賽莱默 (XYL) 2026 Q2 法說會逐字稿

Good day, everyone, and welcome to Xylem's second-quarter 2026 results conference call. (Operator Instructions) Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Mr. Gregory Giometti. Senior Vice President, Investor Relations and FP&A. Please go ahead.

各位好，歡迎參加賽萊默（Xylem）2026 年第二季業績電話會議。(接線員指示) 也請注意，今天的活動將被錄音。現在，我想把會議交給 Gregory Giometti 先生。投資人關係與財務規劃與分析（FP&A）資深副總裁。請開始。

Thank you, operator. Good morning, everyone, and welcome to Xylem's second-quarter 2026 earnings call. With me today are Chief Executive Officer, Matthew Pine; and Chief Financial Officer, Bill Grogan. They will provide their perspectives on Xylem's second-quarter results and discuss the third-quarter and full-year 2026 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，接線員。各位早安，歡迎參加賽萊默 2026 年第二季財報電話會議。今天與我一同出席的有執行長 Matthew Pine，以及財務長 Bill Grogan。他們將分享對賽萊默第二季業績的觀點，並討論第三季與 2026 全年展望。在我們的準備發言之後，我們將回答與本次電話會議所涵蓋資訊相關的問題。也請各位每次提問限一個問題加一個追問，之後請回到排隊序列。

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, August 11, and will be available for playback via the investors section of our website under the heading Investor Events.

提醒各位，本次電話會議與網路直播搭配一份投影片簡報，可於我們網站的投資人專區取得。今天電話會議的重播將提供至 8 月 11 日午夜，並可在我們網站投資人專區的「投資人活動（Investor Events）」項下回放。

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 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.

請翻到投影片第 2 頁。我們在今天的電話會議中將作出若干前瞻性陳述，包括提及我們預期未來將會或可能發生的事件或發展。這些陳述受未來風險與不確定性影響，例如賽萊默最近一期 Form 10-K 年報及其後向美國證券交易委員會（SEC）提交之報告中所描述的因素。請注意，公司不承擔公開更新任何前瞻性陳述以反映後續事件或情況之義務，且實際事件或結果可能與預期存在重大差異。

Please turn to slide 3. We have provided you with a summary of our key performance metrics, including both GAAP and non-GAAP metrics. For the purposes of today's call, all references will be made 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.

請翻到投影片第 3 頁。我們已提供關鍵績效指標摘要，包括 GAAP 與非 GAAP 指標。就今天的電話會議而言，除非另有說明，所有提及將以有機及／或調整後基礎呈現；非 GAAP 財務數據亦已為各位完成調節，並收錄於簡報附錄部分。

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

現在請翻到投影片第 4 頁，我將把電話會議交給我們的執行長 Matthew Pine。

Thank you, Greg. Welcome to the team. It's great to have you with us today. And good morning, everyone. Thank you for joining us. Across our markets, we're seeing a clear theme. Both utilities and industrial customers are placing greater value on comprehensive water solutions that help improve resilience, performance, and efficiency. Over the past several years, we've been intentionally positioning Xylem for this moment. And today, that strategy is increasingly taking shape.

謝謝你，Greg。歡迎加入團隊。很高興今天有你與我們同在。各位早安。感謝各位參與。在我們所服務的各個市場，我們看到一個明確的主題。無論是公用事業或工業客戶，都更加重視能提升韌性、效能與效率的整體水務解決方案。過去幾年，我們一直有意識地讓賽萊默為此刻做好準備。而今天，這項策略正日益成形。

Municipal remains a core strength and a resilient foundation for our business. At the same time, we've been increasing our exposure to high-growth industrial verticals where our technology, services, and water expertise create greater value for customers.

市政市場仍是我們的核心優勢，也是業務的韌性基礎。同時，我們也在提高對高成長工業垂直領域的曝險，在這些領域中，我們的技術、服務與水務專業能為客戶創造更高價值。

This evolution is being driven by three factors. First, more industries are relying on water to support quality, reliability, and operational performance. Second, the AI ecosystem build-out is increasing the strategic importance of water across a broader set of end markets. And third, our portfolio actions are sharpening our capabilities around the markets where we see the strongest long-term growth and value creation.

這項演進由三個因素驅動。第一，更多產業仰賴用水來支撐品質、可靠性與營運績效。第二，AI 生態系的建置正在提升水在更廣泛終端市場中的策略重要性。第三，我們的投資組合調整正強化我們在長期成長與價值創造最強的市場中的能力。

One of the clearest trends we see is that customers increasingly want simplicity. They're looking to work with a strategic partner that can help them manage growing complexity around regulation, operational resiliency, and risk management. We've seen this play out in a number of engagements this year from the expansion of our long-term partnership with Dow, which became the largest contract in our company's history to our recent win with one of the world's largest chemical companies.

我們看到最明顯的趨勢之一是，客戶愈來愈希望簡化。他們希望與能協助其管理法規、營運韌性與風險管理等日益增加複雜度的策略夥伴合作。今年我們在多項合作案中都看到這點，從我們與陶氏（Dow）長期合作夥伴關係的擴大（成為公司史上最大合約），到近期我們贏得全球最大化工公司之一的案子。

In this engagement, we were selected over a long-term incumbent to secure a 20-year commitment. This opportunity brings together our advanced treatment technology, operations, maintenance, and digital monitoring under a single integrated model. Importantly, this momentum reflects the stronger industrial platform we created through the Evoqua acquisition, which significantly expands our capabilities across treatment, reuse, and services, deepening our presence in attractive industrial end markets.

在這項合作案中，我們擊敗長期既有供應商，取得為期 20 年的承諾。此機會將我們的先進處理技術、營運、維護與數位監測整合於單一的一體化模式之下。重要的是，這股動能反映了我們透過收購 Evoqua 所打造的更強大工業平台；該收購大幅擴展我們在處理、再利用與服務方面的能力，並加深我們在具吸引力的工業終端市場中的布局。

That brings me to the second area which we documented in the Watering the New Economy report we released at Davos in January. Water will play an increasingly strategic role in the AI ecosystem. As AI-related infrastructure expands from data centers and semiconductors to power and mining, access to reliable water is becoming increasingly important.

這也帶到第二個領域：我們在今年 1 月於達沃斯發布的《Watering the New Economy》報告中所記錄的內容。水將在 AI 生態系中扮演愈來愈具策略性的角色。隨著 AI 相關基礎設施從資料中心與半導體擴展到電力與採礦，取得可靠用水正變得愈來愈重要。

We're already supporting data centers through wins with hyperscalers, HVAC OEMs, and infrastructure partners, and this year's revenue is expected to increase by approximately 200%. However, this is only part of the story. We view data centers as an early indicator of a larger opportunity across the AI ecosystem, where water is increasingly becoming a critical input to infrastructure development and industrial growth. And over time, we see this same value proposition extending into additional verticals such as food and beverage and life sciences, where water quality, reliability, and sustainability are also essential.

我們已透過與超大規模業者（hyperscalers）、HVAC 原始設備製造商（OEM）及基礎設施合作夥伴的得標案來支援資料中心，今年相關營收預期將成長約 200%。然而，這只是故事的一部分。我們將資料中心視為 AI 生態系更大機會的早期指標；在該生態系中，水正日益成為基礎設施發展與工業成長的關鍵投入要素。隨著時間推進，我們也看到同樣的價值主張將延伸至更多垂直領域，例如食品飲料與生命科學，這些領域同樣高度重視水質、可靠性與永續性。

To align our business with these growth drivers, we have actively reshaped the portfolio, sharpening our focus through more than $400 million of the divestitures while acquiring assets that expand our ability to serve customers in high-growth markets.

為了讓我們的業務與這些成長驅動因素一致，我們已積極重塑投資組合，透過超過 4 億美元的資產處分來聚焦，同時收購能擴大我們在高成長市場服務客戶能力的資產。

The recently closed TriOS acquisition strengthens the intelligence layer of our portfolio through advanced sensing and water-quality capabilities that are highly relevant to industrial customers. We also recently signed an agreement to acquire WaterFleet, which expands our capabilities in mobile water treatment and strengthens our position across AI-related infrastructure markets.

近期完成的 TriOS 收購，透過先進感測與水質能力強化了我們投資組合的智慧層，這些能力與工業客戶高度相關。我們也在近期簽署協議收購 WaterFleet，以擴展我們在移動式水處理方面的能力，並強化我們在 AI 相關基礎設施市場中的地位。

This is a services-led business with recurring revenue, established customer relationships, and strong commercial momentum, including a multi-million dollar project supporting a hyperscalers data center build-out in Texas.

這是一項以服務為主導的業務，具備經常性收入、既有客戶關係與強勁的商業動能，其中包括一個數百萬美元的專案，用於支援某超大規模業者在德州的資料中心建置。

And importantly, we're not investing ahead of hypothetical demand. We are aligning the portfolio with demand patterns we are already seeing in the market and where customers are already choosing Xylem to solve increasingly complex water challenges. At the same time, demand in our municipal markets remains healthy, supported by strong infrastructure spending and backlog execution.

而且重要的是，我們並非在假設性的需求之前超前投資。我們正讓投資組合與市場上已經看到的需求型態對齊，且客戶已經在選擇賽萊默來解決日益複雜的水務挑戰。同時，我們的市政市場需求仍然健康，受惠於強勁的基礎設施支出與在手訂單（backlog）執行。

I'll now turn it over to Bill to take you through the details for Q2 and our updated guidance.

接下來我把時間交給 Bill，帶各位了解第二季的細節以及我們更新後的財測指引。

Thanks, Matthew. Please turn to slide 5. We're pleased with the momentum we've built in the first half of the year. Our team stayed disciplined despite market volatility and delivered solid results that give us a strong base to build on. Demand remains healthy with our ending backlog at $5.3 billion and our book-to-bill for the quarter well above one. This was supported by the Dow order in WSS as orders were up 41% versus last year with growth in three of our four segments.

謝謝，Matthew。請翻到投影片第 5 頁。我們對上半年所建立的動能感到滿意。儘管市場波動，我們的團隊仍保持紀律，交出穩健成果，為後續發展奠定良好基礎。需求仍然健康，期末在手訂單為 53 億美元，本季接單出貨比（book-to-bill）遠高於 1。這主要受惠於 WSS 業務中的陶氏訂單，帶動訂單較去年成長 41%，且我們四個事業部中有三個實現成長。

Revenue was up 1% in the quarter versus prior year, in line with expectations as strength in key markets offset a 27% decline in China and walkaway revenue of almost 2%. The team's operational discipline delivered quarterly EBITDA margin of 23.3%, up 150 basis points versus the prior year. The improvement was driven by productivity, price, and mix more than offsetting inflation and lower volume.

本季營收較去年同期成長1%，符合預期，主要市場的強勁表現抵銷了中國27%的下滑以及近2%的放棄（walkaway）營收。團隊的營運紀律使本季EBITDA利潤率達23.3%，較去年同期提升150個基點。此改善主要來自生產力、價格與產品組合的提升，足以抵銷通膨與較低的銷量。

Water Infrastructure led the way with strong leverage in North America transport growth. We also achieved record quarterly EPS of $1.46, a 16% increase over the prior year. Net debt to adjusted EBITDA increased to 0.8 times, driven by our opportunistic share repurchases in the quarter.

水務基礎建設業務領先，受惠於北美運輸領域成長帶來的強勁槓桿效益。我們也創下單季每股盈餘（EPS）1.46美元的紀錄，較去年同期成長16%。淨負債對調整後EBITDA倍數上升至0.8倍，主要因本季把握時機進行庫藏股回購。

Free cash flow was strong in the quarter, driven by higher net income partially offset by outsourced water contracts. And the teams continue to make progress with our working capital efficiency metrics.

本季自由現金流表現強勁，主要由較高的淨利所帶動，但部分被外包水務合約所抵銷。團隊也持續在營運資金效率指標上取得進展。

Let's turn to slide 6. For Measurement and Control Solutions, in the quarter, book-to-bill was below one, but backlog remained at roughly $1.2 billion. Orders were up 2%, driven by continued smart metering demand in water with double-digit orders growth, offsetting declines in electric on difficult comps and project delays.

接著請看第6頁投影片。在量測與控制解決方案（MCS）方面，本季出貨比（book-to-bill）低於1，但在手訂單仍維持約12億美元。訂單成長2%，主要由水務智慧水表需求持續帶動、訂單呈雙位數成長所驅動，抵銷了電力業務在高基期下的下滑以及專案延遲。

Revenue was down 1%, driven by Energy Metering demand, mostly offsetting softness in water. EBITDA margin of 21.1% was 200 basis points lower than prior year, driven by unfavorable mix, inflation, and volume, offset partly by productivity and price. With recent project delays in electric metering, we are bringing down our outlook for the MCS full-year performance to low-single-digit revenue versus the prior year.

營收下滑1%，主要受能源計量需求影響，且大致抵銷了水務端的疲弱。EBITDA利潤率為21.1%，較去年同期下降200個基點，主因為不利的產品組合、通膨與銷量影響，部分由生產力與價格所抵銷。鑑於近期電力計量專案延遲，我們下調MCS全年表現展望，預期全年營收較去年同期為低個位數變動。

The pipeline is strong and long-term electric demand remains healthy, but affordability concerns and a more cautious capital spending environment ahead of upcoming elections have slowed down near-term investment. We continue to win more than our share of the market and expect sustained growth in the years ahead, driven by the ongoing AMI 2.0 refresh cycle.

商機管線強勁，長期電力需求仍然健康，但可負擔性疑慮以及選舉前更為審慎的資本支出環境，已放緩短期投資。我們持續取得高於市占的贏單，並預期在未來數年維持成長，主要由持續進行的AMI 2.0更新週期所驅動。

In Water Infrastructure, orders were down 4% in the quarter, driven by continued softness in treatment due to 80/20 in China, offset by strong demand in transport. Revenue was up 3%, driven by transport offsetting softness in treatment related to our walkaway actions. Double-digit growth in US municipalities more than offset a 40% decline in China.

在水務基礎建設方面，本季訂單下滑4%，主因為中國80/20策略導致處理（treatment）業務持續疲弱，但運輸（transport）需求強勁而部分抵銷。營收成長3%，主要由運輸業務成長帶動，抵銷了因我們放棄（walkaway）行動而使處理業務走弱。美國市政業務的雙位數成長，足以抵銷中國40%的下滑。

EBITDA margin expansion was outstanding for Water Infrastructure at 480 basis points, with productivity, mix, price and volume more than offsetting inflation and investments. In Applied Water, orders were up 9% and book-to-bill was well above 1%, lifted again by data center wins. Data center orders in Q2 were up over 300%. Revenues were up 3% versus the prior year, primarily driven by strength in US commercial buildings, offsetting softness in the residential end market and China.

水務基礎建設的EBITDA利潤率擴張表現亮眼，提升480個基點；生產力、產品組合、價格與銷量的改善，足以抵銷通膨與投資。在應用水務（Applied Water）方面，訂單成長9%，出貨比顯著高於1，再次受資料中心贏單帶動。第二季資料中心訂單成長超過300%。營收較去年同期成長3%，主要由美國商用建築的強勁表現帶動，抵銷住宅終端市場與中國的疲弱。

EBITDA margin was slightly below expectations, down 50 basis points year over year, driven by inflation and volume, mostly offset by productivity and price.

EBITDA利潤率略低於預期，年減50個基點，主因為通膨與銷量影響，但多數由生產力與價格所抵銷。

Finally, Water Solutions and Services saw significant orders growth due to its largest order ever in April, an approximately $850 million 23-year outsourced water project. Revenue increased 1% year over year, driven by capital projects, including the impact of the finalized Dow contract and strength in dewatering. Segment EBITDA margin was 25.3%, up 90 basis points versus the prior year, driven by price, mix, and productivity, offset by inflation and lower volume.

最後，水務解決方案與服務（Water Solutions and Services）因4月取得史上最大訂單而帶動訂單大幅成長，該訂單為約8.5億美元、為期23年的外包水務專案。營收年增1%，主要由資本專案帶動，包括已定案的Dow合約影響，以及脫水（dewatering）業務的強勁表現。部門EBITDA利潤率為25.3%，較去年同期提升90個基點，主要由價格、產品組合與生產力帶動，但部分被通膨與較低銷量所抵銷。

Now let's turn to slide 7 for our updated full-year and third-quarter guidance. We are narrowing our organic outlook against the prior guide with MCS electric project delays impacting the near-term outlook.

現在請看第7頁投影片，說明我們更新後的全年與第三季指引。由於MCS電力專案延遲影響短期展望，我們相較先前指引縮窄了有機成長展望區間。

Full-year reported revenue is now expected to be roughly $9.2 billion, which delivers revenue growth of approximately 2%, while organic revenue growth will be in the 2% to 3% versus prior guidance of 2% to 4%. EBITDA margin is expected to be 23.1% to 23.5% versus the prior guide of 22.9% to 23.3%. This represents 90 basis points to 130 basis points of expansion versus the prior year, driven by productivity, volume, and price more than offsetting inflation as well as investments in the business.

目前預期全年報表營收約為92億美元，約帶來2%的營收成長；有機營收成長預期為2%至3%，低於先前指引的2%至4%。EBITDA利潤率預期為23.1%至23.5%，高於先前指引的22.9%至23.3%。這代表較去年同期擴張90至130個基點，主要由生產力、銷量與價格的提升所驅動，足以抵銷通膨以及對業務的投資。

Also, there is no material impact to our projected results from recently announced changes in tariffs or tariff refunds. Our strong first-half performance, along with the benefits from share repurchases, and higher margins, more than offset the revenue headwind from electric metering delays and gives us confidence to raise the EPS range from $5.35 to $5.60; to $5.55 to $5.70. Cash flow generation was strong in the first half and we remain on target to achieve our low-double-digit free cash flow margin for the year.

此外，近期公布的關稅調整或關稅退還，對我們的預估結果沒有重大影響。上半年強勁表現，加上庫藏股回購效益與較高利潤率，足以抵銷電力計量延遲帶來的營收逆風，並使我們有信心將EPS區間由5.35至5.60美元上調至5.55至5.70美元。上半年現金流創造強勁，我們仍按計畫達成全年低雙位數的自由現金流利潤率目標。

Now, drilling down on the third quarter. We anticipate revenue growth will be flat on a reported basis and up roughly 3% organically. We expect third-quarter EBITDA margin to be approximately 23.5% to 24%, which is up 30% to 80 basis points, driven by price realization, productivity gains, and higher volumes. These results will yield third-quarter EPS of $1.42 to $1.47.

接著更深入說明第三季。我們預期以報表基礎計算的營收成長將持平，而有機成長約為3%。我們預期第三季EBITDA利潤率約為23.5%至24%，提升30至80個基點，主要由價格落實、生產力提升與較高銷量所驅動。上述結果將帶來第三季EPS為1.42至1.47美元。

We are exiting the first half of the year with strong demand and in a position of strength. Our balanced outlook reflects our strong commercial position, the durability of our portfolio, and impacts and benefits from our simplification efforts. We also continue to monitor broader market conditions and volatility, including the Middle East conflict, changes in tariffs, and other inflationary pressures. Overall, our expectations for this year remain extremely positive as we build momentum to a strong fiscal year in 2027.

我們在上半年結束時，需求強勁且處於有利位置。我們的均衡展望反映了強勁的商業地位、產品組合的韌性，以及簡化措施帶來的影響與效益。我們也持續監測更廣泛的市場狀況與波動，包括中東衝突、關稅變動及其他通膨壓力。整體而言，我們對今年的預期仍極為正向，並正累積動能，邁向2027年強勁的會計年度表現。

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

以上，請翻到第8頁投影片，我將把電話會議交回Matthew作結語。

Thank you, Bill. Stepping back from the quarter, I think it's important to keep sight of what's driving demand across our markets over the longer term. We continue to see healthy demand for Water Infrastructure investments as the underlying need to modernize and maintain water systems remain strong. At the same time, the growth of AI is making water a more strategic input across a broader ecosystem, driving demand from semiconductors and power generation to mining and other critical industries.

謝謝你，Bill。回顧本季，我認為重要的是要把焦點放在長期驅動我們各市場需求的因素。我們持續看到水務基礎建設投資需求健康，因為水系統現代化與維護的根本需求仍然強勁。同時，AI的成長正使水成為更廣泛生態系中的策略性投入要素，帶動從半導體與發電到採礦及其他關鍵產業的需求。

Beyond AI, we see similar opportunities emerging across high-growth industrial sectors such as food and beverage and life sciences where water is increasingly central to quality and operational performance. These trends are creating demand opportunities across the markets we serve and reinforcing the value of the capabilities we have been building.

除了AI之外，我們也看到在食品飲料與生命科學等高成長工業領域出現類似機會，水在品質與營運績效上日益成為核心。這些趨勢正在我們所服務的市場中創造需求機會，並強化我們持續打造之能力的價值。

As we position Xylem for the future, we remain focused on strengthening our portfolio, our capabilities, and our leadership team. Recent leadership changes reflect that ongoing focus, and I'd like to recognize Meredith and Joe as they take on their new roles while also thanking Mike for his many contributions to Xylem and wishing him the very best.

在我們為 Xylem 的未來進行布局之際，我們仍專注於強化我們的產品組合、能力以及領導團隊。近期的領導層變動反映了這項持續的重點；我想在 Meredith 與 Joe 接任新職務之際向他們致意，同時也感謝 Mike 對 Xylem 的諸多貢獻，並祝福他一切順利。

Across the organization and portfolio, the strategic decisions we're making today are expanding our ability to serve customers, increasing the quality of our growth, and positioning Xylem to create greater value over the long-term.

在整個組織與產品組合層面，我們今天所做的策略決策正在擴大我們服務客戶的能力、提升成長品質，並使 Xylem 得以在長期創造更大的價值。

And now, let's open up the call for your questions.

接下來，我們開放提問。

(Operator Instructions) Deane Dre, RBC Capital Markets.

(接線員指示) Deane Dre，RBC Capital Markets。

Thank you. Good morning, everyone.

謝謝。各位早安。

Good morning, Deane.

早安，Deane。

Love to put the spotlight on Applied Water and that organic revenue growth of 9%, nice upside there. And I know you've talked about the data center growth and the 300% and the orders, but can you just kind of flesh out for us that 9%, what were the key industrial, non-municipal drivers there and what the outlook is for the balance of the year?

我想把焦點放在 Applied Water，以及 9% 的有機營收成長，表現相當亮眼。我知道你們談過資料中心的成長、300% 以及訂單，但能否再更具體說明這 9% 的構成：其中有哪些關鍵的工業端、非市政端驅動因素？以及對今年剩餘期間的展望為何？

Yeah, Deane, thanks for the question. Primarily, it was, I would say, in Applied Water, it was largely data center driven, although in North America, our commercial building services business has done well across multiple verticals.

好的，Deane，謝謝你的問題。我會說在 Applied Water 方面，主要仍是由資料中心帶動；不過在北美，我們的商用建築服務業務在多個垂直領域也表現不錯。

Data centers remain a very attractive growth area for us, and we expect our exposure to continue to increase over time. And like we said in the prepared remarks, we expect revenue to be up 200% this year, and we'll probably be exiting this year about 2% of our revenue tied to data centers, but I think also I just mentioned and maybe we'll get into it later, our acquisition of WaterFleet, which is not in the Applied Water business, but in the WSS segment, also gives us more exposure into that part of the marketplace as well.

資料中心對我們而言仍是非常具吸引力的成長領域，我們預期相關曝險將隨時間持續提高。如同我們在事先準備的講稿中所提到的，我們預期今年該部分營收將成長 200%；而今年結束時，資料中心相關營收占比大約會到 2%。另外我也提到、或許稍後會再談到，我們收購 WaterFleet（不在 Applied Water 業務，而是在 WSS 事業部）也讓我們在該市場領域有更多的曝險。

Yeah, I did want to put the spotlight on capital allocation, just really balanced here. And we like that WaterFleet deal and its positioning. And maybe just step back and talk about the opportunities in the outsource contracts. I mean, the Dow has got a milestone deal for you all, but it does sound like there's more to do. And this was like the whole premise of the Evoqua deal to begin with. So what can you talk about in terms of that pipeline for these contracts?

是的，我也想把焦點放在資本配置上，整體看起來相當均衡。我們也喜歡 WaterFleet 這筆交易及其定位。或許可以退一步談談外包合約的機會。我的意思是，Dow 對你們而言是一筆里程碑式的合約，但聽起來似乎還有更多可做。而這也正是當初收購 Evoqua 的整體前提。那麼就這類合約的案源（pipeline），你們可以分享些什麼？

Yeah, we have multiple contracts, but build-on operates are obviously a big part of that as well as capital and services. But let me just maybe first say that municipal does remain a source of strength for us in the core part of our business. But what's changed is that we've expanded our capabilities and really increased our participation through the Evoqua acquisition, especially in high-growth verticals like high-tech power, life sciences, and things of that nature.

是的，我們有多項合約，而「建置—擁有—營運」（build-own-operate）顯然也是其中很重要的一部分，此外也包含資本與服務。不過我先說，市政端仍然是我們核心業務的強項來源。但改變之處在於，透過收購 Evoqua，我們擴大了能力，並且在高成長垂直領域（例如高科技電力、生命科學等）大幅提高了參與度。

So we view it as complementary to municipal, but maybe a couple of examples that I would highlight, Deane, that are kind of in this build on operator capital service type of a deal. We recently won a job in the lithium battery space. So we secured a win with the world's largest lithium battery cell manufacturer.

因此我們將其視為對市政端的互補。不過 Deane，我想舉幾個例子，屬於這種建置/營運/資本/服務類型的交易。我們最近在鋰電池領域拿下一個案子。我們成功取得全球最大的鋰電池電芯製造商的訂單。

We developed a solution to treat the recycling of really a novel wastewater system. It includes, I would call it cutting-edge wastewater treatment and really took the entire treatment train, including our most recent acquisition of Vacom, the zero-liquid discharge asset that's helped us have the complete front-to-back part of the treatment train.

我們開發了一套解決方案，用於處理回收流程中一套相當新穎的廢水系統。其中包含我所稱的尖端廢水處理，並且涵蓋整個處理流程（treatment train）；也納入我們最近收購的 Vacom——其零液體排放（ZLD）資產，協助我們具備從前端到後端的完整處理鏈。

So that's a really big win. The second I would point to is a data center in Pennsylvania. We're finding, not all the time, but sometimes data centers are having to secure additional water outside of mini water through river streams and wells. And we're treating settled river water and bringing that into a state-of-the-art facility to make sure that they've got the quantity and the quality of water that they need.

所以那是一個非常重大的勝利。第二個例子是賓夕法尼亞州的一座資料中心。我們發現，雖非每次如此，但有時資料中心必須透過河川水源與井水等方式，在市政供水之外取得額外用水。我們會處理沉澱後的河水，並將其導入最先進的設施，以確保他們取得所需的水量與水質。

That's great. Thank you.

太好了。謝謝。

Thank you.

謝謝。

Mike Halloran, Baird.

Mike Halloran，Baird。

Good morning, gentlemen. Let's get on the MCS commentary and just kind of help frame how you're thinking about things. The electric piece sounds like there's some pushouts. What's going on there? Any change in thought process from those customers on a medium- to long-term horizon and then maybe contract that with the water utility side of things? All else equal, what you're seeing more on the water side as we move to the back half, any change on that side? And how you think about what that trajectory means for out years?

各位先生早安。我們來談談 MCS 的評論，請協助我們釐清你們對現況的思考框架。電力端聽起來有一些延後（pushouts）。那邊發生了什麼事？這些客戶在中長期的思維上有任何改變嗎？另外也請與自來水公用事業端做個對比。在其他條件相同下，隨著我們進入下半年，你們在水務端看到更多什麼？那邊有任何變化嗎？以及你們如何看待這樣的走勢對未來年度的意涵？

Yeah, Mike, if we start just -- a revenue take down from [four to three] on the high end is really all around MCS, and that's really directly attributable to the slowdown in electric meter deployments. We talked about affordability concerns and more cautious capital spending environment ahead of upcoming elections have just slowed down the near-term investment cycle. We've really seen politicians take a hard stand on electricity rate increases, and utilities have pulled back in pockets their short-term investments to compensate.

好的，Mike，如果我們先從——把營收指引上緣從 [4 降到 3]，基本上完全是 MCS 的因素，而這直接歸因於電表部署放緩。我們談到可負擔性疑慮，以及在即將到來的選舉前更為審慎的資本支出環境，這些都讓短期投資循環放慢。我們確實看到政治人物對電價上調採取強硬立場，而公用事業公司為了因應，在部分地區縮減了短期投資。

I think, again, we continue to gain share versus competitors as we look at our bid and win rates. And do expect this to be a healthy market in the years ahead, primarily driven by the ongoing AMI 2.0 refresh. But again, the near-term pullback is creating a little bit of pressure for us. But to your point on the water side, we actually continue to see strength. Order activities really positive and customer engagement is really constructive.

我認為，再次強調，從我們的投標與得標率來看，我們仍持續相對競爭對手提升市占。我們也預期未來幾年這會是一個健康的市場，主要由持續進行的 AMI 2.0 更新換代所驅動。但同樣地，短期的拉回確實對我們造成一些壓力。不過就你提到的水務端而言，我們其實仍持續看到強勁表現。訂單活動非常正向，客戶互動也相當具建設性。

Our funnel is up about 30% versus last year. Water orders have been up double-digits in both the first and second quarter. We expect that to continue into the second-half, helping offset some of the declines we're going to see on the electric side and expect Water to be up about low-single digits for the year with a strong second-half.

我們的商機漏斗（funnel）較去年提升約 30%。水務訂單在第一季與第二季皆呈現雙位數成長。我們預期這樣的趨勢將延續到下半年，有助於抵銷電力端將出現的一些下滑；並預期水務全年將成長約低個位數，下半年表現強勁。

Thanks for that. And then maybe some thoughts on orders more holistically and how you're thinking about things from here. The treatment side of things that seems concentrated overseas and intentional. What's the run rate for the US piece on the infrastructure side? And then maybe just put all this together between the applied comments that Deane was talking to, some of your 80/20 initiatives, what you just mentioned on the water, timing on the electric, however you want to answer the infrastructure piece. Are we looking at something more normalized as we exit this year from a growth perspective relative to how you think about long-term growth for Xylem?

謝謝你的說明。接著想更全面地談談訂單，以及你們接下來如何看待整體情勢。處理（treatment）端看起來集中在海外，而且是刻意為之。美國端在基礎建設方面的運行水準（run rate）如何？另外把這些都整合起來：包含 Deane 提到的 Applied 相關評論、你們的一些 80/20 計畫、你剛提到的水務狀況、電力端的時點，以及你想如何回答基礎建設那一塊。從成長角度來看，當我們在今年結束時，是否會回到較為正常化的狀態，並與你們對 Xylem 長期成長的看法更一致？

Yeah, definitely. Maybe if I started at a high level. Revenue progression through the years is generally in line with the exception of the electric metering delays. We said we're flat in the first quarter, we're up 1%. Here in the second quarter, expectations are for three here in the third, and then we're going to exit the year in the fourth quarter at mid-single-digits.

是的，當然。也許我先從較高層次開始說。多年來的營收走勢整體大致一致，例外是電力計量（electric metering）延遲的影響。我們說第一季持平，實際上年增1%。到了第二季，預期是第三季約3%，然後我們將在第四季以中個位數的增幅結束今年。

So I think we're building momentum leading into next year. And if you break it down by segment, obviously Matthew highlighted, again, strength in Applied Water, right, they've had really strong orders consistently with book-to-bill above one for the last several quarters. On top of the data centers, we really see resiliency in the US commercial building space and expect them to continue to build backlog here in the second-half leading into a strong '27.

所以我認為我們正在累積動能，帶入明年。如果按事業部拆分，顯然 Matthew 再次強調了 Applied Water 的強勁表現，他們過去幾季的接單一直很強，且 book-to-bill 已連續好幾季高於1。除了資料中心之外，我們也看到美國商用建築市場具備韌性，並預期他們在下半年將持續累積在手訂單（backlog），為2027年的強勁表現鋪路。

To your point, Water Infrastructure, yeah, even with the China headwind and some of the 80/20 walkaway on the treatment side, we've built backlog in the first half and expect positive orders growth here in the second half. They'll finish the year with positive book-to-bill and again with strong momentum leading into next year, again with a lot of the 80/20 walkaway and the China comp behind us.

如你所說，Water Infrastructure 方面，是的，即使面臨中國的不利因素以及在處理（treatment）端部分 80/20 的退出（walkaway），我們在上半年仍建立了在手訂單，並預期下半年訂單將呈現正成長。他們今年將以正向的 book-to-bill 收官，並且在明年前仍具備強勁動能，因為多數 80/20 的退出影響以及中國的比較基期（comp）都將落在我們身後。

WSS obviously has had a phenomenal first half of the year, but it's always going to be lumpy. We talked about just the shift and outsourced water in the funnel that's creating across a variety of different end markets. Really excited about that and the backlog that they're going to end with this year puts us in a strong position. And again, my commentary around MCS.

WSS 顯然在上半年表現非常出色，但它一向會比較波動。我們談到管線（funnel）中外包水務（outsourced water）的轉移，這正在多種不同終端市場中形成機會。我們對此非常興奮，而他們今年結束時的在手訂單也讓我們處於有利位置。另外也呼應我先前對 MCS 的評論。

I think we have here a little bit near-term mitigation on the electric side, but water momentum continues to build, right? We'll see positive book-to-bill in the second-half with high-single-digit orders growth. So I think there's lots of momentum across the organization and continues to give us confidence in the outlook from a commercial perspective heading into next year.

我認為在電力端我們有一些短期的緩解措施，但水務的動能仍在持續累積，對吧？我們將在下半年看到正向的 book-to-bill，訂單成長為高個位數。所以我認為整個組織都有很多動能，從商業面來看，這也持續讓我們對明年的展望更有信心。

Thanks, guys. Appreciate it.

謝謝各位。非常感謝。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

Yeah, good morning. This is Adam Farley on for Nathan. Maybe just following up on some of that commentary, maybe first on Water Infrastructure. Maybe could you speak to the underlying treatment market [ex] e-AB2 actions that you're doing?

是的，早安。我是 Adam Farley，代 Nathan 發問。延續剛才的一些評論，先從 Water Infrastructure 談起。你們能否談談在處理（treatment）市場的基本面情況，以及你們正在進行的 e-AB2 行動之外的部分？

I think positive overall, I mean, even with the 80/20 actions and some of the projects where we've increased price, we've had a very strong win rate. So I think the treatment market here in the US has been really positive for that business, and I think we expect that to continue in the second-half.

我認為整體是正面的。即便有 80/20 行動，以及我們在部分專案上提高價格，我們的得標率仍然非常高。所以我認為美國的處理市場對這項業務一直非常正面，我們也預期下半年會延續。

A lot of the challenges there, again, relative to China and different decisions we've made on our bidding strategy around tenders in different emerging markets. So I think that business has got a lot of momentum here as we progress in the back half.

那裡的許多挑戰，仍然是相對於中國，以及我們在不同新興市場投標（tender）時，針對投標策略所做的不同決策。因此我認為隨著我們進入下半年，這項業務將具備很強的動能。

Thank you for that. And then maybe switching gears. Are you seeing any signs of supply-chain tightness anywhere in the portfolio? Do you think there's any need to increase safety stock for electronic components?

謝謝你的說明。接著換個方向。你們在產品組合中是否看到任何供應鏈吃緊的跡象？你們是否認為需要提高電子元件的安全庫存？

I mean, it's something we review really monthly in our leadership meeting. I don't think there's anything pressing right now that we already haven't taken action on. Obviously, we look at rare earth and we've got most of our businesses about a year of supply we pulled in from a safety stock perspective.

這是我們在領導團隊會議中幾乎每月都會檢視的事項。我不認為目前有任何迫切問題是我們尚未採取行動的。顯然，我們會關注稀土，而我們大多數業務從安全庫存角度已拉進約一年的供應量。

Obviously, we've made some investments, and I might have highlighted this on a prior call on chips and wafers, looking to kind of get about six months of supply there, just as more of a safety stock buffer. But outside of those two areas, I would say in general, we're pretty balanced, and we do review it, like I said, every month.

另外，我們也做了一些投資，我可能在之前的電話會議提過，針對晶片與晶圓（chips and wafers），我們希望能準備大約六個月的供應量，作為更偏向安全庫存的緩衝。但除了這兩個領域之外，我會說整體而言我們相當平衡，而且如我所說，我們每個月都會檢視。

Thank you for taking my questions.

謝謝回答我的問題。

Thanks, Adam.

謝謝你，Adam。

Andrew Kaplowitz, Citigroup.

Andrew Kaplowitz，Citigroup。

Good morning, everyone.

各位早安。

Morning, Andy.

早安，Andy。

[Mandel], strong quarter margin, particularly in Water Infrastructure. So maybe you could just double click on what were the main drivers of the strong performance there? Did you sort of hit another glide path in terms of the ['20] performance? And then I know you want to be conservative, but Q3, 30, 80 basis points; Q2, you did 150. So maybe you can give us some more color on the puts and takes you see for that Q3 margin?

[Mandel]，本季毛利率/利潤率表現強勁，尤其是在 Water Infrastructure。所以也許你能再深入說明一下，那裡強勁表現的主要驅動因素是什麼？你們是否在['20]的表現上達到另一個既定改善軌跡（glide path）？另外我知道你們想保守一些，但第三季指引是30到80個基點；第二季你們做到了150個基點。所以也許你可以多給一些第三季利潤率的增減因素（puts and takes）的細節？

Yeah, yeah. If we start with Water Infrastructure, again they had a phenomenal quarter and they continue to be the leader in margin expansion for the organization. I think they're definitely seeing increased benefits from their simplification efforts, they've kicked off 80/20 and have been doing this now for over two years.

是的，是的。先從 Water Infrastructure 談起，他們本季表現非常出色，並且持續是公司整體利潤率擴張的領頭羊。我認為他們確實正從簡化（simplification）工作中看到更多效益；他們已啟動 80/20，且已執行超過兩年。

They've done a really good job optimizing their overhead to more effectively and efficiently serve their customers. And then again, they've been really purposeful with their go-to-market strategies to be selective on bidding projects where they can create the most value, a little bit to my treatment commentary a little bit earlier.

他們在優化間接費用（overhead）方面做得很好，以更有效率的方式服務客戶。此外，他們在市場進入策略（go-to-market strategies）上也非常有目的性，會選擇性地投標那些能創造最大價值的專案，這也呼應我稍早對處理業務的評論。

That's weighed a little bit on their orders and sales growth, obviously, but that's short-term. I think the focus that they have will help them better lever as they get back into their mid-single-digit-growth algorithm exiting the year with positive performance here in Q3 and Q4.

這確實在短期內對他們的訂單與銷售成長造成一些壓力，但那是短期的。我認為他們的聚焦將有助於在今年結束時回到中個位數成長的既定模式（algorithm），並在第三季與第四季以正向表現收尾，進而帶來更好的營運槓桿。

We continue to see margin opportunities within the segment, though. They've made solid progress, and I think they still have operational productivity and things that they're going to be able to leverage. And the 80/20 benefits that they've driven on the margin side, you're going to see them inflect on the growth side, particularly in transport where they've made resource allocation decisions to refocus certain areas of their commercial and engineering teams to drive incremental growth.

不過，我們仍在該事業部看到利潤率的機會。他們已取得扎實進展，我認為他們仍有營運生產力等項目可以持續槓桿。而他們在利潤率端所推動的 80/20 效益，也將在成長端出現拐點（inflect），特別是在運輸（transport）領域；他們已做出資源配置決策，重新聚焦商務與工程團隊的某些領域，以帶動增量成長。

So -- yeah, they did have a little bit more transport mix within the quarter that helped overdrive relative to our expectations. That will balance a little bit, Andy, I think that's a part of the Q4 sequential challenge that we'll have from a margin perspective, but overall still really excited about their margin outlook.

所以——是的，本季他們的運輸（transport）組合占比稍高，這相較於我們的預期帶來更強的推升效果。Andy，這之後會稍微回到較平衡的狀態；我認為這也是我們在第四季從利潤率角度會面臨的環比挑戰之一，但整體而言我們仍對他們的利潤率展望感到非常振奮。

It's helpful. And then I think we all know that WSS is a bit lumpy and we talked about the shift toward outsourced water, but as Vacom before you bought it was big in end markets that we've been starting to talk about like microelectronics, mining, life sciences. So do you see more incremental projects there in general? Like, what are your customers doing saying about that? So WSS overall can, continue to improve in growth even outside of outsourced water.

這很有幫助。另外，我想大家都知道 WSS 會比較波動，我們也談到轉向外包水務，但在你們收購之前，Vacom 在我們開始討論的一些終端市場（例如微電子、採礦、生命科學）中占比很大。所以你們是否整體上看到那裡有更多增量專案？客戶對此有什麼回饋或說法？因此，WSS 整體是否能在外包水務之外，也持續改善成長？

Yeah, Andy, it's Matthew. Like we said, coming into the year, there were some project delays coming from tariffs and they were creating slower decision-making and really some rescoping of projects that happened last year that really pushed out that business some decisions at least probably, I'd say, three to six months.

是的，Andy，我是Matthew。如同我們先前所說，年初時因關稅導致部分專案延宕，造成決策速度放緩，且去年確實出現一些專案重新範疇界定（rescoping），使得該業務的一些決策至少被往後推遲了約三到六個月。

So momentum is picking up, and the business will be back at mid-single-digit growth in the second-half. We have a very active funnel and a strong backlog position as noted by, obviously, the Dow when we highlighted on the last call, and then another large order that we just received a few weeks ago with one of the world's largest chemical companies.

因此動能正在回升，該業務在下半年將回到中個位數成長。我們的商機漏斗非常活躍，且如我們在上次電話會議中提到並以 Dow 的案例說明，我們的在手訂單（backlog）部位也很強；此外，我們幾週前也剛收到來自全球最大化工公司之一的另一筆大型訂單。

Long-term, we do see accretive growth coming from high-growth verticals that mainly sit within the WSS segment. What we're calling high-tech, I would say that's kind of defense, semiconductor, data centers, power, seeing a big pickup in power where the energy mix over the past couple of years has actually expanded versus contracted, which has held plus.

長期來看，我們確實看到來自高成長垂直領域的增益性成長（accretive growth），這些領域主要位於 WSS 事業部門。我們所稱的高科技，我會說大致涵蓋國防、半導體、資料中心、電力；其中電力的成長動能明顯回升，因為過去幾年的能源組合其實是擴張而非收縮，這帶來正面支撐。

If you think about the power generation needed for the AI ecosystem over the next several years, I think that business is in a very strong position to take advantage of a lot of nuclear expansion specifically. And then mining and life sciences and food and beverage are other ones that we're really focused on. So I think we're really starting to see some momentum, Andy, and we'll exit the year pretty strong in that business.

如果你思考未來幾年 AI 生態系所需的發電量，我認為該業務在把握特別是核能擴張方面，處於非常有利的位置。另外，採礦、生命科學，以及食品與飲料，也是我們高度聚焦的領域。所以我認為我們確實開始看到一些動能，Andy，而我們將以相當強勁的態勢結束今年該業務的表現。

Scott Davis, Melius Research.

Scott Davis，Melius Research。

I wanted to just talk a little bit about 80/20, and I'm just kind of curious to hear your view on how it evolves as it scales. And what I mean by that is that you spent the first couple of years doing basic 80/20, just a fair amount of walkaway revenues related to that. By the time you get to 2027 though, do you still have walkaway revenues? Or are you at the point then where you're back to more traditional 80/20 where you've got your customers segmented and folks kind of -- that that stuff is kind of already gone, right. And so you're playing offense more than playing defense? You know what I'm saying?

我想稍微談一下 80/20，我有點好奇想聽聽你們對它在規模擴大時如何演進的看法。我的意思是，你們前幾年在做的是基本的 80/20，並因此有相當多的放棄營收（walkaway revenues）。但到了 2027 年，你們還會有放棄營收嗎？還是說到那時你們已回到較傳統的 80/20，也就是客戶已完成分群，那些事情基本上都已經處理完了，對吧？因此你們更多是在進攻，而不是在防守？你懂我的意思嗎？

Yeah, no, definitely. I think we've highlighted this year, obviously we've accelerated some of our actions and this will be the height of our walkaway revenue at close to 2%, I think, next year will be significantly lower just as we've pretty much gone through a majority of the portfolio. So I agree kind of like 80/20 as an element of fundamental and operating model for us is taking hold though.

是的，當然。我想我們今年已經提到，顯然我們加速了一些行動，而今年將是我們放棄營收的高峰，接近 2%；我認為明年會顯著降低，因為我們幾乎已經檢視並處理了大部分的產品組合。所以我同意，80/20 作為我們基本面與營運模式的一個要素，正在逐步成形。

We're kind of midway through 2.5 years into the transformation and each quarter we take an additional step at simplifying and embedding it in the culture, right, so it's just not a tool set. And highlighting walkaway revenue and getting the margin increase from it, it's really how we're going to drive growth longer-term. And I think we highlighted some of that conversation just as we've implemented the tool set and areas of focus where businesses are shifting resources and developing strategies to drive growth around underrepresented or underpenetrated areas within US transport or the data center story or mining or outsourced water offerings.

我們這場轉型已進行約 2.5 年、目前大概在中段；每一季我們都會再往前一步，持續簡化並把它嵌入文化之中，對吧，讓它不只是工具組。而強調放棄營收並從中取得毛利率提升，真正的重點在於：這將是我們長期推動成長的方式。我想我們也談到一些例子：隨著我們導入工具組並聚焦特定領域，各事業正在調整資源配置並制定策略，以推動在美國運輸、資料中心題材、採礦或外包水務方案等相對代表性不足或滲透率不足的領域的成長。

We're able to increase our capabilities and the resources we're throwing at those, which I think will be a catalyst for incremental growth as we get into 2027. So I think you're exactly right. We're shifting from it being a significant lever from a margin perspective. We're going to wash through the majority of our walkaway revenue here this year, and then next year, it's all going to be how it's enabling our growth algorithm.

我們得以提升能力並投入更多資源在這些領域，我認為當我們走到 2027 年時，這將成為帶動增量成長的催化劑。所以我認為你說得完全正確。我們正從「以毛利率角度來看的一個重大槓桿」轉變。今年我們會把大部分放棄營收的影響消化完，到了明年，重點將完全在於它如何賦能我們的成長演算法（growth algorithm）。

That's helpful. And then just switching gears to M&A and potential things to do with your balance sheet, when we've seen some revaluation lower on water assets, obviously public assets, and it's hard to know what's going on in private markets necessarily, but typically they'll follow at some point. Have you seen opportunities out there or do you have a backlog of opportunities where you feel like the valuations are coming down to attractive enough levels where it makes sense, particularly given the fact you revalued lower a bit too?

這很有幫助。接著換個話題談併購（M&A）以及資產負債表可能的運用：我們看到水務資產的估值下修，顯然是公開市場資產；私募市場的情況不一定清楚，但通常某個時間點也會跟著反映。你們是否看到一些機會，或是有一批機會儲備（backlog of opportunities），讓你們覺得估值已下修到足夠具吸引力、值得出手的水準？尤其考量你們自己也做了一些下修重估？

Yeah, that's a great question. I think it's a mixed bag. It kind of depends on the types of businesses that you're looking at. Scott, I would say, in general, it's probably starting to soften a little bit. We're starting to see some signals, but I think, in general, it's not aligned to where the market is.

是的，這是個很好的問題。我認為情況有點參差不齊。這其實取決於你在看哪一類型的企業。Scott，我會說整體而言，估值可能開始稍微軟化。我們開始看到一些訊號，但我認為整體上仍未與市場水準對齊。

Usually isn't, right?

通常都不會，對吧？

Private valuations --

私募估值--

Yeah, but look (inaudible) But we look, we have a very active funnel. We've talked about deploying $1 billion of capital toward M&A a year. We're tracking to that goal, and we've got a really healthy pipeline. So we're excited to continue to deploy capital holistically, but specifically toward M&A, accretive M&A.

是的，但你看（聽不清）。不過我們確實有非常活躍的商機漏斗。我們談過每年投入 10 億美元資本用於併購。我們正朝這個目標推進，而且我們的管線非常健康。所以我們很期待能以整體性的方式持續部署資本，但特別是用於併購、用於具增益性的併購（accretive M&A）。

I'll pass it on. Thank you, guys. Appreciate it.

我就把問題交給下一位。謝謝各位。感謝。

Andrew Buscaglia, BNP Paribas.

Andrew Buscaglia，BNP Paribas。

Good morning, everyone. Just wanted to check in some of the more shorter cycle areas within Xylem. Did you see a noticeable pickup as the quarter progressed in some of your more poor pump-and-valve areas?

各位早安。我想了解一下 Xylem 內部一些較短週期的領域。在本季進行過程中，你們在一些表現較弱的泵與閥門領域，是否看到明顯回升？

I missed the first part of the question, sorry?

抱歉，我漏聽了問題的前半段？

Just asking if you saw a more noticeable pickup in your more short-cycle pump-and-valve areas as the quarter progressed?

我是在問：隨著本季推進，你們在較短週期的泵與閥門領域，是否看到更明顯的回升？

No, I don't think so. I mean, our short-cycle exposure for us is primarily within the Applied Water business. That's been fairly consistent on the items outside of the data centers, really strong in the US. Europe kind of bumping along a little bit. Our small resi exposure we have, it was probably the one area of weakness that we call out with an Applied Water. So I think relative to increase in industrial production, not a lot of our business, you see an immediate inflection.

不，我不這麼認為。我的意思是，我們的短週期曝險主要在 Applied Water 業務之內。除了資料中心之外，其他項目表現相對一致；資料中心在美國非常強勁。歐洲則有點起伏。我們有一些小型住宅（resi）曝險，那大概是我們在 Applied Water 中點名的唯一較弱領域。所以我認為，相較於工業生產的回升，我們的業務並不會立刻出現明顯的拐點。

Got it. And a little bit of confusion on the China -- some of your China comments, just that -- we had in our head, I think that China was a pretty small portion of your total sales. Yeah, can you help us understand the nature of the declines and what your commitment is to China, maybe as you reevaluate or you continue to evaluate 80/20 as a strategy?

了解。另外對你們關於中國的一些評論，我有點困惑：我們原本的理解是，中國在你們總銷售中占比很小。是的，你能否協助我們理解下滑的性質，以及你們對中國的承諾是什麼？也許在你們重新評估、或持續以 80/20 作為策略來評估時？

Yeah. I think our commentary with China has been pretty consistent over the last few quarters. It remains a challenging market for us, both on the orders and revenue side. Like we said, Q2 orders were down over 30%, sales were down almost 30%. And again, I think that's primarily reflecting ongoing economic headwinds within Water Infrastructure and Applied Water.

是的。我認為我們過去幾個季度對中國的評論一直相當一致。對我們而言，這仍然是一個具挑戰性的市場，無論是在訂單端或營收端。如同我們所說，第二季訂單下滑超過30%，銷售下滑接近30%。而且再次強調，我認為這主要反映了水務基礎建設與應用水務領域持續存在的經濟逆風。

Some of that is the broader economic with the Chinese government investing less on infrastructure and shifting their dollars into AI and the life sciences. Again, we've talked about significant competition within the market that's put pressure. And then again, relative to 80/20 and us being more selective on the quality of business that we're bidding there kind of stacked up. And we frame that as -- last year was about 3% of overall sales, this year it's going to be about 2%. So again 1% headwind for total Xylem.

其中一部分是更廣泛的經濟因素，因為中國政府在基礎建設上的投資減少，並將資金轉向AI與生命科學。同樣地，我們也談過市場內顯著的競爭所帶來的壓力。再者，與80/20策略相關、以及我們在那裡對投標業務品質更為挑選的做法，這些因素疊加在一起。我們的表述是——去年約占整體銷售的3%，今年將約占2%。因此，對Xylem整體而言，約有1%的逆風。

We think it's stabilized a bit. There have been a couple of data center wins within the country that have been positive. But for the most part, I think it's bottomed out a bit. The second-half, I think, will be sequentially similar from a total volume perspective to the first half so the comps will be easier year over year. But we've right-sized that market. I think we're being selective in the areas that we're investing and trying to target things where we can differentiate with our technology. And again, it's the world's second largest economy. So it's someplace here in the near term that we want to participate in, but we consistently evaluate that assumption.

我們認為情況已稍微穩定一些。在國內有幾個資料中心的得標案帶來正面影響。但大致上，我認為已經有些觸底。從總量角度來看，下半年我認為將與上半年在環比上大致相近，因此同比比較會更容易。但我們已將該市場調整到合適規模。我認為我們在投資領域上更為挑選，並試圖鎖定我們能以技術差異化的方向。而且再次強調，這是全球第二大經濟體。所以在短期內我們仍希望參與其中，但我們也會持續評估這項假設。

Joe Giordano, TD Cowen.

Joe Giordano，TD Cowen。

Hi, good morning. This is Chris Grenga on for Joe. Thanks for taking the questions. The NCS outlook continues to rely on a fairly substantial fourth quarter step-up. Could you elaborate on what you've seen that increases your confidence in the trajectory, particularly given that Q2 growth was relatively modest at 2% organic?

嗨，早安。我是代替Joe提問的Chris Grenga。感謝讓我提問。NCS展望仍然依賴第四季相當顯著的躍升。鑑於第二季有機成長相對溫和、僅2%，能否請您進一步說明您看到了哪些跡象，讓您對成長軌跡更有信心？

Yeah. Again, I think the Q2 growth was really strong growth on the Water side offset with some of this electric metering delays. So I think what gives us confidence is we've seen here in the first half double-digit orders growth on the Water side. What we have line of sight too with our flow business and where that's tracking has been strong all year and conversations we've had with customers.

是的。再次說明，我認為第二季的成長其實是水務端非常強勁的成長，被部分電表計量的延遲所抵銷。因此讓我們有信心的是：我們在上半年看到水務端訂單呈現兩位數成長。此外，從我們的流量（flow）業務以及其全年追蹤表現、以及我們與客戶的對話來看，我們也有清晰的能見度。

The balance of the projects that we need to see the sequential improvement, we're close to signing. Again, we'll be book-to-bill positive in the second-half with orders in the high single-digit range on the Water side. So we're -- excuse me -- overall with double-digit orders growth on the water side. So I think all the proof points are there outside of the challenges we're seeing on the electric side.

至於我們需要看到環比改善的其餘專案，我們已接近簽約。同樣地，下半年我們將呈現接單出貨比（book-to-bill）為正，水務端訂單將落在高個位數區間。所以我們——抱歉——整體而言，水務端訂單成長會是兩位數。因此，除了我們在電力端看到的挑戰之外，我認為所有的佐證都已具備。

Thank you. And you've highlighted momentum in digital offerings, and we've heard positive feedback around early adoption of Data Lake as utilities are leveraging that base of AMI meters. Could you talk about what you're seeing in customer engagement since the launch of that product, and whether tools like Data Lake are accelerating adoption of higher value offerings such as Vue and the pathway that you're seeing from metering deployments to recurring software revenue?

謝謝。您也強調了數位產品的動能，我們也聽到對Data Lake早期採用的正面回饋，因為公用事業公司正在利用既有的AMI電表基礎。能否談談自該產品推出以來，您在客戶互動方面看到的情況？以及像Data Lake這類工具是否正在加速採用更高價值的產品（例如Vue），以及您看到從電表部署到經常性軟體營收的路徑？

Yeah, we definitely have seen a pretty fast pickup in the Vue platform through our joint venture with Idrika out of Valencia, Spain. We've been at this in earnest the past really probably 2.5 to 3 years, and we've got significant momentum. We doubled the business last year. We're on phase two, grow that business significantly in 2026, probably close to 30% to 40% as we sit here today. I'd say that as I travel around the world and I talk to lots of different CEOs of municipalities, it solves their biggest pain point.

是的，我們確實看到Vue平台透過我們與西班牙瓦倫西亞的Idrika合資企業，出現相當快速的成長。我們真正全力投入大概已經2.5到3年，並且已取得顯著動能。我們去年把這項業務規模翻倍。我們正處於第二階段，目標是在2026年大幅成長這項業務；以目前來看，可能接近30%到40%。我想說的是，當我走訪世界各地、與許多不同城市的市政首長交流時，這確實解決了他們最大的痛點。

Really, it's about they've got, to your point about a data lake, they've got several applications that they're trying to manage that are discrete and bespoke, and they want to bring them into a common platform and then put that into a data lake so that they can drive insights off the data.

實際上，正如你提到的資料湖（data lake），他們有好幾個應用程式需要管理，彼此分散且高度客製化；他們希望把這些整合到一個共同的平台上，然後再匯入資料湖，讓他們能從資料中產生洞察。

And so that's what really we're coming over the top of their applications to do. We've had some significant wins over the course of the past really, I'd say, three months that really continue to bolster our position with utilities.

因此，這正是我們要在他們既有應用之上提供整合層來完成的事情。在過去大約三個月裡，我們拿下了一些重要的案子，進一步鞏固了我們在公用事業客戶中的地位。

Another area -- I mean, this platform is scalable beyond municipal. We are talking to other industrial companies and other verticals where this platform can also scale. So we obviously wanted to get rooted in municipal and get momentum there, but also we're looking to expand the platform into the industrial sector as well.

另一個面向——我的意思是，這個平台的可擴展性不僅限於市政領域。我們也正在與其他工業公司以及其他垂直產業洽談，這個平台同樣可以擴展到那些領域。所以我們當然希望先在市政領域扎根並取得動能，但同時也在尋求把平台擴展到工業領域。

And with that, ladies and gentlemen, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Matthew Pine for any closing remarks.

各位女士、先生，今天的問答環節到此結束。我想把時間交還給Matthew Pine，請他做結語。

Thanks for your questions today and thank you for all that joined. As always, we appreciate your interest in Xylem. All the very best. Take care.

感謝各位今天的提問，也謝謝所有參與的朋友。一如既往，我們感謝各位對Xylem的關注。祝一切順利。保重。

And with that, we'll conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.

至此，我們將結束今天的電話會議。也非常感謝各位出席今天的簡報。您現在可以掛線。