賽莱默 (XYL) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to Xylem's second quarter 2025 results conference call. (Operator Instructions) Please note that today's event is being recorded. At this time, I'd like to turn the floor over to Mr. Keith Buettner, Vice President, Investor Relations and FP&A.

大家好，歡迎參加賽萊默 2025 年第二季業績電話會議。（操作員指示）請注意，今天的活動正在被記錄。現在，我想把發言權交給投資者關係和 FP&A 副總裁 Keith Buettner 先生。

Sir, please go ahead.

先生，請繼續。

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

謝謝您，接線生。大家早安，歡迎參加 Xylem 2025 年第二季財報電話會議。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二季業績的看法，並討論第三季和 2025 年全年的展望。

Following our prepared remarks, we will address questions related to the information covered on the call. I'll 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, August 14, and will be available for playback via the Investors section of our website under the heading Investor Events.

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 8 月 14 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。

Please turn to Slide 2. We will make some forward-looking statements on today's call, including references to future events or developments that we anticipate will or may occur in the future. These statements are subject to future risks and synergies such as those factors described in Xylem's most recent annual report on Form 10-K and in subsequent reports filed with the SEC.

請翻到投影片 2。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協同效應的影響，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。

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. 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簡報的附錄部分。

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)。

Thank you, Keith. Good morning, everyone, and thank you for joining us. The team delivered another strong performance in Q2, continuing the momentum we built over the last several quarters. We generated broad-based organic revenue growth led by measurement and control solutions. Adjusted EBITDA margin reached a quarterly record of 21.8%, up 100 basis points year-over-year, and adjusted EPS grew mid-teens.

謝謝你，基斯。大家早安，感謝大家的收看。該團隊在第二季度再次表現出色，延續了過去幾個季度的勢頭。我們實現了由測量和控制解決方案引領的廣泛的有機收入成長。調整後的 EBITDA 利潤率達到季度最高水準 21.8%，年增 100 個基點，調整後的 EPS 成長 15% 左右。

Demand for our products and solutions remains resilient and we see a particularly solid order pace, including double-digit growth in smart metering. So we're raising our full year guidance for revenue and EPS. That raises guidance reflects our confidence in delivering strong performance balanced with prudent management of our outlook.

對我們的產品和解決方案的需求仍然強勁，我們看到訂單速度特別穩健，其中智慧計量實現了兩位數的成長。因此，我們提高了全年收入和每股收益的預期。這項提高的預期反映了我們對實現強勁業績的信心以及對前景的審慎管理。

I'm very proud of the team for operating with discipline in a dynamic environment, navigating tariff uncertainty, inflation and speculation about the impact of trade policy on demand. Our pricing and supply chain actions more than offset inflation and tariff-related costs.

我為團隊在動態環境中嚴守紀律、應對關稅不確定性、通貨膨脹以及對貿易政策對需求影響的猜測感到非常自豪。我們的定價和供應鏈行動足以抵銷通貨膨脹和關稅相關成本。

Simplification efforts are driving measurable improvements in productivity and customer responsiveness and we're seeing the benefits in margin expansion and in our ability to serve customers more efficiently. As I mentioned, underlying demand signals remain resilient across our end markets. we're not seeing any material demand pull forward from the second half and our backlog remains strong.

簡化工作正在推動生產力和客戶回應能力的顯著提高，我們看到了利潤率擴大和更有效地為客戶服務的能力方面的好處。正如我所提到的，我們終端市場的潛在需求訊號依然保持彈性。我們沒有看到下半年出現任何實質需求拉動，而且我們的積壓訂單仍然強勁。

Our guidance, which Bill will get into in a moment, assumes current and announced tariff structures remain in place. and we built in contingencies for potential volatility. We remain focused on executing the plan we laid out at Investor Day last year. The transformation of our operating model across culture, processes and structure has already had significant positive impact on our business and our results. Simplifying our operations and structure has reduced complexity, enabled faster decision-making.

我們的指導方針（比爾稍後會談到）假設當前和已宣布的關稅結構保持不變，並且我們為潛在的波動制定了應急計劃。我們仍然專注於執行去年投資者日制定的計劃。我們的營運模式在文化、流程和結構的轉變已經對我們的業務和績效產生了重大的正面影響。簡化我們的營運和結構降低了複雜性，從而加快了決策速度。

As an example, this quarter, we set a Xylem record for on-time performance. We're seeing the benefits of simplification and our focus, speed and margins. At the same time, we're enhancing our operational performance, we're also enhancing our portfolio for growth.

例如，本季度，我們創下了賽萊默的準時履行記錄。我們看到了簡化以及我們的重點、速度和利潤帶來的好處。同時，我們正在提高營運績效，我們也在增強我們的成長投資組合。

For example, with two recent targeted acquisitions in advanced treatment. Our strong first half performance gives us confidence in our ability to deliver both a strong 2025 and our long-term financial framework.

例如，最近在先進治療領域進行了兩次有針對性的收購。我們上半年的強勁表現讓我們對實現強勁的 2025 年業績和長期財務框架的能力充滿信心。

With that, I'll turn it over to Bill to walk through the quarter's results, our financial position and our updated outlook. Bill?

接下來，我將把時間交給比爾，讓他介紹本季的業績、我們的財務狀況和最新展望。帳單？

Thanks, Matthew. Please turn to Slide 5. We're very pleased with the strong quarter and first half. The team remained focused and delivered results that exceeded our expectations. Our simplification initiatives have set us up to be agile and mitigate risk in an uncertain environment.

謝謝，馬修。請翻到投影片 5。我們對本季和上半年的強勁表現感到非常滿意。團隊保持專注並取得了超越我們預期的成果。我們的簡化措施使我們在不確定的環境中變得敏捷並降低風險。

And there's still considerable impact to come as we continue to implement our operating model transformation and reap the benefits of 80/20. Demand across the business remains healthy with orders up 4% even against tough comps, and we closed the quarter with year-to-date book-to-bill near 1.

隨著我們繼續實施營運模式轉型並享受 80/20 的優勢，未來還會產生相當大的影響。整個業務的需求仍然健康，儘管與強勁的競爭對手相比，訂單仍成長了 4%，本季結束時，年初至今的訂單出貨比接近 1。

Backlog increased in all segments except MCS, where we are successfully working it down to a more normalized level. Overall, backlog remains above $5 billion. Revenue growth was strong at 6% in the quarter, ahead of our expectations, primarily driven by outperformance in MCS, but with contributions from all segments. EBITDA margin expanded 100 basis points year-over-year driven by productivity, pricing and volume more than offsetting inflation mix and investments. Increased operational discipline continues to come through in our results.

除 MCS 外，所有部門的積壓訂單均有所增加，我們已成功將其降至更正常的水平。整體而言，積壓訂單仍超過 50 億美元。本季營收成長強勁，達到 6%，超出我們的預期，主要得益於 MCS 的優異表現，但所有部門都有貢獻。受生產力、定價和銷售的推動，EBITDA 利潤率同比增長 100 個基點，超過了通貨膨脹組合和投資的影響。我們的業績持續反映營運紀律的加強。

With Q2 EPS of $1.26, $0.12 above the midpoint of our guidance and up 16% versus the prior year. Year-to-date free cash flow was down $61 million year-over-year, primarily due to outsourced water projects and timing of tax payments, mostly offset by higher net income and improved net working capital. Net debt to adjusted EBITDA stands at 0.4 times, reflecting our strong balance sheet and capacity for continued investment.

第二季每股收益為 1.26 美元，比我們的預期中位數高出 0.12 美元，比上年增長 16%。年初至今的自由現金流年減 6,100 萬美元，主要原因是外包水務專案和納稅時間，但大部分被更高的淨收入和改善的淨營運資本所抵銷。淨債務與調整後 EBITDA 比率為 0.4 倍，反映出我們強勁的資產負債表和持續投資的能力。

Let's turn to Slide 6. We had outstanding results across the segments and want to start with measurement and control solutions. Demand for our AMI solutions remains robust as orders grew 12% organically with strength across water and energy metering. Backlog remains healthy at $1.7 billion. Revenue was up 10%, driven by energy metering demand and backlog execution.

讓我們翻到幻燈片 6。我們在各個領域都取得了優異的成績，並希望從測量和控制解決方案開始。我們的 AMI 解決方案的需求依然強勁，訂單有機成長了 12%，水和能源計量領域表現強勁。積壓訂單仍保持健康水平，為 17 億美元。受能源計量需求和積壓訂單執行的推動，收入增加了 10%。

Adjusted EBITDA margin was better than expected at 23.1%, down just 30 basis points year-over-year, driven by inflation and mix, most offset by productivity, higher volumes and price. In Q2, we saw an acceleration in higher-margin energy orders, helping offset the negative impact of unfavorable legacy projects. Project timing and lower tariffs also helped drive favorable performance compared to our original expectations.

調整後的 EBITDA 利潤率優於預期，達到 23.1%，年比僅下降 30 個基點，這主要受到通貨膨脹和產品組合的影響，但大部分都被生產力、銷售和價格的提高所抵消。在第二季度，我們看到高利潤能源訂單加速成長，有助於抵消不利的遺留項目帶來的負面影響。與我們最初的預期相比，專案時間和較低的關稅也有助於推動良好的績效。

In Water Infrastructure, demand remained strong across most regions and end markets. Book-to-bill was above one despite orders declining by 2% against difficult comps. Funding delays in the UK and Canada were the primary drivers of the decline, and we expect that to resolve in the second half of the year.

在水基礎設施方面，大多數地區和終端市場的需求仍然強勁。儘管與競爭對手相比訂單量下降了 2%，但訂單出貨比仍然高於 1。英國和加拿大的融資延遲是下滑的主要原因，我們預計這個問題將在今年下半年解決。

Revenue grew 4%, led by treatment demand and growth in all regions, with the exception of China, where we continue to see ongoing economic challenges. Adjusted EBITDA margin expanded 200 basis points to 21.8%, driven by productivity and price, partially offset by inflation. And the WI team continues to get significant traction with their 80/20 efforts.

收入成長了 4%，這主要得益於治療需求和所有地區的成長，但中國除外，因為中國仍面臨持續的經濟挑戰。調整後的 EBITDA 利潤率擴大 200 個基點至 21.8%，這得益於生產力和價格的推動，但部分被通貨膨脹所抵消。WI 團隊憑藉其 80/20 的努力繼續取得顯著進展。

In Applied Water, orders rose for the sixth straight quarter, up 4% with strength in commercial buildings. Revenue increased 5% with growth in the US and strength in commercial buildings. Adjusted EBITDA margin expanded 420 basis points to 21.7%, driven by productivity and price, partially offset by inflation, including tariffs. This segment continues to set the pace for delivering benefits from 80/20.

在應用水務領域，由於商業建築業務的強勁成長，訂單連續第六個季度上漲，漲幅達 4%。隨著美國市場的成長和商業建築的強勁成長，收入成長了 5%。調整後的 EBITDA 利潤率擴大 420 個基點至 21.7%，主要得益於生產力和價格的提高，但被包括關稅在內的通貨膨脹部分抵消。這一部分將繼續為實現 80/20 效益奠定基礎。

And in Water Solutions & Services, orders increased 5%, led by services for utility and power end markets. Revenue grew 5% with contributions from capital projects and services. Adjusted EBITDA margin expanded 60 basis points to 24.4%, reflecting strong execution on price and productivity, divestitures and revenue synergies, partially offset by inflation.

在水處理解決方案和服務領域，訂單成長了 5%，主要由公用事業和電力終端市場的服務推動。由於資本項目和服務的貢獻，收入增加了 5%。調整後的 EBITDA 利潤率擴大 60 個基點至 24.4%，反映出價格和生產力、資產剝離和收入協同效應的強勁執行，但部分被通貨膨脹所抵消。

Let's move to Slide 7. As outlined in our last quarterly earnings call, we've taken proactive steps to mitigate tariff impacts, implementing targeting -- targeted pricing actions and accelerated supply chain adjustments. We're updating our annualized outlook based on the current rates, noting the fluid nature of the impacts though.

讓我們轉到第 7 張投影片。正如我們上次季度收益電話會議中概述的那樣，我們已採取積極措施減輕關稅影響，實施有針對性的定價行動並加速供應鏈調整。我們正在根據當前利率更新我們的年度展望，但同時注意到影響的流動性。

We've added the impact of Section 232 tariffs and steel on steel and aluminum as well as the rest of the world. While there remains uncertainty around final timings and tariff levels, we are confident that the pricing actions and available supply chain levers will allow us to substantially offset the current impacts though we expect a slightly dilutive impact on margin.

我們增加了第 232 條關稅對鋼鐵和鋁以及世界其他地區的影響。儘管最終時間和關稅水平仍存在不確定性，但我們相信，定價行動和可用的供應鏈槓桿將使我們能夠大幅抵消當前的影響，儘管我們預計利潤率將略有稀釋作用。

Let's turn to Slide 8. Given our strong first half performance and execution momentum, we are raising our full year guidance. We now expect full year revenue of $8.9 billion to $9 billion, representing 4% to 5% total growth and approximately 4% organic growth. Adjusted EBITDA margin is unchanged at 21.3% to 21.8%, reflecting 70 basis points to 120 basis points of expansion versus prior year. Our strong first half performance is mitigated a bit by the dilutive impact of tariffs.

讓我們翻到第 8 張投影片。鑑於我們上半年強勁的業績和執行勢頭，我們上調了全年業績預期。我們現在預計全年營收為 89 億美元至 90 億美元，整體成長 4% 至 5%，有機成長約 4%。調整後的 EBITDA 利潤率保持不變，為 21.3% 至 21.8%，較上年增長 70 個基點至 120 個基點。關稅的稀釋效應稍微削弱了我們上半年的強勁表現。

We are raising the adjusted EPS guide to $4.70 to $4.85, up from $4.50 to $4.70. Free cash flow margin remains at 9% to 10%. For Q3, we expect revenue of $2.2 billion with 4% to 5% organic growth. Adjusted EBITDA margin is expected to be 21.7% to 22.2% and adjusted EPS is expected to be $1.20 to $1.25.

我們將調整後每股盈餘預期從4.50美元至4.70美元上調至4.70美元至4.85美元。自由現金流利潤率維持在9%至10%。對於第三季度，我們預計營收為 22 億美元，有機成長率為 4% 至 5%。調整後的 EBITDA 利潤率預計為 21.7% 至 22.2%，調整後的 EPS 預計為 1.20 美元至 1.25 美元。

There continues to be macro uncertainty, particularly around tariffs and FX movements that could impact our performance. But as the results show, the team is doing a great job controlling what we can control. We remain confident in our ability to deliver our full year commitments, supported by strong demand, backlog execution and benefit from simplification.

宏觀不確定性仍然存在，特別是關稅和外匯變動可能會影響我們的績效。但結果顯示，團隊在控制我們所能控制的事情上做得很好。在強勁的需求、積壓訂單的執行和簡化所帶來的好處的支持下，我們仍然有信心兌現全年的承諾。

Let's turn to Slide 9, and I'll turn it back to Matthew.

讓我們翻到第 9 張幻燈片，然後我把它交還給馬修。

Thanks, Bill. Building on Bill's guidance comments, we entered the second half with confidence, both in our ability to deliver a strong 2025 and also in our long-term framework that we laid out at Investor Day last year. That plan outlined how Xylem would create value by leveraging our combination with Evoqua, simplifying our business for speed and performance and delivering profitable above-market growth over the cycle.

謝謝，比爾。基於比爾的指導意見，我們滿懷信心地進入下半年，不僅對我們實現強勁的 2025 年業績的能力充滿信心，而且對我們去年投資者日制定的長期框架也充滿信心。該計劃概述了賽萊默如何利用與 Evoqua 的結合來創造價值，簡化業務以提高速度和性能，並在整個週期中實現高於市場的盈利增長。

I want to take a moment to recognize and thank the team that is driving so much momentum on all three of those vectors of value creation. On Evoqua, we're now 2-years post close, and the team has done an outstanding job with the integration.

我想花點時間來認識並感謝在這三個價值創造載體上發揮巨大作用的團隊。關於 Evoqua，我們已經完成了兩年，團隊在整合方面做得非常出色。

By the numbers, we delivered cost synergies ahead of schedule, and we're seeing the value of our combined portfolio and strong traction on revenue synergies across both industrial and utility end markets. But we also recognized a sustainable success from an acquisition of this scale requires deep cultural integration, which is why we've given so much attention to transforming our combined culture and made it an integral part of our operating model and it shows in the way our teams are working.

從數據上看，我們提前實現了成本協同效應，並且我們看到了合併後的產品組合的價值以及在工業和公用事業終端市場的收入協同效應的強勁牽引力。但我們也意識到，如此規模的收購要想取得可持續的成功，就需要深度的文化融合，這就是為什麼我們如此重視轉變我們的綜合文化，並使其成為我們營運模式不可或缺的一部分，這體現在我們團隊的工作方式上。

When you walk around our operations, you can see and feel how aligned our teams are, how quickly they're turning strategy into action and delivering results. We also use the integration as a catalyst and imperative to simplify our business. Since launching our operating model transformation last September, the changes we've made to structure, processes and systems have enabled faster decisions, clearer accountability and better service.

當您參觀我們的營運部門時，您可以看到並感受到我們的團隊是多麼協調一致，他們是多麼迅速地將策略轉化為行動並取得成果。我們也將整合作為簡化業務的催化劑和必要條件。自去年九月啟動營運模式轉型以來，我們對結構、流程和系統所做的改變使得決策更快、更明確、更優質。

We're seeing that show up in our performance. The second quarter is a strong demonstration of the team's increased speed and agility. In addition to the strong financial results, the team delivered a new benchmark in on-time performance. That's a clear signal that our customers are benefiting from the team's hard work and getting tangible value from our transformation.

我們看到這一點在我們的表現中有所體現。第二節比賽有力地證明了球隊速度和敏捷性的提升。除了強勁的財務表現外，該團隊還在準時表現方面樹立了新的標竿。這清楚地表明，我們的客戶受益於團隊的辛勤工作，並從我們的轉型中獲得了實際的價值。

At the same time, we're sharpening our operational discipline, we're also strengthening Xylem's growth engine. For example, we recently added two high-value capabilities to our platform with the acquisitions of Vaycom and Environics. Bacon brings proprietary breakthrough solutions in zero liquid discharge which offers compelling value propositions to attractive industrial verticals like microelectronics and energy.

同時，我們正在加強我們的營運紀律，我們也在加強賽萊默的成長引擎。例如，我們最近透過收購 Vaycom 和 Environics 為我們的平台增加了兩項高價值功能。培根在零液體排放領域帶來了專有的突破性解決方案，為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。

Enviro mix represents another enhancement to our advanced treatment portfolio. The company is a leader in non-mechanical mixing and biological process solutions, which enhances our ability to serve one of the fastest-growing segments in water, advanced nutrient removal.

Enviro mix 是我們先進處理產品組合的另一個增強。該公司是非機械混合和生物過程解決方案的領導者，這增強了我們服務於水處理領域成長最快的領域之一——高級營養物去除的能力。

These moves reflect our intent to continue simplifying our business for performance and agility. While we invest in the applications and end markets that will drive customer impact, profitable growth and sustainable value creation.

這些舉措反映了我們繼續簡化業務以提高效能和靈活性的意圖。我們投資於能夠推動客戶影響、獲利成長和永續價值創造的應用和終端市場。

With that, operator, let's go to your questions.

接線員，現在讓我們來回答您的問題。

(Operator Instructions) Mike Halloran, Baird.

（操作員指示）麥克·哈洛倫，貝爾德。

Hey, good morning, everyone.

嘿，大家早安。

Hey, good morning, Mike.

嘿，早上好，麥克。

So first on the MCS order side of things, obviously, good orders this quarter, good absolute dollar levels of orders. Maybe you can just give an update on how you think that outlook looks today, where we have the destocking side, what are your customers saying from a forward perspective, what the replacement piece looks like? And then lastly, any updated thoughts on when you think that book to grow contract towards one again?

因此，首先從 MCS 訂單方面來看，顯然本季的訂單情況良好，訂單的絕對美元水準良好。也許您可以簡單介紹一下您認為目前的前景如何，我們的去庫存情況如何，您的客戶從前瞻性角度有何看法，替代品是什麼樣的？最後，您認為這本書什麼時候會再次發展成為一部契約書，對此您有什麼最新的想法嗎？

Yeah, I'll start this out, Mike. First, let me say that we feel our demand across the board has been really resilient, especially given the volatility globally -- probably the one exception there, Mike, I would say, from a geographic standpoint would be China, which is a small portion of our business, and it's now low single digits. If you had to look at one segment in the quarter, I would say that WI being down two stands out, but the book-to-bill was greater than one. And we did have a tough compare over last year.

是的，我先開始，麥克。首先，我想說的是，我們認為我們整體的需求確實具有彈性，特別是考慮到全球的波動性——麥克，我想說，從地理角度來看，唯一的例外是中國，它只占我們業務的一小部分，現在的成長率只有個位數。如果你必須看本季的一個部分，我會說 WI 下降了兩個，但訂單出貨比卻大於一個。與去年相比，我們確實進行了艱難的比較。

Last year, we were up high single digits in orders in Q2 for water infrastructure. We did see some delays in the UK, which is one of our top markets is they're moving into their AMP cycle 8. And that can be typical at the start of new AMP cycles and also, we saw some delays in Canada with their change in government.

去年第二季度，我們水利基礎設施訂單量成長了個位數。我們確實看到英國出現了一些延誤，英國是我們的主要市場之一，他們正在進入 AMP 第 8 週期。這在新的 AMP 週期開始時很常見，而且，我們也看到加拿大政府更迭導致了一些延遲。

So we expect those things to snap back in the second half. But with the line of sight that we have for sure over the next 90-days, we feel the demand is pretty resilient across the board, and we'll continue to monitor it and stay on top of it really to stay close to our customers.

因此我們預計這些情況將在下半年恢復。但從我們對未來 90 天的預測來看，我們認為整體需求相當有彈性，我們將繼續監控並密切關注，以便真正貼近我們的客戶。

Yeah, Mike. And specifically to MCS, I think commercial demand remains extremely strong. as we look at the back half of the year, I think we see a sequential improvement in orders. We talked about MCS continues to work down its backlog to a more normalized historical level, right?

是的，麥克。特別是對於 MCS，我認為商業需求仍然非常強勁。展望下半年，我認為我們會看到訂單量較上季改善。我們討論過 MCS 繼續將其積壓工作減少到更正常的歷史水平，對嗎？

It has been inflated for the last couple of years and they're getting close to the $1.7 billion. We have single signaled that MCS will be back to book-to-bill positive as we close the year and we maintain that expectation.

過去幾年，該數字不斷膨脹，目前已接近 17 億美元。我們曾單獨發出訊號，表示到今年年底，MCS 的訂單出貨比將恢復為正值，並且我們維持這項預期。

Appreciate all that color there. And then lastly, maybe just an update on where you stand on the simplification side of things, how the rollout has gone in a couple of the areas you've put it in the front half of the year and what the next steps are from here?

欣賞那裡的所有色彩。最後，也許您只是想更新一下您在簡化方面的立場，您在上半年提出的幾個領域的推廣情況，以及下一步的計劃是什麼？

Yeah. I'll start it out, and then I'll let Bill give some commentary, Mike. But we're tracking ahead of the time line that we laid out in February on our Q4 earnings call. So really proud of the team for leaning into the transformation.

是的。我先開始，然後讓比爾發表一些評論，麥克。但我們正在提前實現我們在二月份第四季財報電話會議上所製定的時間表。我真的為團隊的轉型感到自豪。

I've been traveling quite a bit really since I became CEO, just when you're going through a large-scale transformation like this, it's good to make sure you get out and getting the pulse of the organization and I'd say our colleagues and our customers say the impact is real, and they're feeling the change. So the teams are much more focused, making decisions more quickly.

自從我擔任執行長以來，我確實經常出差，當你經歷像這樣的大規模轉型時，最好確保自己能夠走出去，了解組織的脈搏，我想說我們的同事和客戶都說影響是真實的，他們感受到了變化。因此團隊會更專注，更快做出決策。

And we're seeing, again, customer metrics improve like on-time performance, as we look at our customers, they're starting to grow at a higher rate in a raving fan. So one thing I'd point to also, Mike, we just wrapped up our long-range planning last week. And where we had our 16 new division GMs present their long-range plans for the first time in our new structure.

我們再次看到，客戶指標有所改善，例如準時表現，當我們關注我們的客戶時，他們開始以更高的速度成長。所以我想指出的一件事是，麥克，我們上週剛完成了我們的長期規劃。我們的 16 位新部門總經理在新架構下首次展示了他們的長期計劃。

And so I walked away very energized by the depth and level of detail and how we're in the review and how we're able to really drive focus and execution. And each division really understands their position in the company, whether that's a growth position, kind of a transformation position or continuing to maintain their execution in their divisions.

因此，我對審查的深度和細節水平以及我們如何進行審查以及如何真正推動重點和執行感到非常振奮。每個部門都真正了解自己在公司中的地位，無論是成長地位、轉型地位或繼續保持在部門中的執行力。

So all in all, making good headway.

總而言之，進展順利。

Just from -- just if we look at specifically, from an 80/20 perspective, Matthew, I think is talking about the overall simplification on orig design, including 80/20. I'd say that from my perspective, it's really starting to take hold in the organization.

僅從 — — 如果我們具體從 80/20 的角度來看，馬修，我認為是在談論原始設計的整體簡化，包括 80/20。我想說，從我的角度來看，它確實開始在組織中紮根。

Each quarter, we take another step -- we've talked a lot about internally that 80-20 is not just a tool set, but a key element of how we want to run the businesses. and embedding that in the culture. I think we're starting to get a better understanding of the power of simplification and the positive impacts it will have across our key stakeholders.

每個季度，我們都會邁出新的一步——我們在內部進行過多次討論，認為 80-20 不僅僅是一套工具，而且是我們希望如何經營業務的關鍵要素，並將其融入文化中。我認為我們開始更好地理解簡化的力量及其對我們的主要利害關係人的正面影響。

And I think we see an acceleration of learning as we roll the tool set out. The dewatering business began its journey in the second quarter. So we now have all four segments that have pieces that are actively engaged in the tool set. So about 80% of the business has some stage of implementation. For the most part, MCS, supplied water, water infrastructure are further along and they've made solid progress on the implementation, just identifying their largest areas of complexities.

我認為，隨著我們推出這套工具，我們會看到學習速度的加速。脫水業務於第二季度開始了它的旅程。因此，我們現在擁有所有四個部分，它們都積極參與工具集。因此大約 80% 的業務都處於某個實施階段。總體而言，MCS、供水、水基礎設施建設已經取得了長足進步，實施工作也取得了紮實進展，只是確定了其中最複雜的領域。

And then they've redesigned their organizations to take significant costs out and look at what the structural needs are to run their business. When you look at the margin improvement we've seen in Applied Water and water infrastructure, really the proof points of the potential we see across our businesses.

然後，他們重新設計了組織結構，以節省大量成本，並研究營運業務的結構需求。當您看到我們在 Applied Water 和水基礎設施領域看到的利潤率提高時，這確實證明了我們在整個業務中看到的潛力。

Appreciate it.

非常感謝。

Andy Kaplowitz, Citigroup.

花旗集團的安迪‧卡普洛維茲 (Andy Kaplowitz)。

Morning, Andy.

早安，安迪。

So I just wanted to focus on applied water for a second. You always had good orders and revenue growth. I think you mentioned driven by commercial buildings. And I think supposedly you've talked about having the highest headwind from two on applied water. So maybe you could give us a little more flavor to what's going on.

所以我只想暫時關註一下應用水。您的訂單量一直都很好，收入也不斷成長。我認為您提到了由商業建築推動。我認為您已經談到了在應用水時遇到的最大逆風。所以也許您可以讓我們更了解正在發生的事情。

How does this also make you feel about affecting change with 80/20 and maybe not slowing down growth at Xylem?

您對透過 80/20 來影響變革並且可能不會減緩 Xylem 的成長有何感想？

That's a good question. First, I'd say I'm really proud of the Applied Water team. They've done a really nice job with 80/20, both in terms of margin but also focusing on customers. The tool is about not only simplifying, but it's about redeploying effort to focus on growth. So the growth tends to come second but we're starting to see pockets or some green shoots of that as well.

這是個好問題。首先，我要說我真的為 Applied Water 團隊感到驕傲。他們在 80/20 原則下做得非常好，不僅在利潤方面，而且在關注客戶方面也做得很好。該工具不僅是為了簡化，而且還為了重新部署精力以專注於成長。因此，成長往往排在第二位，但我們也開始看到一些成長的跡象。

This business, Andy, has the most complexity within our portfolio. and the most opportunity. So on the orders front, this is a -- I think it's a six quarter in a row, we're up in orders, which is a positive. I'd say it's a bit more weighted to developed markets.

安迪，這個業務是我們投資組合中最複雜的，也是機會最多的。因此，就訂單方面而言，我認為這是連續六個季度我們的訂單量都在增加，這是一個積極的信號。我想說它更側重於已開發市場。

And it was across most of the portfolio, especially commercial buildings, to your point, and industrial. And on the revenue side, I would say that we've had really strong price execution here. Part of that is from the 80/20 tool. Part of it is we've just gotten especially through our new structure, just more nimble and can make faster decisions. So when you look at the headwinds from tariffs, the teams were really able to get ahead of that.

它涉及大部分投資組合，特別是商業建築（正如您所說）和工業建築。在收入方面，我想說我們在這裡的價格執行非常強勁。其中一部分來自 80/20 工具。部分原因是我們剛剛透過新的結構變得更加靈活，可以更快地做出決策。因此，當你看到關稅帶來的阻力時，這些球隊確實能夠克服它。

We had a little -- some -- I would say, some very minor pull-ins from the second half to get ahead of tariffs in this segment, but nothing meaningful that would have any impact on the second half year. So maybe the last thing I'd say on revenue, we are walking away from volume, right?

我們在下半年做了一些事——我想說，一些非常小的拉動，以領先於這一領域的關稅，但沒有什麼有意義的事情會對下半年產生任何影響。因此，關於收入，我最後要說的是，我們正在放棄數量，對嗎？

We talked about that as part of the tool set and part of our long-range outlook is we're going to walk away from volume. So the performance has been in line with what we expect in simplifying the business will only help us continue to grow going forward.

我們將其作為工具集的一部分進行討論，而我們長期展望的一部分是我們將擺脫數量限制。因此，業績符合我們的預期，簡化業務只會幫助我們繼續向前發展。

Matt, that's helpful. And maybe just stepping back. Maybe talk about the dichotomy between developed and developing markets. I mean you said the strength really is coming from developed. Anything sort of different going on in the two markets and cognizant of China continued to be a bit of a headwind.

馬特，這很有幫助。或許只是退一步。也許可以談談已開發市場和發展中市場之間的二分法。我的意思是，你所說的力量確實來自於發展。兩個市場中發生的任何不同情況以及對中國的認知都會繼續帶來一些阻力。

Maybe you can talk about that. And I think you mentioned sort of delays in Canada and UK in treatment maybe just address that again.

也許你可以談論這個。我認為您提到了加拿大和英國在治療方面的延誤，也許我們可以再次討論這個問題。

Yeah. So the delays were -- I mean, largely funding timing. I mean the AMP cycle in the UK, they're going to double their investments over the next AMP cycle. So pretty significant, and it's just really a timing. And we see that pick up in the second half.

是的。所以延遲——我的意思是，主要是資金時間安排的問題。我指的是英國的 AMP 週期，他們將在下一個 AMP 週期中將投資增加一倍。所以非常重要，這只是一個時機問題。我們看到下半年這一情況有所好轉。

The same with Canada with the change in the government. Let's just push some of the traditional buy to the right and we believe that will pick back up in the second half as well, talking to folks on the ground there. And I was actually just in Toronto a couple of weeks ago. talking to some of our customers. So feel good that, that will rebound.

加拿大也發生了同樣的政府更迭。讓我們將一些傳統的購買推向右邊，我們相信下半年也會回升，並與當地民眾進行交談。事實上，幾週前我才剛在多倫多與我們的一些客戶交談。所以感覺很好，那將會反彈。

In terms of geography you were asking me, maybe less specific to applied water, but in general, I would say that would point to China as being probably the weak area us, I think orders were down around 18% year-over-year.

就您問我的地理方面而言，可能不太具體到應用水，但總的來說，我想說中國可能是我們的薄弱地區，我認為訂單同比下降了約 18%。

That would be the area that I'd call out outside developed markets. And I would say also the 80/20 tool Andy is forcing us to kind of rethink do everything for everybody, everywhere. And we're intentionally kind of walking away from different parts of our businesses outside of kind of developed markets where we've probably been not as effective.

這就是我要指出的已開發市場以外的領域。我想說的是，安迪的 80/20 工具也迫使我們重新思考為每個人、每個地方做每件事。我們有意放棄在已開發市場以外的業務，因為在這些市場我們可能效率不高。

Deane Dray, RBC Capital Markets.

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

Thank you. Good morning, everyone.

謝謝。大家早安。

Morning, Deane.

早上好，迪恩。

Can we put the spotlight on these two deals? And I know they're smaller, but just the M&A strategy on these niche types of applications that then you can, without a big cash outlay drop into your portfolio of offerings and scale. So just the implications, and that would suggest really high returns on these smaller dollar amount deals. But just how does that fit into the what you're seeing in the pipeline? And that would be a big help.

我們能重點關注這兩筆交易嗎？我知道它們規模較小，但只要對這些利基類型的應用程式實施併購策略，您就可以在不投入大量現金的情況下擴大您的產品組合和規模。因此，僅從含義上看，這意味著這些小額交易的回報確實很高。但這與您在管道中看到的情況有何關係？這將會有很大的幫助。

Thanks.

謝謝。

Yeah. Thanks, Deane. We do have a really healthy pipeline. I think I mentioned on last call that we really changed our M&A process and much more risk, much more bottoms up, which I think is helping really drive the funnel improvement and the velocity. We talked a lot in our last Investor Day about areas that we're going to focus.

是的。謝謝，迪恩。我們確實擁有非常健康的管道。我想我在上次電話會議上提到過，我們確實改變了我們的併購流程，風險大大增加，自下而上的變化也大大增加，我認為這確實有助於推動漏斗的改進和速度。我們在上次投資者日上討論了很多我們將要關注的領域。

One of those that we highlighted was advanced treatment, which these two fit into -- and like you said, we are really excited about some of these technologies and smaller acquisitions that can scale over time and we can kind of help them incubate and do that.

我們強調的其中一點是先進的治療方法，這兩者都適合 - 正如您所說，我們對其中一些技術和可以隨著時間推移而擴大規模的小型收購感到非常興奮，我們可以幫助他們孵化並做到這一點。

So Vycom is a great solution around zero liquid discharge, it's becoming more and more important and imperative in areas like mining and microelectronics and food and beverage and Enviromax a really great technology.

因此，Vycom 是實現零液體排放的絕佳解決方案，它在採礦、微電子、食品和飲料等領域變得越來越重要和必要，而 Enviromax 是一項非常棒的技術。

Today, we use a lot of mixers, mechanical mixers and this moves away from that and brings in a technology for us that uses air compression in bubbles. So another big area of improvement around nutrient removal. So we're excited about the technologies. We'll continue to do these, and we've got a lot of velocity in this area.

如今，我們使用了許多攪拌器、機械攪拌器，而這款產品則拋棄了這些傳統攪拌器，為我們帶來了一種利用氣泡中空氣壓縮的技術。因此，另一個重大改進領域是營養物質的去除。所以我們對這些技術感到非常興奮。我們將繼續這樣做，並且我們在這個領域已經取得了很大的進展。

And I think, Deane, to your point, these are strong return deals where I think there are significant synergies with our core business, not only from a cost perspective, but significant revenue uplift.

迪恩，正如您所說，這些都是回報豐厚的交易，與我們的核心業務有顯著的協同效應，不僅從成本角度來看，而且收入也顯著提升。

Good. That's what I was looking for, Bill. And then second question on MCS. There's always some consternation about the energy meters, a non-smart water meter business. And it sounds and looks like there's some difference between some of the legacy energy meter projects versus some of the new ones that you've booked in terms of the returns?

好的。這正是我要找的，比爾。第二個問題是關於 MCS 的。人們對電能表和非智慧水錶業務總是有些擔憂。就回報而言，聽起來和看起來一些傳統的電錶項目和您預訂的一些新項目之間存在一些差異？

Can you just clarify that?

你能澄清一下嗎？

Yeah. I would just say that, yes, that's a great observation that we've introduced new technology in both the gas and electric side of our businesses, which has helped us get better margin improvement and also be a leader in those spaces in terms of the technology that we're introducing in those meters.

是的。我只想說，是的，這是一個很好的觀察，我們在天然氣和電力業務方面都引入了新技術，這有助於我們獲得更好的利潤率提高，並且就我們在這些儀表中引入的技術而言，我們也成為這些領域的領導者。

So we really like that part of the business. We have over probably 300 combination accounts where you have a water and a gas utility or water and electric utility. And it really just drives a lot of scale for them when they can put in a network and put multiple different utilities on the network.

所以我們真的很喜歡這部分業務。我們可能有超過 300 個組合帳戶，其中包括水和瓦斯或水和電。當他們可以建立一個網路並在網路上放置多個不同的實用程式時，這實際上為他們帶來了很大的規模。

So that's going well. And the last thing I would say on the electric side, that industry tends to be a leader in terms of AMI, and we learn a lot from being in that market that flows down into the water into the gas side of our business in metrology.

一切進展順利。關於電氣方面，我最後要說的是，該行業往往是 AMI 的領導者，我們從該市場中學到了很多東西，這些經驗延伸到了我們計量業務中的水和氣體方面。

Jacob Levinson, Melius Research.

Jacob Levinson，Melius Research。

Hey, good morning, everyone.

嘿，大家早安。

Hey, good morning.

嘿，早安。

Matthew, I think you mentioned that you had a record on-time delivery quarter here. I'm not sure what you're comfortable sharing, but can you give us some context around kind of where you've come since -- I guess, since you became COO and CEO. And where are you on that journey? And I'm sure you're benchmarking to some level, but just any color you can provide would be helpful.

馬修，我想你提到你在本季創下了準時交貨的紀錄。我不確定您願意分享什麼，但您能否向我們介紹一下您自擔任營運長和執行長以來的情況？您在旅途中處於什麼位置？我相信您正在進行某種程度的基準測試，但您提供的任何顏色都會有所幫助。

Thanks for the question. That's a great output of the simplification that we're doing. And two metrics that I always look at in our CEO scorecard monthly as quality and on-time performance because if you have those two things, then you're probably doing pretty well as a company. And we've seen a marked improvement in our on-time performance since implementing 80/20 and transforming our structure is starting to help as well, just getting more focus.

謝謝你的提問。這是我們所做的簡化工作所取得的巨大成果。我每個月都會在 CEO 記分卡中查看兩個指標：品質和準時績效，因為如果您擁有這兩項指標，那麼您的公司可能表現相當不錯。自從實施 80/20 和轉變結構以來，我們的準時表現有了顯著改善，也開始發揮作用，讓我們更加專注。

We've reduced a lot of complexity by simplifying our SKU counts not only which in terms improves our ability to operate in our factories and drive down lead time, but also improves our working capital and we had good working capital improvement this quarter as well.

透過簡化 SKU 數量，我們減少了很多複雜性，這不僅提高了我們在工廠運作的能力並縮短了交貨時間，而且還提高了我們的營運資本，本季我們的營運資本也得到了良好的改善。

So we've -- we're also tracking as a part of 80/20, our on-time performance to customers. We want to make sure we overdeliver there. And so that's a new metric that we're looking at. So all this, to give you some numbers, in the month of June, we were up 600 basis points year-over-year on on-time performance.

因此，作為 80/20 計劃的一部分，我們也正在追蹤我們向客戶交付產品的準時情況。我們希望確保能夠超額完成任務。這是我們正在研究的一個新指標。因此，給大家一些數字，6 月份，我們的準點率年增了 600 個基點。

So year-to-date, we're close to 300 basis points. And I'd say that in pockets, we're getting close to best-in-class. But overall, as an organization, we still have some work to do. And I think just a continued focus on simplification will -- and customers will get us there.

因此，今年迄今為止，我們已經接近 300 個基點。我想說，在某些方面，我們已經接近一流水平。但總的來說，作為一個組織，我們還有一些工作要做。我認為，只要繼續專注於簡化，客戶就會幫助我們實現這一目標。

That's helpful color. And just on a different topic, you've got a balance sheet at this point as you could argue underlevered. I know there's a lot of change going on within the organization that I'm sure will be challenging to struggle too many balls in one if you're thinking about M&A, for example. But just I guess, how are you thinking about capital deployment here? And really as it relates to the M&A environment or buybacks for that matter?

這是很有幫助的顏色。換個話題，你現在有一份資產負債表，你可以爭論一下槓桿率過低的情況。我知道組織內部正在發生很多變化，如果你正在考慮併購的話，我相信同時處理太多事情會很有挑戰性。但我只是猜測，您是如何考慮這裡的資本部署的？這真的與併購環境或回購有關嗎？

Yeah. No, I think we're still forward leading on the M&A side. Again, we continue to look at assets that fit our strategy and then also have strong financial returns. I think as we created a different process with the organization, we pushed some of the cultivation down to the segments.

是的。不，我認為我們在併購方面仍然處於領先地位。再次，我們繼續尋找符合我們策略並能帶來強勁財務回報的資產。我認為，當我們與組織一起創建不同的流程時，我們將一些培育工作推到了各個細分領域。

We've seen an increase in volume and quality of our funnel across the portfolio but again, we're balancing things within the organization on transformation actions that we're taking across the portfolio and what those returns are going to be from an organization and then looking at a high bar relative to things that are strategic that we want to invest in three categories that we've highlighted multiple times and Matthew talked about a little bit earlier.

我們已經看到整個投資組合中管道的數量和質量有所提高，但同樣，我們正在組織內部平衡我們在整個投資組合中採取的轉型行動以及這些回報將來自一個組織，然後考慮相對於戰略性事物的高標準，我們希望投資於三個類別，我們已經多次強調過，馬修之前也談到過這一點。

So I think we have a really robust funnel. We're focused on it. and the balance sheet will get levered when the time comes and these assets are actionable.

所以我認為我們有一個非常強大的管道。我們專注於此。當時機成熟且這些資產可採取行動時，資產負債表將會槓桿化。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Good morning everyone. I guess I'm going to -- I'm going to start with a question we get a lot from investors on municipal utility funding in the US I'm sure you've heard this, but I'm going to ask it on the call, just so you can address it directly. Investors are concerned that funding for utilities under the Trump administration is going to decline.

大家早安。我想我要——我要從一個問題開始，這個問題是投資者經常問到的，關於美國市政公用事業融資，我相信你已經聽說過這個問題，但我要在電話會議上問，這樣你就可以直接回答它。投資人擔心川普政府對公用事業的資助將會減少。

Utilities were very well funded under the Biden administration with a bunch of those programs. There's cuts to EPA funding potentially rolling through state water funds. So just I'd love to get your perspective on that and what, if any, negative impact do you think that might have on your business?

在拜登政府的領導下，公用事業公司透過一系列項目獲得了充足的資金。環保署的資金削減可能會影響州水資源基金。所以我很想聽聽您對此的看法，以及您認為這會對您的業務產生什麼負面影響（如果有的話）？

Thanks for the question. Maybe I'll just start just to remind everybody that roughly about 75% of our demand is OpEx. And I would say that also infrastructure in the US is not getting any younger. And so this has to be replaced.

謝謝你的提問。也許我只是想提醒大家，我們大約 75% 的需求是營運支出。我想說的是，美國的基礎建設也不再年輕了。因此這必須被取代。

As a proxy the first half -- water infrastructure being the proxy was up about mid-single digits. So I'd say, been pretty resilient given the macro uncertainty. It continues to be a watch item for us, but I would say I'm not -- we're not overly concerned at this time. But I will say that on RF funding, state revolving fund funding, it only makes up 5% of muni budgets, about $3 billion historically.

作為替代，上半年水利基礎設施的替代品增加了約個位數。所以我想說，考慮到宏觀不確定性，我們的韌性還是很強的。這仍然是我們關注的焦點，但我想說的是，我們目前並不太擔心。但我要說的是，就 RF 資金、國家循環基金資金而言，它僅佔市政預算的 5%，歷史上約為 30 億美元。

Obviously, we don't want to defund that because we're already woefully underspent on our infrastructure in the US. But all signs out of the congress will appropriate money and get back to healthy SRF levels even though there's been a lot of chatter about that not happening. So I think congress will do that. and we should see SRF levels kind of back to kind of norms going forward.

顯然，我們不想停止資助，因為我們在美國基礎設施方面的支出已經嚴重不足。但所有跡像都表明國會將撥款並恢復健康的 SRF 水平，儘管有許多傳言說這不會發生。所以我認為國會會這樣做。我們應該看到 SRF 水平恢復到正常水平。

Great. And my follow-up is going to be on MCS. A couple of questions on that. You had seen customers looking to destock inventory on the water side in the first half, which I think you anticipated coming to an end about midyear. Can you confirm that and that we should get improvement in mix in the second half?

偉大的。我的後續工作將集中在 MCS 上。關於這一點我有幾個問題。您已經看到客戶在上半年尋求減少水上庫存，我認為您預計這種情況將在年中結束。你能確認這一點嗎？我們在下半年的表現會有所改善嗎？

And then I think on the electric side, you're talking about more profitable business there. I think there's been an anticipation of replacement cycle for the electric meters that were put in 10- to 15-years ago starting up. Is that part of the contributing factor to improve profitability on electric and then should we see that continue for the next few years as that placement cycle progresses?

然後我認為在電力方面，你談論的是更有利可圖的業務。我認為，人們預計 10 至 15 年前安裝的電錶將會有一個更換週期。這是提高電力獲利能力的部分因素嗎？隨著配置週期的推進，我們是否應該看到這種情況在未來幾年繼續下去？

Thanks.

謝謝。

Can I just say yes? I would say, first, kind of our expectations for water meters have been right in line we said that it would be down in the first half and start to ramp in the second half. We see that with an exit rate back at kind of high single digits as we exit 2025 on the water side.

我可以說是嗎？我想說，首先，我們對水錶的預期是一致的，我們說過它會在上半年下降，並在下半年開始上升。我們看到，到 2025 年，水運出口的退出率將回落至較高的個位數。

On the energy side, yes, there's significant growth driven by both gas and electric. I think the refresh cycle that you're talking about is kind of early stages and will all then be a big tailwind over the next couple of years.

在能源方面，天然氣和電力都推動了顯著的成長。我認為您談論的更新周期還處於早期階段，並將在未來幾年成為巨大的推動力。

I think the profitability associated with both continues to improve. Matthew highlighted just on the new projects on the gas side, margin improvement and kudos to that team for going after price and continued operational efficiencies the entire segment, leveraging 80/20 to simplify the reduced product portfolio complexity and double down on their 80s products.

我認為兩者的獲利能力都會持續提高。馬修強調了天然氣的新項目、利潤率的提高，並讚揚該團隊追求價格並持續提高整個部門的營運效率，利用 80/20 來簡化降低的產品組合複雜性並加倍投入 80 年代的產品。

So I think they're well positioned having both the energy and water assets together. We highlighted just the benefits that we get from sharing the network provides a tailwind and learnings that we can spread across all three areas. So lots to be excited about that business going forward.

所以我認為他們擁有能源和水資源資產，處於有利地位。我們強調了從共享網路中獲得的好處，它提供了順風，並讓我們能夠將經驗傳播到所有三個領域。因此，我們對該業務未來的發展充滿期待。

Brian Lee, Goldman Sachs.

高盛的 Brian Lee。

This is [Tyler Bisset] on for Brian. Thanks for taking our questions. You guys raised your revenue guidance. You also guided for a strong adjusted EBITDA margins in 3Q. And with less of a tariff impact expected I was wondering if maintaining your full year adjusted EBITDA margin is just accounting for some conservatism or some of those contingencies you mentioned in the back half of the year, are there potential impacts you're assuming in 4Q?

我是 [Tyler Bisset]，為 Brian 播報。感謝您回答我們的問題。你們提高了收入預期。您也預測第三季調整後的 EBITDA 利潤率將達到強勁。由於預計關稅影響較小，我想知道維持全年調整後的 EBITDA 利潤率是否只是考慮到一些保守因素或您在下半年提到的一些意外情況，您是否認為第四季度會產生潛在影響？

Yeah. I think ultimately, we highlighted there's a little bit of dilutive nature of the tariffs, right? It's not -- the incrementals on that. We're not making a significant amount of money that's somewhere between 10 basis points and 25 basis points of pressure on our year-over-year EBITDA margin expansion in the back half.

是的。我認為最終我們強調了關稅具有一點稀釋性質，對嗎？這不是--增量。我們賺的錢並不多，這對我們下半年 EBITDA 利潤率的同比擴張造成了 10 個基點到 25 個基點的壓力。

So obviously, we continue to try to push for the top side on it. Again, we highlighted lots of progress on our simplification efforts. So we're -- the teams continue to progress, and we're just being cautious here as a lot of volatility still remains, and we'll see what happens in Q4.

因此，顯然，我們會繼續努力爭取成為頂尖選手。我們再次強調了我們在簡化工作上所取得的許多進展。因此，我們 - 團隊繼續進步，我們只是在這裡保持謹慎，因為仍然存在很多波動，我們將看看第四季度會發生什麼。

Great. And you raised your assumptions for corporate expenses this year by $10 million to $15 million. Anything in particular driving that increase? Is it just that M&A you mentioned or anything else?

偉大的。您將今年的公司支出預期提高了 1000 萬美元至 1500 萬美元。有什麼特別的原因推動了這種成長嗎？您提到的只是併購還是其他？

No, I think it's a combination of FX and variable comp relative to the stronger results.

不，我認為這是外匯和變數補償相對於更強結果的結合。

Mark Strouse, JPMorgan.

摩根大通的馬克‧斯特勞斯。

Yes, good morning.

是的，早安。

Thank you very much for taking our questions. I think at this point, most of them have been asked. I wanted to follow up with a couple of margin questions, if I could. First, on MCS. Can you talk about the margin drag that you're seeing from that -- the legacy energy business that is in your backlog? And as that gets burned off in the next couple of quarters, how we should think about kind of EBITDA margins overall for MCS as that occurs?

非常感謝您回答我們的問題。我想，現在大多數人都已經被問過了。如果可以的話，我想繼續問幾個關於保證金的問題。首先，關於 MCS。您能否談談您所看到的利潤率拖累—積壓的傳統能源業務？隨著這一數字在接下來的幾季逐漸消失，我們應該如何看待 MCS 的整體 EBITDA 利潤率？

Yeah. So I think we talked about the three factors. One of those some of the lower-margin legacy projects. Some of that put a little bit to the right relative to us having to go back and try to negotiate additional pricing relative to the tariffs. So we'll put a little bit of pressure on sequential margins in the third quarter.

是的。所以我認為我們討論了三個因素。其中一個是利潤率較低的遺留項目。其中一些相對於我們必須回去並嘗試協商與關稅相關的額外定價而言有點偏右。因此，我們將對第三季的連續利潤率施加一點壓力。

I'd say, 50 basis points to 100 basis points in that kind of ballpark. And then MCS sequentially improve and will improve the quarters year-over-year but sequentially improve for Q4.

我想說，大概是 50 個基點到 100 個基點。然後 MCS 會逐步改善，並且每季都會比去年同期有所改善，但第四季會逐步改善。

Okay. And then on the applied water side, just the over 400 basis points expansion that you saw year-over-year. Just any I'm sorry if I missed it, but any kind of one-timers in there, how we should think about that kind of sustainably going forward.

好的。然後在應用水方面，您看到的同比增長僅超過 400 個基點。如果我錯過了，我很抱歉，但是對於其中的任何一次性事件，我們應該如何思考這種可持續的發展。

Thank you.

謝謝。

Yeah, no, I don't think any onetimers -- for me, there's an element of about two-third of that is the significant traction they made on 80/20 and then positive price/cost. Matt highlighted there was a little bit of pull ahead on some volume likely go down a little bit in the third quarter, so there'll be some under absorption. So I think their expansion won't be as great, but it will still be really robust on a year-over-year basis.

是的，不，我不認為有任何一次性的事情——對我來說，其中大約三分之二的因素是他們在 80/20 上取得的顯著進展，然後是積極的價格/成本。馬特強調，第三季部分交易量可能會略有下降，因此會出現一些吸收不足的情況。因此我認為他們的擴張不會那麼大，但同比來看仍然會非常強勁。

Andrew Buscaglia, BNP Paribas.

安德魯·巴斯卡利亞，法國巴黎銀行。

Hey, good morning, everyone. So (inaudible) or larger solutions rather for orders and growth I'm wondering on the order side, those are picking up and you're seeing more on services. And I know this business can be lumpy. What are you seeing on the capital equipment side? And how have tariffs impacted that?

嘿，大家早安。因此（聽不清楚）或更大的解決方案，而不是針對訂單和成長，我想知道在訂單方面，這些正在回升，並且您會在服務上看到更多。我知道這個生意可能會很不順利。您在資本設備方面看到了什麼？關稅對此有何影響？

No. I think WSS overall is positioned for another strong year of growth as it leverage is the synergies with the combined portfolio. It does have significant strength with the outsourced water projects across several of their end markets. energy being one of them. They've also seen significant growth in their utility services business, which is a combination of the legacy municipal services business from Evoqua and the assessment services business in legacy Xylem.

不。我認為 WSS 總體上將迎來另一個強勁的成長年，因為它可以利用合併後的投資組合的協同效應。該公司在多個終端市場的外包水務專案中確實擁有顯著實力，能源就是其中之一。他們的公用事業服務業務也取得了顯著成長，該業務是 Evoqua 的傳統市政服務業務和 Xylem 傳統評估服務業務的結合。

And to be honest, I give Rodney and team a lot of credit for the improvements they've made in that section of the business. They've turned it around in a very short period of time. But again, they've got a significant funnel of their outsourced water projects. Like you said, projects can be lumpy.

老實說，我對羅德尼和他的團隊在該業務領域的進步表示高度讚賞。他們在很短的時間內就扭轉了局面。但同樣，他們擁有大量外包水項目。正如您所說，專案可能會很不順利。

That's why we're not overly concerned with their book-to-bill being less than one, it's timing of some projects that have already filtered in here in the third quarter. So their capital business is a real shining point of growth within the portfolio.

這就是為什麼我們並不太擔心他們的訂單出貨比低於一，這是一些已經在第三季過濾的項目的時間安排。因此，他們的資本業務是投資組合中真正的成長亮點。

Okay. And then one of your larger water peers is talking a little bit more about data centers as a demand driver. I'm wondering, just an update there. I know it's small for you, but anything incremental you're seeing in the last 3-, 6-months?

好的。然後，你們的一家較大的水務同行正在更多地談論資料中心作為需求驅動因素。我很好奇，只是那裡的更新。我知道這對您來說很小，但是在過去的 3 到 6 個月裡您看到有什麼進步嗎？

I wouldn't call it anything meaningful. It would probably show up more in our applied water business with heat exchangers and pumps. Although we have seen a little bit of an uptick in our water solutions and services business, where -- in some cases, believe it or not, data centers can't get municipal water, and they're bringing in surface water. And so we're seeing more and more of a need to filter that water before it gets into the data center. I think you'll actually see that trend continue as municipalities get stressed.

我不會稱其為任何有意義的東西。它可能會更多地出現在我們的熱交換器和泵浦應用水業務中。儘管我們的水處理解決方案和服務業務略有成長，但在某些情況下，不管你信不信，資料中心無法獲得市政供水，因此他們引入了地表水。因此，我們越來越需要在水進入資料中心之前對其進行過濾。我認為，隨著市政當局面臨壓力，你會看到這種趨勢持續下去。

Data centers take about 50 -- what is it? It represents about 50,000 people in terms of a population and it's about 5 million gallons of water a day that they're using. So I don't think people really appreciate that. I think people talk a lot about the energy side of data centers. But I would say that we've all got to put a watchful eye towards the water side of the energy transformation that we're going through.

資料中心大約需要 50 個——它是什麼？它代表著大約 50,000 名居民，他們每天使用的水量約為 500 萬加侖。所以我不認為人們真正欣賞這一點。我認為人們談論了很多資料中心的能源方面。但我想說，我們都必須密切關注我們正在經歷的能源轉型中的水資源方面。

Do you think this will be a real meaningful driver -- multi-year driver?

您認為這會是一個真正有意義的驅動力——多年的驅動力嗎？

I think in the next 1-year, probably not so much. But as we look out in the next 3- to 5-years, and you look at the stresses that we're seeing across different parts of the world and here right here in the US on water, absolutely, it's going to be more and more of an issue. And so water reuse will become really important.

我認為在未來一年內，情況可能不會那麼糟。但展望未來 3 到 5 年，如果我們看看世界各地以及美國在水資源方面面臨的壓力，我們就會發現，水資源問題肯定會越來越嚴重。因此，水的重複利用將變得非常重要。

And ladies and gentlemen, at this time, we're going to be ending today's question and answer session. I'd like to turn the conference call back over to Matthew Pine for any closing remarks.

女士們、先生們，我們今天的問答環節就要結束了。我想將電話會議交還給馬修·派恩 (Matthew Pine) 來做最後發言。

Thanks a lot. We'll just wrap it up there. Thanks for your questions, and thanks to everybody who had joined the call today, especially our colleagues, many of them dial into the call. And we appreciate your interest and support, all the best.

多謝。我們就到此為止吧。感謝您的提問，也感謝今天參加電話會議的所有人，特別是我們的同事，他們中的許多人撥通了電話。我們感謝您的關注和支持，祝一切順利。

Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

女士們、先生們，今天的電話會議和演講就到此結束。感謝您的加入。現在您可以斷開線路了。