賽莱默 (XYL) 2025 Q1 法說會逐字稿

Good day, and welcome to Xylem's first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Xylem 2025 年第一季財報電話會議。（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 Mr. Keith Buettner, Vice President of Investor Relations and FP&A. Please go ahead, sir.

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

Thank you, operator. Good morning, everyone, and welcome to Xylem's first-quarter 2025 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 results and discuss the second quarter and full year 2025 outlook.

謝謝您，接線生。大家早安，歡迎參加 Xylem 2025 年第一季財報電話會議。今天與我一起的還有執行長馬修派恩 (Matthew Pine) 和財務長比爾格羅根 (Bill Grogan)。他們將提供對賽萊默第一季業績的看法，並討論第二季和 2025 年全年的展望。

Following our prepared remarks, we will address questions related to information covered on the call. I will ask that you please keep to one 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 13, and will be available for playback via the Investors section of our website under the heading Investor Events. Please turn to slide 2.

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。我請您只提出一個問題並進行後續跟進，然後返回隊列。提醒一下，本次電話會議和我們的網路廣播都附有幻燈片演示，可在我們網站的「投資者」部分找到。今天的電話會議重播將持續到 5 月 13 日午夜，您可以透過我們網站的「投資者」部分中的「投資者活動」標題進行重播。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. These statements are subject to future risks and uncertainties and 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.

我們將在今天的電話會議上做出一些前瞻性陳述，包括對我們預計未來會發生或可能發生的未來事件或發展的提及。這些聲明受未來風險和不確定性的影響，例如賽萊默公司最新的 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。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. We have provided you with a summary of key performance metrics, including both GAAP and non-GAAP metrics. 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.

請翻到幻燈片 3。我們為您提供了關鍵績效指標的摘要，包括 GAAP 和非 GAAP 指標。就今天的電話會議而言，所有參考均以有機和/或調整後的基礎為基礎，除非另有說明，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，請翻到投影片 4，我將把電話轉給我們的執行長馬修派恩 (Matthew Pine)。

Thanks, Keith. Good morning, everyone, and thanks for joining us. The team got off to a strong start to the year, and Q1 exceeded expectations building on our prior momentum. Demand was resilient, and our book-to-bill remained above 1. Revenue grew across all segments, and we delivered 120 basis points of EBITDA margin expansion, driving double-digit EPS growth. I'm proud of the team for staying focused on helping customers despite various distractions in the business environment.

謝謝，基斯。大家早安，感謝大家的參與。團隊今年開局表現強勁，第一季的表現超出了預期，延續了之前的良好勢頭。需求具有彈性，我們的訂單出貨比仍保持在 1 以上。所有部門的營收均實現成長，EBITDA 利潤率擴大 120 個基點，推動每股盈餘達到兩位數成長。我為團隊感到自豪，儘管商業環境中存在各種幹擾，但他們仍然專注於幫助客戶。

We're better positioned than most to address the water needs of communities and businesses because the portfolio we built is differentiated in every part of the water cycle. On top of that, our structural exposure in this sector is disproportionately aligned with customer OpEx, which historically has been remarkably stable in the face of broader volatility. We're also confident in the agility we built into the business by doing what we said we would do at our Investor Day last May. We are leaning into our high-impact culture, simplifying our processes and systems and reorienting our structure to improve customer focus.

我們比大多數人更有能力滿足社區和企業的用水需求，因為我們建立的產品組合在水循環的每個部分都有差異。最重要的是，我們在該領域的結構性風險敞口與客戶營運支出不成比例地一致，而從歷史上看，面對更廣泛的波動，客戶營運支出一直非常穩定。我們也對我們在去年五月投資者日上所承諾的事情所建立的業務彈性充滿信心。我們正在傾向於我們的高影響力文化，簡化我們的流程和系統，並重新調整我們的結構以提高對客戶的關注。

As a result, we're in a better position now to respond with speed and agility in any business environment. While we'd welcome less uncertainty around tariffs, we have pricing and supply chain programs in place designed to offset the majority of the impacts from the current tariff scheme. We have a strong line of sight to Q2 and execution momentum reflected in our first quarter results. So based on where we stand today and at current tariff levels, we are reaffirming our full year 2025 guidance on both revenue and earnings per share.

因此，我們現在能夠更好地在任何商業環境中做出快速、靈活的反應。雖然我們希望關稅方面的不確定性減少，但我們已經制定了定價和供應鏈計劃，旨在抵消當前關稅計劃的大部分影響。我們對第二季度有著強烈的期待，第一季的業績也反映了執行的動能。因此，根據我們目前的狀況和目前的關稅水平，我們重申 2025 年全年收入和每股盈餘的指導。

In a moment, I'll offer some comments updating where we stand 12 months into executing on the plans laid out in our Investor Day last year. But first, I'm going to turn the call over to Bill to provide more detail on our outstanding Q1 results and on the assumptions underpinning our guide. Bill?

稍後，我將對我們去年投資者日制定的計劃執行 12 個月以來的進展進行一些更新。但首先，我將把電話轉給比爾，讓他提供有關我們出色的第一季業績以及我們指南所依據的假設的更多詳細資訊。帳單？

Thanks, Matthew. Please turn to slide 5. As Matthew mentioned, we are very pleased with the strong start to the year. The team stayed focused despite the volatility and delivered results exceeding our expectations. Demand remains solid with our ending backlog of $5.1 billion and our book-to-bill for the quarter above 1. Orders were down slightly versus last year, but against challenging comps in WSS and MCS. Revenue growth was ahead of expectations, up 3% in the quarter, driven by an outperformance in MCS. The team's operational discipline pushed quarterly EBITDA margin to 20.4%, up 120 basis points from the prior year. This improvement was driven by productivity, impacts from our simplification efforts and price more than offsetting inflation and mix.

謝謝，馬修。請翻到投影片 5。正如馬修所說，我們對今年的強勁開局感到非常高興。儘管情況不穩定，團隊仍然保持專注，並取得了超越我們預期的成果。需求依然強勁，我們期末積壓訂單金額為 51 億美元，本季訂單出貨比超過 1。與去年相比，訂單略有下降，但與 WSS 和 MCS 相比卻頗具挑戰性。受 MCS 優異表現的推動，本季營收成長超出預期，成長 3%。該團隊的營運紀律將季度 EBITDA 利潤率推高至 20.4%，比上年上升 120 個基點。這項改善是由生產力、簡化努力的影響以及價格所推動的，這些都超過了通貨膨脹和混合的影響。

The strong commercial and operational performance helped us realize quarterly EPS of $1.03. Surpassing the midpoint of our guidance by $0.08 and delivering 14% increase over the prior year. Our balance sheet remains in great shape with net debt to adjusted EBITDA at 0.5 times. Year-to-date, free cash flow decreased by $53 million from the prior year and was driven by outsourced water projects and payables, partly offset by higher net income.

強勁的商業和營運業績幫助我們實現了季度每股收益 1.03 美元。超出我們預期中位數 0.08 美元，較上年增長 14%。我們的資產負債表保持良好狀態，淨債務與調整後 EBITDA 比率為 0.5 倍。年初至今，自由現金流較前一年減少 5,300 萬美元，主要受外包水項目和應付款項的影響，但淨收入增加部分抵銷了這一影響。

Now, let's turn to slide 6. In Measurement & Control Solutions, we continue to convert the backlog with the total for MCS coming down slightly from the prior quarter to $1.8 billion. Orders were down 8%, driven by difficult comps in smart metering, partially offset by growth in analytics. Bidding and funnel activity remains healthy overall and has increased year-on-year with some key wins with AMI projects that will fill in the second half.

現在，我們翻到第 6 張投影片。在測量與控制解決方案方面，我們繼續轉換積壓訂單，MCS 總額較上一季略有下降，為 18 億美元。訂單量下降了 8%，原因是智慧計量領域的競爭較為激烈，但分析領域的成長部分抵消了下降。投標和漏斗活動總體上保持健康，並且同比增長，一些關鍵的 AMI 項目將在下半年完成。

Revenue grew more than expected for the quarter, up 6% versus the prior year, driven by energy growth and offset by water delivery calibration. EBITDA margin of 21% was up sequentially versus the fourth quarter, but 170 basis points lower than prior year, driven primarily by the energy water mix challenges we highlighted previously, which will impact margins for the first half of the year.

本季營收成長超過預期，比上年增長 6%，這主要得益於能源成長，但被供水校準所抵消。EBITDA 利潤率為 21%，較第四季度環比上升，但比去年同期低 170 個基點，主要原因是我們先前強調的能源水結構挑戰，這將影響上半年的利潤率。

In Water Infrastructure, orders were up 1% in the quarter, led by strong demand and treatment offsetting double-digit declines in China due to ongoing economic challenges. Revenue increased 5%, driven by strong treatment and transport demand across most regions, with the exception of China. EBITDA margin for water infrastructure was up an outstanding 290 basis points productivity and price more than offset inflation and mix and the WI team continues to get significant traction with our 80/20 efforts.

在水利基礎設施領域，本季訂單成長了 1%，這主要得益於強勁的需求和處理能力，抵消了中國因持續的經濟挑戰而出現的兩位數下滑。營收成長了 5%，這得益於除中國外大多數地區強勁的處理和運輸需求。水利基礎設施的 EBITDA 利潤率顯著上升，達到了 290 個基點，生產力和價格足以抵消通貨膨脹和混合因素的影響，而 WI 團隊繼續憑藉我們的 80/20 努力獲得顯著的牽引力。

In Applied Water, orders were up 3%, growing for the fifth straight quarter. Orders were driven by strength in Building Solutions and book-to-bill was well above 1. Revenues were up 1% compared to the prior year, primarily driven by strength in Building Solutions, partially offset by 80/20 walkaway impacts.

在應用水務領域，訂單量成長了 3%，連續第五季成長。訂單量受到建築解決方案業務強勁成長的推動，訂單出貨比遠高於 1。營收較上年同期成長 1%，主要得益於建築解決方案的強勁成長，但部分抵銷了 80/20 的放棄效應。

Segment EBITDA margin improvement of 300 basis points year-over-year was a company best for the quarter. Productivity, price and mix more than offset higher inflation and lower volumes. AW simplification efforts are really starting to take hold.

分部 EBITDA 利潤率較去年同期提高 300 個基點，為公司本季最佳表現。生產力、價格和產品組合足以抵消通貨膨脹上升和產量下降的影響。AW 簡化工作確實開始取得成效。

Finally, Water Solutions and Services saw robust demand with book-to-bill well over 1. Orders decreased by 5%, though, lapping a difficult comp due to a large order in the prior year. Revenue grew 1% with strength in services, offset by weather impacts in the southeastern part of the US Segment EBITDA margins were down 60 basis points versus the prior year at 21.7% and driven primarily by mix and lower volume, partially offset by productivity and positive price cost.

最後，水務解決方案和服務部門的需求強勁，訂單出貨比遠超過 1。不過，訂單量減少了 5%，與去年的大額訂單形成鮮明對比。由於服務業務強勁，收入成長了 1%，但被美國東南部天氣影響所抵消。部門 EBITDA 利潤率較上年下降 60 個基點至 21.7%，主要受產品組合和銷售下降的影響，但被生產力和積極的價格成本部分抵消。

Now, let's turn to slide 7 to discuss our current views on tariffs. Before I go through our overall guidance, I want to highlight that our reaffirmation of our full year guidance is based on the assumption that the current tariff scheme remains in place for the balance of the year. At this time, we expect to offset the cost of the additional tariffs with incremental pricing and supply chain actions and any softening demand should be buffered by our strong start to the year in FX tailwinds.

現在，讓我們翻到第 7 張投影片來討論我們目前對關稅的看法。在介紹我們的整體指導之前，我想強調一下，我們對全年指導的重申是基於這樣的假設：目前的關稅方案將在今年剩餘時間內保持不變。目前，我們預計透過增量定價和供應鏈行動來抵消額外關稅的成本，任何疲軟的需求都應該會因我們今年強勁的外匯順風而得到緩衝。

We're providing a summary of the imports from our largest regions and the estimated impact tariffs will have at current levels. The large rate increase on China imports from our last earnings call has changed the math and made this our [AD], but we should note that our imports from China are down significantly from where they were just a few years ago. And we continue to reduce our exposure with dual sourcing of most of what comes out of China now.

我們正在提供來自我們最大地區的進口情況摘要以及關稅在當前水準下的預期影響。我們上次收益電話會議上對中國進口商品的大幅上調改變了計算結果，並使其成為我們的[AD]，但我們應該注意到，我們從中國的進口量與幾年前相比大幅下降。目前，我們透過對大部分來自中國的產品進行雙重採購，繼續減少風險敞口。

On Mexico, fortunately, 75% of goods imported are covered through the USMCA exemption, and we continue to work to increase that number. At this time, we have a net increased costs from tariffs on Mexico of just $30 million. From the EU, we are primarily seeing impacts on our imports of water infrastructure products and are exploring a few alternatives outside of implemented pricing actions to help mitigate the impact. I think everyone realizes that this is a very dynamic situation with multiple potential tariff rate changes in the future, but our newly implemented operating model makes the organization more nimble, which gives us confidence in our ability to manage the evolving situation.

關於墨西哥，幸運的是，75%的進口商品都受到 USMCA 豁免的保護，我們將繼續努力提高這個數字。目前，我們對墨西哥徵收關稅的淨成本僅增加了 3,000 萬美元。從歐盟來看，我們主要看到水基礎設施產品進口的影響，並且正在探索實施定價行動以外的一些替代方案，以幫助減輕影響。我想每個人都意識到這是一個非常動態的情況，未來可能會發生多次關稅稅率變化，但我們新實施的營運模式使組織更加靈活，這使我們對管理不斷變化的局勢的能力充滿信心。

Now, let's turn to slide 8 for our Q2 and full year guidance. The organic outlook is unchanged versus what we provided at the start of the year, but there are several changes to our reported figures and initial assumptions. Full year reported revenue is now expected to be $8.7 billion to $8.8 billion, up from our prior guide of $8.6 billion to $8.7 billion, which delivers revenue growth of 1% to 2%, while organic revenue growth of 3% to 4% remains unchanged versus prior guidance. FX has shifted and is no longer a material headwind, while the divestiture impact we've noted is roughly 1% of sales.

現在，讓我們翻到第 8 張投影片來了解我們的第二季和全年指引。與我們年初提供的數據相比，有機前景沒有變化，但我們報告的數字和初步假設有一些變化。目前預計全年報告收入為 87 億美元至 88 億美元，高於我們先前預測的 86 億美元至 87 億美元，收入成長率為 1% 至 2%，而有機收入成長率為 3% 至 4%，與先前預測相比保持不變。外匯已發生變化，不再是重大阻力，而我們注意到的資產剝離影響約為銷售額的 1%。

We are holding back the impact of our enacted tariff pricing in our guide until we get better visibility into any softening demand that may result from evolving trade dynamics. EBITDA margin is expected to remain at 21.3% to 21.8%. This represents 70 to 120 basis points of expansion versus the prior year, driven by productivity and price more than offsetting inflation as well as investments in the business. And benefits from our simplification efforts will help mitigate mix pressure from MCS. This yields an unchanged EPS range of $4.50 to $4.70. Despite a challenging start, we remain committed to the 9% to 10% free cash flow margin.

在我們更了解貿易動態變化可能導致的需求疲軟之前，我們正在指南中抑制已製定關稅定價的影響。EBITDA利潤率預計維持在21.3%至21.8%。這意味著與前一年相比，成長了 70 至 120 個基點，這得益於生產力和價格的上漲，超過了通貨膨脹以及業務投資的影響。我們的簡化努力帶來的好處將有助於減輕 MCS 的混合壓力。這使得每股收益範圍保持不變，為 4.50 美元至 4.70 美元。儘管開局充滿挑戰，我們仍致力於實現 9% 至 10% 的自由現金流利潤率。

Again, cash flow will be impacted in 2025, primarily by our recently announced restructuring actions. Now, drilling down on the second quarter. We anticipate revenue growth will be in the 1% to 2% range on a reported basis and 2% to 3% organically. We expect second quarter EBITDA margin to be approximately 21% to 21.5%, which is flat to up 50 basis points. driven by price realization and productivity gains and higher volumes as well as impacts from our simplification efforts.

同樣，2025 年的現金流將受到影響，主要是因為我們最近宣布的重組行動。現在，深入探討第二季。我們預計報告收入成長率將在 1% 至 2% 之間，有機成長率將在 2% 至 3% 之間。我們預計第二季 EBITDA 利潤率約為 21% 至 21.5%，持平至上漲 50 個基點。受價格實現、生產力提高、產量增加、簡化工作的影響。

Second quarter MCS EBITDA margin will be down significantly year-over-year, driven again by the energy and water mix. It will be the low mark for the year. But we will -- we expect it to improve sequentially from there and return to expansion in the second half. This yields second quarter EPS of $1.12 to $1.16. We started the year with momentum and in a position of strength. Our balanced outlook reflects our strong commercial position, the durability of our portfolio and benefits from our simplification efforts. While we also continue to monitor broader market conditions and volatility, including potential new or additional tariffs, inflation and fluctuations in currency and interest rates.

第二季 MCS EBITDA 利潤率將年比大幅下降，這也受到能源和水結構的影響。這將是今年的最低紀錄。但我們預計它會從那時起逐步改善並在下半年恢復擴張。這使得第二季每股收益達到 1.12 美元至 1.16 美元。我們以強勁的勢頭和優勢開啟了新的一年。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。同時，我們也將繼續監測更廣泛的市場狀況和波動，包括潛在的新關稅或額外關稅、通貨膨脹以及貨幣和利率的波動。

Overall, our expectations for the year remain positive as we build on our strong momentum. With that, please turn to slide 9, and I'll turn the call back over to Matthew for closing comments.

總體而言，由於我們保持了強勁的發展勢頭，因此對今年的預期依然樂觀。接下來，請翻到投影片 9，我會把電話轉回給馬修，請他作最後發言。

Thanks, Bill. Our solid Q1 performance is another proof point that we are delivering on the plan we laid out at our Investor Day last May. It's been almost a year since then. So as a reminder, we outlined our intention to create value from simplifying our operating model, integrating Evoqua and optimizing our portfolio with disciplined capital deployment.

謝謝，比爾。我們第一季的穩健表現再次證明我們正在履行去年五月投資者日制定的計劃。從那時起已經過去快一年了。因此，提醒一下，我們概述了透過簡化營運模式、整合 Evoqua 和透過嚴格的資本配置優化投資組合來創造價值的意圖。

On our operating model, as I mentioned a few moments ago, that work has already begun to make us more agile, and that's a great benefit. But the real reason to simplify our operating model is to position us for long-term growth. And we're doing that by implementing our high-impact culture, driving 80/20, which is progressing nicely across the business and simplifying our organizational structure, which is tracking to the timing we laid out on our last earnings call. We can already see the spike in productivity from those actions, which is reflected in our margin expansion over the last five quarters. But just as important, simplification has unleashed a new energy across the enterprise.

在我們的營運模式上，正如我剛才提到的，這項工作已經開始讓我們變得更加靈活，這是一個很大的優勢。但簡化營運模式的真正原因是為了實現我們的長期成長。為了實現這一目標，我們推行了高影響力的企業文化，推動 80/20 原則，這在整個業務範圍內進展順利，並且簡化了我們的組織結構，這與我們在上次收益電話會議上確定的時間一致。我們已經看到這些行動帶來的生產力的飆升，這反映在我們過去五個季度的利潤率擴張上。但同樣重要的是，簡化為整個企業釋放了新的活力。

Our team told us that very clearly in our most recent employee survey, and our global leaders report an increase in the speed of our responsive [listed] customers alongside less wasted time and effort. In the integration of Evoqua, we've delivered the cost synergies faster than planned. And now we've got great momentum on the revenue synergies.

我們的團隊在最近的員工調查中非常清楚地告訴我們這一點，我們的全球領導者報告說，我們對[列出的]客戶的回應速度有所提高，同時浪費的時間和精力也減少了。在 Evoqua 整合過程中，我們比計劃更快地實現了成本協同效應。現在我們在收入協同效應方面取得了巨大的進展。

And finally, on capital deployment, we built considerable momentum in the last 12 months. We have an attractive and robust M&A pipeline focused on capabilities that complement our core, especially in advanced treatment, intelligent solutions and in services. So we're confident about delivering a consistent flow of opportunities with the right level of discipline. In the recent weeks, as an example, we closed on Vacom a leading technology company with proprietary breakthrough solutions and zero liquid discharge. As in addition to our treatment portfolio, the technology offers a compelling value proposition in attractive industrial verticals like microelectronics and energy.

最後，在資本部署方面，我們在過去 12 個月中累積了相當可觀的勢頭。我們擁有具有吸引力且強勁的併購管道，專注於補充我們核心業務的能力，特別是在先進處理、智慧解決方案和服務領域。因此，我們有信心透過適當的紀律來提供持續不斷的機會。例如，最近幾週，我們收購了 Vacom，這是一家擁有專有突破性解決方案和零液體排放的領先技術公司。除了我們的處理產品組合之外，該技術還在微電子和能源等有吸引力的工業垂直領域提供了引人注目的價值主張。

Alongside M&A, we're actively optimizing our portfolio with specific actions in place to further focus on our strategic priorities. So the team has gotten a lot done since last May, and the benefits are reflected in our results. At the same time, we've remained fully committed to sustainability leadership. Our annual sustainability report will be out tomorrow, April 30. When you read it, you'll get a strong impression of the impact the team is having on the customers and communities we serve. In fact, we've exceeded all four of our 2025 customer sustainability goals ahead of schedule, and we've raised the bar with our 2030 goals.

除了併購，我們也積極優化投資組合，並採取具體行動，進一步關注我們的策略重點。因此，自去年五月以來，團隊已經完成了許多工作，其效益也反映在我們的成果上。同時，我們始終致力於永續發展領導地位。我們的年度永續發展報告將於明天（4 月 30 日）發布。當您閱讀它時，您會對團隊對我們服務的客戶和社區的影響有深刻的印象。事實上，我們已經提前超額完成了 2025 年所有四個客戶永續發展目標，並且我們提高了 2030 年目標的標準。

We outlined those at Investor Day last year, and you'll be able to find further detail on them in the report, which will be on our website tomorrow. Before we get to your questions, I want to highlight our team once more because this is a team sport. I'm proud of the team for delivering such a tremendous start to the year and for leaning into the transformation of Xylem with so much determination and positive energy and for putting us in such a privileged position to execute on our purpose, which is to empower our customers and communities to build a more water secure world.

我們在去年的投資者日上概述了這些內容，您可以在明天我們網站上發布的報告中找到更多詳細資訊。在回答您的問題之前，我想再次強調我們的團隊，因為這是一項團隊運動。我為團隊感到驕傲，他們在新的一年裡取得瞭如此出色的開局，以如此大的決心和積極的能量致力於賽萊默的轉型，並讓我們處於如此有利的位置來實現我們的目標，即幫助我們的客戶和社區建立一個水資源更加安全的世界。

And with that, operator, I will turn the call over to you for Q&A.

接線員，接下來我將把電話轉給您進行問答。

(Operator Instructions) Deane Dray, RBC Capital Markets.

（操作員指示） Deane Dray，RBC 資本市場。

Just really appreciate all the tariff detailed mitigation plan and so forth and page 7 is a big help. And kind of interesting as you all in terms of China as a percent of COGS, are pretty similar to a number of the multi-industry companies that we cover. So no surprises there. So first question is more of a -- just a reflection of this past quarter, did you benefit in any way from customers' prepositioning inventory to pull forward?

真的很感謝所有關稅詳細的緩解計劃等等，第 7 頁很有幫助。大家對中國銷貨成本百分比的看法很有趣，與我們報道的許多跨產業公司非常相似。所以這並不奇怪。因此，第一個問題更多的是——只是對上個季度的一個反映，您是否從客戶預先配置庫存以提前推動中受益？

And then similarly, did you all reposition any inventory ahead of some of the tariff issues, supply chain issues and so forth?

同樣地，你們是否都針對一些關稅問題、供應鏈問題等重新調整了庫存？

Yes, Dean, I'll start this out. In terms of kind of front-loading orders ahead of tariffs, we didn't see any increase in to get ahead of tariffs. We post the teams actually in our business were used in April, and we did see a small impacted area in applied water in our commercial business. But in general, we really haven't seen anybody do any pull-ins to get ahead of the tariffs.

是的，Dean，我先開始。就關稅前的預先裝載訂單而言，我們並未看到任何為趕在關稅前下達的訂單增加。我們發布的實際業務團隊是在四月使用的，我們確實看到商業業務中應用的水有一小塊受影響的區域。但總的來說，我們確實沒有看到任何人採取任何措施來逃避關稅。

Got it. And anything for yourself or in terms of positioning?

知道了。對於自己或定位方面有什麼建議嗎？

No.

不。

Good. And then second question would be, just can you clarify the point about the price increases that you're putting through, you're not assuming any falloff in demand. I'm not sure that that's your typical price elasticity, but just what is the underlying assumption there -- and maybe it's kind of the timing and when you could see some overall falloff in demand because of these price mitigation issues?

好的。第二個問題是，您能否澄清一下您所實施的價格上漲的觀點，您並沒有假設需求會下降。我不確定這是不是典型的價格彈性，但其基本假設是什麼——也許是時機問題，以及何時您會看到由於這些價格緩解問題而導致需求總體下降？

Yes. I think for sure, we do anticipate some demand falling off in the second half of the year. We don't have a really good line of sight to that. That's probably the biggest puzzle this piece of the puzzle that's missing. But as we've done sensitivity analysis, if we looked at tariffs, we looked at price, we looked at demand we feel really comfortable with having beat Q1 and our first quarter beat.

是的。我認為，我們確實預計下半年需求會下降。我們對此並沒有很好的認識。這可能是拼圖中缺少的最大一塊。但是，正如我們所做的敏感性分析一樣，如果我們看一下關稅，看看價格，看看需求，我們對超過第一季和第一季的業績感到非常滿意。

Now, we've got tailwinds from FX in the right direction. We feel very comfortable that any sizable amount of demand impact in the second half we can manage. But we brought different sensitivity, and we feel confident that we can manage any movement in demand. But we do anticipate it. It's just to what extent that we feel we've got it covered.

現在，我們已從 FX 獲得了正確方向的助力。我們非常有信心，我們可以應對下半年任何相當大的需求影響。但我們帶來了不同的敏感性，我們有信心應對需求的任何變化。但我們確實預料到了這一點。這只是我們感覺我們已經覆蓋到什麼程度了。

Yes. I mean, Dean, the comment in the prepared remarks was we've gone out with extensive pricing across the portfolio. So we didn't raise our organic growth guide, which would reflect that because we're going to offset it with any potential decline that Matthew just highlighted. That's yet to be determined.

是的。我的意思是，迪恩，準備好的評論中的評論是，我們已經對整個投資組合進行了廣泛的定價。因此，我們沒有提高有機成長指南，這反映了這一點，因為我們將用馬修剛才強調的任何潛在下降來抵消它。這尚未確定。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

So just kind of walk through a couple of things too. First, the tariff side of things. How are you expecting to manage the pricing piece of this on a forward basis, surcharges versus formal price increases. Are these layering in over the next two months? Have they already been put in place? Would you roll some of those back, if tariffs come down, leverage if there are even more tariffs? Just kind of walk through the moving pieces there to help understand the timing and related. Does this matter for the second quarter, particularly much based on order levels, inventory, timing, et cetera? Is this kind of like a back half of the quarter impact? Or is it more 3Q?

所以也簡單介紹一下幾件事。首先是關稅方面。您打算如何前瞻性地管理這部分定價，附加費與正式價格上漲。這些會在接下來的兩個月內分層進行嗎？這些措施已經實施了嗎？如果關稅下降，你會取消其中一些嗎？如果關稅進一步增加，你會採取哪些措施？只需瀏覽一下那裡的移動部分，即可幫助理解時間和相關內容。這對第二季有影響嗎，特別是基於訂單水準、庫存、時間安排等等？這是否有點像是本季後半段的影響？或更像 3Q？

Yes, I'll start with where you finished. It's more back half loaded to the quarter and then obviously to the second half of the year. But Mike, we've got a mix of surcharge and price increases. I would say it's probably two-thirds price increase, about one-third surcharge. Different parts of our business needed to handle it in different ways. But those actions -- look, I think a lot of the work we've done on our operating model structure have enabled us to move more swiftly. We took pricing actions in Q1. We took those again in early April in Q2 and those are in the market and in play right now.

是的，我將從您完成的地方開始。它更多地回到了本季度的一半，然後顯然是到今年下半年。但是麥克，我們收取的是附加費並且漲價了。我認為價格可能會上漲三分之二，附加費大約增加三分之一。我們業務的不同部分需要以不同的方式處理它。但是這些行動——看，我認為我們在營運模式結構上所做的大量工作使我們能夠更加迅速地行動。我們在第一季採取了定價行動。我們在第二季的 4 月初再次採用了這些產品，現在它們已在市場上銷售並投入使用。

So there's parts of our backlog that we can reprice and we're doing that, and there's parts that we can't. We've done an assessment we understand that, and that's kind of baked into our full year guide. But we're pretty nimble and moving quickly in an evolving situation as things change, we'll reevaluate and we'll readjust. But I think we're in a good position right now.

因此，我們的部分積壓訂單可以重新定價，而且我們正在這樣做，但有些部分我們不能。我們已經完成了評估，我們理解這一點，並且這已經融入我們的全年指南中。但我們非常靈活，能夠隨著情勢的變化迅速採取行動，我們會重新評估並進行調整。但我認為我們現在處於良好狀態。

And then the follow-up is if at all, how much does this change your approach to the simplification side of things? Is this an opportunity to lean in even further? Is it creating any challenges mean, obviously, you're pretty comfortable in what you're doing internally. Otherwise, you wouldn't tell the guide and all the offset points. But I'm just curious if it changes that dynamic at all? And just if you don't mind also adding where you are right now in the process and what the main focal point is on the simplification side.

那麼接下來的問題是，如果有的話，這會在多大程度上改變您對事物簡化方面的態度？這是一個進一步傾斜的機會嗎？它是否帶來了任何挑戰，顯然意味著你對自己所做的事情感到滿意。否則，你不會告訴導遊和所有的偏移點。但我只是好奇它是否會改變這個動態？如果您不介意的話，還可以添加您現在在流程中所處的位置以及簡化方面的主要焦點是什麼。

Yes. Maybe I would start. I think fundamentally, no change to our methodology or approach I think if anything, as we look for areas to accelerate businesses that are more challenged from the tariffs. We look for other actions to expedite some of the simplification efforts to help offset the weight of the tariffs. I think overall, on the restructuring plan, we're on track.

是的。也許我會開始。我認為從根本上來說，我們的方法或途徑沒有改變，因為我們正在尋找能夠加速那些受關稅挑戰更大的業務的領域。我們期待採取其他行動來加快一些簡化措施，以幫助抵消關稅的壓力。我認為總體而言，重組計劃正在順利進行。

I think our Q1 performance was slightly ahead of schedule. I think we're starting to see it, as Matthew highlighted, though, as the businesses come together, our resegmentation and the divisional structure we've created, where we've got dedicated leaders that have P&L ownership that nimbleness and them to have full control and line of sight to the actions that they need to take to drive business results.

我認為我們第一季的業績略微提前了一點。我認為，正如馬修所強調的那樣，隨著業務的整合，我們開始看到這一點，我們重新劃分並創建了部門結構，我們有專門的領導者，他們擁有損益所有權，靈活性，並且能夠完全控制和洞察他們需要採取的行動來推動業務成果。

I think it's hugely beneficial in this environment. So I think it was obviously a much needed activity and then perfect timing to face a really challenging macroeconomic environment.

我認為它在這種環境下非常有益。因此，我認為這顯然是一項非常必要的活動，而且是應對真正具有挑戰性的宏觀經濟環境的絕佳時機。

Scott Davis, Melius Research.

戴維斯 (Scott Davis)，Melius Research。

Seems -- doesn't seem like this tariff stuff is creating as much drama for you guys as perhaps maybe some others out there. But -- so I'll ask questions in a different way, maybe more traditional, and that would be balance sheet still really under levered and you've got a lot of market disruptions. Is this an environment that we've heard mixed things. Some folks say M&A is stalled out, and some have said it, it hasn't. So what have you guys seen? And what do you expect as far as able to put some capital to work this year?

看起來——這些關稅問題似乎並沒有給你們帶來像其他人那樣大的麻煩。但是 — — 所以我將以不同的方式提問，也許更傳統，那就是資產負債表仍然處於槓桿率過低的狀態，而且市場存在很多混亂。這是一個我們聽過各種不同聲音的環境嗎？有些人說併購已經停滯，有些人則說並沒有。那你們看到了什麼？您對今年能夠投入多少資金有什麼期望？

Yes. We may look like a duck, but the feet are moving pretty quickly under the water. Scott, as we laid out at our Investor Day, our priorities are first investing in the core. M&A is really important to us to get to the mid-teens EPS guide that we put out for LRP. So we're very active there. We have a lot of targets in the funnel.

是的。我們可能看起來像鴨子，但是我們的腳在水下移動得相當快。斯科特，正如我們在投資者日所說的那樣，我們的首要任務是投資核心。對我們來說，併購對於實現我們為 LRP 制定的十幾美元 EPS 指導值非常重要。所以我們在那裡非常活躍。我們的漏斗中有許多目標。

Obviously, we talked about, obviously, we want to continue dividends and then we'll be opportunistic on share buybacks. I think it's a little bit from a valuation perspective, maybe I'll talk about that. I think it's a little bit too early to kind of see maybe any impacts to valuations. Private valuations tend to lag public markets. We haven't really seen a lot of movement there. However, high-quality companies usually come into premium. And the one thing that we continue to do is optimize our portfolio. We're very direct about that at Investor Day last year.

顯然，我們討論過，顯然，我們希望繼續派發股息，然後我們將抓住機會回購股票。我認為這與估值角度有點關係，也許我會談論這個。我認為現在判斷其對估值的影響還為時過早。私人估值往往落後於公開市場。我們確實沒有看到那裡有太多動靜。然而，高品質的公司通常會獲得溢價。我們將繼續做的一件事就是優化我們的投資組合。我們在去年的投資者日上非常直接地談到了這一點。

We did one deal in Q1 or on divestiture in Q1. We've got a few other things in the portfolio that we're looking to divest that either we're no longer fit or not accretive to the business. And we're going to continue to look at assets that fit our strategy and make decisions based on strategic fit and financial hurdles and I know that we built a lot of muscle to do a lot of M&A. So we're -- we've built a lot of capability, and we're going to be active out with M&A over the course of this year and through our LRP.

我們在第一季完成了一筆交易或資產剝離。我們的投資組合中還有一些其他資產，我們正在考慮剝離，因為它們要么不再適合，要么對業務沒有增值作用。我們將繼續尋找符合我們策略的資產，並根據策略契合度和財務障礙做出決策，我知道我們已經累積了大量實力來進行大量併購。因此，我們已經建立了許多能力，我們將在今年透過我們的 LRP 積極開展併購活動。

Okay. Sounds encouraging. Total switch gears, and sorry, I missed the first seven minutes of your call, the Water Solutions and Services segment, is that a little bit too lumpy for us to start picking on quarters. What should we expect kind of this new segmentation. Just trying to get used to it at 1% growth seemed a little light for versus kind of what we were thinking. But again, if it's just lumpy and it's kind of hard to call it quarters and maybe we should make a big deal out of that stuff.

好的。聽起來令人鼓舞。完全切換，抱歉，我錯過了您通話的前七分鐘，水處理解決方案和服務部分，這對我們來說有點太不均衡了，無法開始挑選季度。我們應該對這種新的細分抱持什麼樣的期待？僅僅嘗試適應 1% 的成長率似乎與我們想像的不太一樣。但話說回來，如果它只是塊狀的，而且很難稱之為季度，那麼我們也許應該對它大驚小怪。

Yes. No, I would definitely agree with that. It is our lumpiest segment just right, we were at double-digit growth in the fourth quarter, double-digit growth in the second quarter. So you're going to see as some of these larger capital projects hit a little bit less consistency, as you'll see in the balance of the portfolio. I think overall, they've got outside of the tough comp, I mean, last year, just to remind everyone, we had a about $150 million outsourced water project that we booked. So excluding that, orders would have been extremely strong.

是的。不，我絕對同意這一點。這是我們最不穩定的部分，第四季實現了兩位數的成長，第二季也實現了兩位數的成長。因此，你會看到其中一些較大的資本項目的一致性會降低一些，正如你在投資組合平衡中看到的那樣。我認為總體而言，他們已經擺脫了艱難的競爭，我的意思是，去年，只是提醒大家，我們預訂了一個約 1.5 億美元的外包水項目。因此，如果不考慮這一點，訂單量將會非常強勁。

In the quarter, we built significant backlog I think backlog year-over-year is up 6% or 7% for that business. So I think the fundamentals are still there. And yes, I'd look at a rolling 12-month organic rate versus a quarter-to-quarter to really get the true health of WSS. But relative to expectations, they were right in line, and I think they have a really strong year ahead of them.

在本季度，我們累積了大量的積壓訂單，我認為該業務的積壓訂單同比增長了 6% 或 7%。所以我認為基本面仍然存在。是的，我會查看連續 12 個月的有機成長率與季度成長率，以真正了解 WSS 的真實健康狀況。但相對於預期，他們的表現完全符合預期，我認為他們今年的業績將會非常強勁。

Okay. That's what we thought. That's helpful. I'll pass it on. I appreciate it guys. Best of luck this year.

好的。我們就是這麼想的。這很有幫助。我會傳達的。我很感謝你們。祝你今年好運。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

I guess my question on tariffs, are there parts of the portfolio where tariffs leave you either better or worse off relative to competitors. So are there differences in the competitive impact or your competitive position that you see coming from tariffs? And does that make price increases easier to get in places, harder to get in others? And how do you deal with that?

我對關稅的問題是，在投資組合中，是否有部分產品受到關稅的影響，相對於競爭對手而言，是表現更好還是更差。那麼，您認為關稅對競爭影響或競爭地位有何影響？這是否意味著有些地方的價格上漲更容易，而有些地方的價格上漲則更難？您如何處理這個問題？

Yes. That's a good question. I would just start maybe at a high level that roughly about -- we're 4% of our COGS in terms of tariffs. And I think we're in a very competitive position based on what I've been able to glean over the past couple of weeks, and I think we're in a really good space. I think I would just -- like I said in the opening remarks, that our diversification of our portfolio and the end markets help us really have a stable business in the face of economic downturns like the potential one we're looking at and also the critical nature of our products and solutions are really important.

是的。這是個好問題。我可能只是從大約較高的水平開始——就關稅而言，我們的 COGS 為 4%。根據過去幾週我所掌握的信息，我認為我們處於非常有競爭力的地位，而且我認為我們處於一個非常好的空間。我想我會——就像我在開場白中所說的那樣，我們的投資組合和終端市場的多樣化幫助我們在經濟衰退（例如我們正在考慮的潛在衰退）面前真正擁有穩定的業務，而且我們的產品和解決方案的關鍵性質也非常重要。

So if I harken back to COVID, we obviously had kind of a peak of the trough of down 6%. But I think normal pullbacks, we have been pretty resilient across the markets driven by muni exposure and then high-growth verticals in our industrial business, especially as we brought on legacy Evoqua into the portfolio. So I think we're feeling really good about our competitive position, and we'll take it one day at a time.

因此，如果我回想一下 COVID，我們顯然經歷了 6% 的低谷高峰。但我認為，在正常的回調中，我們在市政債券敞口以及工業業務的高成長垂直行業的推動下，在各個市場都表現得相當有彈性，特別是當我們將傳統的 Evoqua 納入投資組合之後。所以我認為我們對自己的競爭地位感到非常滿意，我們會一天天地進步。

I guess the other question I wanted to ask about or have you guys comment on was about the organizational realignment that you guys have gone through over the last few quarters, I mean, I think pretty much going live into place now. Can you talk about how you've changed the internal organization of the company? And what impact you're looking for that to have on the business?

我想問的另一個問題或讓你們評論的是關於你們在過去幾個季度經歷的組織調整，我的意思是，我認為現在基本上已經到位了。可以談談你們是如何改變公司內部組織的嗎？您希望這會對​​業務產生什麼影響？

Yes. Yes, I think like I said last call, just -- I'll start out with just reiterating that these actions, however, necessary for the business, meaning that we're going to have 2,000 colleagues that either have or will be leaving the business over the course through the summer.

是的。是的，我想就像我上次說的一樣，我首先要重申的是，這些行動對於業務來說是必要的，這意味著我們將有 2,000 名同事在夏季離開或即將離開公司。

We don't take that likely. We do want to make sure that everyone is treated fairly and that with the utmost respect. So I'll start there. first and foremost, Nate, we're tracking to the timeline that we laid out on the last earnings call. I think Bill just alluded to that as well.

我們認為這不太可能。我們確實希望確保每個人都受到公平對待和最大程度的尊重。所以我將從那裡開始。首先，內特，我們正在追蹤上次在收益電話會議上製定的時間表。我認為比爾剛才也提到了這一點。

With the majority of our actions wrapping up this summer, especially in Europe where we're working with workers' councils there. I would say I've been traveling quite a bit around the globe spending time with colleagues and customers. And I can already see the impact. The teams are much more focused. They're making decisions more quickly, and we're already seeing the impact on customer focus. And prior to that, we were highly matrisized, as you know.

我們的大部分行動將於今年夏天結束，特別是在歐洲，我們正在與那裡的工人委員會合作。我想說我已經在全球各地旅行了相當長一段時間，與同事和客戶共度時光。我已經看到了它的影響。團隊更加專注。他們做出決策的速度更快，我們已經看到了對客戶關注度的影響。在此之前，如你所知，我們已經高度母系化了。

Now, we're singularly focused on a segment, and now we have 16 division GMs that have end-to-end accountability for the P&L statement. And so that's enabling the speed and focus and accountability, and it's going to make us much better. I'm already starting to see that in my travels -- maybe another thing I would mention is we've set up an enterprise solutions organization. Before we were focused on the $20, not the $80 million in terms of customers that wanted to buy our total portfolio. And I am personally calling on C-suite executives and helping that team for customers that want to buy our total solution. So that's making a lot of great progress.

現在，我們專注於一個細分市場，我們有 16 位部門總經理對損益表負有端到端的責任。這樣就能提高速度、集中註意力和責任感，讓我們變得更好。我在旅行中已經開始看到這一點——也許我想提到的另一件事是我們已經建立了一個企業解決方案組織。以前，我們關注的是想要購買我們全部產品組合的客戶金額為 2000 萬美元，而不是 8000 萬美元。我個人正在呼籲高階主管們幫助該團隊為想要購買我們整體解決方案的客戶提供服務。所以，這取得了很大的進步。

And I said this in our prepared remarks, but I'll just reiterate it, we do poll surveys 3 times a year. We just wrapped up our poll survey, and we've seen really marked improvements. And the two questions we asked, we asked different questions, but the two that really reflect the transformation are. Are we making it easier to serve our customers -- and are we making it easier for you as a colleague to do your job.

我在準備好的發言中說過這一點，但我只想重申一下，我們每年進行三次民意調查。我們剛剛結束了民意調查，我們看到了非常明顯的改善。我們提出的兩個問題是不同的，但真正反映轉變的兩個問題是。我們是否讓為客戶提供服務變得更容易？我們是否讓您作為同事更輕鬆地完成工作？

We've seen especially marked improvement with our top 150 our global leaders, as you think about the fusion of the structure and culture down, it should start there. And we've seen the broader organization improve in those two questions as well. So we're off to a good start, and there's a lot more to go, but we're off to a good start.

我們看到，我們的全球前 150 名領導者取得了特別顯著的進步，當你考慮結構和文化的融合時，它應該從那裡開始。我們也看到整個組織在這兩個議題上都有進步。所以，我們已經有了一個好的開端，雖然還有很多工作要做，但我們已經有一個好的開始。

Saree Boroditsky, Jefferies.

薩裡‧博羅迪茨基 (Saree Boroditsky)，傑弗里斯 (Jefferies)。

Maybe just on M&CS, orders have been choppy recently. So just any color on how you're thinking about orders versus high single-digit growth expected for the full year? And then maybe any additional color on the margins that are included in that backlog? And do you expect to have this energy mix issue going forward?

也許只是在 M&CS 上，最近的訂單一直不穩定。那麼，您如何看待訂單量與全年預期的高個位數成長之間的關係？那麼，也許在積壓工作中包含了邊緣的任何附加顏色？您預計未來還會出現這種能源結構問題嗎？

Yes. I would say we've said just MCS orders as they go through the rephasing of their projects, that book-to-bill, we think will be positive in the back half of the year. I mean general bid activity remains strong. Our win rate has maintained. So the fundamentals of that business as we get through some of this rephasing, I think returns to a more normal cadence, and you'll see that water business back to the high single-digit growth rate. Yes, we highlighted the energy part of smart metering is doing significantly well. growth with 40%-plus growth rates this year. So -- and we have line of sight to how some of those projects are going to lay in the back half as we see an acceleration of growth as we go through the balance of the year.

是的。我想說的是，我們已經說過，隨著 MCS 訂單的重新安排，我們認為訂單出貨比將在下半年呈現正面趨勢。我的意思是整體競標活動依然強勁。我們的勝率保持了下來。因此，隨著我們完成一些重新調整，我認為該業務的基本面將恢復到更正常的節奏，你會看到水業務恢復到高個位數成長率。是的，我們強調智慧計量的能源部分錶現非常好。今年的成長率將達到40%以上。因此，我們可以預見其中一些項目在下半年將如何發展，因為我們看到在今年餘下的時間裡，成長將會加速。

From a margin perspective, I think we're very solid on the water side. We've talked about we've got a specific project or two in the energy space, that's putting some pressure on overall margin. It's less margin than the water portfolio on balance, but we've got some specific issues that we're cycling through our backlog and will be at a more normal level going into 2026.

從利潤角度來看，我認為我們在水資源方面非常穩固。我們已經討論過我們在能源領域有一兩個特定的項目，這給整體利潤帶來了一些壓力。總體而言，它的利潤率低於水務投資組合，但我們有一些具體問題，我們正在處理積壓問題，到 2026 年將處於更正常的水平。

I think the MCS team overall, from a margin perspective, continues to work on core productivity to help try to offset that. But the mix impact is significant, a couple of hundred basis points here in the first quarter, and we'll ramp here in the second quarter. Like we said in the prepared remarks, I think Q2 is the bottom and then start to see a sequential improvement from there and then back to year-over-year expansion.

我認為，從利潤率的角度來看，MCS 團隊整體將繼續致力於核心生產力，以幫助抵消這種影響。但混合影響是顯著的，第一季有幾百個基點，第二季還會進一步增加。正如我們在準備好的評論中所說的那樣，我認為第二季度是底部，然後從那裡開始看到連續的改善，然後回到同比增長。

I appreciate all the color. And then last quarter, I believe you talked about seeing some impact on orders from 80/20, I think, in water infrastructure. Just can you update us on any impact you saw this quarter? from 80/20 on overall orders? And then do recent tariff actions change this strategy in any way, given maybe the higher cost base for some products.

我欣賞所有的色彩。上個季度，我相信您談到了 80/20 對水利基礎設施訂單的影響。您能否向我們介紹本季所看到的影響？從整體訂單的 80/20 來看？那麼，考慮到某些產品的成本基礎可能較高，最近的關稅行動是否會以某種方式改變這項策略？

Yes. I think we highlighted we had built into our guide a little over 1% of headwind from an 80/20 perspective, and maybe a little bit heavier in Applied Water and water infrastructure as they have been they've implemented the tool set, the longest within the portfolio, and we looked at kind of the buildup of their product and customer portfolio, there was the largest opportunity there.

是的。我認為我們強調了我們在指南中已經考慮到了從 80/20 角度來看略高於 1% 的逆風，而且在應用水和水基礎設施方面可能要重一些，因為他們已經實施了該工具集，這是投資組合中最長的，我們研究了他們的產品和客戶組合的積累，那裡存在最大的機會。

So I think the teams are continuing to make those decisions to reduce the complexity free up the team's time to help at the end of the day, longer term, grow and innovate with our largest customer. So I don't think there's a material change to that strategy now with tariffs in place. Overall, obviously, the incremental pricing will provide a tailwind if there's no material economic pullback, as we said earlier.

因此，我認為團隊正在繼續做出這些決定，以降低複雜性，從而騰出團隊的時間來幫助我們最大的客戶實現長期成長和創新。因此，我認為，在關稅實施的情況下，這項策略不會發生實質改變。總體而言，顯然，正如我們之前所說，如果沒有出現實質的經濟衰退，增量定價將帶來順風。

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

I actually wanted to follow up on M&CS margin performance and outlook, Bill, you just said Q1 mix impact couple of hundred basis points. By how much does that step up into Q2? And then given the visibility that you have on first half results, second half project pipeline tariff impact, et cetera. Are you still confident in full year segment margin expansion.

我實際上想跟進 M&CS 的利潤率表現和前景，比爾，你剛才說第一季的組合影響有幾百個基點。這會在第二季上升多少？然後，根據您對上半年業績的了解，了解下半年專案管道關稅的影響等等。您對全年分部利潤率擴張仍有信心嗎？

Yes. So first off, I'd say Q1 margin was right in line with our expectations. And again, just -- it's very specifically attributed to the mix shift between our water and energy meter businesses. We talked about last quarter, this is really a first half type of phenomenon as they get through the rephasing of their backlog. So I think we are on track and in line with expectations.

是的。首先，我想說第一季的利潤率符合我們的預期。再說一次，這只是——這非常具體地歸因於我們的水錶和能源表業務之間的組合轉變。我們在上個季度討論過，這實際上是一種上半年出現的現象，因為他們正在重新安排積壓的工作。所以我認為我們正走在正確的軌道上並且符合預期。

I think as we get into the second quarter, the margin decrease for MCS be close to double the impact that we experienced in the first quarter. Again, that's why our overall Xylem margin guidance at a flat -- was flat on the bottom end because of that significant MCS pressure. But again, that team continues to do a lot of great work on profitability that's being masked by this mix issue.

我認為，隨著我們進入第二季度，MCS 的利潤率下降將接近第一季所受影響的兩倍。再次，這就是為什麼我們的整體 Xylem 利潤率指導保持平穩 - 由於 MCS 壓力較大，底端保持平穩。但是，該團隊繼續在盈利能力方面做了很多出色的工作，但這些工作卻被混合問題所掩蓋。

They drove a few hundred basis points of productivity through their 80/20 and organizational simplification efforts. They continue to drive material efficiencies or sorting and design work. So they're tackling it, that will create a better leverage point for when this mix issue resolves later in the year. But we're confident that as we stand here today, full year MCS margins will expand year-over-year.

他們透過 80/20 和組織簡化措施將生產力提高了幾百個基點。他們繼續推動材料效率或分類和設計工作。因此他們正在解決這個問題，這將為今年稍後解決混合問題創造更好的槓桿點。但我們相信，就目前的情況來看，全年 MCS 利潤率將逐年擴大。

Okay. Very helpful detail. And as a follow-up, you have covered this directionally with some other responses, but perhaps offer a little more detail on April order trends and any apparent impact in the early days of additional pricing. Curious if there are callouts by segment or at a higher level, OpEx versus CapEx-oriented businesses.

好的。非常有用的細節。作為後續行動，您已經透過其他一些回應方向性地涵蓋了這一點，但也許可以提供更多關於四月份訂單趨勢以及額外定價初期的任何明顯影響的細節。好奇是否有按細分市場或更高層次劃分的標註，OpEx 與 CapEx 導向的業務。

Just maybe starting with Q1, we exceeded our expectations on orders across all segments and into the first part of the quarter, in our first business were used in April, we're tracking to our order forecasting. So we haven't seen any pullbacks as of late. Obviously, we're keeping a watchful eye on that as tariffs start to really work their way through the system and people start to react to that maybe from a demand perspective.

也許從第一季開始，我們在所有部門的訂單上都超出了我們的預期，進入本季度的第一部分，我們的第一筆業務是在四月份開始的，我們正在追蹤我們的訂單預測。因此我們最近沒有看到任何回調。顯然，我們正在密切關注這一點，因為關稅開始真正發揮作用，人們開始從需求的角度對此做出反應。

We have seen a few project delays, mostly on the industrial treatment side, but those are well within what we do in terms of hedging against as we negotiate contracts or are there any project delays, things that we always account for with typical kind of delays in the capital project. So nothing outside the realm of things we don't hedge against. So I think so far, so good, but obviously, there's a lot of road in front of us this year. and we're going to have to take it kind of day by day, week by week and month by month.

我們已經看到一些專案延遲，主要是在工業處理方面，但這些都在我們在談判合約時對沖的範圍內，或者是否存在任何專案延遲，我們總是將資本專案中典型的延遲考慮在內。因此，沒有什麼超出了我們無法對沖的範圍。所以我認為到目前為止一切都很好，但顯然，今年我們還有很多路要走。我們必須日復一日、週復一周、月復一月地堅持下去。

Joe Giordano, Cowen.

喬喬達諾，考恩。

Apologies if you covered this in the prepared remarks have been down steaming between calls. But can you just talk me through the the sequential dynamics in margin at MCS from 4Q to 1Q? Because I thought the energy headwind is kind of on both of those quarters. But I know margin is down year-on-year in the 1Q, but still up fairly significantly sequentially.

如果您在準備好的發言中提到了這一點，我們深感抱歉，因為通話之間討論已經停止。但您能否向我介紹 MCS 從第四季到第一季的利潤率連續動態？因為我認為能源逆風對這兩方面都有影響。但我知道第一季的利潤率同比有所下降，但環比仍大幅上升。

Yes. I think -- obviously, we started to see some of the margin improvement of overall MCS in Q1 of 2024, which I think adds some of the -- just the year-over-year pressure as we look at mix between the two sides.

是的。我認為——顯然，我們在 2024 年第一季開始看到整體 MCS 的利潤率有所提高，我認為這增加了一些——當我們看雙方的組合時，這只是同比壓力。

On a quarter-to-quarter basis, I think just as -- there was a couple of other one-timers outside of mix in Q4 on true-up of incentive and things like that, that mitigated their margin expansion. So again, this was in line with our expectations. I think we sequentially go down into the second quarter and then look for sequential improvement and year-over-year improvement starting in Q3 and moving on to Q4.

從季度來看，我認為——第四季度除了激勵措施之外，還有其他一些一次性措施，諸如此類，這減輕了他們的利潤率擴張。所以，這又符合我們的預期。我認為我們會逐步進入第二季度，然後從第三季度開始尋求連續改善和同比增長，並持續到第四季度。

Perfect. And then you mentioned book-to-bill there looking at above 1 in the second half. Are we talking like getting back -- it's a pretty big increase versus the first quarter, first half order rate. What's kind of informing that magnitude of increase in the back half there from an order standpoint?

完美的。然後您提到訂單出貨比在下半年將超過 1。我們說的是回升嗎？與第一季、上半年的訂單率相比，這是一個相當大的成長。從訂單角度來看，後半部的成長幅度為何如此龐大？

Just as we look at the commercial funnel and the activity of projects as we see to start to layer in one. And then two, just the movement of inventory through the channel as they rephase those projects, I'll let blood that down and start getting in a more normal order pattern.

正如我們觀察商業漏斗和專案活動時所見，它們開始分層整合。其次，隨著他們重新安排這些項目，庫存會透過管道進行流動，我會將其放下，並開始進入更正常的訂單模式。

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

我們的問答環節到此結束。我想將會議交還給馬修·派恩先生，請他作最後發言。先生，請繼續。

Well, we'll wrap it up there. Thanks for your questions, and thanks to everyone who joined the call today. As always, we appreciate your interest and support. All the very best. Take care.

好吧，我們就到此為止。感謝您的提問，也感謝今天參加電話會議的所有人。一如既往，我們感謝您的關注與支持。祝一切順利。小心。

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。