賽莱默 (XYL) 2025 Q3 法說會逐字稿

Welcome to Xylem's third quarter 2025 results conference call. (Operator Instructions) Please note that this event is being recorded.

歡迎參加賽萊默公司2025年第三季業績電話會議。（操作說明）請注意，本次活動正在錄影。

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.

現在我謹將會議交給投資人關係與財務規劃與分析副總裁基斯‧布特納先生。請繼續，先生。

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

謝謝接線生。各位早安，歡迎參加賽萊默公司2025年第三季財報電話會議。今天陪同我出席的有執行長馬修·派恩和財務長比爾·格羅根。他們將對賽萊默第三季業績發表看法，並討論第四季和 2025 年全年展望。在宣讀完準備好的演講稿後，我們將回答與本次電話會議所涵蓋資訊相關的問題。請您每次只提一個問題，並提出一個後續問題，然後返回隊列。

As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website. A replay of today's call will be available until midnight, November 11, and will be available for playback via the Investors section of our website under the heading, Investor Events.

再次提醒，本次電話會議和網路直播均配有幻燈片演示文稿，可在我們網站的投資者關係版塊查看。今天電話會議的錄音回放將保留至 11 月 11 日午夜，可透過我們網站「投資者」版塊下的「投資者活動」欄位進行回放。

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

請翻到第二張幻燈片。我們將在今天的電話會議上發表一些前瞻性聲明，包括提及我們預期將來會發生或可能發生的事件或發展。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年度報告（10-K 表格）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.

請翻到第3張投影片。我們已向您提供關鍵績效指標摘要，其中包括 GAAP 指標和非 GAAP 指標。就今天的電話會議而言，除非另有說明，所有參考資料均以有機增長和/或調整後為基礎，非GAAP財務數據已為您進行核對，並包含在演示文稿的附錄部分中。

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

現在請翻到第 4 張投影片，我將把電話交給我們的執行長馬修派恩。

Thank you, Keith. Good morning, everyone, and thank you for joining us. I'm pleased to share that the team delivered another great quarter, continue our momentum with disciplined execution, driving strong results across the business.

謝謝你，基斯。各位早安，感謝各位的參與。我很高興地告訴大家，團隊又取得了一個出色的季度業績，我們保持了良好的發展勢頭，透過嚴謹的執行，在整個業務範圍內取得了強勁的成果。

Revenue grew in all segments and most end markets with double-digit growth in Measurement and Control Solutions and Water Solutions and Services. We also achieved record quarterly EBITDA margin north of 23%, expanding 200 basis points year over year and delivering 23% EPS growth.

所有業務板塊和大多數終端市場的收入均實現成長，其中測量和控制解決方案以及水解決方案和服務業務實現了兩位數成長。我們也實現了創紀錄的季度 EBITDA 利潤率，超過 23%，年增 200 個基點，每股收益成長 23%。

It's a great performance by the team, supported by healthy demand. While orders were down slightly against tough comps, we saw notable growth in Measurement and Control Solutions with strong performance across smart metering, underscoring the differentiation of our core portfolio.

這是團隊的優秀表現，也得益於強勁的需求。儘管受強勁的同期市場競爭影響，訂單略有下降，但測量和控制解決方案業務實現了顯著增長，智慧計量業務表現強勁，凸顯了我們核心產品組合的差異化優勢。

We continue to see strong demand for our mission-critical solutions across all segments. These results reflect the impact of our commercial and operational momentum as well as the benefits of our ongoing simplification efforts.

我們看到，各行各業對我們關鍵任務解決方案的需求依然強勁。這些結果反映了我們商業和營運動能的影響，以及我們持續簡化流程所帶來的益處。

Our 80/20 implementations continue to drive margin improvement and focus our resources on the highest value opportunities. And we're also moving even faster than anticipated, especially with the restructuring component of our operating model transformation. These changes we've made to culture, processes, and structure are enabling faster decisions, clear accountability, and better service.

我們的 80/20 策略實施持續推動利潤率提升，並將我們的資源集中於最有價值的機會。而且，我們的進展速度甚至比預期的還要快，尤其是在營運模式轉型中的重組部分。我們對文化、流程和結構所做的這些改變，使得決策速度更快、責任更明確、服務更好。

The team's impact on increasing quality of our customer experience is a great example. We began to set new Xylem benchmarks for on-time performance. That serves to strengthen our customer relationships and reinforce our reputation for reliability.

團隊對提升客戶體驗品質的影響就是一個很好的例子。我們開始為賽萊默公司設定新的準時交貨效能基準。這有助於加強我們與客戶的關係，並鞏固我們可靠的聲譽。

Solid execution is deepening trust with our customers. At the same time, it's expanding margins, and they see the benefit in how we partner with them on innovation because 80/20 focuses our energy and resources on their most important challenges.

紮實的​​執行力加深了我們與客戶的信任。同時，利潤空間也不斷擴大，他們看到了我們與他們合作進行創新的好處，因為 80/20 將我們的精力和資源集中在他們面臨的最重要挑戰上。

As we've often said, 80/20 isn't a cost-out tool, it's about resource allocation, helping us redeploy capacity to the areas of our portfolio and customer base where value and impact are greatest, which is aligned with our strategy of portfolio optimization and disciplined capital deployment. It's that discipline and mindset that led to divesting the international metering business, which we announced earlier this month. The sale concentrates are focused on AMI technologies in markets where we have the strongest differentiation and are best positioned for profitable growth.

正如我們常說的，80/20 原則並非降低成本的工具，而是資源分配的策略，它幫助我們將產能重新部署到我們投資組合和客戶群中最有價值和影響力的領域，這與我們優化投資組合和審慎的資本部署策略相一致。正是這種嚴謹的策略和思維方式促使我們在本月初宣布剝離國際計量業務。此次銷售重點集中在AMI技術領域，尤其是在我們擁有最強差異化優勢且最有利於獲利成長的市場。

Turning to our outlook. Given our performance and resilient market demand, we're raising our full year guidance for revenue, margin and EPS. Our guide reflects confidence in the team's ability to deliver our commitments even as we manage through continuing macro uncertainty. We expect our momentum to continue through the end of the year and beyond, and we're solidly on track to deliver our long-term financial framework.

展望未來。鑑於我們的業績和強勁的市場需求，我們上調了全年營收、利潤率和每股盈餘預期。我們的指南體現了團隊對履行承諾能力的信心，即使我們仍在應對持續的宏觀不確定性。我們預計這一發展勢頭將持續到年底及以後，並且我們正穩步朝著實現長期財務框架的目標邁進。

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

接下來，我將把發言權交給比爾，讓他更詳細地介紹本季的業績、我們的財務狀況以及我們更新後的展望。帳單？

Thanks, Matthew. Please turn to slide 5. We're very pleased with the strong quarter and year-to-date progress. Ongoing simplification efforts have improved our organizational agility and risk management effectiveness, positioning us to navigate uncertainty with confidence. We anticipate further benefits as we continue advancing our simplification initiatives through our operating model transformation and fully leverage the advantages of our 80/20 implementations.

謝謝你，馬修。請翻到第5張投影片。我們對本季和年初至今的強勁進展感到非常滿意。持續的簡化措施提高了我們的組織靈活性和風險管理效率，使我們能夠自信地應對不確定性。我們預計，隨著我們繼續推動營運模式轉型中的簡化舉措，並充分利用 80/20 實施的優勢，我們將獲得更多益處。

Demand across the business is healthy, and our year-to-date book-to-bill ratio remains near 1. Orders were down 2% in the quarter, but against tough comps, with softness in China, mostly offset by growth in the US and Western Europe.

整個業務的需求都很健康，我們今年迄今的訂單出貨比仍然接近 1。本季訂單量下降了 2%，但考慮到同期基數較高，且中國市場疲軟，美國和西歐市場的成長基本上抵消了這一影響。

Backlog remains robust, closing the quarter at approximately $5 billion. Revenue growth was strong at 7% in the quarter, ahead of our expectations, driven by outperformance in MCS and WSS. North America was particularly strong in the quarter while we grew across most regions and end markets.

積壓訂單依然強勁，本季末積壓訂單約 50 億美元。本季營收成長強勁，達到 7%，超出預期，主要得益於 MCS 和 WSS 的出色表現。本季北美市場表現尤為強勁，而我們在大多數地區和終端市場均實現了成長。

EBITDA margin expanded 200 basis points year over year, driven by productivity, pricing, and volume, more than offsetting inflation, investments in mix. Increased operational discipline continues to come through in our results with Q3 EPS of $1.37, up 23% versus the prior year.

EBITDA 利潤率年增 200 個基點，主要得益於生產力、定價和銷售的成長，超過了通貨膨脹和產品組合投資的影響。營運紀律的加強繼續體現在我們的業績中，第三季每股收益為 1.37 美元，比上年同期增長 23%。

Year-to-date free cash flow was down modestly, primarily due to outsourced water projects and restructuring 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.

今年迄今的自由現金流略有下降，主要是由於外包水務項目和重組付款，但大部分被更高的淨收入和改善的淨營運資本所抵消。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 fantastic results across the segments, starting with Measurement and Control Solutions. Demand for our AMI solutions remains robust as orders grew 11% organically with strength across water and energy metering. Backlog remains healthy at $1.5 billion. Revenue was also up 11% driven by energy metering demand and backlog execution.

讓我們翻到第6張投影片。我們在各個領域都取得了非常好的成績，首先是測量和控制解決方案領域。市場對我們 AMI 解決方案的需求仍然強勁，訂單量自然增長了 11%，其中水錶和電錶領域表現尤為突出。積壓訂單量依然健康，達15億美元。受能源計量需求和積壓訂單執行的推動，營收也增加了 11%。

EBITDA margin was up 60 basis points year over year to 21.8%, driven by productivity, price, and higher volumes, offset in part by mix and inflation. As Matthew mentioned, at the end of the quarter, we signed a definitive agreement to sell our international metering business. The business, which includes water and heat meters generated around $250 million of revenue in full year 2024 with a consolidated adjusted EBITDA margin of less than 10%.

EBITDA 利潤率年增 60 個基點至 21.8%，主要得益於生產力、價格和銷售量的成長，但部分被產品組合和通貨膨脹所抵銷。正如馬修所提到的，在本季末，我們簽署了一項最終協議，出售我們的國際計量業務。該業務包括水錶和熱表，2024 年全年營收約 2.5 億美元，合併調整後的 EBITDA 利潤率不到 10%。

We expect to close in early 2026 with a selling price of $125 million. This will drive a 100 basis point margin improvement in the MCS segment on a run rate basis. The divestiture will allow us to focus on the North American meter market where we have substantial competitive differentiation with the only FCC licensed proprietary bandwidth on our FlexNet fixed network, serving water, gas, and electric utility customers.

我們預計將於 2026 年初完成交易，售價為 1.25 億美元。這將使MCS業務部門的年化利潤率提高100個基點。此次剝離將使我們能夠專注於北美計量市場，我們在該市場擁有顯著的競爭優勢，因為我們的 FlexNet 固定網路擁有唯一獲得 FCC 許可的專有頻寬，為水、燃氣和電力公用事業客戶提供服務。

In Water Infrastructure, demand remains strong across most regions and end markets. Book-to-bill was above 1 despite orders declining by 2% against difficult comps. Significant softness in China and funding timing from the AMP cycle in the UK were the primary drivers of the decline.

在水利基礎設施領域，大多數地區和終端市場的需求仍然強勁。儘管訂單量因同比基數較高而下降了 2%，但訂單出貨比仍高於 1。中國市場的明顯疲軟以及英國AMP週期的融資時機是導致下跌的主要原因。

Revenue grew 5%, led by strong demand in transport and treatment and growth in most regions with double-digit growth in the US. EBITDA margin expanded a robust 400 basis points to 24.4% driven by productivity, price, and mix partially offset by inflation, volume, and investments. And the team continues to get significant traction with their 80/20 efforts as treatment starts to replicate the success we have realized in transport.

營收成長 5%，主要得益於運輸和治療領域的強勁需求以及大多數地區的成長，其中美國實現了兩位數的成長。EBITDA 利潤率大幅成長 400 個基點至 24.4%，主要得益於生產力、價格和產品組合的提升，但部分被通貨膨脹、銷售和投資所抵銷。隨著治療開始複製我們在運輸方面取得的成功，團隊的 80/20 努力繼續取得顯著進展。

Applied Water continued its turnaround in the year with orders growth in the quarter, just edging into positive territory, making it its seventh consecutive quarter of gains. The result was driven by strength in the US, mostly offset by a significant slowdown in China.

Applied Water 今年持續扭轉頹勢，本季訂單量成長，勉強轉正，連續第七個季度實現成長。這一結果主要受美國經濟強勁成長的推動，但基本上被中國經濟的大幅放緩所抵消。

Revenue increased 1% with growth in both the US and Western Europe and strength in Building Solutions, again, partially offset by China. EBITDA margin expanded 310 basis points to 21.7%, driven by productivity, mix, and price partially offset by inflation, investments, and volume.

營收成長 1%，主要得益於美國和西歐市場的成長以及建築解決方案業務的強勁表現，但部分被中國市場的成長所抵銷。EBITDA 利潤率成長 310 個基點至 21.7%，主要得益於生產力、產品組合和價格的提升，但部分被通貨膨脹、投資和銷售所抵銷。

Applied Water continues to gain traction from 80/20 as it accelerates both productivity and growth. And in Water Solutions and Services, orders were down 11% against really tough comps, driven by timing of capital projects, though year-to-date book-to-bill remains above 1.

應用水處理技術從 80/20 法則中持續獲得認可，因為它能夠加速生產力和成長。在水解決方案和服務領域，由於資本項目的時間安排，訂單量比非常低，比去年同期下降了 11%，但年初至今的訂單出貨比仍然高於 1。

Revenue grew 10%, with contributions from capital projects to watering and services. EBITDA margin expanded 160 basis points to 26.3%, reflecting strong execution on price, volume, and productivity, partially offset by inflation, mix, and investments.

收入成長了 10%，其中資本項目、供水和服務均有所貢獻。EBITDA 利潤率成長 160 個基點至 26.3%，反映出價格、銷售和生產力的強勁執行，但部分被通貨膨脹、產品組合和投資所抵銷。

Let's move to slide 7. We're updating our annualized tariff outlook based on the current rates, noting the fluid nature of the impacts, as of today, our updated annualized impact is roughly $180 million with the inclusion of additional Section 232 derivative tariffs.

我們來看第7張投影片。我們正在根據當前稅率更新年度關稅展望，並注意到影響的動態性。截至今日，我們更新後的年度影響約為 1.8 億美元，其中包括額外的 232 條款衍生關稅。

While there remains uncertainty around final timing and tariff levels, we are confident that the pricing actions and available supply chain levers will allow us to substantially offset the current impact, though we expect a slight margin dilutive effect. We have not seen a meaningful volume impact on the business due to tariffs, but decision-making has taken a bit longer than normal given the uncertainty.

儘管最終的時間表和關稅水平仍存在不確定性，但我們相信，定價措施和可用的供應鏈槓桿將使我們能夠大幅抵消目前的影響，儘管我們預計利潤率將略有下降。雖然關稅尚未對業務量產生實質影響，但鑑於不確定性，決策過程比平常花費的時間要長一些。

Let's turn to slide 8. Given our strong year-to-date performance and execution momentum, we are again raising our full year guidance. We now expect full year revenue of roughly $9 billion, representing 5% to 6% total growth and 4% to 5% organic growth.

讓我們翻到第 8 張投影片。鑑於我們今年迄今強勁的業績和執行勢頭，我們再次上調全年業績預期。我們現在預計全年營收約 90 億美元，總成長率為 5% 至 6%，內生成長率為 4% 至 5%。

EBITDA margin is expected to be 22% to 22.3%, reflecting 140 basis points to 170 basis points of expansion versus prior year, up from the previous guide of 21.3% to 21.8%, primarily due to an acceleration of our restructuring and simplification efforts. We are further raising our EPS guide to $5.03 to $5.08, up from $4.70 to $4.85. Free cash flow margin expectation remains at 9% to 10%.

預計 EBITDA 利潤率，高於先前預期的 21.3% 至 21.8%，主要原因是我們加快了重組和簡化工作。我們將每股收益預期從4.70美元至4.85美元進一步提高5.03美元至5.08美元。自由現金流利潤率預期維持在9%至10%。

For the fourth quarter, we expect revenue of approximately $2.4 billion with 2% to 3% organic growth. And as a reminder, we grew 7% in the fourth quarter of 2024. EBITDA margin is expected to be roughly 23% and EPS is expected to be $1.37 to $1.42.

我們預計第四季營收約 24 億美元，有機成長率為 2% 至 3%。再次提醒大家，我們在 2024 年第四季實現了 7% 的成長。預計 EBITDA 利潤率約為 23%，每股收益預計為 1.37 美元至 1.42 美元。

We have a strong trajectory as we close out the fiscal year. While there continues to be macro uncertainty, particularly around tariffs and FX movements, the team is doing a great job controlling what we can control and building a systematic process to deliver results. We have confidence in our ability to meaningfully outperform our initial guidance set out in February, supported by strong demand, backlog execution, and accelerated benefits from simplification.

在財政年度即將結束之際，我們保持著強勁的發展勢頭。儘管宏觀經濟仍存在不確定性，尤其是在關稅和匯率波動方面，但團隊在控制我們能夠控制的因素以及建立系統化的流程以取得成果方面做得非常出色。我們有信心在強勁的需求、積壓訂單的執行以及簡化流程帶來的加速效益的支持下，顯著超越我們在 2 月制定的初步業績指引。

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

讓我們翻到第 9 張投影片，然後我把鏡頭切回給馬修。

Thanks, Bill. Before we move to Q&A, I want to highlight some great work the team has done with Amazon and two of our large municipal customers on a couple of projects, we announced during the quarter. They are a great example of how Xylem's leadership in digital water solutions positions us in a global economy being transformed by artificial intelligence.

謝謝你，比爾。在進入問答環節之前，我想重點介紹團隊在本季度與亞馬遜和我們的兩個大型市政客戶合作開展的幾個項目，這些項目我們已宣布啟動。它們很好地體現了賽萊默在數位水解決方案領域的領先地位，以及人工智慧如何改變全球經濟格局。

Together with Amazon, we're deploying Xylem's view advanced analytics in Mexico City on Monterrey, helping these cities save more than 1 billion liters of water each year. This partnership is a model for how hyperscalers and communities can collaborate to ensure water security for both businesses and residents. And it's a clear example of how our solutions are creating meaningful impact for customers and communities.

我們與亞馬遜合作，在墨西哥城和蒙特雷部署賽萊默的 View 高級分析技術，幫助這些城市每年節省超過 10 億公升水。這種合作關係為超大規模企業和社區如何合作以確保企業和居民的用水安全樹立了典範。這清楚地表明了我們的解決方案如何為客戶和社區帶來有意義的影響。

That's only going to become more consequential as AI infrastructure expands. Attention is focused on data centers, which is understandable. Data centers consume a lot of water, so they present clear applications for water management and reuse solutions that AI's water footprint is much, much larger.

隨著人工智慧基礎設施的擴展，這一點只會變得更加重要。人們的注意力都集中在資料中心上，這可以理解。資料中心消耗大量水，因此它們對水資源管理和再利用解決方案有著明確的應用需求，而人工智慧的水足跡則大得多。

The whole AI value chain runs on water. Alongside data center build-outs, water demand is growing across key verticals like power generation, chip fabrication, and mining for essential minerals. In examples like the work with Amazon in Mexico, we see the potential for water solutions that resolve the difficult trade-offs between economic growth and community well-being by effectively providing for both.

整個人工智慧價值鏈都離不開水。隨著資料中心建設的推進，發電、晶片製造和重要礦物開採等關鍵垂直行業的用水需求也不斷增長。以與亞馬遜在墨西哥的合作為例，我們看到了水資源解決方案的潛力，這些方案能夠有效地兼顧經濟成長和社區福祉，從而解決兩者之間難以權衡的問題。

As AI shapes a new economy, we're optimistic about the opportunity to have positive impact on both customers and on the communities that they serve, increasing water security for both. That optimism is built on both underlying macro trends and on solid foundations the team has been building, positioning Xylem for sustainable long-term growth.

隨著人工智慧塑造新的經濟，我們樂觀地認為，人工智慧將對客戶及其服務的社區產生正面影響，從而提高雙方的用水安全。這種樂觀情緒建立在宏觀趨勢和團隊一直在建立的堅實基礎上，使賽萊默能夠實現可持續的長期成長。

The word simplification can make it sound easy, but our strong performance over the last several quarters is a function of the team's dedication, drive, and tireless execution. Our self-help initiatives, including 80/20, portfolio optimization and our operating model transformation are all delivering results. If anything, we're moving a little faster than expected.

「簡化」這個詞聽起來很容易，但我們在過去幾季取得的優異成績，是團隊的奉獻精神、進取心和不懈努力的成果。我們的自助舉措，包括 80/20 法則、投資組合優化和營運模式轉型，都取得了成效。如果有什麼改變的話，那就是我們的進展比預期快一些。

Overall, we have a positive outlook for the remainder of the year, we're well on track to deliver our long-term financial framework, and we are strongly positioned to drive sustainable growth and value creation over the cycle.

總體而言，我們對今年剩餘時間持樂觀態度，我們正按計劃穩步實現長期財務框架，並且我們已做好充分準備，在本週期內推動可持續增長和價值創造。

With that, operator, let's open the line for questions.

好了，接線員，我們現在開始接受提問。

(Operator Instructions)

（操作說明）

Andy Kaplowitz, Citigroup.

安迪‧卡普洛維茨，花旗集團。

Good morning, everyone. Nice quarter.

各位早安。不錯的街區。

Hey, good morning, Andy.

嘿，早安，安迪。

Thank you.

謝謝。

Matt and Bill, you're now expecting 140 basis points to 170 basis points of EBITDA margin improvement for '25. I think your Investor Day algorithm has been 100 basis points per year. And obviously, segments such as Water Infrastructure and Applied have had substantial 80/20 benefits so far.

Matt 和 Bill，你們現在預計 2025 年 EBITDA 利潤率將提高 140 到 170 個基點。我認為你們的投資者日演算法每年波動幅度為 100 個基點。顯然，水利基礎設施和應用等細分領域迄今已經獲得了巨大的 80/20 收益。

So the obvious question becomes how much improvement is still left in the tank? Can you continue to get that 100 basis points off the higher base as you go into '26 and beyond? And is it time to start thinking about a higher potential '27 adjusted EBITDA margin versus your Investor Day target?

那麼顯而易見的問題是，還有多少提升空間？進入 2026 年及以後，你能否繼續在高基數的基礎上再獲得 100 個基點的收益？現在是否應該開始考慮 2027 年調整後 EBITDA 利潤率高於投資者日目標的可能性了？

Great question. Just as a reminder for folks that may have not heard our Investor Day numbers, we had put out 4% to 6% growth with 23% EBITDA margin by 2027. Now to be fair, we did finish 2024 at 20.6%, so there was 300 basis points up to 20.6%. We're guiding to your point, 22%-plus for this year ahead of schedule. So there's likely some upside to our long-term targets.

問得好。提醒一下可能還沒聽過我們投資者日數據的各位，我們預計到 2027 年，成長率將達到 4% 至 6%，EBITDA 利潤率將達到 23%。公平地說，我們 2024 年結束時的利率為 20.6%，所以距離 20.6% 還有 300 個基點。我們正朝著您的目標努力，今年比原計劃提早22%以上。因此，我們的長期目標可能還有一些上漲空間。

Right now, we're focused on delivering on 2025 commitments. And quite frankly, working to dial in 2026. There's still a lot of noise out there, macro we're trying to digest. And internally, there's a lot of good things going on that we're trying to calibrate as well.

目前，我們正集中精力履行2025年所做的承諾。坦白說，目標是在 2026 年實現。目前宏觀層面上仍然存在著許多噪音，我們正在努力消化這些資訊。內部也有很多好事正在發生，我們也正在努力調整。

And we'll have a lot more detail in February. But I would say we've made great progress. And I would -- Andy called this the first phase of our journey, and that was really around transforming our operating model, both around our culture, our processes, and our structure.

二月我們會公佈更多細節。但我認為我們已經取得了巨大進步。而我——安迪稱之為我們旅程的第一階段，這實際上是圍繞著轉變我們的營運模式，包括我們的文化、流程和結構。

And this work never ends. It's always ongoing. But what we're trying to do in the next phase of our journey as we move out of Phase 1, we've taken enough ground into Phase 2 is to leverage that simplification that we created, to drive our growth engine in what we call Phase 2.

這項工作永無止境。它一直都在進行中。但是，在我們邁出第一階段，進入第二階段之際，我們正在努力利用我們創造的這種簡化，來推動我們在第二階段的成長引擎。我們已經取得了足夠的進展。

And some examples of that would be enterprise account management, targeted selling, especially with our A customers, customers we call raving fans. And to leverage what we've done in 80/20 to redeploy effort for innovation as well. So maybe the last thing I would also comment, what I would call Phase 3 is getting after a long-term competitiveness by doubling down on some of our core franchises like North America metrology.

例如，企業客戶管理、精準銷售，尤其是針對我們的 A 級客戶（我們稱之為鐵桿粉絲的客戶）。而且，我們還要利用 80/20 法則所取得的成果，重新投入精力進行創新。所以，我最後想補充一點，我稱之為第三階段，即透過加倍投入我們的一些核心特許經營業務（如北美計量）來追求長期競爭力。

Hence, you saw the divestiture of the international business, commercial services, our transport business, where we really have strong positions. So -- and M&A that aligns to our value mapping and leveraging the strong balance sheet that we have. So I would say that we have a lot left in the tank. There's more on margins. But more holistically, really this in our first phase of our journey and making good progress.

因此，你們看到了我們剝離了國際業務、商業服務、運輸業務，而我們在這些領域確實擁有強大的實力。因此－併購要符合我們的價值規劃，並利用我們強大的資產負債表。所以我覺得我們還有很多潛力可以挖。還有更多關於利潤率的內容。但從更全面的角度來看，這確實是我們旅程的第一階段，並且取得了良好的進展。

Very helpful. And then, Matt, you had difficult comparisons in Q3 in MCS, yet you still delivered 11% order growth. Is the strength broad-based in energy and water meters? How is that strength sets out up for 2026 in that segment? Does it mean good visibility toward growth in both smart energy and water meters in '26?

很有幫助。還有，Matt，儘管MCS第三季面臨嚴峻的業績對比，但你仍然實現了11%的訂單成長。這種優勢在能源和水錶領域是否普遍存在？這種優勢將如何影響該公司在2026年在該領域的發展？這是否意味著2026年智慧能源和水錶市場都將迎來良好的成長前景？

Yeah. I mean, in MCS, overall demand is still healthy, right? Our pipeline is strong and the fundamental growth drivers for AMI adoption are still solid. We don't have a concern about funding here in the short term that's been raised a little bit, and we have a long way to go on AMI adoption. We're still less than 50% there.

是的。我的意思是，在MCS領域，整體需求仍然健康，對吧？我們的產品線實力雄厚，AMI普及應用的基本成長動力依然強勁。短期內，我們並不擔心資金問題，儘管有人提出了一些擔憂，但我們在 AMI 的普及方面還有很長的路要走。我們距離目標完成不到50%。

We're through the deployment calibration phase, which took almost a year, but we sit with pretty strong backlog level at $1.5 billion, which is down versus last year, but reflecting a move towards a more normalization to historical levels, kind of after the post supply chain surge in this project redeployment phase, and we're typically around 60% of the following year sales, and we're getting closer to that balance.

我們已經完成了部署校準階段，這花了將近一年的時間，但我們目前的積壓訂單水平相當強勁，達到 15 億美元，雖然比去年有所下降，但這反映出在項目重新部署階段供應鏈激增之後，訂單水平正朝著歷史水平更加正常化的方向發展。我們通常能達到隔年銷售額的 60% 左右，而且我們正在接近這個平衡點。

This order strength in Q3, up 11%, it was across both water and energy meters. We have a really strong commercial funnel and continue to gain share with our largest 4,400 municipalities that account for about 80% of the AMI market. Q4, we've talked about all year. We think we're going to be back to a book-to-bill positive. As we see some of the water meter project wins convert to orders and our energy funnel still remains robust.

第三季訂單量增加了 11%，水錶和電錶的訂單量均有所成長。我們擁有非常強大的商業管道，並且不斷從我們最大的 4,400 個市政當局（約佔 AMI 市場的 80%）中獲得更多份額。第四季度，我們一整年都在討論這個問題。我們認為訂單出貨比將會恢復為正。我們看到一些水錶項目成功轉化為訂單，而且我們的能源管道仍然保持強勁。

So Q4 is shaping up really well, are expected to be up double digits on the water side, making our water growth in the back half, kind of mid-single digits. MCS sales will be up sequentially, too, from the third quarter to the fourth quarter. And the outlook for 2026 remains in our long-term framework of high single digits.

所以第四季情況非常好，預計水務業務將實現兩位數成長，使得下半年水​​務業務的成長達到個位數中段水準。從第三季到第四季度，MCS 的銷售額也將較上季成長。2026 年的展望仍符合我們長期預期的高個位數成長率。

Very helpful, guys. Thanks.

非常感謝各位的幫助。謝謝。

Thank you.

謝謝。

Deane Dray, RBC Capital Markets.

迪恩德雷，加拿大皇家銀行資本市場。

Thank you. Good morning, everyone.

謝謝。各位早安。

Hey, good morning, Deane.

嘿，早上好，迪恩。

Hey, that was a really nice earnings quality this quarter between organic revenue, incrementals, and cash flow, so you can check the box there. Would like to hear a bit about the government shutdown. We're getting a lot of questions about that. Just kind of what are the ripple effects into -- from federal funding to state and local? Have some projects being delayed because of that? And just kind of what does that mean for the setup into '26?

嘿，本季有機收入、增量收入和現金流的獲利品質都非常不錯，所以這方面可以打勾了。想了解政府停擺的情況。我們收到了很多關於這方面的問題。聯邦政府的撥款會對州和地方政府產生哪些連鎖反應？是否有工程因此而延誤？那麼，這對 2026 年的安排又意味著什麼呢？

Yeah. On the government shutdown front, we haven't seen anything meaningful. Funding mechanisms have always been slow to move in general in this space, especially with municipalities. And previously allocated funds will still make their way down to fund projects. So right now, we don't see any meaningful impact.

是的。在政府停擺方面，我們還沒有看到任何實質進展。在這個領域，資金機制的運作一直比較緩慢，尤其是市政當局。先前分配的資金仍將繼續用於資助項目。所以目前來看，我們還沒有看到任何實質的影響。

In the near term, there could be a pause on EPA grant application reviews, but I don't see that, that's going to have any material impact on Q4 or, quite frankly, on the full year of 2026. So all in all, we feel good about the municipal resilience, not only in the US, but more broadly across the globe.

短期內，EPA 撥款申請審查可能會暫停，但我認為這不會對第四季度，或者坦白說，對 2026 年全年產生任何實質影響。總而言之，我們對市政韌性感到滿意，不僅在美國，而且在全球範圍內也是如此。

Really good to hear. And I appreciate the answer to Andy's question about the 80/20 implementation and entering Phase 2. But can you just step back on 80/20 because there was such high expectations, and there are still high expectations about the fundamental changes that are happening at Xylem.

聽到這個消息真好。感謝您解答安迪關於80/20比例分配方案實施以及進入第二階段的問題。但是，能否暫時擱置 80/20 的策略呢？因為人們對賽萊默正在發生的根本性變革抱有很高的期望，而這種期望至今仍然很高。

Broadly, what inning are you in? Have all the business has gone through their first implementation? And kind of where do you go from here in terms of further divestitures at the margin? Should we be expecting anything like that in the next couple of quarters?

大致來說，你現在處於比賽的哪一局？所有業務部門都已完成首次實施嗎？那麼，從這裡開始，在邊緣地帶進一步剝離資產方面，你該如何走呢？未來幾季我們是否應該預期會出現類似的情況？

Okay. I'll start us out here. Deane. 80/20 is, as you can tell by the results, really starting to take hold, almost two years into our transformation. And I would say that each quarter, the team continues to take another step towards what we call simplifying Xylem. So it's moving from a tool set to more of a critical piece on how we run the business, which is, in my mind, more cultural. So that's very strong evidence that things are progressing in a positive way.

好的。我先從這裡開始。迪恩：正如你從結果中看到的，80/20 法則真的開始奏效了，這距離我們轉型已經過去了將近兩年。而且我認為，每個季度，團隊都在朝著我們所說的簡化 Xylem 的目標邁出新的一步。所以它正從一套工具轉變為我們營運業務的關鍵組成部分，在我看來，這更多的是一種文化現象。這有力地證明了事情正在朝著正面的方向發展。

As I said in my opening remarks, it also provides this kind of what I would call them a maniacal focus on resource allocation, which is really, really important for any company. So to answer your question more specifically, 80% of the business is in some phase of the implementation with our dewatering business globally, our analytics business and our treatment business, the most recent divisions to start the implementation of 80/20.

正如我在開場白中所說，它也為企業提供了一種我稱之為「瘋狂的資源分配」的關注方式，這對任何公司來說都非常重要。更具體地回答您的問題，80% 的業務正處於實施 80/20 的某個階段，其中全球脫水業務、分析業務和處理業務是最近開始實施 80/20 的部門。

Treatment being probably one of the bigger divisions we have so far to date going into the tool, and we'll see some meaningful impact to that division of our company. As you see from the results, we're moving with more speed, accountability, customer focus. One thing I talk a lot about is on-time performance and quality is metrics of the health of your company. And on-time performance with our A customers reached a record high, and it's nearing what I would deem best-in-class in terms of industrial companies performance to their customers.

治療可能是我們迄今為止投入使用該工具的最大部門之一，我們將看到它對我們公司的這一部門產生一些有意義的影響。從結果可以看出，我們正在以更快的速度、更強的責任感和更以客戶為中心的理念前進。我經常談到的一點是，準時交貨和品質是衡量公司健康狀況的指標。我們A級客戶的準時交貨率達到了歷史新高，在我看來，這已經接近工業企業為客戶提供的最佳水平了。

So yeah, maybe the last thing I would say, another proof point is just the margin improvement you're seeing in the legacy Xylem businesses with Applied Water and Water Infrastructure over the past several quarters. So maybe just one thing I just want to highlight for those listening. We're going to continue to walk away from revenue, Deane. We do have divestitures.

所以，最後我想說的是，另一個佐證是過去幾季以來，Xylem 旗下應用水務和水基礎設施業務的利潤率有所提高。所以，我只想向聽眾強調一點。迪恩，我們將繼續放棄獲利。我們確實進行了一些資產剝離。

We, obviously, will have just about 1% this year in divestiture and about 1% of acquisition this year, kind of almost washing, but obviously, the international metrology piece will happen next year. It is a core focus. We've talked publicly about $400 million to $600 million of things that will be pruning on the portfolio and that we're still kind of tracking there. But the walkaway business will be a little bit more in 2026 in terms of 80/20.

顯然，我們今年的資產剝離和收購比例分別只有大約 1% 和 1%，幾乎可以忽略不計，但很顯然，國際計量業務將在明年進行。這是核心重點。我們曾公開談論過要從投資組合中削減 4 億至 6 億美元的項目，我們目前仍在追蹤這一數字。但到 2026 年，退出市場的比例將略高一些，達到 80/20。

It was just under 1% this year. It will be just over 1% next year. But just to remind everybody, that comes with higher quality earnings. And it's all about simplifying the business, so we can really build the long-term growth engine and focus on our customers.

今年略低於1%。明年將略高於1%。但要提醒大家，這會帶來更高品質的收入。這一切都是為了簡化業務，這樣我們才能真正建立長期成長引擎，並專注於我們的客戶。

Scott Davis, Melius Research.

Scott Davis，Melius Research。

Hey, good morning, guys.

嘿，各位早安。

Hey, Scott.

嘿，斯科特。

I'll echo the congrats not just on the quarter, but it's been a really good couple of years for you guys. I just had to ask Matthew, this is kind of a strange question, but you led in with culture, processes, and structure. What do you specifically mean by structure? I think that can mean different things to different people. So some explanation. Thanks.

我不僅要祝賀你們本季取得的成績，還要祝賀你們過去兩年所取得的成就。我必須問馬修一個問題，這個問題可能有點奇怪，但你一開始就談到了文化、流程和結構。你說的「結構」具體指的是什麼？我認為這對不同的人來說可能意味著不同的事情。需要解釋一下。謝謝。

Yeah. So structure was really getting at -- we were -- prior to this year, we were kind of highly a metricized structure. So we pivoted to more of a -- we had a segment orientation but more with discrete divisions under the segment, 16 P&Ls with discrete leadership GMs. And it just drives better accountability. I think the matrix structure served us well in the past, but going forward, just to drive better accountability, better empowerment, getting to a kind of a singular access around the segments and divisions, this enables us to make faster decisions.

是的。所以，結構其實指的是──在今年之前，我們是一個高度指標化的結構。因此，我們轉向了更——我們採取了細分市場導向，但細分市場下有更獨立的部門，16 個損益表，每個部門都有獨立的總經理領導。而且，這確實能提升問責制。我認為矩陣式結構過去對我們很有幫助，但展望未來，為了更好地落實問責制，更好地賦予員工權力，並實現各部門和業務單元的統一資訊共享，這將使我們能夠更快地做出決策。

For example, in the prior structure, we would have 20 to 25 people sign off on a delegation of authority. Now we have 4 to 5. And so this provides us the ability to be more nimble. It makes our colleagues lives easier and make our customers happier with our service. And so those were two, what I would call, pieces of voice of customer that we got 2.5, 3 years ago that we wanted to address.

例如，在先前的結構中，我們需要 20 到 25 個人簽字才能授權。現在我們有4到5個。因此，這使我們能夠更加靈活。它讓我們的同事工作更輕鬆，也讓我們的客戶對我們的服務更滿意。所以，這兩點，我稱之為我們2.5到3年前收到的客戶回饋，我們想加以解決。

That makes sense. Thanks. And then your net debt to EBITDA, 0.4, I think you mentioned. The -- pegs the kind of question on priorities in the next 12 months and if you can talk to your M&A backlog or when and if you kind of switch to more of a buyback priority and just where your head is on that stuff right now?

這很有道理。謝謝。然後，你提到了你的淨負債與 EBITDA 的比率，0.4。這個問題引出了關於未來 12 個月優先事項的問題，例如，您是否可以談談您的併購積壓項目，或者您是否會將優先事項轉向股票回購，以及您目前對這些事情的看法？

Yeah. No, it's a good question. We've always said kind of our priorities are, let's invest in the core. We like M&A. We think it will help us really grow the business in a positive way. Dividends, obviously, would be next. And then we talked about opportunistic share buyback. So that's kind of our approach.

是的。不，這是個好問題。我們一直強調，我們的首要任務是投資核心業務。我們喜歡併購。我們認為這將對我們業務的積極發展起到真正的幫助。很顯然，接下來就是分紅了。然後我們討論了伺機回購股票的問題。這就是我們的方法。

As I've mentioned in prior calls, we have put a really strong process in place. Before a couple of years ago, we were a bit more top down and M&A were much more bottoms up, assigning targets to our segment leaders that are now focused maybe not equally, but for sure, focused on organic and organic in terms of growing the business.

正如我之前在電話會議中提到的，我們已經建立了一套非常完善的流程。幾年前，我們的決策方式更偏向自上而下，併購則更偏向自下而上，將目標分配給各業務部門的負責人。現在，這些負責人可能關注的重點並不完全相同，但肯定都集中在業務成長的有機成長上。

So we've got a very strong funnel, probably the most actionable funnel we've had and it's largely because of the new process that we've put in place. So we'll continue to be very disciplined look at things that are strategic fit, meet our hurdles. We've got such a great self-help story right now, Scott, that real focus is on small to medium bolt-ons.

所以我們擁有一個非常強大的銷售漏斗，可能是我們迄今為止最有效的銷售漏斗，這很大程度上要歸功於我們實施的新流程。因此，我們將繼續保持高度的自律，專注於那些符合策略、能夠克服我們障礙的事物。斯科特，我們現在有一個非常棒的自助故事，所以真正的重點是中小型的附加功能。

We talked about deploying $1 billion of capital a year, trying to create $60 million to $75 million of EBITDA. But I wouldn't rule out if there was something very strategic and transformational, we would definitely look at it, but that's not our intent. So our intent is about $1 billion of capital deployment towards M&A each year.

我們討論了每年投入 10 億美元資本，力求創造 6,000 萬至 7,500 萬美元的 EBITDA。但是，如果遇到非常具有策略意義和變革性的機會，我不會排除這種可能性，我們肯定會考慮，但這並非我們的本意。因此，我們的目標是每年投入約10億美元的資金用於併購。

Got you. Thank you, Matthew. Appreciate it. Good luck, guys.

抓到你了。謝謝你，馬修。謝謝。祝你們好運。

Thank you.

謝謝。

Thank you.

謝謝。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

Good morning, everyone.

各位早安。

Good morning, Nate.

早安，內特。

A couple of follow-ups on MCS for me. Bill, I think you mentioned in your answer to Andy's question that you're still in the kind of high single-digits framework for 2026. The book-to-bill service is about 0.83, probably gets to 0.85 if you're close to 1 in the fourth quarter. And you have talked about burning off some backlog and backlog being at a more normalized level.

關於MCS，我還有幾點後續問題。比爾，我想你在回答安迪的問題時提到過，你仍然認為 2026 年的成長率將保持在個位數高位。帳務處理效率約為 0.83，如果第四季接近 1，則可能達到 0.85。您也提到要清理一些積壓的工作，讓積壓的工作量達到一個更正常的水平。

I'm just wondering how that -- how the math works to get to high single digits for 2026? And why there wouldn't be maybe a little bit of a reset lower because you're not burning off backlog next year? So any additional color you could give on that would be helpful.

我只是想知道——2026 年的預測是如何透過數學計算得出的，才能達到個位數高位？為什麼不會因為明年無法清理積壓訂單而導致價格略微下調呢？所以，如果您能提供更多細節信息，那就太好了。

Well, I think the $1.5 billion that we're at right now, Nate, is still elevated relative to historical. So as we burn existing backlog and start to get the book-to-bill positive, I think that supports that high single-digit framework with -- we talked about the calibration of water getting back to a more normalized growth within that framework and some of the additional projects we have on the energy side that will layer in here over the next quarter or two, gives us real confidence to get back there next year.

嗯，內特，我認為我們目前所處的 15 億美元水平，相對於歷史水平而言仍然很高。因此，隨著我們消化現有積壓訂單並開始實現訂單出貨比為正，我認為這支持了高個位數增長框架——我們討論了水務業務的調整，使其在該框架內恢復到更正常的增長水平，以及我們在能源方面的一些額外項目將在未來一兩個季度逐步推進，這讓我們有信心在明年重回正軌。

Great. I guess, second follow-up on the margin profile in M&CS, 60 basis points of margin expansion. I think I probably expected that to be a little higher. I think we're probably expecting the water mix to improve a bit and, obviously, can leverage on volume given the good growth. Maybe you can just talk about what the offsets were to the margin profile for MCS in the quarter and kind of where we should be longer term for that business? Thanks.

偉大的。我猜，M&CS利潤率情況的第二次跟進，利潤率擴張了60個基點。我原本以為這個數字會比較高。我認為我們可能會預期水質混合比會有所改善，而且，鑑於良好的成長勢頭，顯然可以利用產量優勢。或許您可以談談本季MCS利潤率的抵銷因素，以及該業務的長期發展方向？謝謝。

Yeah. I think, the biggest lever there has been the energy water mix. We talked about last quarter, obviously, the strong performance. There was a push out in some of the lower-margin energy projects that we've talked about.

是的。我認為，最大的槓桿是能量水的混合。我們當然也談到了上個季度強勁的業績。我們之前討論過的一些低利潤能源項目出現了退出的情況。

I think it's calibrated and sequentially, margins for MCS should look fairly similar here with the energy water mix normalization getting back to historical levels later in 2026 with that business, though, with some of the structural changes they've made relative to 80/20, you see it come through with Applied Water and with Water Infrastructure.

我認為，隨著能源水組合正常化在 2026 年晚些時候恢復到歷史水平，MCS 的利潤率應該會相當相似。不過，由於他們相對於 80/20 比例進行了一些結構性調整，你會看到這些調整體現在應用水務和水務基礎設施業務中。

MCS has just been masked a little bit with this mix challenge. So we look for them to continue to expand margins into next year as mix normalizes and the second phase of some of their 80/20 simplification efforts pull through.

MCS只是透過這次混音挑戰稍微掩蓋了一下而已。因此，我們預計隨著產品組合趨於正常化以及部分 80/20 簡化措施第二階段取得成效，他們的利潤率將在明年繼續擴大。

Great. Thanks for taking the questions.

偉大的。謝謝您回答問題。

William Grippin, Barclays.

威廉·格里平，巴克萊銀行。

Hi, thanks. Just a couple of basic ones here, but you had a little bit of M&A spending in the quarter. Just wondering if you could provide some color on what that was for?

您好，謝謝。這裡只有幾個基本的例子，但本季你們有一些併購支出。請問您能否詳細說明一下那是做什麼用的？

Yeah, it's primarily associated with international metering divestiture.

是的，這主要與國際計量業務剝離有關。

Got it. And on that front, are you able to quantify sort of how accretive that divestiture could be to margin for the MCS segment?

知道了。在這方面，您能否量化一下此次資產剝離對MCS業務部門利潤率的提升幅度？

Yeah. In the prepared remarks, we talked about on a run rate about 100 basis points.

是的。在準備好的發言稿中，我們談到了運行率約為 100 個基點。

Got it. Appreciate it. That's all for me.

知道了。謝謝。我就說這些了。

Sure.

當然。

Andrew Buscaglia, BNP Paribas.

安德魯·巴斯卡利亞，法國巴黎銀行。

Hey, good morning, everyone.

嘿，大家早安。

Good morning.

早安.

Just on the MCS margins related to the divestment, wondering how do we compare you guys versus your larger peers in that space? And I ask that in that can you get to or even above some of those peers that you comp to? And I think divesting the international piece gets you one step closer. But are there other things you think you can do? Or how should we think about that long term?

僅就與資產剝離相關的MCS利潤率而言，我想知道我們如何將你們與該領域規模更大的同行進行比較？我想問的是，你能否達到甚至超越你所比較的某些同儕？我認為剝離國際業務會讓你離目標更近一步。但你覺得還有其他可以做的事情嗎？或者我們應該如何看待長遠問題？

I think, Andrew, if we would bucket our margin profile, our core water business within smart metering is at or above our peer set. I think the dilutive nature is obviously the international metrology business that we're divesting.

安德魯，我認為，如果我們將利潤率分類，我們在智慧計量領域的核心水務業務的利潤率達到或超過同行水準。我認為，真正具有稀釋性質的顯然是我們正在剝離的國際計量業務。

Within the energy piece, we've talked about as at a lower margin profile. Obviously, the team has done a phenomenal job of identifying opportunities to increase that over time, but there will always be a gap there relative to the technology differentiation and the end market applications. But right, our core water business, the profitability is significantly higher than some of our competitors and at some of the leading margin profiles that you're probably referring to.

在能源部分，我們已經討論過其利潤率較低的情況。顯然，該團隊在發現隨著時間的推移增加這方面的機會方面做得非常出色，但相對於技術差異化和終端市場應用而言，始終存在差距。沒錯，我們的核心水務業務的盈利能力明顯高於一些競爭對手，而且利潤率也處於領先水平，這可能是您所指的。

Yeah. Okay. Okay. That's helpful. And then, I was hoping you could sort of parse out where you're seeing demand pickup versus internal efforts to improve organic sales. If you could just run through some of the end markets and you talk about what was maybe a little bit better, a little bit worse than you expected demand-wise?

是的。好的。好的。那很有幫助。然後，我希望你能分析一下，你認為哪些是需求成長，哪些是內部努力提高自然銷售的結果。如果您能簡單介紹一下一些終端市場，並談談需求方面哪些方面可能比您預期的略好一些，哪些方面比您預期的略差一些呢？

From an overall demand perspective, I would say if we ticked off, obviously, we spent a lot of time here just talking about, hey, resilient demand within MCS is still there relative to getting -- it's actually been in excess of our long-term framework here this year with the energy meter refresh cycle and then next year getting back to a combo of high single digits for both water and energy.

從整體需求角度來看，我想說，如果我們仔細分析一下，顯然，我們在這裡花了很多時間討論，嘿，MCS 內部的彈性需求仍然存在，相對於獲取——實際上，今年隨著能源計量表更新周期的到來，它已經超過了我們的長期框架，然後明年水和能源的需求都將恢復到接近兩位數的水平。

Water Infrastructure, right, we continue to see resilient OpEx and CapEx demand. Transport has been really strong over the last few quarters. It was 5% growth against this quarter due to its -- mission-critical nature of its applications and gaining shares.

水利基礎設施方面，我們看到營運支出和資本支出需求仍然強勁。近幾個季度以來，運輸業表現非常強勁。由於其應用程式的關鍵任務性質以及市場份額的成長，本季實現了 5% 的成長。

The team has identified several different opportunities through segmentation, different regional opportunities where they're underpenetrated. Treatment also has had pretty strong growth as it executes its backlog and focuses on different areas of the portfolio that they have the best profitable growth outlook.

該團隊透過市場區隔發現了幾個不同的機會，以及在不同區域市場滲透率較低的機會。隨著公司逐步完成積壓訂單，並專注於投資組合中最具獲利成長前景的不同領域，治療業務也取得了相當強勁的成長。

They're doing a lot of portfolio and looking at different bidding practices to nail down where they have differentiation and go after those areas. Applied Water, we talked about continuing its growth streak with really strong performance in the Western world and within commercial buildings. They've seen along with -- the biggest headwind for Applied Water and Water Infrastructure has been China with double-digit decline on sales and orders for both segments.

他們正在進行大量的投資組合分析，並研究不同的投標方式，以確定自身的差異化優勢，並專注於這些領域。在談到應用水務時，我們討論了其在西方世界和商業建築領域持續強勁的成長勢頭。他們也看到了——應用水處理和水基礎設施領域最大的不利因素是中國，這兩個領域的銷售額和訂單都出現了兩位數的下降。

And just to frame kind of China overall for Xylem, it had about 2% headwind on revenue and orders growth within the quarter. So pretty material. It's a smaller part of the overall portfolio, but as that market kind of accelerated its decline from kind of a macroeconomic perspective and then the team is getting much more disciplined with the work that we're going after has created some headwinds.

總的來說，Xylem 在中國的業務受到一定影響，本季其營收和訂單成長面臨約 2% 的阻力。好漂亮的布料。雖然它在整個投資組合中所佔比例較小，但從宏觀經濟角度來看，隨著該市場加速下滑，以及團隊在追求的工作方面變得更加自律，這造成了一些不利影響。

And then lastly, I'd say WSS, obviously, double-digit growth again. Continued strength with our outsourced water projects. That's ramped here over the last two years as they focused providing some really differentiated technology to some large customers, along with dewatering was up double digits again this quarter. So we've seen lots of strength across all four segments with the only area of watch we dial in on China.

最後，我想說的是WSS，顯然，它再次實現了兩位數的成長。外包水務專案持續保持強勁勢頭。過去兩年，隨著他們專注於為一些大客戶提供一些真正差異化的技術，這一趨勢愈演愈烈，而脫水業務在本季度再次實現了兩位數的成長。因此，我們看到所有四個細分市場都表現強勁，我們唯一關注的領域是中國。

And then a little bit in our prepared remarks, just talking about large capital projects, nothing has been canceled, but things relative to conversion from our commercial funnel to an order is taking a little bit longer is maybe one area we continue to monitor.

然後，在我們準備好的發言稿中，我們稍微談到了大型資本項目，目前還沒有任何項目被取消，但是從我們的商業管道到訂單的轉換過程可能需要更長的時間，這可能是我們繼續關注的一個領域。

Okay. Very clear. Thank you.

好的。非常清楚。謝謝。

Mike Halloran, Baird.

麥克哈洛蘭，貝爾德。

Hey, good morning, everyone.

嘿，大家早安。

Good morning.

早安.

First, when you triangulate into all the things you just said, Bill, and some of the comments earlier, is there anything to suggest about underlying dynamics in the marketplace where you would not be at least in the range for kind of normal-ish type growth as you look to 2026, meaning we know China is a little bit of a headwind here, but it seems like you're talking to pretty healthy normal dynamics, resilient dynamics, however you want to characterize it for the majority of your markets. So could you just frame that as a thought process as we head into next year?

首先，比爾，當你把剛才你說的所有內容，以及之前的一些評論綜合起來考慮，是否存在某種潛在市場動態，導致你到 2026 年的增長無法達到正常水平？我們知道中國市場存在一些不利因素，但就你所說的大部分市場而言，似乎都呈現出相當健康的正常動態，或者說具有韌性的動態，無論你怎麼描述它。那麼，您能否就我們展望明年時的思考過程做一個總結呢？

Yeah, I think you're spot on. I think the fundamental dynamics for all four segments are strong. Again, outside of a little bit of the China headwind, Matthew highlighted a little bit, there's probably a little bit more walk away as the teams are accelerating like kind of their 80/20 progress. Obviously, you're seeing it in the margin.

是的，我覺得你說得完全正確。我認為這四個板塊的基本動態都很強勁。再次強調，除了中國帶來的一些不利因素（馬修稍微強調了一下），隨著各隊加速推進他們的 80/20 進程，可能會有更多人選擇離開。顯然，你是在頁邊空白處看到的。

We expect that to continue. But as we get much more selective and make bigger strides on our customer simplification or product line simplification, there's probably, again, a little bit more headwind, a little under one point this year, a little over one point next year.

我們預計這種情況會持續下去。但隨著我們更加重視選擇，並在簡化客戶或簡化產品線方面取得更大進展，今年可能會再次遇到一些阻力，不到 1 個百分點，明年可能會超過 1 個百分點。

But outside of that, I think, as we look out as best as we have visibility over the next 12 months with still macro volatility, I mean, the fundamental dynamics are still strong with resilient demand within muni and I think differentiated technology helping us on the industrial side with some of the fits and starts other companies are seeing in that space.

但除此之外，我認為，就我們目前對未來 12 個月宏觀經濟波動仍能最佳預見的情況來看，我的意思是，基本面依然強勁，市政債券需求具有韌性，而且我認為，在工業領域，差異化技術正在幫助我們克服其他公司在該領域遇到的一些起伏不定的問題。

And what's the long-term thought process on how to manage China from here? I know it's an area of softness today. It's -- maybe there's some deprioritization of US-based products. What's the thought on how you guys plan on addressing or attacking that market from here?

那麼，從長遠來看，如何管控中國問題呢？我知道今天這是一個比較薄弱的環節。或許——美國本土產品的重要性降低。你們打算如何著手開拓或攻克這個市場？

Yeah. I think, we're staying the course, but we're also rightsizing the business for the demand environment, Mike. We're taking restructuring actions as we speak in China to the extent of around 40% of the workforce is coming out. That's -- we don't take those decisions lightly. It's unfortunate, but it's really just an indicator of the demand that we're seeing in the market and the hyper-competitiveness of the market as well.

是的。麥克，我認為我們會堅持既定路線，但同時也會根據市場需求調整業務規模。我們正在中國採取重組措施，裁員比例約40%。也就是說──我們不會輕易做出這些決定。這很不幸，但這確實反映了我們目前在市場上看到的需求以及市場的激烈競爭。

We like the market long term, but we have to size the business for the market that we're dealing with over the next balance of this year and through '26. That's how the approach we've taken. And we'll just -- it will be a watch item for us as we head into the first half of 2026, but that's really where we are right now.

我們長期看好這個市場，但我們必須根據今年剩餘時間和到 2026 年期間所處的市場情況來調整業務規模。這就是我們採取的方法。我們會密切關注它，直到 2026 年上半年才會採取行動，但這就是我們目前的狀況。

Yeah. And I think that the teams are stepping back and looking at what is the greatest market opportunity where we have the technology to match that and then reallocating all of our resources around those efforts to try to spur incremental growth as we move forward.

是的。我認為，各個團隊正在退後一步，審視我們擁有與之匹配的技術的最大市場機會，然後圍繞這些努力重新分配所有資源，以期在前進的過程中促進逐步增長。

Thanks, guys. Appreciate it.

謝謝各位。謝謝。

Thank you.

謝謝。

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

我們的問答環節到此結束。我謹將會議交還給馬修·派恩，請他作總結發言。

Thanks for joining today. We'll wrap it up there. Appreciate the questions. And as always, we appreciate your interest and support. Have a great day.

感謝您今天的參與。我們就到此為止吧。感謝提問。一如既往，我們感謝您的關注與支持。祝你有美好的一天。

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

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。