Water Quality Concerns & Challenges - 行业研究表明，99% 的处理饮用水被用于非饮用目的，被称为“dumb water”[1] - 行业专家指出，水中存在超过 15,000 种全氟/多氟烷基物质 (PFAS)，但目前仅监管其中的 6 种，导致更纯净的水被用于冲厕等用途 [2][3] - 行业数据显示，每年约有 20% 的处理水在输送过程中泄漏，相当于 33 万亿加仑的损失 [4] - 公共供水系统面临资金压力，联邦资金预计将削减三分之二，难以有效解决水资源浪费问题 [5] Proposed Solutions: Smart Water Systems - 行业呼吁采用智能水解决方案，通过可持续技术在需要时对水进行处理 [7] - 行业建议利用传感器技术测量水中的污染物，并评估水处理技术的性能 [8] - 行业强调智能水解决方案应具有可定制性，以满足不同地区、家庭和个人的需求 [9] - 美国水务协会 (AWWA) 的 Water 2050 倡议将“fit-for-purpose”设计水或智能水系统视为解决水资源挑战的关键技术创新 [11] Call to Action & Overcoming Barriers - 行业报告显示，消费者对水质感到担忧，但对复杂的水处理方案感到困惑 [19] - 行业专家认为，接入家庭和操作复杂性（如更换滤芯）是智能水解决方案推广的主要障碍，需要简化监管 [19] - 行业呼吁公众阅读年度水质报告，检测家庭用水，并在发现问题时咨询专业人士 [22][23] - 行业倡导通过立法（如 Healthy H2O Act）为家庭和社区提供资金支持，以应对水质挑战 [24]

Financial Data and Key Metrics Changes - Total sales grew 6.4% year over year to $1.37 billion, with core sales growth of 4.8% driven by broad-based volume gains across both segments [21][22] - Adjusted earnings per share increased 9.4% year over year to $0.93, exceeding guidance due to better-than-expected sales volumes [14][23] - Free cash flow generation was strong at $323 million, an increase of $83 million year over year, reflecting effective cash management [30][31] Business Line Data and Key Metrics Changes - Water Quality segment sales reached $825 million, up 6.2% year over year, with core sales growth of 5% driven by strong demand for water analytics and treatment solutions [24][26] - PQI segment sales grew 6.8% year over year to $546 million, with core sales growth of 4.6% supported by recurring revenue and equipment shipments [27][29] Market Data and Key Metrics Changes - Core sales growth in Western Europe was 6.3%, led by double-digit growth in water quality, while North America saw core sales growth of 5.6% [14][16] - High growth markets experienced over 6% core sales growth year over year, with notable performance in Latin America and India [20] Company Strategy and Development Direction - The company raised its full-year adjusted earnings per share guidance to a range of $3.72 to $3.80, reflecting stable demand and positive macroeconomic conditions [10][32] - The capital allocation strategy remains focused on acquisitions, with a commitment to invest in emerging technology-oriented businesses [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macroeconomic environment, citing strong secular growth drivers in water quality and essential goods [36][37] - The company anticipates continued strong performance in the second half of the year, supported by robust demand and effective execution of its business model [36][58] Other Important Information - The company announced a €20 million commitment to invest in Emerald Technology Ventures Global Water Fund II, enhancing its innovation and technology development efforts [11] - Adjusted operating profit margin for the quarter was 23.7%, with expectations for margin expansion in the second half of the year [22][33] Q&A Session Summary Question: Can you provide more details on core water quality growth by region? - Management indicated that their water quality business is resilient to fluctuations in government funding, driven by secular trends such as water reuse and sustainability goals [44][45] Question: What is the impact of tariffs and pricing on PQI margins? - Management explained that margin compression was due to acquisitions, timing of pricing actions, and investments, with expectations for gradual improvement in the second half of the year [48][51] Question: How is the company positioned in the UK water utility market? - Management expressed confidence in capitalizing on opportunities in the UK, leveraging direct sales to customers to identify and act on local opportunities [105][106]