EMCOR Group Inc (EME) 2024 Q3 法說會逐字稿

Good morning. My name is Chuck, and I'll be your conference operator today. At this time, I would like to welcome everyone to the EMCOR Group third-quarter 2024 earnings conference call.

早安.我叫查克，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 EMCOR 集團 2024 年第三季財報電話會議。

(Operator Instructions) I would now like to turn the call over to Mr. Andy Backman, Vice President of investor relations. Mr. Backman, you may begin.

（接線員指示）我現在想將電話轉給投資者關係副總裁安迪·巴克曼 (Andy Backman) 先生。巴克曼先生，您可以開始了。

Thank you, Chuck, and good morning, everyone and welcome to EMCOR's third quarter 2024 earnings conference call. For those of you joining us by webcast, we're at the beginning of our slide presentation that will accompany our results today. The presentation will be archived in the Investor Relations section of our website at emcorgroup.com.

謝謝查克，大家早上好，歡迎參加 EMCOR 2024 年第三季財報電話會議。對於那些透過網路廣播加入我們的人，我們的幻燈片演示即將開始，該幻燈片演示將伴隨我們今天的結果。此簡報將存檔在我們網站 emcorgroup.com 的投資者關係部分。

With me today are Tony Guzzi, our Chairman, President and Chief Executive Officer; Jason Nalbandian, Senior Vice President and EMCOR's Chief Financial Officer; and Maxine Mauricio, Executive Vice President, Chief Administrative Officer and General Counsel.

今天與我在一起的有我們的董事長、總裁兼執行長 Tony Guzzi； Jason Nalbandian，EMCOR 資深副總裁兼財務長；執行副總裁、首席行政官兼總法律顧問 Maxine Mauricio。

For today's call, Tony will provide comments on our third quarter. Jason will then review the third quarter numbers before turning it back to Tony to discuss RPOs as well as reviewing our revised 2024 guidance before we open it up for Q&A.

在今天的電話會議中，托尼將對我們的第三季發表評論。然後，Jason 將審查第三季的數據，然後將其返回給托尼討論 RPO，並在我們開放問答之前審查我們修訂後的 2024 年指引。

Before we begin as a reminder, this presentation and discussion contains certain forward-looking statements and may contain certain non-GAAP financial information. Slide 2 of our presentation describes in detail, these forward-looking statements and the non-GAAP financial information disclosures. I encourage everyone to review both disclosures in conjunction with our discussion and accompanying slides.

在我們開始提醒之前，本示範和討論包含某些前瞻性陳述，並可能包含某些非 GAAP 財務資訊。我們簡報的投影片 2 詳細描述了這些前瞻性陳述和非 GAAP 財務資訊揭露。我鼓勵大家結合我們的討論和隨附的幻燈片來審查這兩項披露。

And finally, as a reminder, all financial information discussed during this morning's call is included in our consolidated financial statements within both our earnings press release issued this morning and in our Form 10-Q filed with the Securities and Exchange Commission.

最後，提醒一下，今天早上的電話會議中討論的所有財務資訊都包含在我們今天早上發布的收益新聞稿和向美國證券交易委員會提交的 10-Q 表格中的合併財務報表中。

And with that, let me turn the call over to Tony. Tony?

接下來，讓我把電話轉給東尼。托尼？

Yeah, thanks so much, Andy. And I'll be speaking mainly just page 4 of this opening.

是的，非常感謝，安迪。我將主要在本開場白的第 4 頁發言。

In the third quarter of 2024, our team continued to perform exceptionally well and delivered another great quarter. When you compare it to the third quarter of 2023, we had record revenues of $3.7 billion, which represents growth of 15.3% revenue growth. We had record operating income of $363.5 million, which was a 54.7% increase and we more than doubled our operating cash flow to $526 million.

2024 年第三季度，我們的團隊繼續表現出色，再次交付了出色的季度業績。與 2023 年第三季相比，我們的營收達到創紀錄的 37 億美元，營收成長了 15.3%。我們的營運收入達到創紀錄的 3.635 億美元，成長了 54.7%，營運現金流增加了一倍多，達到 5.26 億美元。

Our RPOs grew to a record $9.8 billion in the quarter, up $1.15 billion or 13.4% from the prior year quarter. And we earn diluted earnings per share of $5.80 compared to $3.57 for the third quarter of 2023.

本季我們的 RPO 成長至創紀錄的 98 億美元，比去年同期成長 11.5 億美元，成長 13.4%。我們的攤薄每股收益為 5.80 美元，而 2023 年第三季為 3.57 美元。

Our electrical and mechanical construction segments continued their impressive performance with a combined third-quarter operating margin of 13.3% and individual operating margins of 14.1% and 12.9% respectively. And how does this happen is through excellent field leadership. They continue to drive this outstanding execution through relentless attention to detail and constant innovation across the project life cycle. That begins with project and customer selection, estimating, contract structure, and negotiation, significant use of VDC, which is virtual design construct. We used to talk about it as BIM. Now we talk about as a more holistic approach with virtual design construct, which leads to prefabrication, labor planning and training, commissioning, and finally, all the way through the diligent collection of receivables.

我們的機電建築業務持續保持驕人業績，第三季綜合營業利潤率為 13.3%，個別營業利潤率分別為 14.1% 和 12.9%。而這一切是如何實現的，是透過出色的現場領導力。他們透過在整個專案生命週期中對細節的不懈關注和不斷創新，繼續推動這項出色的執行。首先是專案和客戶選擇、估算、合約結構和談判，以及虛擬設計建構 VDC 的大量使用。我們過去常將其稱為 BIM。現在我們談論的是一種更全面的虛擬設計構造方法，它導致預製、勞動力規劃和培訓、調試，最後一直是勤奮的應收帳款收集。

Our teams then incorporate these learnings into the next opportunity to make them even more successful and productive for our customers. We do have a continuous improvement and learning culture here at EMCOR. And when you couple that great execution with a strong mix of work that includes data center semiconductor plants, other high-tech and traditional manufacturing, institutional water and wastewater and good aftermarket service, and project opportunities including in the commercial sector, then our impressive performance is the end resolve.

然後，我們的團隊將這些知識融入下一個機會中，使他們為我們的客戶帶來更大的成功和生產力。EMCOR 確實擁有持續改善和學習的文化。當您將出色的執行力與包括資料中心半導體工廠、其他高科技和傳統製造、機構用水和廢水以及良好的售後服務以及包括商業領域在內的專案機會在內的強大工作組合相結合時，我們的業績令人印象深刻是最終的決心。

We are executing this diverse work and expanding into these resilient sectors with our growth over the last five years occurring through a combination of greenfield expansion, robust training once we do the greenfield expansions, and complementary acquisitions. We do have some of the best leadership at the segment and subsidiary levels and they work together to share best practices and drive results across our mechanical and electrical trades. The result is this exceptional outcome for our customers, and as a result of that, strong performance for our shareholders. Our building services segment continues to perform as we expected to perform this year with very strong mechanical services performance and an overall operating margin of 7%, despite the previously discussed lost contracts in our site-based businesses.

我們正在執行這項多樣化的工作，並擴展到這些有彈性的領域，過去五年來我們的成長是透過綠地擴張、綠地擴張後的強有力培訓以及補充性收購相結合而實現的。我們確實在細分市場和子公司層面擁有一些最優秀的領導層，他們共同努力分享最佳實踐並推動我們的機械和電氣行業取得成果。結果是為我們的客戶帶來了非凡的成果，並為我們的股東帶來了強勁的業績。儘管之前討論過我們的現場業務失去了合同，但我們的建築服務部門今年的表現仍符合我們的預期，機械服務業績非常強勁，總體營業利潤率為 7%。

During the third quarter of 2024, our mechanical services business benefited from strong performance across this whole product line and portfolio work, including service maintenance agreements, repair services, HVAC retrofits, and building controls upgrades. Our industrial services segment continues to experience a gradual resumption of normal demand, and we are performing well both in this field and shops and we are executing a normal fall turnaround season.

2024 年第三季度，我們的機械服務業務受益於整個產品線和產品組合工作的強勁表現，包括服務維護協議、維修服務、暖通空調改造和樓宇控制升級。我們的工業服務部門繼續經歷正常需求的逐步恢復，我們在該領域和商店都表現良好，並且我們正在執行正常的秋季週轉季節。

Our UK business also continues to perform well in a difficult market. We are winning new work in our poised to secure additional opportunities with customers that demand a strong technical solution for their facility services. At $9.8 billion, we have a strong base of RPOs to execute, and we have a balance sheet, which will enable us to continue to compete, win, and grow in the future.

我們的英國業務在困難的市場中也繼續表現良好。我們正在贏得新的工作，準備為需要為其設施服務提供強大技術解決方案的客戶提供更多機會。我們擁有 98 億美元的 RPO 執行基礎，並且擁有資產負債表，這將使我們能夠在未來繼續競爭、獲勝和發展。

With all that said, I think we can all agree it was a great quarter, exceptional performance by our team. And with that, Jason, I will turn the call over to you and you will provide more detail on our quarterly results.

話雖如此，我想我們都同意這是一個偉大的季度，我們的團隊表現出色。傑森，接下來我會將電話轉給您，您將提供有關我們季度業績的更多詳細資訊。

Thank you, Tony.

謝謝你，托尼。

Over the next several slides, I'll review the operating performance for each of our segments as well as some of the key financial data for the third quarter of 2024 compared to the third quarter of 2023. I'm going to start here on slide 5, which is revenues.

在接下來的幾張投影片中，我將回顧我們每個部門的營運表現以及 2024 年第三季與 2023 年第三季相比的一些關鍵財務數據。我將從第五張投影片開始，即收入。

As Tony mentioned, consolidated revenues were a quarterly record at $3.7 billion, an increase of $489.3 million or 15.3%. Led by our construction segments, we continue to execute well and demand remains strong across most of the large and growing sectors that we serve. And on an organic basis, revenues grew by 12.6%.

正如東尼所提到的，綜合收入創季度記錄，達到 37 億美元，增加了 4.893 億美元，即 15.3%。在我們的建築部門的帶領下，我們繼續表現良好，我們所服務的大多數大型和不斷增長的行業的需求仍然強勁。在有機基礎上，收入成長了 12.6%。

Looking at our segments, revenues of US electrical construction were $845 million, an increase of 21.2%. This segment continues to benefit from increased demand across many market sectors with the most significant growth coming once again from networking communications due to our data center project demand. This segment additionally experienced notable increases in revenues within high-tech manufacturing as well as the institutional and manufacturing and industrial sectors. In the quarter, revenue growth within manufacturing and industrial was partially driven by the completion of certain battery energy storage projects.

從我們的細分市場來看，美國電力建設收入為 8.45 億美元，成長 21.2%。該細分市場繼續受益於許多市場領域需求的成長，其中最顯著的成長再次來自我們資料中心專案需求帶來的網路通訊。該細分市場的高科技製造以及機構、製造和工業部門的收入也顯著增長。本季度，製造業和工業領域的收入成長部分受到某些電池儲能專案完成的推動。

US mechanical construction revenues were $1.66 billion, increasing 25%. Demand in this segment continues to be broad based and we once again saw growth in the majority of the markets in which we operate. While the strongest growth was seen in high-tech manufacturing and networking communications, we also experienced notable increases within institutional and health care.

美國機械製造收入為 16.6 億美元，成長 25%。該領域的需求仍然廣泛，我們再次看到我們經營的大多數市場的成長。雖然最強勁的成長出現在高科技製造和網路通訊領域，但我們在機構和醫療保健領域也經歷了顯著成長。

The segment additionally benefited from greater levels of service work. As we expected and consistent with my comments last quarter, partially offsetting the growth for both of our construction segments was a decrease in revenues from the commercial sector due to either reduced demand across the commercial real estate industry or the completion of various warehousing and distribution projects, which were active a year ago.

該部門也受益於更高水準的服務工作。正如我們預期的那樣，並且與我上季度的評論一致，由於商業房地產行業的需求減少或各種倉儲和配送項目的完成，商業部門的收入減少部分抵消了我們兩個建築部門的增長，一年前活躍。

Together our domestic construction segments generated revenues of $2.5 billion, which is an increase of nearly 24%. If we look at US building services, revenues were $796.9 million, representing a decrease of 2.5% due to the non-renewal of certain facilities maintenance contracts that we've discussed on prior calls. A nearly $78 million decrease from our commercial and government site-based operations more than offset the continued strength from our mechanical services division which grew revenues by $57 million in the quarter.

我們的國內建築部門總共創造了 25 億美元的收入，成長了近 24%。如果我們看看美國的建築服務，收入為 7.969 億美元，下降了 2.5%，原因是我們在之前的電話會議中討論過的某些設施維護合約沒有續約。我們的商業和政府現場業務減少了近 7800 萬美元，這足以抵消我們機械服務部門的持續強勁勢頭，該部門本季收入增長了 5700 萬美元。

There continues to be strong demand for mechanical services. And as Tony mentioned, we experienced growth across each of our service lines including projects in retrofits, repair service, building automation and controls, and service maintenance.

對機械服務的需求仍然強勁。正如托尼所提到的，我們的每條服務線都經歷了成長，包括改造、維修服務、建築自動化和控制以及服務維護項目。

If we move to industrial services, driven by greater demand across their field services division, including turnarounds of a larger size and scope growth on certain projects, revenues were $286.4 million, an increase of 13.6%. And lastly, UK building services delivered revenues of $106.4 million. But project revenue remains consistent with that of the year ago period. Service revenues have declined resulting in a 4% decrease for this segment.

如果我們轉向工業服務，受現場服務部門更大需求的推動，包括某些項目規模更大和範圍擴大的周轉，收入為 2.864 億美元，增長 13.6%。最後，英國建築服務業的收入為 1.064 億美元。但項目收入與去年同期保持一致。服務收入下降，導致該細分市場下降 4%。

Let's turn to slide 6. For the quarter, we had an operating income of $363.5 million or 9.8% of revenues. Our performance established new quarterly records both for operating income and operating margin and compares favorably to operating income of $235 million or 7.3% of revenues a year ago.

讓我們轉到投影片 6。本季度，我們的營業收入為 3.635 億美元，佔營收的 9.8%。我們的業績在營業收入和營業利潤率方面都創下了新的季度記錄，與一年前 2.35 億美元的營業收入（佔收入的 7.3%）相比，表現毫不遜色。

Once again, if we look at each of our segments, US electrical reported operating income of $119.1 million, which represents a nearly 89% increase. Operating margin was 14.1% which is a 500 basis point improvement. The segment generated increased gross profit and gross profit margin from the majority of the sectors in which we serve. In line with revenues, the most notable increases were experienced within networking communications. However, the segment also benefited from greater gross profit within the institutional, manufacturing industrial, and high-tech manufacturing sectors.

再一次，如果我們看看我們的每個部門，美國電力報告的營業收入為 1.191 億美元，成長了近 89%。營業利益率為 14.1%，提高了 500 個基點。該部門在我們服務的大多數行業中產生了更高的毛利和毛利率。與收入一樣，最顯著的成長出現在網路通訊領域。然而，該部門也受惠於機構、製造業和高科技製造業的毛利增加。

Operating income for US mechanical construction was $214.8 million, an increase of just over 55%; an operating margin of 12.9% expanded by 250 basis points. Similar to electrical construction, this segment experienced greater gross profit from the majority of the sectors we serve. The largest increases were generated within high-tech manufacturing and networking communications.

美國機械製造營業收入為2.148億美元，成長略高於55%； 12.9%的營業利益率擴大了250個基點。與電力建設類似，該細分市場在我們服務的大多數行業中獲得了更高的毛利。增幅最大的是高科技製造和網路通訊領域。

While our commercial sector revenues have declined, we did experience an increase in gross profit from this sector due to a more favorable mix of work. And together, our construction segments reported operating margin of 13.3%.

雖然我們的商業部門收入有所下降，但由於工作組合更加有利，我們的毛利確實有所增加。我們的建築部門合計營業利益率為 13.3%。

Operating income for US building services was $55.6 million, a slight decline year over year. However, operating margin remained strong at 7% in both periods. Consistent with the segment's revenues, increased gross profit and gross profit margin from our mechanical services division was offset by reductions within commercial and government due to the headwinds we previously referenced. Industrial services operating income was $3.3 million or 1.1% of revenues versus essentially breakeven performance a year ago. This improvement was driven by higher gross profit margin from both field and shop services due in part to better pricing and greater indirect cost absorption.

美國建築服務營業收入為 5,560 萬美元，年比略有下降。然而，這兩個時期的營業利潤率均維持在 7% 的強勁水準。與該部門的收入一致，我們的機械服務部門的毛利和毛利率的增加被我們之前提到的不利因素導致的商業和政府部門的減少所抵消。工業服務營業收入為 330 萬美元，佔收入的 1.1%，而一年前基本達到損益兩平。這項改善是由於現場服務和商店服務的毛利率提高而推動的，部分原因是更好的定價和更大的間接成本吸收。

As a reminder, the third quarter is typically a weaker quarter for the segment accounting for the lower operating margin when compared to the first half of the year. And lastly, UK building services reported operating income of $5.5 million or 5.2% of revenues. While project revenues have remained steady in the quarter, the UK saw a less favorable mix of work from a margin perspective, notably as their portfolio in the prior year included a greater number of higher-margin projects. When compared to projects of a more traditional profile, operating margins have declined in the UK by 280 basis points.

需要提醒的是，與上半年相比，第三季度通常是該部門業績較弱的季度，導致營業利潤率較低。最後，英國建築服務公司報告營業收入為 550 萬美元，佔收入的 5.2%。儘管本季專案收入保持穩定，但從利潤角度來看，英國的工作組合不太有利，特別是因為他們上一年的投資組合包括更多利潤率較高的項目。與更傳統的項目相比，英國的營業利潤率下降了 280 個基點。

If we turn to slide 7, just a few highlights on this slide, starting with gross profit. Due to a combination of revenue growth, improved mix, excellent project execution, enhanced productivity, and favorable pricing, gross margin has expanded by 290 basis points and gross profit has increased by 35%. Our third-quarter SG&A increased by $63 million, which includes $10.2 million of incremental expenses attributable to companies acquired. While our SG&A margin of 10% for the quarter has increased by 40 basis points, our SG&A margin for the year-to-date period of 9.7% remains consistent with that of the prior year. Given the stronger-than-anticipated performance, a true up of operating company incentive accruals accounts for the quarterly increase in SG&A margin.

如果我們轉向投影片 7，這張投影片上只有一些亮點，從毛利開始。由於收入成長、產品組合改善、專案執行出色、生產力提高以及有利的定價，毛利率擴大了 290 個基點，毛利增加了 35%。我們第三季的 SG&A 增加了 6,300 萬美元，其中包括歸因於被收購公司的增量費用 1,020 萬美元。雖然本季 SG&A 利潤率為 10%，但成長了 40 個基點，而年初至今 SG&A 利潤率為 9.7%，與去年持平。鑑於業績強於預期，營運公司應計激勵措施的真實成長帶動了銷售、管理及行政費用利潤率的季度增長。

And finally, on this page, diluted earnings per share was $5.80 compared to $3.57, an increase of 62.5%.

最後，在此頁面上，稀釋後每股收益為 5.80 美元，較 3.57 美元增加 62.5%。

If we briefly turn to slide 8, you can see our performance for the first nine months of 2024. On a year-to-date basis, we have grown revenues by 18.1% or 16.2% organically and our diluted EPS of $15.21 represents a 72% increase from $8.85 a year ago. In a later slide, Tony will outline our updated earnings guidance for 2024. I mention that now as it's our performance for the last two quarters as well as the year-to-date period, which frames our guidance.

如果我們簡單地翻到投影片 8，您可以看到我們 2024 年前 9 個月的表現。今年迄今為止，我們的收入有機增長了 18.1% 或 16.2%，稀釋後每股收益為 15.21 美元，比一年前的 8.85 美元增長了 72%。在後面的幻燈片中，托尼將概述我們更新的 2024 年獲利指引。我現在提到這一點是因為我們過去兩個季度以及今年迄今為止的業績構成了我們的指導。

If we look at the low end of our guidance range, we've assumed operating margins which are in line with the 8.9% we have earned year to date. At the midpoint, we have assumed fourth-quarter operating margins which reflect the average of our second- and third-quarter performance. And the high end represents what we could achieve if our fourth quarter margins are equal to the record margins we earned in this quarter.

如果我們看一下指導範圍的下限，我們假設營業利潤率與我們今年迄今賺取的 8.9% 一致。在中點，我們假設第四季的營業利潤率反映了我們第二季和第三季業績的平均值。如果我們第四季的利潤率等於本季創紀錄的利潤率，那麼高端代表了我們可以實現的目標。

And finally, if we look at our balance sheet on slide 9, our balance sheet remains strong and liquid and continues to be a differentiator for us in the market. Although not shown on this slide, operating cash flow for the quarter was approximately $526 million, which represents 145% of operating income. And on a year-to-date basis, we have generated $938 million of operating cash equivalent to 98% of operating income.

最後，如果我們看一下投影片 9 上的資產負債表，就會發現我們的資產負債表仍然強勁且具有流動性，並且繼續成為我們在市場上的差異化因素。儘管本幻燈片中未顯示，但該季度的營運現金流約為 5.26 億美元，佔營運收入的 145%。年初至今，我們已產生 9.38 億美元的營運現金，相當於營運收入的 98%。

Our significant cash generation leaves us well positioned to continue to fund organic growth, pursue strategic M&A, and return capital to shareholders, all of which we have demonstrated thus far this year. For the first nine months of 2024, we have utilized $189 million on acquisitions and returned $437 million to our shareholders in the form of dividends and share repurchases. During the quarter, we repurchased 256 million of shares, bringing our year-to-date total to $405 million.

我們產生的大量現金使我們能夠繼續為有機成長提供資金、追求策略併購並向股東返還資本，所有這些我們今年迄今都已證明。2024 年前 9 個月，我們已使用 1.89 億美元進行收購，並以股息和股票回購的形式向股東返還 4.37 億美元。本季度，我們回購了 2.56 億股股票，使年初至今的總額達到 4.05 億美元。

With that, I will turn the call back to Tony for a discussion on our RPOs.

之後，我會將電話轉回托尼，討論我們的 RPO。

Thanks, Jason. And like I said, all said, what a great quarter.

謝謝，傑森。就像我說的，所有人都說，這是多麼偉大的季度。

As I discuss RPOs, I'd like you to take sides 10 and 11 together and put them side by side and we can see the themes driving our business. On slide 10, you can see the key trends in sectors where we are experiencing growth. If you look at data centers and connectivity, we continue to see strong demand for hyperscale data center work which is included in the network and communications sector. At the end of the quarter, RPOs in the sector were a record $2.1 billion, up $759 million or nearly 55% year over year and almost 25% sequentially.

當我討論 RPO 時，我希望您將第 10 條和第 11 條放在一起，並將它們並排放置，我們可以看到推動我們業務的主題。在投影片 10 上，您可以看到我們正在成長的行業的主要趨勢。如果您關注資料中心和連接，我們將繼續看到網路和通訊領域對超大規模資料中心工作的強勁需求。截至本季末，該產業的 RPO 達到創紀錄的 21 億美元，年增 7.59 億美元，增幅近 55%，季增近 25%。

As I've said on prior calls, we believe that we were in the early endings of the overall data center expansion, especially with the addition of AI and that we've successfully positioned ourselves in more data center key geographies over the past five years to serve our customers better. Re-shoring and nearshoring continues to provide opportunity for us in both the high-tech manufacturing and traditional manufacturing and industrial sectors.

正如我在先前的電話會議中所說，我們相信我們正處於整體資料中心擴張的早期階段，特別是在人工智慧的加入之後，並且我們在過去五年中已成功地將自己定位於更多數據中心的關鍵地區更好地服務我們的客戶。回流和近岸外包繼續為我們在高科技製造業以及傳統製造業和工業領域提供機會。

In high-tech manufacturing, we have RPOs of $1.3 billion at the end of the third quarter. And that includes semiconductor, pharma, biotech, life sciences, and the electric vehicle value chain. RPOs in this sector were down 7% from the year ago period as we continue to work through a number of high-tech manufacturing projects, including the initial fab 1 of several semiconductor campuses.

在高科技製造業中，截至第三季末，我們的復原點目標 (RPO) 為 13 億美元。其中包括半導體、製藥、生物技術、生命科學和電動車價值鏈。隨著我們繼續進行許多高科技製造項目，包括幾個半導體園區的初始晶圓廠 1，該行業的恢復點目標 (RPO) 比去年同期下降了 7%。

However, we believe the long-term fundamentals here are solid. And as we have stated before, we expect ebbs and flows in the award of this work. Many of these project sites are multi-year sites and we are working on or anticipated to be working on multi-year, multi-phase construction projects, for which we will generally only be awarded one phase at any given time or part of the phase at any given time. While we believe we are well positioned for these follow-on contracts, they will be released in different amounts, different times, and sometimes even under different contract structures on these multi-year, multi-phase building programs.

然而，我們相信長期基本面是穩固的。正如我們之前所說，我們預計這項工作的獎項會出現起伏。其中許多項目工地都是多年期工地，我們正在或預計將從事多年期、多階段的建設項目，對於這些項目，我們通常只會在任何給定時間或部分階段獲得一個階段的合同在任何給定時間。雖然我們相信我們已經為這些後續合約做好了準備，但在這些多年、多階段的建設項目中，它們將以不同的數量、不同的時間、有時甚至根據不同的合約結構發布。

In addition to high-tech manufacture, we continue to have a healthy dose base of RPOs within the traditional manufacturing industrial sector which totaled $921 million at the end of the quarter, up nearly 8% year over year and almost 18% sequentially. When you look at energy efficiency and sustainability, we continue to excel with retrofit project work, especially within the mechanical services division of our US building services segment where we saw a year-over-year increase in RPOs of 4%.

除了高科技製造之外，我們在傳統製造業領域繼續擁有健康的 RPO 劑量基礎，截至本季度末總計 9.21 億美元，同比增長近 8%，環比增長近 18%。當您考慮能源效率和永續性時，我們在改造專案工作方面繼續表現出色，尤其是在美國建築服務部門的機械服務部門，我們的 RPO 同比增長了 4%。

As a reminder, much of this work is focused not only retrofit replacement of aged equipment but also reducing energy consumption by coupling more efficient equipment with a building automation upgrade. And lastly on this page, health care is an area where we have excelled, and we ended up the quarter at a record $1.2 billion in RPOs, up over 19% in the year ago period.

提醒一下，這項工作的大部分重點不僅在於對老化設備進行改造更換，還在於透過將更有效率的設備與樓宇自動化升級相結合來減少能源消耗。最後，醫療保健是我們表現出色的領域，本季我們的 RPO 達到了創紀錄的 12 億美元，比去年同期成長了 19% 以上。

Now we go to slide 11 and I'll finish this off. Water and wastewater now total $729 million an increase of 21% sequentially and 18% year over year. And for those new to the call, this is a market for us which is mainly focused in Florida. RPOs in the institutional sector, which includes project work for schools, universities, and local and state and federal buildings were up 19% year over year, coming in at a record $1.1 billion. Spending is on research facilities, enhanced the new classroom space, technology upgrades across campuses and renovation and retrofits with the goal of improved air quality and reduced energy consumption drives demand in this sector.

現在我們轉到投影片 11，我將完成這一點。目前，水和廢水處理總額為 7.29 億美元，季增 21%，年增 18%。對於那些新來的人來說，這是我們主要集中在佛羅裡達州的市場。機構部門的 RPO（包括學校、大學以及地方、州和聯邦建築的專案工作）年增 19%，達到創紀錄的 11 億美元。支出用於研究設施、增強新的教室空間、整個校園的技術升級以及翻新和改造，以改善空氣品質和減少能源消耗，從而推動該領域的需求。

Transportation grew over 10% sequentially and 66% year over year to approximately $305 million driven by the award of certain infrastructure projects and short-duration projects which are our small project work and it's across the gamut of work we do from building control upgrades, HVAC upgrades, electrical upgrades, technology enhancements all in the build space. We're trying to make the buildings and campuses more efficient -- energy efficient, smarter, cleaner, and more productive. They're at $437 million -- $473 million, essentially flat year over year.

交通運輸業務環比增長超過10%，年增66%，達到約3.05 億美元，這得益於某些基礎設施項目和短期項目的授予，這些項目是我們的小型項目工作，涉及我們從樓宇控制升級、暖通空調等所有工作。我們正在努力使建築和園區更有效率——節能、更有智慧、更乾淨、更有效率。其銷售額為 4.37 億美元 - 4.73 億美元，與去年同期基本持平。

When you partially upset these increases, was an expected decline within commercial, and again, for us that's new construction that's driving that. And it's really not high rise and office project, but more some of the warehousing and distribution market that has slowed somewhat.

當你部分地擾亂這些成長時，商業領域的預期下降，對我們來說，又是新建築推動了這一成長。這實際上不是高層建築和辦公項目，而是一些倉儲和分銷市場有所放緩。

RPOs in the commercial sector were $1.4 billion at the end of the third quarter but we did grow 3% sequentially. As I've mentioned earlier, RPOs are $9.8 billion. They're up 13.4% or $1.15 billion from a year ago. And the question you're going to ask is, what do you think? We like the mix. We like the projects. And we like the execution. Although, we don't control totally the timing and execution of these projects as those RPOs roll out. We believe that the value in the type of mix of contract structure work we have in those RPOs is similar to the work we've been executing over the last six quarters.

截至第三季末，商業領域的 RPO 為 14 億美元，但我們確實季增了 3%。正如我之前提到的，RPO 為 98 億美元。較去年同期成長 13.4%，即 11.5 億美元。你要問的問題是，你覺得怎麼樣？我們喜歡這種混合。我們喜歡這些項目。我們喜歡執行。儘管如此，隨著這些 RPO 的推出，我們並不能完全控制這些專案的時間表和執行情況。我們認為，這些 RPO 中的合約結構工作組合類型的價值與我們過去六個季度執行的工作類似。

Now, I'm going to close on page 12 and 13. We've obviously performed very well during the first three quarters of 2024. And Jason talked about the record performance we had in the third quarter, especially with respect to operating margins. Our momentum has been strong, both on revenue growth and operating margin expansion. Our revenues have grown 18.1% on a year-to-date basis and our operating margin has expanded 250 basis points to 8.9%.

現在，我要在第 12 和 13 頁結束。顯然，我們在 2024 年前三個季度的表現非常好。傑森談到了我們第三季創紀錄的業績，尤其是營業利益率。無論是營收成長還是營業利潤率擴張，我們的勢頭都很強勁。年初至今，我們的營收成長了 18.1%，營業利潤率成長了 250 個基點，達到 8.9%。

As a result, we're going to raise our diluted earnings per share guidance to $20.50 to $21 and that's from our previous range of $19 to $20. And we expect to earn revenues of at least $14.5 billion.

因此，我們將把稀釋後每股盈餘指引從先前的 19 美元到 20 美元提高到 20.50 美元到 21 美元。我們預計收入至少為 145 億美元。

You know, as we move into the year end and look at the future, I always step back and reflect on what is working well and what are the challenges. And what's going well? Well, clearly, we are positioned well in a set of growing and diverse sectors that demand excellence and execution, especially with respect to large projects. To better serve our customers, we've expanded our skills across geographies and sectors and we do that by training people well. We've had Greenfield expansion, complementary acquisitions. And we continue to invest heavily in VDC and in our prefab, which results in better field execution and improve productivity.

你知道，當我們進入年底並展望未來時，我總是退後一步思考哪些方面運作良好，哪些方面存在挑戰。進展順利嗎？顯然，我們在一系列不斷成長和多樣化的行業中處於有利地位，這些行業需要卓越和執行力，特別是在大型專案方面。為了更好地服務我們的客戶，我們透過良好的培訓來擴展我們跨地域和跨行業的技能。我們進行了綠地擴張和補充性收購。我們繼續大力投資 VDC 和我們的預製件，從而實現更好的現場執行並提高生產力。

Our companies utilize peer learning and share best practices on means and methods to build capabilities and leverage our customer relations better at any time in our company's history. We leverage our corporate staff and segment staff very well to improve outcomes, not only on contract negotiations and planning, but human resources planning. Cyber, IT, financial discipline, which includes management, planning, cash collection, marketing, risk management for trust means insurance, in this case, to gain the benefits of expertise in the learnings that we've had, especially over the last five years as we build more and more of these scale products to also leverage our scale to improve outcomes first for our customers and our employees.

我們的公司在公司歷史上的任何時候都利用同行學習並分享有關手段和方法的最佳實踐來增強能力並更好地利用我們的客戶關係。我們很好地利用我們的公司員工和細分員工來改善成果，不僅在合約談判和規劃方面，而且在人力資源規劃方面。網路、IT、財務紀律，包括管理、規劃、現金收集、行銷、信任風險管理意味著保險，在這種情況下，我們可以從我們所學到的專業知識中獲益，特別是在過去五年中隨著我們製造越來越多的此類規模產品，也利用我們的規模首先為我們的客戶和員工改善成果。

We have invested in success over many years in leadership development with a focus on our core values of mission first, people always and continue to develop our unique and core operating system and practices. We always have opportunities to improve. And I'll mention a short view. We always need to adjust our product offerings, our project delivery, but in this case, we continue to need to enhance our ability to serve our customers through geographic expansion and skill transfer.

多年來，我們在領導力發展方面進行了成功投資，重點關注「使命第一、以人為本」的核心價值觀，並繼續發展我們獨特的核心作業系統和實踐。我們總是有機會改進。我會提一個簡短的觀點。我們總是需要調整我們的產品供應、專案交付，但在這種情況下，我們繼續需要透過地理擴張和技能轉移來增強我們為客戶服務的能力。

We need to enhance our site-based service offerings to focus further on our technical services expertise as a point of differentiation versus the real estate firms. You 're always going to face challenges in an uncertain world of supply chain disruptions, continued economic uncertainty, interest rates, geopolitical tensions. But our team has shown resilience and has overcome such challenges successfully in the past. And there's no reason to believe we won't do that in the future. And again, we always go back to our culture of mission. first, people always, and our unique EMCOR operating model.

我們需要增強基於站點的服務產品，進一步關注我們的技術服務專業知識，作為與房地產公司的差異化點。在供應鏈中斷、持續的經濟不確定性、利率、地緣政治緊張局勢等不確定的世界中，您始終會面臨挑戰。但我們的團隊展現了韌性，並在過去成功克服了這些挑戰。我們沒有理由相信我們將來不會這樣做。再說一次，我們總是回到我們的使命文化。首先，以人為本，以及我們獨特的 EMCOR 營運模式。

And finally, you got to continue to invest on what's going well and you have to even do more investment and learning to make it even better. We've had a good mix of capital allocation this year from strong organic investment, acquisition investment, and return of cash to shareowners through share repurchases and dividends. We continue to pursue robust opportunities to invest more organic capital across our operations to support our BDC, which again reminding you is virtual design and construct and prefabrication efforts, but also continue to apply technology and improved productivity, safety, and efficiency from our back offices, the project execution.

最後，你必須繼續投資於進展順利的事情，你甚至必須做更多的投資和學習，以使其變得更好。今年我們進行了良好的資本配置組合，包括強大的有機投資、收購投資以及透過股票回購和股息向股東返還現金。我們繼續尋求強大的機會，在我們的營運中投入更多的有機資本來支持我們的BDC，這再次提醒您這是虛擬設計、施工和預製工作，但我們也繼續應用技術並提高後台的生產力、安全性和效率、專案執行。

You're going to ask about acquisitions. I've always had the attitude that deals happen when they happen. We are in discussion with many people across many years, help them come into the EMCOR family. And we've had a great track record of that over the last five years, especially on the execution and integration of those acquisitions.

你會問有關收購的問題。我一直認為交易發生時就會發生。我們多年來一直在與許多人進行討論，幫助他們加入 EMCOR 大家庭。在過去的五年裡，我們在這方面擁有良好的記錄，特別是在這些收購的執行和整合方面。

As always, I want to thank my EMCOR teammates for performing so well for our customers and for making EMCOR a great place to work as we always strive to improve as a mission first, people always culture.

一如既往，我要感謝我的 EMCOR 團隊成員為我們的客戶提供如此出色的服務，並使 EMCOR 成為一個理想的工作場所，因為我們始終將改進作為使命第一，員工始終堅持文化。

And with that Chuck, I'll take questions.

我將和查克一起回答問題。

(Operator Instructions) Brent Thielman, DA Davidson.

（操作員說明）Brent Thielman，DA Davidson。

Hey, just first on -- I mean, the growth in data center for you just continues to be remarkable. Tony, I was wondering if you could just talk around what's being supported by new build out versus retrofit. And then, if you think about retrofit down the line, how much of an opportunity is that for you in that category?

嘿，首先——我的意思是，資料中心的成長仍然非常顯著。東尼，我想知道您是否可以談談新建與改造所支援的內容。然後，如果您考慮進行改造，那麼在該類別中這對您來說有多少機會？

I think it's going to be a significant opportunity. But if you look today specifically, 90% plus of our work is new build, and probably, two-thirds of that's on existing campuses and a third of that's on new campuses. And Brent, when we think about data centers actually to get ready for this call, I always reflect on what's changed over a five-year period.

我認為這將是一個重要的機會。但如果你今天具體看一下，我們 90% 以上的工作都是新建的，其中三分之二可能是在現有校區，三分之一是在新校區。布倫特，當我們考慮到資料中心實際上為這次電話會議做好準備時，我總是反思五年期間發生的變化。

If you go back to the middle of 2019 and you snap the line here at the end of the third quarter, we were serving electrically about 2.5 markets at the end of '19. And it was a half is because it's not really a data center market. It's more one of those places where they used to transfer data here around the New York area. And today, I counted at least 13 -- depending on how you count it, 14 markets, we're serving electrically. And what's driving that is our customers.

如果你回到 2019 年中期，並在第三季末打破這條線，我們在 19 年底為大約 2.5 個市場提供電力服務。這是一半是因為它不是真正的資料中心市場。它更像是他們過去在紐約地區傳輸數據的地方之一。今天，我數了一下，至少有 13 個市場——這取決於你如何計算，我們正在為 14 個市場提供電力服務。推動這一趨勢的是我們的客戶。

We execute well. We share learnings well. Our customers want us to expand in more markets and we do that a number of ways. Now mechanical -- let me finish. On mechanical, we went from serving one data center market in 2019 to six today.

我們執行得很好。我們很好地分享經驗。我們的客戶希望我們拓展更多市場，我們透過多種方式做到這一點。現在機械地——讓我說完。在機械方面，我們從 2019 年為 1 個資料中心市場提供服務到今天的 6 個資料中心市場。

And on the fire life safety side, we can serve our customers pretty ubiquitously across the country. Again, understand what I'm saying. It's because our customers are asking us to help serve them better in more markets.

在消防生命安全方面，我們可以為全國各地的客戶提供服務。再次，明白我在說什麼。這是因為我們的客戶要求我們幫助他們在更多市場提供更好的服務。

So how do we do that? Well, we do that first by leveraging our capabilities and teaching folks that we already have in an existing subsidiary how to do data center work and meet this most demanding market segment. So yes, the growth is remarkable, but these are some of the most demanding customers in the world. Second, we then combine that with organic investment in those subsidiaries and in our existing subsidiaries to deliver great results for those customers.

那我們該怎麼做呢？好吧，我們首先透過利用我們的能力並教導我們現有子公司中已有的人員如何進行資料中心工作並滿足這個最苛刻的市場領域來做到這一點。所以，是的，成長是顯著的，但這些是世界上要求最嚴格的客戶。其次，我們將其與對這些子公司和我們現有子公司的有機投資結合起來，為這些客戶帶來巨大的成果。

And then we're applicable. We may buy into the data center market or -- and that company has to do more than data center. They have to be able to stand on their own in that market without the data center market. So you put all that together, that's how you serve that market.

然後我們就可以應用了。我們可能會進入資料中心市場，或者——而該公司要做的不僅僅是資料中心。他們必須能夠在沒有資料中心市場的情況下在該市場中獨立生存。所以你把所有這些放在一起，這就是你服務該市場的方式。

Now if you go look into the future here and the next question should be okay, how much do you think is that tied to AI today? In the future, it'll probably be a third to half of what we're doing will be tied to AI and the balance will be just cloud storage and expanding that, and eventually, they interact with each other.

現在，如果你展望未來，下一個問題應該沒問題，你認為這與今天的人工智慧有多大關係？未來，我們正在做的事情可能有三分之一到一半將與人工智慧相關，其餘部分將只是雲端儲存和擴展，最終，它們會相互互動。

I will tell you the AI power requirements are, you know, anywhere from 5 to 6 times in some cases what a traditional cloud storage data center will be. So what does that mean for us? It means enhanced scope. It means more requirement for planning. It requires more sophistication on the BDC side, which continues to make you understand why customers want us to expand with them into other markets.

我會告訴你，在某些情況下，人工智慧的電力需求是傳統雲端儲存資料中心的 5 到 6 倍。那麼這對我們意味著什麼呢？這意味著範圍擴大。這意味著對規劃的要求更高。它要求 BDC 方面更加成熟，這將繼續讓您了解為什麼客戶希望我們與他們一起擴展到其他市場。

With that. I'll stop. Jason, you have anything to add?

就這樣。我會停下來。傑森，你還有什麼要補充的嗎？

No, Tony.

不，托尼。

Very good. Appreciate all that, Tony. And then, profitability in electrical is even better than the last few quarters, which were quite good. Are there any closed out operational one-timers driving the 14% op margin? Tony, I know there's always things in any given quarter but --

非常好。感謝這一切，托尼。然後，電力的獲利能力甚至比前幾季還要好，前幾季相當不錯。是否有任何已平倉的一次性營運商能夠推動 14% 的營運利潤率？托尼，我知道任何特定的季度總是會有事情發生，但是--

I think if you look at closed out, if you look at what we disclosed, I think year over year, there really isn't a drastic change that's accounting for the margins. I think, as we've said, it continues to be driven by mix and execution, but I do think, right, you can never look at one quarter and say that that's an indicator of our margins. I think in this environment, I'd say looking at a 9- to 15-month rolling average is probably a good way to look at it.

我認為，如果你看看關閉的情況，如果你看看我們披露的內容，我認為年復一年，利潤率確實沒有發生巨大的變化。我認為，正如我們所說，它繼續由混合和執行驅動，但我確實認為，對，你永遠不能看一個季度並說這是我們利潤率的指標。我認為在這種環境下，我認為查看 9 至 15 個月的滾動平均值可能是一個很好的看待方式。

Yeah, and the reason we say that is, right, we don't control the timing of these projects. So at any given time, we could have -- especially, our supervision on the bench for us for a month or 1.5 month as we wait for new projects to start up. It's always important to remember. I always have to recall back to the early 2022. We saw the build happening. People were questioning whether this was going to be sustained. We thought yes. We held on to the key supervision. The margins got beat up a little bit in the first quarter of 2022. And here we are today.

是的，我們這麼說的原因是，我們無法控制這些項目的時間安排。因此，在任何特定時間，我們都可以——特別是在等待新項目啟動時，在替補席上對我們進行一個月或 1.5 個月的監督。記住這一點總是很重要的。我總是得回想起2022年初。我們看到了建構的發生。人們質疑這種情況是否會持續下去。我們認為是的。緊緊抓住重點監管。2022 年第一季的利潤率略有上升。今天我們就到這裡了。

This is not a quarter-to-quarter business. This is a long term. You think about what we're trying to do here. We're trying to match our precious resources, which is our shop capacity, our BDC capability, our estimating, but most importantly, our field supervision and labor on the means and method with what is a long-term capital build cycle across some high-impact sectors. And you can see that in RPOs. Those high-impact sectors include data centers and connectivity. They include the aftermarket. They include high-tech manufacturing to include semiconductors. They include traditional manufacturing industrial. They include health care. They include water and wastewater.

這不是一個季度的業務。這是一個長期的過程。你想想我們在這裡想做什麼。我們正在努力將我們寶貴的資源（即我們的車間能力、我們的BDC 能力、我們的估算，但最重要的是我們的現場監督和在手段和方法上的勞動力）與跨一些高水平的長期資本建設週期相符。您可以在 RPO 中看到這一點。這些高影響力的產業包括資料中心和連結。其中包括售後市場。其中包括半導體等高科技製造。其中包括傳統製造業。其中包括醫療保健。它們包括水和廢水。

So we really value our field supervision. And we're taking that precious resource and thinking about how to line it up against those opportunities in the future and that's not a linear path to get there.

所以我們非常重視我們的現場監督。我們正在利用這項寶貴的資源，並思考如何將其與未來的機會結合起來，但這並不是一條線性的路徑。

Very good. Maybe just last one. Tony, appreciate the comments around high-tech manufacturing but your visibility into these projects sort of extends several years. The timing can be episodic. I get it. I was actually more curious on the RPO strength in manufacturing and industrial, which reflects things, I guess, outside of high tech. What are the things you're seeing there? Maybe, what contributed to the strength this quarter? I found that uptick interesting.

非常好。也許只是最後一張。托尼，感謝有關高科技製造的評論，但您對這些項目的了解可以延長幾年。時間安排可能是間歇性的。我得到它。實際上，我對製造業和工業領域的 RPO 實力更好奇，我想這反映了高科技以外的事情。你在那裡看到了什麼？也許，是什麼促成了本季的強勢？我發現這種上升很有趣。

Yeah, it's pretty broad based, but it's the traditional things we've done again. It always goes back to those manufacturers drive for efficiency and automation and market expansion coupled with restoring. And it's traditional things. It's food. It's general consumer goods. It's some effects of auto suppliers into the traditional automotive chain. It's suppliers doing everything from pumps and motors and all those things that support all these other projects we're doing in capacity expansion.

是的，它的基礎相當廣泛，但這是我們再次做的傳統事情。它總是可以追溯到那些製造商對效率、自動化以及市場擴張和恢復的追求。而且都是傳統的東西。這是食物。是一般消費品。這是汽車供應商進入傳統汽車產業鏈的一些影響。供應商負責從泵浦到馬達以及所有支援我們在產能擴張方面正在進行的所有其他項目的所有工作。

So some of it is driven by capacity expansion to meet the more mundane areas of all these other growth trends. And then some of it's restoring in the drive for automation. And look, all these places, you think about what's going on with energy prices. So we talk a lot about office buildings, office buildings, office buildings, but think about what a manufacturing plant uses. We're doing that work there too, where they drive for energy efficiency and they get into a multi-year program with us to drive efficiency across their plant network. So that theme of driving down energy costs and reducing carbon footprint. But I will tell you, it's led by cost right now because of the spike in energy prices and no one thinks they're going down anytime soon.

因此，其中一些是由產能擴張所推動的，以滿足所有其他成長趨勢中更平凡的領域。然後其中一些在自動化驅動器中恢復。看看，所有這些地方，你都會想到能源價格的變化。所以我們談了很多辦公大樓、辦公大樓、辦公大樓，但想想製造工廠使用什麼。我們也在那裡做這項工作，他們推動能源效率，並與我們一起參與多年計劃，以提高整個工廠網路的效率。因此，主題是降低能源成本和減少碳足跡。但我會告訴你，由於能源價格飆升，目前它是由成本主導的，沒有人認為它們會很快下降。

Yeah, I think the only thing I would add to that, Brent. I agree with everything Tony said. I think the nearshoring, re-shoring continues to be strong for us, continues to be a driver. If you're looking at RPO sequentially, I will say maybe we saw a little bit more strength in the food process side, which Tony mentioned, at the onset of his commentary, but just looking sequentially, food is definitely a driver.

是的，我想我唯一要補充的是，布倫特。我同意托尼所說的一切。我認為近岸外包、再外包對我們來說仍然很強勁，仍然是一個驅動力。如果您按順序查看 RPO，我會說也許我們在食品加工方面看到了更多的優勢，托尼在評論開始時提到了這一點，但僅按順序查看，食品絕對是一個驅動因素。

Adam Thalhimer, Thompson Davis.

亞當·塔爾希默、湯普森·戴維斯。

Hey. Good morning, guys. Congrats on another great quarter.

嘿。早安，夥計們。恭喜又一個偉大的季度。

Thank you.

謝謝。

Tony, I wanted to ask about the revenue guidance first. What's kind of your message on the decline there?

東尼，我想先問一下收入指引。您對那裡的衰落有何看法？

There's not a decline. We gave you a range of $14.5 billion to $15 billion. Now that we look at the project timing out of our RPOs, we're at $14.5 billion. It always was meant to be a range. Now, we're zeroing in on your end. And with 18.3% year-over-year growth in revenues, I think we're doing okay.

沒有下降。我們給了你 145 億到 150 億美元的範圍。現在，我們查看 RPO 中的專案時間安排，結果為 145 億美元。它始終是一個範圍。現在，我們正瞄準你。營收年增 18.3%，我認為我們做得還不錯。

To me, I think it's -- as Tony said, it's looking at the RPOs that we have coming in and the timing of when we expect those projects to kick off, right? There's always a natural lag between when a contract's awarded and when that contract ramps up. And this is just us revising our estimates of when we think those projects are going to ramp. So I don't necessarily view it as a reduction of or a loss of revenues as much as I view it as a timing.

對我來說，我認為 - 正如托尼所說，它正在考慮我們已經制定的 RPO 以及我們預計這些項目啟動的時間，對嗎？授予合約的時間和合約增加的時間之間總是存在著自然的滯後。這只是我們修改我們對這些項目何時會加速的估計。因此，我不一定將其視為收入的減少或損失，而是將其視為一個時機。

Okay. So that was my next question. That's perfect. So this is your best sequential backlog growth in two years. And my question is, when do those jobs start?

好的。這是我的下一個問題。那很完美。因此，這是兩年來最好的積壓訂單連續成長。我的問題是，這些工作什麼時候開始？

Some of them are starting right now. Some will start in the first quarter. Very few things we have in RPOs right now, will start much past March. Most of it will start between now and the middle of March.

其中一些現在就開始了。有些將在第一季開始。目前 RPO 中的內容很少會在 3 月以後開始。大部分將從現在到三月中旬開始。

And then, with pack log growth accelerating and maybe a little pushout in project timing, I guess, just curious if you had any high-level thoughts on '25 revenue growth, you could share?

然後，隨著包日誌成長加速，專案時間表可能會有點推遲，我想，只是好奇您是否對 25 年收入成長有任何高層想法，您可以分享一下嗎？

Well, Adam, we've been doing this together for a while. no. we'll talk about 2025 in February. But clearly, with the RPO growth, we are planning another year of growth, right? Jason put together some interesting analysis because this helps frame it for the long term, right.

嗯，亞當，我們一起做這件事已經有一段時間了。不。我們將在 2 月討論 2025 年。但顯然，隨著 RPO 的成長，我們正在計劃另一年的成長，對吧？傑森（Jason）整理了一些有趣的分析，因為這有助於制定長期計劃，對吧。

First of all, right, we've spent a lot of time on this call already and justifiably so talking about some of these outside growth sectors like data centers and high-tech manufacturer. Even if you strip that out and you look at this year, we're still growing in the underlying more traditional markets, 7% revenue growth. And if you look over the last five years, and you say how are you growing versus non-res construction, we're growing about 250 basis points above that, of what non-res construction. That typically said, we grow somewhere between 20% to 20% -- to 30% and 35% of non-res in a high-growth market. And in a slower growth market when it's growing to GDP, we typically double that growth, right? So that's held true over the last five years, which has been a very healthy growth market for non-res.

首先，我們已經在這次電話會議上花費了大量時間，並且有理由談論其中一些外部成長部門，例如資料中心和高科技製造商。即使你把這一點去掉，看看今年，我們仍然在更傳統的基礎市場中成長，收入成長了 7%。如果你回顧過去五年，你會說與非再生能源建設相比，你們的成長情況如何，我們的非再生能源建設成長比這高出約 250 個基點。通常來說，在高成長市場中，我們的非資源成長在 20% 到 20% 到 30% 到 35% 之間。在成長較慢的市場中，當它成長到 GDP 時，我們通常會將該成長翻倍，對吧？過去五年的情況確實如此，對於非資源市場來說，這是一個非常健康的成長市場。

So there's no reason for us to believe, whatever the expectation for non-res is that we're likely to outperform it over a year period. Quarter to quarter, you never quite know.

因此，我們沒有理由相信，無論對非資源的期望如何，我們都可能在一年內超越它。季復一季，你永遠不知道。

Alex Dwyer, KeyBanc Capital Markets.

Alex Dwyer，KeyBanc 資本市場。

Hi, Tony, Jason, and Andy. Good morning. Congrats on the quarter.

嗨，東尼、傑森和安迪。早安.恭喜本季。

I guess I wanted to get your thoughts on what would happen if there was a change in administration next year. And I guess the things that come to my mind would be the more focused on oil and gas plus on clean energy. Maybe tariffs then continue to focus on domestic manufacturing. I'm not sure how to think about how impactful any of these could be to your business or if I'm missing anything, but just any thoughts there would be helpful.

我想我想聽聽您對如果明年政府發生變動會發生什麼的想法。我想我想到的事情會更關注石油和天然氣以及清潔能源。也許關稅將繼續集中在國內製造業。我不確定如何考慮這些對您的業務有多大影響，或者我是否遺漏了任何內容，但任何想法都會有所幫助。

Well, I always say so you'll never hear me make partisan comments publicly. And it may be over bear. I'll give you my own thoughts. But the reality is we make money with Democrats and we make money with Republicans.

好吧，我總是這麼說，你永遠不會聽到我公開發表黨派評論。而且可能已經超出承受範圍了。我給你我自己的想法。但現實是我們和民主黨一起賺錢，我們和共和黨一起賺錢。

So I think, if you go to the broad teams, is anybody likely not to want to see more manufacturing reshore into the United States? I think the answer to that is both want that to happen. I think the second thing you say, one of the big drivers is semiconductors. Does anybody think that the situation between Taiwan and China is better today than it was when they did the Chips Act or even before the land was bought, which was like five or seven years ago? Does anybody think that it's better today than it was two years ago? And do you think either the Republican or Democrat, in this case, either one of them not want to see the domestic chip manufacturing industry flourish? Well, the answer to that's no.

所以我認為，如果你去廣泛的團隊，有人可能不希望看到更多的製造業回流到美國嗎？我認為答案是雙方都希望這種情況發生。我認為你說的第二件事，最大的推動因素之一是半導體。有人認為現在台灣和中國的關係比他們制定《籌碼法案》時，甚至比買地之前，也就是五、七年前更好嗎？有人認為今天比兩年前好嗎？您認為在這種情況下，無論是共和黨還是民主黨，他們中的任何一方都不希望看到國內晶片製造業蓬勃發展嗎？嗯，答案是否定的。

Do you think anybody wants to not see data center construction go and have AI be a real advantage in this country? And do you think that either one of them want to let significant US computing power or companies want that overseas? The answer to that is no. So some of the big drivers I think remain intact because these are major forces driving it that have little to do with public policy or I think they're more to do with geopolitical things and security.

你認為有人不希望看到資料中心建設繼續進行並讓人工智慧成為這個國家的真正優勢嗎？您是否認為他們中的任何一個人希望讓美國擁有重要的運算能力，或者公司希望將其轉移到海外？答案是否定的。因此，我認為一些重要的驅動因素仍然完好無損，因為這些是驅動它的主要力量，與公共政策無關，或者我認為它們更多地與地緣政治問題和安全有關。

Then you go to the energy situation. I think there is a difference there. I don't think it'll be as profound as people think. I personally think that we're going to have to have an all of the above strategy but I think you're going to see oil and gas flourish under one versus the other more quickly.

然後你就進入能源狀況。我認為這是有區別的。我認為它不會像人們想像的那麼深刻。我個人認為，我們將必須制定上述所有策略，但我認為，您將看到石油和天然氣在其中一種策略下比另一種策略更快地蓬勃發展。

I think in any case, we're going to have to build more gas turbine plants in the next five years because it's the only way to fill this energy GAAP that's going to be created because of all the things I talked about in the beginning of my answer. I think with one of them, that will happen quicker and with the other one, we'll have to get into a little bit of a crisis for that to happen, but it will happen.

我認為無論如何，我們將在未來五年內建造更多的燃氣渦輪機工廠，因為這是滿足能源公認會計原則的唯一方法，而該能源公認會計原則將根據我在開頭談到的所有內容而創建。的回答。我認為對於其中一個，這會發生得更快，而對於另一個，我們將不得不陷入一點危機才能發生，但它會發生。

I think on the renewable side -- not an area that we have huge exposure to. We have some exposure but not huge exposure like others. I think we may be seen. I do think that's been challenging anyway and that'll be more challenged if one wins versus the other.

我認為在再生能源方面——這不是我們涉足的領域。我們有一些曝光，但不像其他人那樣有很大的曝光。我想我們可能會被看到。我確實認為無論如何這都是一個挑戰，如果一個人贏了另一個人，挑戰就會更大。

I think, if you go long term in the auto space, for us, we look at a lot of different scenarios with respect to our own fleet. We believe or what we do, hybrid will eventually come in as a viable solution somewhere in the next three to five years as it gets more into SUVs and pickup trucks and vans and those things.

我認為，如果你長期涉足汽車領域，對我們來說，我們會針對我們自己的車隊考慮很多不同的場景。我們相信，或者說我們所做的，混合動力最終將在未來三到五年內成為可行的解決方案，因為它將更多地應用於 SUV、皮卡車和貨車等領域。

On the EV value chain something, we have exposure to. But of all these big trends is the one we have the least exposure to, it's been more of a fire life safety vote as they build infrastructure. I think in that case, I don't know, either one of them will jump ahead. One will be a market approach. I do think if one wins versus the other, the tailpipe emission standard will change pretty dramatically back to something that can actually maybe be accomplished.

在電動車價值鏈上，我們有所接觸。但在所有這些大趨勢中，我們接觸到的趨勢最少，這更多的是在基礎設施建設過程中進行的消防生命安全投票。我想在那種情況下，我不知道他們中的任何一個會跳到前面。其中之一是市場方法。我確實認為，如果一方獲勝，廢氣排放標準將發生相當大的變化，回到實際上可以實現的目標。

Put all that together, go back to my original comment, we've done well under Democratic administrations and we've done well over Republican administrations. What our shareholders pay this management team to do is adjust and adapt. We're not big on lobbying. We don't do that. We adjust and adapt. We move on. And that's the greatest thing about a contractor. That's how we're trained to think.

把所有這些放在一起，回到我最初的評論，我們在民主黨政府領導下做得很好，在共和黨政府領導下我們也做得很好。我們的股東付錢讓這個管理團隊做的就是調整和適應。我們不熱衷於遊說。我們不這樣做。我們調整並適應。我們繼續前進。這就是承包商最偉大的事。這就是我們被訓練思考的方式。

Got it. Appreciate the thoughts, Tony. And then, I guess just coming back to the high-tech manufacturing RPOs, the return to sequential growth in the quarter, like how should we think about the ability to keep growing these RPO -- this end market RPO, going forward, as we think about the initial semi-fab awards turning into follow-on awards? I'm just wondering if that could be headwind.

知道了。欣賞你的想法，托尼。然後，我想回到高科技製造業的 RPO，本季恢復連續成長，就像我們應該如何考慮保持這些 RPO 成長的能力一樣——這個終端市場 RPO，展望未來，因為我們考慮過將最初的半晶圓廠獎項轉變為後續獎項嗎？我只是想知道這是否會是逆風。

Yeah, my gut tells me talking to our folks on the ground and the conversations on the three areas that were most exposed to fabs electrically and mechanically, more mechanical than electrical, is the sites we're on somewhere between now and the middle of the third quarter next year. We're likely to get another big award and it might come in pieces. That's likely to happen. And that's going to happen at two of the sites.

是的，我的直覺告訴我，與我們在當地的人員交談，以及在電氣和機械方面最容易接觸晶圓廠的三個區域的對話，機械多於電氣，是我們從現在到中期之間的某個地點。我們很可能會獲得另一個大獎，而且它可能會被分成幾個部分。這很可能會發生。這將在其中兩個地點發生。

The plan is well along the way. And we're helping with some of the infrastructure planning as they get ready to do that. I think, the building side of it is one part of it, but then they got to staff it and run it for the long term. And the people that are doing this have to do both. We don't have to do this. We just have to help them get it up and running and commission it.

計劃進展順利。當他們做好準備時，我們正在幫助進行一些基礎設施規劃。我認為，建築方面是其中的一部分，但隨後他們必須配備人員並長期運作它。做這件事的人必須同時做這兩件事。我們不必這樣做。我們只需幫助他們啟動、運行並調試即可。

So net-net, I think it's a great long-term market for us. I'm glad we have the capabilities we have and I'm glad we continue to invest and build more capabilities into that market.

因此，我認為這對我們來說是一個巨大的長期市場。我很高興我們擁有我們所擁有的能力，我很高興我們繼續投資並在該市場建立更多的能力。

Got it. Okay. And then I guess my last question, the cash flows just continue to be super strong this year. I think in the beginning of the year, you had given that 100% operating cash flow to net income guide. I think it's been well above that for the year-to-date performance. How do we think about that? Was that overly conservative or is there something in the cash performance that has just significantly exceeded your expectations? And is that the right way to think about the business as we head to next year?

知道了。好的。然後我想我的最後一個問題是，今年的現金流仍然非常強勁。我想在今年年初，你們已經給了 100% 的營運現金流對淨利的指導。我認為這遠高於今年迄今的表現。我們對此有何看法？這是過於保守還是現金表現中是否有什麼東西大大超出了您的預期？當我們邁向明年時，這是思考業務的正確方式嗎？

Well, long term over three to four years, you can't collect more than that income, right? That is the standard, right, 100% of net income. Now, why are we doing better than that right now? We're getting ahead of some of our contracts. We always focus on this net billings and excess is a major metric for us. And I'm going to let Jason jump in here in more detail. But the point is people say, oh, you send bills. No, that's not how that works, right? That means the project is going very well and the schedule values and we've negotiated them into a way that we can keep ahead of cash a little bit or cash neutral on these projects.

好吧，從長遠來看，三到四年，你不可能收集到比這個收入更多的收入，對嗎？這就是標準，對吧，淨利潤的100%。現在，為什麼我們現在做得比現在更好？我們正在提前履行一些合約。我們始終關注淨帳單，超額是我們的一個主要指標。我將讓 Jason 詳細介紹。但重點是人們說，哦，你寄帳單。不，事情不是這樣的，對吧？這意味著該專案進展順利，時間表很有價值，我們已經透過談判達成了某種方式，可以在這些專案上提前一點現金或保持現金中立。

Sometimes, we get prepays ahead of time to allow us to mobilize and go on the customer site. That's a negotiation. I will tie it back to a broader point. I'm going to turn it over to Jason, right? Our balance sheet is a major way that we compete, right? We have the capacity to do a lot of things with that balance sheet and we will.

有時，我們會提前收到預付款，以便我們能夠動員並前往客戶現場。那是一場談判。我將把它與更廣泛的觀點聯繫起來。我要把它交給傑森，對嗎？我們的資產負債表是我們競爭的主要方式，對吧？我們有能力利用該資產負債表做很多事情，我們也會這樣做。

We will continue to look through the growth and acquisition. We are not afraid of -- we've said that before. For the right deal, we would move and go do that. We think that works. But in general, we're never going to be a high-leverage company. And the reason for that is you think of who we're working with. They are all cash focused, cash rich customers. And when they point to long-term relationship with customers like contractors like us and partners, they want people that look like them with that respect. They want to know the job is going to get done. And so we've been able to get favorable contract terms and that's really what allows us to be a little bit ahead on cash versus net income. But long term, right, that doesn't work.

我們將繼續關注成長和收購。我們並不害怕——我們之前已經說過了。為了達成正確的交易，我們會搬家並去做。我們認為這有效。但總的來說，我們永遠不會成為一家高槓桿公司。原因是你想到我們正在與誰合作。他們都是注重現金、現金充裕的客戶。當他們指望與像我們這樣的承包商和合作夥伴等客戶建立長期關係時，他們希望員工能夠像他們一樣受到尊重。他們想知道工作是否會完成。因此，我們能夠獲得有利的合約條款，這確實使我們在現金收入與淨利潤方面領先一些。但從長遠來看，這是行不通的。

Jason?

傑森？

Yeah. I think, Tony, that's a great summary. I think, long term, we will go back to that average that we always look at, which is 100% of net income or 80% to 85% of operating income. When we look at this year, yeah, right now, we're 98% of operating income. I think we'll maintain that level through the end of the year. We'll have another strong cash generation quarter in Q4. But I think over the long term, we have to revert back to that traditional metric.

是的。我認為，托尼，這是一個很好的總結。我認為，從長遠來看，我們將回到我們一直關注的平均水平，即淨利潤的 100% 或營業收入的 80% 至 85%。當我們看看今年時，是的，現在，我們的營業收入達到了 98%。我認為我們將在今年年底前保持這一水平。我們將在第四季度迎來另一個強勁的現金生成季度。但我認為從長遠來看，我們必須恢復到傳統的衡量標準。

Jason and I had a very wise co colleague that ran our construction business for years. He'll say, Tony, you can only collect the cash once. And that's how you get back to cash flow equals net income.

傑森和我有一位非常聰明的同事，他經營我們的建築業務多年。他會說，東尼，你只能領一次現金。這就是你如何回到現金流量等於淨收入的情況。

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

我們的問答環節到此結束。我想將會議轉回東尼古齊先生發表閉幕詞。請繼續。

Yeah. Well, thank you, all, for your interest in EMCOR. I know that the audience listening is broader than just our sell-side analysts. So thank you, all. And if you're invested in our company, we appreciate that. Again, I want to go back and circle around and thank our field leadership and all of our teammates at EMCOR. It has surely been an extraordinary five year of performance as we continue to grow.

是的。好的，謝謝大家對 EMCOR 的關注。我知道傾聽的聽眾不僅僅是我們的賣方分析師。所以謝謝大家。如果您投資我們公司，我們將不勝感激。我想再次回過頭來感謝我們的現場領導以及 EMCOR 的所有團隊成員。隨著我們不斷發展，這無疑是非凡的五年。

And with that, Andy, I'll turn the call back over to you.

安迪，我會把電話轉回給你。

Yeah. Thanks, Tony. And thanks, Jason, Maxine, and everybody, for joining us.

是的。謝謝，托尼。感謝 Jason、Maxine 和大家加入我們。

Before we close the call, as we announced this morning, Tony, Jason, and I will be participating in the Baird 2024 Global Industrial Conference in Chicago, including one-on-ones and a webcast fireside chat on Tuesday, November 12, at 9:30 AM Eastern Time. We hope to see many of you there.

正如我們今天早上宣布的那樣，在結束通話之前，托尼、傑森和我將參加在芝加哥舉行的貝爾德2024 年全球工業會議，包括一對一會談和11 月12 日星期二上午9 點的網絡直播爐邊聊天。我們希望在那裡見到你們中的許多人。

As always, if you -- should you have any follow up questions, please do not hesitate to reach out to me directly. Thank you, all, and have a great day. And Chuck, could you please close the call?

像往常一樣，如果您有任何後續問題，請隨時直接與我聯繫。謝謝大家，祝您有美好的一天。Chuck，你能結束通話嗎？

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。