售、一般和行政費用方面。

Great, I appreciate all those details.

太好了，我很欣賞這些細節。

That's a big help.

這很有幫助。

And then the second question unrelated, just given the administration change, there's some anxiety about potential rollbacks of PFAS.

然後第二個問題無關緊要，考慮到政府的變動，人們對 PFAS 的潛在回滾感到有些擔心。

We saw a halt of industrial PFAS test that -- just what's your expectation here?

我們看到工業 PFAS 測試已經停止—您對此的期望是什麼？

I realize PFAS is not in your framework.

我知道 PFAS 不在你的框架內。

That was made very clear at your Analyst Day.

這一點在分析師日上已經講得非常清楚了。

But just the understanding on -- and how -- what might be done differently from the industrial side versus drinking water side, but I'd love to hear your thoughts.

但只是了解——以及如何——在工業方面和飲用水方面可以做些什麼不同的事情，但我很想聽聽您的想法。

Yeah, Deane, to your point, I'll just echo, we didn't have any PFAS regulatory impact in our guide or in the LRP for municipal or industrial.

是的，迪恩，對於你的觀點，我只是想重複一下，我們的指南或市政或工業的 LRP 中沒有任何 PFAS 監管影響。

And industrial is the one that was still kind of a draft rule.

其中，工業方面的規定仍處於草案階段。

And that specific draft rule, and I think you mentioned this recently in a note, Deane, was dropped with the Trump executive order to pause all regulations.

迪恩，我記得您最近在一份說明中提到過這一點，該項具體草案規則已隨著川普暫停所有監管的行政命令而被廢除。

And it was -- I think it was aimed largely at the chemical industry and really designed to set an affluent limitation or guideline for PFAS chemical manufacturers.

我認為它主要針對化學工業，旨在為 PFAS 化學品製造商設定一個富裕的限製或指導方針。

So I would say that this has no impact on the drinking water regulation when that rule went final last year.

因此我想說，這對去年最終實施的飲用水管理規定沒有影響。

And maybe a comment I would make, I'd say Lee Eldon recently stated in his confirmation testimony for EPA -- Head of EPA, that he would be an advocate for PFAS cleanup.

也許我要說的是，李·埃爾登 (Lee Eldon) 最近在環境保護署署長的確認證詞中表示，他將成為 PFAS 清理工作的倡導者。

So it will be kind of a wait and see when it comes to the industrial side, but we don't see any rollback of the municipal side.

因此，在工業方面，我們將拭​​目以待，但我們不會看到市政方面有任何倒退。

And I think that Trump administration is, as a lot of people know, were the ones that initially started the PFAS regulation for municipal drinking water in the first term.

我認為，正如許多人所知，川普政府是第一任期內率先制定市政飲用水 PFAS 法規的政府。

So in general, we're still bullish on PFAS.

因此總體而言，我們仍然看好 PFAS。

We know that the timing is going to push out.

我們知道時間將會延後。

But states, as we've talked about in the past, have taken action of their own.

但正如我們過去談到的，各州已經採取了自己的行動。

And then specifically on the industrial side, Deane, we've seen a few states, specifically Georgia, recently set standards for industrial affluent.

然後具體到工業方面，迪恩，我們看到一些州，特別是喬治亞州，最近為工業富裕者制定了標準。

So it will be a little bit of a tailwind from a state-by-state basis.

因此，從各州的角度來看，這將會是一種順風。

But from a federal perspective, the industrial side will probably push out, but the muni side is still tracking.

但從聯邦的角度來看，工業方面可能會推出，但市政方面仍在追蹤。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Hey, good morning, everyone.

嘿，大家早安。

Good morning, Mike.

早上好，麥克。

So first on the MCS side, maybe just talk through how you think about the margin progression through the year?

因此，首先從 MCS 方面來說，您能否談談您對全年利潤率成長的看法？

I know you said sequentially improved through the year.

我知道您說過，全年業績會逐步改善。

What are we thinking for an exit rate or an approximate exit rate, all else equal once mix normalizes and given all the restructuring things you're doing?

一旦組合正常化並且考慮到您正在進行的所有重組，在其他所有條件相同的情況下，我們對退出率或近似退出率有何看法？

And then on a related basis, maybe just talk through what you expect to see in the end markets through the year that give you confidence in that high single-digit margin?

然後在相關的基礎上，也許只是談談您期望在今年的終端市場中看到什麼，讓您對這個高個位數利潤率充滿信心？

Because I know some of it's backlog, but I have to imagine some of it is what your customers are saying, front log, stuff like that, too.

因為我知道其中一些是積壓的，但我必須想像其中一些是你的客戶所說的，還有前端日誌，諸如此類的東西。

Yeah.

是的。

Maybe I'll take the first shot.

也許我會先出手。

So if we start just with the Q4 margin performance, and first, just to highlight again, that's really related to the mix shift between water and energy.

因此，如果我們僅從第四季度的利潤表現開始，首先，再次強調，這確實與水和能源之間的混合轉變有關。

There's a couple -- a few small onetimers, but fundamentally, mix is the biggest driver of the year-over-year decline.

有幾個——一些一次性的小事件，但從根本上來說，混合是導致同比下降的最大驅動因素。

We talked about that last quarter and highlighted that.

我們在上個季度討論過這個問題並強調了這一點。

Then I think we need to just talk about the adjustment period over the next couple of quarters as we do go from less water meter customer volume as they rephase their deployment schedules, continue to work with our partners and customers to get home access and labor scheduling nailed down.

然後，我認為我們只需要談論未來幾季的調整期，因為我們的水錶客戶量會減少，因為他們會重新安排部署計劃，並繼續與我們的合作夥伴和客戶合作，確定家庭接入和勞動力調度。

We've said that with one to two quarters.

我們已在一到兩個季度內說過這一點。

It's probably closer to three quarters, inclusive of Q4.

可能更接近三個季度，包括第四季度。

And this is going to shift that balance of sale towards the energy meters that we saw in Q4 and expect that through the first half of the year.

這將使銷售平衡轉向我們在第四季度看到的能源表，預計這種情況將持續到今年上半年。

And then I just want to make sure, again, from the full year perspective, MCS margins was -- were phenomenal, right?

然後，我只是想再次確保，從全年角度來看，MCS 利潤率是驚人的，對吧？

They were up 370 basis points last year.

去年該指數上漲了 370 個基點。

And some of those core elements we will see next year as they continue to capture strong price.

明年我們將會看到其中一些核心要素繼續佔據高位價格。

The teams continues to drive solid productivity.

該團隊繼續保持強勁的生產力。

Obviously, with these restructuring actions, they're going to get some benefit.

顯然，透過這些重組行動，他們將獲得一些好處。

Mix is probably the only thing that's an outlier relative to our short-term margin expansion journey for them.

相對於我們的短期利潤擴張之旅而言，Mix 可能是唯一的異常值。

We said, I think Q4 is probably the bottom.

我們說，我認為第四季可能是底部。

That will sequentially's improve through the year as mix normalizes, some of the impact from the restructuring starts to take hold.

隨著組合正常化，這種情況將在一年內逐步改善，重組的部分影響將開始顯現。

And for the full year, we will see expanded margins.

就全年而言，我們將看到利潤率擴大。

First half, there's a little bit of contraction, but then we'll see significant expansion in the back half with net-net, 2025 will exit at a higher rate than '24.

上半年會出現一些收縮，但下半年將大幅擴張，2025 年的淨出口速度將高於 2024 年。

And then the second part of the question was just help me get to the high single-digit organic guide, and what that means from a customer perspective?

然後問題的第二部分只是幫助我獲得高個位數的有機指南，從客戶的角度來看這意味著什麼？

Yeah.

是的。

So overall demand is still healthy, right?

所以整體需求仍然健康，對嗎？

The team has a very strong pipeline.

該團隊擁有非常強大的人才儲備。

We've won a couple of verbal awards that we haven't just received in the backlog yet.

我們贏得了一些口頭獎勵，這些獎勵還沒有被納入積壓工作中。

Really, Europe is the only place we've seen some softness.

事實上，歐洲是我們唯一看到經濟疲軟的地方。

But the fundamentals across the majority of the business are still solid.

但大多數業務的基本面仍然穩固。

We're kind of a long way to go on the AMI adoption curve.

我們在 AMI 採用曲線上還有很長的路要走。

Really the short-term noise is just along this project rephasing.

事實上，短期噪音只是伴隨著這個計畫的重新安排。

And just to remind everyone, right, the North American water business over the last two years has grown 30% per year, which is absolutely phenomenal relative to our peer set in that market.

需要提醒大家的是，北美水業務在過去兩年中每年增長 30％，相對於該市場的同行而言，這絕對是驚人的。

So as we look to next year, again, the energy meters relative to the refresh that they're going through, will grow at a significant rate, close to 40%.

因此，展望明年，相對於正在經歷的更新，電能表的數量將再次大幅成長，接近 40%。

It's the refresh cycle, and we've had a couple of projects in backlog that we have full visibility to with defined ship dates.

這是更新週期，我們有幾個積壓項目，我們對這些項目有完全的了解，並有明確的出貨日期。

And then on the water side, relative to the backlog phasing that we have and in line of sight customer projects that we've won have yet to just get into our backlog, we're pretty confident in the ramp that we'll see there in the back half.

然後在水方面，相對於我們現有的積壓階段以及我們贏得的尚未進入積壓階段的客戶項目，我們對後半段將看到的增長非常有信心。

But again, on the water meter side, kind of low single digits, and energy being the significant driver of growth.

但從水錶方面來看，成長率較低，為個位數，而能源是成長的重要動力。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），斯蒂費爾（Stifel）。

Good morning everyone.

大家早安。

Hey, good morning, Nathan.

嘿，早上好，內森。

I wanted to go back and follow up on some of Deane's questions on the restructuring.

我想回去跟進一下迪恩關於重組的一些問題。

I think you said $75 million that you'll realize in benefits in 2025, which is about 90 basis points of margin expansion and kind of accounts for all of the margin expansion you're expecting at the midpoint of the guidance for 2025.

我記得您說過 2025 年您將實現 7500 萬美元的收益，這大約是利潤率增長的 90 個基點，並且占到了您預計的 2025 年指引中點的所有利潤率增長。

You do get some organic growth, there should be some simplification benefits, there should be some pricing, and other productivity benefits.

你確實會獲得一些有機成長，應該會有一些簡化的好處，應該會有一些定價和其他生產力的好處。

Maybe you can just help fill in the gaps there on what the headwinds are that doesn't actually have margins up a little bit more with the benefit of this restructuring?

也許您可以幫助填補那裡的空白，看看有哪些不利因素實際上並沒有透過這次重組帶來更多的利潤？

Yeah.

是的。

No.

不。

The simple walk, Nate, here is, if we look at roughly the midpoint of 100 basis points, our productivity and price are more than offsetting all of our material and labor inflation as well as our continued investment in the business, giving us about 50 basis points of expansion with that group.

簡單的說，內特，如果我們看一下大約 100 個基點的中點，我們的生產力和價格足以抵消我們所有的材料和勞動力通膨以及我們對業務的持續投資，這為我們帶來了大約 50 個基點的擴張。

Then to your point, we're getting the benefit of our restructuring actions and the balance of the Evoqua synergies gives us about another 125 basis points of favorability.

然後回到您的觀點，我們從重組行動中獲益，而 Evoqua 綜效的平衡又為我們帶來了約 125 個基點的有利條件。

So about 175 basis points there.

因此那裡大約有 175 個基點。

But then the biggest piece in the math is really the negative mix within MCS that puts about 75 basis points of pressure, again, due to that energy and water mix shift, netting out to the 100 basis points.

但計算中最大的問題實際上是 MCS 中的負向組合，它產生了大約 75 個基點的壓力，同樣，由於能源和水組合的變化，淨額達到 100 個基點。

That's helpful.

這很有幫助。

And I guess then you're still pretty early in the 80/20 rollout.

我想，你們還處於 80/20 推廣的早期階段。

And I wouldn't imagine that this restructuring program gets you to the end state that you're looking for.

我無法想像這個重組計畫會讓你達到你所期望的最終狀態。

Are you able to comment on the potential to see opportunities to do some more restructuring in '26 or '27 or whenever you get through this and start looking at the next round?

您能否評論一下在 26 年或 27 年，或者在您度過這一輪並開始考慮下一輪重組時是否有可能進行更多重組？

Yeah.

是的。

I would say that the announcement in the 8-K does roll into 2026.

我想說 8-K 中的公告確實會延續到 2026 年。

So some of that's baked into that initial announcement in the 8-K.

因此，其中的一些內容已經融入 8-K 中的初始公告中。

I would just maybe highlight that part of this 8-K was focused on our operating structure, and part of it was 80/20.

我可能只想強調一下，這份 8-K 的一部分重點放在我們的營運結構，其中一部分是 80/20。

And it was really driven by the kind of first wave of 80/20 with predominantly focused on our legacy Xylem business with a lot more focus on applied water and water infrastructure and a little bit on M&CS.

它實際上是受到第一波 80/20 浪潮的推動，主要關注我們傳統的 Xylem 業務，更多地關注應用水和水基礎設施，少量關注 M&CS。

So obviously, we didn't get through the entire segment.

顯然，我們沒有完成整個部分。

I think we talked about having about 40% of the business kind of exiting '24 fully through the tool.

我認為我們討論過大約 40% 的業務將透過該工具完全退出 24。

And through the first quarter of this year, we'll have about 70% of the business.

到今年第一季度，我們的業務量將達到 70% 左右。

So absolutely, there's going to be more opportunity as we continue to really optimize the portfolio and the customer line simplification.

因此，隨著我們繼續真正優化產品組合和客戶線路簡化，絕對會有更多的機會。

So this is a journey.

所以這是一趟旅程。

It's -- we need to move from a -- we talked about a transformation.

我們需要從 — — 我們談論過轉型。

It's really developing a transformative mindset in the business.

這確實在企業中培養了一種變革思維。

And that means you're kind of never done optimizing.

這意味著你永遠無法完成優化。

So for sure, there'll be more things that we look at over time.

因此可以肯定的是，隨著時間的推移，我們將關注更多的事情。

Andy Kaplowitz, Citigroup.

花旗集團的安迪‧卡普洛維茲 (Andy Kaplowitz)。

Morning, everyone.

大家早安。

Hey, good morning, Andy.

嘿，早安，安迪。

Matter, Bill, can you give a little more color into the bookings environment that you're seeing and maybe some of the cyclical headwinds emerging markets and/or in applied water that you've seen and when they might turn orders up 7%, obviously seemed solid in Q4.

問題來了，比爾，您能否更詳細地介紹您所看到的訂單環境，也許還有一些週期性的逆風，例如新興市場和/或應用水，以及它們何時可能將訂單量增長 7%，這在第四季度顯然看起來很穩固。

Would you expect that kind of order trend into '25.

您預計這種訂單趨勢會持續到25年嗎？

And it looks like you're predicting a modest turn in applied water, can you talk about the visibility into that?

看起來您預測應用水會出現適度轉變，您能談談對此的可見性嗎？

Yeah, I think orders in the fourth quarter overall for all of our segments was extremely strong, so we're continuing to be pleased with the commercial momentum we have across all of our businesses.

是的，我認為第四季度我們所有部門的整體訂單都非常強勁，因此我們對所有業務的商業發展勢頭感到滿意。

Specific to applied water, yeah, they'll be back to growth in 2025, yeah, we do see momentum across the developed markets, particularly in the US.

具體到應用水，是的，它們將在 2025 年恢復成長，是的，我們確實看到了已開發市場，特別是在美國的發展勢頭。

They continue to have some larger project winds that we realized through 2024, a lot of those will be coming online and then just a general recovery in a lot of their end markets after a fairly challenging year.

他們繼續進行一些較大的項目，我們意識到到 2024 年，其中許多項目將上線，然後在經歷了相當艱難的一年之後，他們的許多終端市場將全面復甦。

We did talk about, growth will be offset a little bit by some of our 80/20 actions, exiting unprofitable businesses.

我們確實討論過，我們的一些80/20行動，即退出無利可圖的業務，會在一定程度上抵消成長的影響。

As we really look for applied water to simplify their product portfolio and geographic presence, to your point, they have seen some challenges in emerging markets really where we want to leverage our technology and specific applications to win in those markets, and then double down on our core here in our developed markets with our largest customers through some new technologies and better overall.

當我們真正尋求應用水來簡化他們的產品組合和地理位置時，正如您所說，他們確實看到了新興市場中的一些挑戰，我們希望利用我們的技術和特定的應用程序在這些市場中取勝，然後通過一些新技術和更好的整體，在我們發達市場與我們最大的客戶加倍努力。

Operating performance, so I applied waters back to growth, with a little bit of pressure from some of the 80/20 actions, but even on the 80/20 side, I think the incremental pricing they're getting from that tool set is really positive.

營運績效，因此我將水重新應用於成長，並受到一些 80/20 行動的一點壓力，但即使在 80/20 方面，我認為他們從該工具集中獲得的增量定價確實是積極的。

So bottom line performance for them in 2025 will be really strong.

因此，2025 年他們的獲利表現將會非常強勁。

Very helpful.

非常有幫助。

And then it appears Xylem passed on some large water assets that were available for a while, but you do have a very strong balance sheet.

然後看起來賽萊默放棄了一些暫時可用的大型水資產，但你們的資產負債表確實非常強勁。

So how are you thinking about M&A right now versus other methods of deploying repurchases?

那麼，您現在如何看待併購與部署回購的其他方法？

How should we think about, ultimately what happens here and obviously what you talked about the majority ownership in Idrica, what does that mean for you moving forward?

我們應該如何思考，最終這裡會發生什麼，顯然您談到了伊德里察的多數股權，這對您未來的發展意味著什麼？

Yeah, thanks, Andy.

是的，謝謝，安迪。

First I just want to say how proud I am of the team's execution on the integration of Evoqua.

首先，我只想說，我對團隊在 Evoqua 整合方面的執行感到非常自豪。

I don't want to skip over that.

我不想跳過這個。

I mean, that was a big transaction, and we've delivered 18 months early in our cost energy, so we built a lot of muscle and actually that muscle has translated well into our op operating model transformation.

我的意思是，那是一筆大交易，我們提前 18 個月交付了成本能源，因此我們累積了許多實力，實際上這些實力很好地轉化為了我們的營運模式轉型。

We formed a transformation management office largely for some of that team that did the [local integration and] Xylem.

我們成立了一個轉型管理辦公室，主要為負責[本地整合和]Xylem的團隊的部分成員服務。

And as we laid out in Investor Day, we want to be more consistent deployers of capital and helping to move us to the mid-teens EPS over the long range plan.

正如我們在投資者日所闡述的那樣，我們希望更加一致地部署資本，並幫助我們在長期計劃中將每股收益提高到十幾歲左右。

We talked about we'd be optimizing the portfolio, whether that, divestitures or just exits of products or business lines to 80/20 that are underperforming or no longer fit.

我們討論過如何優化投資組合，無論是剝離還是退出表現不佳或不再適合的產品或業務線，將比例調整為 80/20。

One thing I'd highlight, and I might have mentioned this on the last call, but we put in place a very strong kind of acquisition committee process, and it's a much more strong bottoms up process to drive more consistency and help us gain momentum.

我要強調的一件事，我可能在上次電話會議上提到過這一點，但我們建立了一個非常強大的收購委員會流程，這是一個更強大的自下而上的流程，可以提高一致性並幫助我們獲得動力。

Obviously, we want to deploy capital, obviously to our core, but second to that, we want to do a creative M&A.

顯然，我們希望部署資本，顯然是部署到我們的核心，但其次，我們希望進行有創意的併購。

And we'll do opportunistic share buybacks if needed, but really we want to be consistent employers of capital and hopefully you're starting to see this as we exit 2024 and, to your earlier point, we're going to remain disciplined.

如果需要，我們會適時回購股票，但實際上，我們希望成為持續的資本使用者，希望您在我們進入 2024 年之際開始看到這一點，正如您之前所說，我們將保持紀律。

And we're also going to be very aligned to our strategy and the value mapping work that we completed last year.

我們也將高度遵循我們的策略和去年完成的價值映射工作。

So, that's a little bit on capital deployment.

這就是關於資本部署的一些內容。

And in terms of Idrica, we signed that -- signed and closed that in Q4 and moved our ownership to majority so we could more deeply integrate and rationalize the R&D investments of that joint venture with the legacy Xylem business.

就 Idrica 而言，我們已在第四季度簽署並完成了該協議，並將我們的所有權轉讓給多數股東，這樣我們就可以更深入地整合和合理化該合資企業與傳統 Xylem 業務的研發投資。

And quite frankly, leverage the platform across is a standard for Xylem to help us be more efficient.

坦白說，利用跨平台是Xylem幫助我們提高效率的標準。

We have a lot of confidence in the platform and its ability to solve a lot of our customers' biggest pain point, which is trying to manage their data in application management.

我們對該平台及其解決許多客戶最大痛點的能力非常有信心，即嘗試在應用程式管理中管理他們的資料。

So I think that's a really good fit for us and a lot of good momentum in that acquisition.

所以我認為這對我們來說非常合適，而且這次收購給我們帶來了很大的發展勢頭。

Scott Davis, Melius Research.

戴維斯 (Scott Davis)，Melius Research。

Hey, good morning, guys.

嘿，大家早安。

Hey, good morning, Scott.

嘿，早上好，史考特。

Guys, I wasn't -- maybe I missed it.

夥計們，我沒有——也許我錯過了。

Is it fair to assume that the 80/20 headwind is about 2 points.

假設 80/20 逆風約 2 點，公平嗎？

Does that sound kind of ballpark?

這聽起來像是個大概的情況嗎？

If you said it, I apologize, I didn't hear it.

如果你這麼說，我很抱歉，我沒有聽到。

No, we didn't it's a little less than 2 points.

沒有，我們沒有，只比 2 分少一點。

Okay.

好的。

And then just to take a step backwards, Matthew, when you joined on-time deliveries was kind of -- went through kind of a dark day, had to get to the other side of it, where do you stand now on on-time deliveries?

然後退一步來說，馬修，當您加入準時交貨時，就像經歷了一段黑暗的日子，必須走出黑暗，您現在在準時交貨方面的立場是什麼？

And maybe just some context to where do you stand now and perhaps where do you think you'll be in a year assuming you're not where you want to be now?

也許您只是想問一下您現在的處境，假設您現在還沒有達到自己想要的狀態，您認為一年後您會處於什麼位置？

A great question.

一個很好的問題。

I just did a tour of North American factories a couple of weeks ago.

幾週前我剛參觀了北美工廠。

And the two biggest thing I focus on, Scott, is quality and on-time performance.

史考特，我最關注的兩件事就是品質和準時履行。

If you do those things right, and you have a great product with a fair price, you're going to win.

如果您正確地做到了這些，並且您擁有價格合理的優質產品，您就會成功。

And so we have made improvements in on-time performance.

因此我們在準時表現方面取得了進步。

It's only going to get better through 80/20 because 80/20 will help us simplify our factories and have better flow and this better execution.

通過 80/20 只會變得更好，因為 80/20 將幫助我們簡化工廠，實現更好的流程和更好的執行。

We've already started to see it happen.

我們已經開始看到它的發生。

We don't really get into quoting our on-time delivery, but I would just say that we probably, over the course of 2024, made a 500-basis-point improvement.

我們實際上並沒有對我們的準時交付進行引用，但我只想說，在 2024 年期間，我們可能取得了 500 個基點的提高。

And we have about, I would say, [705 to 700] basis points more to go to hit our kind of what I would call our entitlement or where we think best-n-class is.

我想說，我們還有大約 [705 到 700] 個基點的差距才能達到我們應有的水平，或者說達到我們認為的一流水平。

And if I look at our road map and our KPIs, we will come close to that this year.

如果我看一下我們的路線圖和關鍵績效指標 (KPI)，我們今年就會接近這個目標。

So we're keenly focused on that metric.

因此，我們非常關注該指標。

Brian Lee, Goldman Sachs.

高盛的布萊恩李 (Brian Lee)。

I guess one on the free cash flow.

我認為其中一個是自由現金流。

I know you're talking about this kind of being a little bit of a softer year.

我知道你說今年是比較疲軟的一年。

If I back into it, I mean, you've given us conversion targets in the past, I think, this year, implying around maybe 70% to 80%.

如果我回顧一下，我的意思是，您過去曾為我們提供過轉換目標，我想，今年，大概是 70％ 到 80％ 左右。

So one, is that kind of a fair range to be thinking about?

那麼，首先，這是一個值得考慮的公平範圍嗎？

And then, two, what are some of the biggest factors here in '25 that you have visibility or confidence around will revert back in '26?

然後，第二，在 25 年中，您認為或有信心在 26 年會恢復的一些最大因素是什麼？

And is the target for '26 to be back to that 100% or higher free cash flow conversion?

而 26 年的目標是否會回到 100% 或更高的自由現金流轉換率？

Yeah.

是的。

I think, again, a little bit in the prepared remarks is really the largest negative factor is the cost of the restructuring program weighing on overall cash flows.

我認為，在準備好的評論中再次提到，最大的負面因素實際上是重組計畫的成本對整體現金流的影響。

We highlighted a little bit too.

我們也強調了一點。

We've got some larger build on operates that's going to -- that will aid our top line and bottom line, but some upfront capital associated with them will impact.

我們進行了一些更大規模的運營，這將有助於我們的營收和淨利潤，但與此相關的一些前期資本將會產生影響。

And then lastly, as we continue to improve our systems across the organization, some incremental investments to support that activity.

最後，隨著我們繼續改進整個組織的系統，我們會進行一些增量投資來支持該活動。

Those are the three biggest things with the restructuring being the [80] out of that.

這是三件最重要的事情，而重組是其中最重要的[80]。

All right.

好的。

Fair enough.

很公平。

And then I know you mentioned also in the prepared remarks, you're not factoring in any tariff impacts, that you're not expecting anything at the moment.

然後我知道您在準備好的評論中也提到，您沒有考慮任何關稅的影響，您目前沒有任何期望。

Just to kind of level set us, none of the dust to settle here, obviously, but just as we think about your potential exposures, can you sort of walk us through some of your key kind of geos where you do have either supply chain or procurement exposure to some of the regions that are being talked about in terms of being potentially impacted by tariffs.

只是為了讓我們保持平衡，顯然這裡還沒有塵埃落定，但是正如我們考慮您的潛在風險一樣，您能否向我們介紹一下您的一些關鍵地理位置，您在這些地理位置上確實存在供應鏈或採購風險，這些地區正在談論可能受到關稅的影響。

Thank you.

謝謝。

Yeah, I'll start this off and turn it over to Bill to get into some of the numbers.

是的，我將開始這個工作，並將其交給比爾來處理一些數字。

But we don't believe that tariffs will have a material impact on our full year results for 2025.

但我們不認為關稅會對我們 2025 年的全年業績產生重大影響。

Our teams were ready -- sprung into action yesterday to help offset the tariff increases.

我們的團隊已經做好準備——昨天就採取行動，幫助抵消關稅上調的影響。

And we were out, obviously, with our China increase.

顯然，我們在中國的成長已經超乎預期。

We had to pull back on a couple of others that we thought will be going out yesterday that we were quick to take action, and we have taken action with regards to China.

我們不得不撤回一些我們認為昨天將會出台的其他措施，我們迅速採取了行動，並且已經針對中國採取了行動。

And we're -- obviously, we're moving and mobilizing our supply chain where possible to make sure that we're taking advantage of second sources.

顯然，我們正在盡可能地調動和調動我們的供應鏈，以確保我們能夠利用第二個來源。

We spent a lot of time over the past two to three years on diversifying our supply chain, especially as we look at Asia.

過去兩三年來，我們花了大量時間來實現我們的供應鏈多樣化，尤其是在亞洲。

And then lastly, just making sure that we're buttoned up on discretionary costs to mitigate any impact.

最後，我們要確保控制好可自由支配的成本，以減輕任何影響。

So the teams are ready, and we've taken some action with regard to the China tariff.

所以團隊已經做好了準備，我們也針對中國的關稅採取了一些行動。

We'll continue to monitor the situation over the next 30 days and see what comes of Canada and Mexico, and obviously monitor our customers and our channel partners and just try to understand how this may or may not impact their order pattern.

我們將在接下來的 30 天內繼續監測情況，看看加拿大和墨西哥的情況，當然也會監測我們的客戶和通路合作夥伴，試圖了解這可能會或可能不會對他們的訂單模式產生影響。

So that's something that we'll keep a close watch on.

因此我們將密切關注此事。

So maybe I'll pause there and turn it over to Bill to give a little color on the numbers.

因此，也許我會在這裡停下來，將其交給比爾，讓他對這些數字做一些說明。

So if we look at, let's just call it, the proposed tariffs for Canada and for Mexico and the enacted for China, they impact about 5% of our material cost as a percentage of sales.

因此，如果我們看一下，我們就稱之為針對加拿大和墨西哥的擬議關稅以及針對中國的實施關稅，它們對我們的材料成本佔銷售額的百分比約有 5% 的影響。

The Canadian tariff impact is really negligible.

加拿大關稅的影響確實可以忽略不計。

And to Matthew's point, the team has done a phenomenal job post COVID, lessening our dependency on supply from China and the supply chain there is really just for in-country production.

正如馬修所說，該團隊在疫情後做出了非凡的工作，減少了我們對中國供應的依賴，那裡的供應鏈實際上只是用於國內生產。

The Mexico tariff is the [80 for] us and primarily impacts MCS and applied water.

墨西哥的關稅為[80%]，主要影響MCS和應用水。

Again, both segments are taking the appropriate actions to mitigate the impact on our customers and on our bottom line.

再次強調，兩個部門都在採取適當的措施來減輕對我們的客戶和我們的利潤的影響。

So I think we're well positioned.

所以我認為我們處於有利地位。

It's obviously a very fluid situation.

顯然，這是一個非常不穩定的情況。

So we're keeping a close eye on it and taking any and every action necessary to mitigate the impact.

因此，我們將密切關注此事並採取一切必要措施減輕影響。

Andrew Buscaglia, BNP.

英國國家黨安德魯‧布斯卡利亞 (Andrew Buscaglia)

Hey, good morning, guys.

嘿，大家早安。

Hey, good morning, Andy.

嘿，早安，安迪。

I just wanted to check on your Water Solutions has been a really good quarter.

我只是想檢查一下你們的供水解決方案本季表現是否良好。

I'm just curious what the trends are in that segment.

我只是好奇該領域的趨勢是什麼。

I know that can be pretty lumpy, but what do you see going into the first portion of the year?

我知道這可能相當不準確，但您認為今年上半年的情況如何？

And then you had a couple of months to digest President Trump and his new EPA pick.

然後你有幾個月的時間來消化川普總統和他的新環保署選擇。

And obviously, treatment can be influenced by some policy there.

顯然，治療可能會受到那裡的一些政策的影響。

Could you just talk about specifically what you guys think of this new administration and how it pertains to water solutions?

您能否具體談談您對新政府的看法以及它對水資源解決方案的看法？

Yeah.

是的。

Maybe I'll hit WSS first.

也許我會先打 WSS。

I mean Q4 was really the antithesis of Q3.

我的意思是 Q4 實際上是 Q3 的對立面。

The projects that customers are waffling on timing, you ended up starting or progressing a lot faster than we had anticipated.

客戶在時間安排上猶豫不決的項目，最終的啟動或進度都比我們預期的要快得多。

We knew there was a chance of this happening, but low enough probability, I didn't want to build it into the expectations for the quarter.

我們知道有發生這種情況的可能性，但機率很低，我不想將其納入本季的預期中。

Again, to your point, I think it's worth mentioning that we are seeing an increased demand for our outsourced water solutions and sometimes that can drive some lumpiness in WSS' performance where there's a revenue stream associated with the build out of the system before we get the long tail of recurring revenue.

再次回到您的觀點，我認為值得一提的是，我們看到對我們的外包水解決方案的需求不斷增加，有時這可能會導致 WSS 的業績出現一些波動，因為在我們獲得經常性收入的長尾之前，存在與系統建設相關的收入流。

So as we build that business, can be quarter-to-quarter, some variations before things smooth out as that business builds over time.

因此，當我們建立這項業務時，可能會出現季度間變化，但隨著業務的不斷發展，情況會逐漸穩定。

But going into next year, I think we're expecting another strong year from WSS as they continue to leverage synergies with the combined portfolio.

但進入明年，我認為我們預計 WSS 將再創強勁業績，因為他們將繼續利用合併後的投資組合的綜效。

The watering had a very strong year in 2024, and we look for that to continue next year.

2024 年是澆水非常充沛的一年，我們預計明年這種情況將繼續下去。

Again, the outsourced water projects, the funnel is extremely strong, and we have line of sight to some larger wins here later in the year.

再次，外包水項目，通路非常強大，我們預計今年稍後會取得更大的勝利。

So I think we're excited about what -- that segment has only been in effect for one year, and the combination is really delivering some strong consistent performance.

所以我認為我們對此感到興奮——該部分僅生效了一年，而這種組合確實提供了強勁而持續的表現。

So maybe I'll turn it over to Matthew to talk about the regulatory environment.

所以也許我會把話題交給馬修談監管環境。

Yeah.

是的。

So -- maybe I'll just start by saying we operate in a sector where there's, from my perspective, strong bipartisan consensus regarding the need for safe, clean, affordable water services.

所以——也許我首先要說的是，從我的角度來看，我們所處的行業對於安全、清潔、負擔得起的水服務的需求有著強烈的兩黨共識。

So on a number of issues, we see strong support on both sides of the aisle.

因此，我們看到，在許多問題上，雙方都給予了大力支持。

We anticipate that water infrastructure funding will likely remain at kind of the historical norms.

我們預計水利基礎設施建設資金可能仍將維持在歷史正常水準。

And we do checks obviously with the several utilities in the US, and we've confirmed continued OpEx and CapEx spending increases into 2025 to improve a significant aging infrastructure in the US.

我們顯然對美國的幾家公用事業公司進行了核實，並確認到 2025 年，營運支出和資本支出將繼續增加，以改善美國嚴重老化的基礎設施。

We'll stay close to our government affairs team, myself and some other key leaders were going to stay close to the incoming administration as they take their new positions, and we'll just keep a close eye to them.

我們將與政府事務團隊保持密切聯繫，我本人和其他一些主要領導人也將在新政府上任時與他們保持密切聯繫，我們將密切關注他們。

And we've had great relationships.

我們的關係一直都很好。

And with regard to Lee Zeldin I mentioned earlier on Deane's question that water remains a key priority for him and the administration.

關於李·澤爾丁，我之前在回答迪恩的問題時提到過，水資源仍然是他和政府的首要任務。

And again, in his nomination hearing, he did talk about PFAS and the need to make that a top priority.

在他的提名聽證會上，他確實談到了 PFAS 以及將其作為首要優先事項的必要性。

So I'd say net-net, we're pretty positive on the new administration's focus on water and we'll continue to drive those relationships to make sure we understand it.

所以我想說，總的來說，我們對新政府對水資源的關注持非常積極的態度，我們將繼續推動這些關係，以確保我們了解這一點。

Yeah.

是的。

All right, thank you guys.

好的，謝謝大家。

Okay.

好的。

We'll wrap it up there.

我們就到此為止了。

Thanks for your questions, and thank you to everyone who joined today.

感謝您的提問，也感謝今天參加的所有人。

And as always, we appreciate your interest in Xylem.

和往常一樣，我們感謝您對Xylem的關注。

All the best.

一切順利。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。