福斯 (FLS) 2024 Q2 法說會逐字稿

Good day, and welcome to the Second Quarter 2024 Flowserve Corporation earnings conference call. Today's conference is being recorded.

美好的一天，歡迎參加福斯公司 2024 年第二季財報電話會議。今天的會議正在錄製中。

At this time, I'd like to turn the conference over to Jay Roueche, Vice President, Treasurer and Investor Relations. Please go ahead.

這次，我想將會議交給財務主管和投資者關係副總裁 Jay Roueche。請繼續。

Thank you, Melinda, and good morning, everyone. We appreciate you joining our conference call today to discuss Flowserve's second-quarter 2024 financial results. On the call with me today are Scott Rowe, Flowserve's President and Chief Executive Officer; and Amy Schwetz, Senior Vice President and Chief Financial Officer.

謝謝梅琳達，大家早安。我們感謝您今天參加我們的電話會議，討論 Flowserve 2024 年第二季的財務表現。今天與我通話的是 Flowserve 總裁兼執行長 Scott Rowe；以及資深副總裁兼財務長 Amy Schwetz。

Following our prepared comments, we will open the call for your questions. As a reminder, this event is being webcast and an audio replay will be available. Please note that our earnings materials do, and this call will, include non-GAAP measures and contain forward-looking statements.

根據我們準備好的意見，我們將開始電話詢問您的問題。謹此提醒，活動正在進行網路直播，並將提供音訊重播。請注意，我們的獲利資料包括非公認會計原則措施並包含前瞻性陳述，本次電話會議也將包括這些內容。

These statements are based upon forecasts, expectations and other information available to management as of July 30, 2024, and they involve risks and uncertainties, many of which are beyond the company's control.

這些陳述基於截至 2024 年 7 月 30 日管理層可獲得的預測、預期和其他信息，涉及風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍。

We encourage you to review our safe harbor disclosures as well as the reconciliation of our non-GAAP measures to our reported results, both of which are included in our press release and earnings presentation, and both are accessible on our website in the Investors section.

我們鼓勵您審查我們的安全港披露以及我們的非公認會計原則措施與我們報告的結果的調節，兩者都包含在我們的新聞稿和收益演示中，並且都可以在我們網站的投資者部分訪問。

I would now like to turn the call over to Scott Rowe, Flowserve's President and Chief Executive Officer, for his prepared comments.

我現在想將電話轉給 Flowserve 總裁兼執行長 Scott Rowe，聽聽他準備好的評論。

Thanks, Jay, and good morning, everyone. We delivered another quarter of strong results with sequential and year-over-year improvements driven by outstanding execution. Compared to the second quarter last year, some highlights include: revenue growth over 7% with adjusted gross and operating margins increasing to 32.3% and 12.5%, while our adjusted earnings increased more than 40% per share.

謝謝傑伊，大家早安。在出色的執行力的推動下，我們又取得了一個季度的強勁業績，實現了環比和同比的改善。與去年第二季相比，一些亮點包括：營收成長超過 7%，調整後毛利率和營業利潤率分別增至 32.3% 和 12.5%，而調整後每股盈餘成長超過 40%。

Our strong bookings of $1.25 billion in the quarter, represents a 12% increase versus last year and sequential growth of 20%. With a book-to-bill of almost 1.08x in the quarter, our backlog grew over $70 million sequentially to $2.7 billion, positioning the company for further growth. I want to thank our associates around the world for their passion and dedication to supporting our customers in delivering these impressive results.

本季我們的預訂量強勁，達到 12.5 億美元，比去年增長 12%，季增 20%。本季的訂單出貨比幾乎成長了 1.08 倍，我們的積壓訂單季增了 7,000 萬美元以上，達到 27 億美元，為公司的進一步成長奠定了基礎。我要感謝我們世界各地的員工，感謝他們的熱情和奉獻精神，並支持我們的客戶取得這些令人印象深刻的成果。

Continuing with second quarter commentary. Our adjusted earnings per share was $0.73, representing a sequential increase of $0.15 and $0.21 year-over-year. Our bookings are at the highest level since 2014 and included a healthy mix of project awards with ongoing strength in both MRO and aftermarket activity. We generated over $1.15 billion in revenue and increased our adjusted gross and operating margins by 200 basis points and 210 basis points respectively, versus the prior year, which gives us further confidence in our margin progression journey.

繼續第二季評論。調整後每股收益為 0.73 美元，比去年同期增加 0.15 美元，年減 0.21 美元。我們的預訂量達到 2014 年以來的最高水平，其中包括一系列項目獎項以及 MRO 和售後市場活動的持續實力。我們創造了超過 11.5 億美元的收入，調整後的毛利率和營業利潤率分別比前一年增加了 200 個基點和 210 個基點，這讓我們對利潤成長之旅更加充滿信心。

We are very pleased with our results and the progress we have made in the last couple of years, as we implement and capitalize on opportunities for growth and further improvement. Our operational excellence program continues to deliver results with significant progress within our manufacturing facilities.

我們對過去幾年的成果和進步感到非常滿意，因為我們實施並利用了成長和進一步改進的機會。我們的卓越營運計劃繼續取得成果，在我們的製造工廠內取得了重大進展。

The new organizational design, combined with improved process discipline is allowing us to operate at a much higher level. While the recent results are impressive, we are confident that there is further upside as we continue to drive maturity in our operations journey.

新的組織設計與改進的流程紀律相結合，使我們能夠在更高的水平上運作。雖然最近的業績令人印象深刻，但我們相信，隨著我們繼續推動營運歷程的成熟，還有進一步的上升空間。

Additionally, we launched our formal product excellence program earlier this year. We have undergone an extensive product portfolio review within one of our seven business units and have identified significant opportunities to deliver higher margins without compromising our focus on growth.

此外，我們在今年稍早啟動了正式的產品卓越計畫。我們對七個業務部門之一進行了廣泛的產品組合審查，並發現了在不影響我們對成長的關注的情況下提供更高利潤的重大機會。

We plan to launch this program with our second business unit next month and a third business unit before the end of the year. As discussed at our Analyst Day last year, we have committed to an incremental 100 basis points to 200 basis points of margin improvement from the product excellence program by 2027. The early progress is encouraging, and we expect to begin to see results from this effort in the back half of 2024 and 2025.

我們計劃在下個月與第二個業務部門啟動該計劃，並在年底前與第三個業務部門啟動該計劃。正如去年分析師日所討論的那樣，我們承諾到 2027 年，透過產品卓越計畫將利潤率提高 100 到 200 個基點。早期進展令人鼓舞，我們預計將在 2024 年下半年和 2025 年開始看到這項努力的成果。

Operational and product excellence are essential components of the new Flowserve business system that was created to deliver improved process consistency and financial performance across Flowserve.

卓越的營運和產品是福斯新業務系統的重要組成部分，該系統的創建是為了在整個福斯提供改進的流程一致性和財務績效。

Let me now turn to bookings in our end markets. Our second quarter bookings of $1.25 billion marks our tenth consecutive quarter with bookings over $1 billion. Our 3D growth strategy represents over 25% of our total bookings again this quarter, reaffirming our strategic approach.

現在讓我談談我們終端市場的預訂。我們第二季的預訂額為 12.5 億美元，標誌著我們連續第十個季度預訂超過 10 億美元。我們的 3D 成長策略再次佔本季總預訂量的 25% 以上，這再次證實了我們的策略方針。

Our bookings were balanced in the second quarter with original equipment and aftermarket activities each representing about half of the total. For original equipment, we benefited from three large projects in the Middle East, including the two we announced in April. Together, these large awards totaled approximately $200 million.

我們的預訂在第二季保持平衡，原始設備和售後市場活動各佔總數的一半左右。對於原始設備，我們受益於中東的三個大型項目，包括我們在四月宣布的兩個項目。這些巨額獎金總計約 2 億美元。

The elevated asset utilization rate and spring turnaround season at our customers' operations led to record quarterly aftermarket bookings of more than $610 million. In addition, we have now delivered seven consecutive quarters above the $550 million level, showing the resilience of this higher margin, faster turn, parts, service and repair work.

資產利用率的提高和客戶業務的春季週轉季節導致季度售後市場預訂量創下了超過 6.1 億美元的記錄。此外，我們現已連續七個季度交付超過 5.5 億美元的水平，顯示了更高的利潤、更快的周轉、零件、服務和維修工作的彈性。

Flowserve's local presence, strong customer relationships and high levels of service continue to produce solid capture rates on our vast aftermarket entitlement. We expect the world's existing refining, chemical and power facilities will remain at high utilization levels for the foreseeable future and our aftermarket business is well positioned to service their need for continued operability.

福斯的本地業務、強大的客戶關係和高水準的服務繼續為我們龐大的售後市場權益帶來穩定的捕獲率。我們預計，在可預見的未來，全球現有的煉油、化工和電力設施將保持較高的利用率，而我們的售後市場業務已做好充分準備，可以滿足其持續營運的需求。

By end market, oil and gas generated the highest level of dollar growth, representing a year-over-year increase of about 22% and includes two of our three large projects we received this quarter. We also continue to capture a substantial number of 3D bookings that are recorded in this end market, primarily in decarbonization activities such as carbon capture, biofuel conversion, LNG and our energy advantage program.

從終端市場來看，石油和天然氣的美元成長水準最高，年增約 22%，其中包括我們本季收到的三個大型項目中的兩個。我們也繼續獲得該終端市場記錄的大量 3D 預訂，主要是在碳捕獲、生物燃料轉化、液化天然氣和我們的能源優勢計劃等脫碳活動中。

We also demonstrated significant growth within the chemicals market this quarter, booking $272 million. This represented 14% growth versus the prior year and was driven by the Emerald greenfield petrochemical project in Saudi Arabia, which was announced in April. We continue to expect significant chemical capacity additions in the Middle East and modest improvement in overall global chemical demand.

本季我們也展示了化學品市場的顯著成長，銷售額達 2.72 億美元。這比前一年增長了 14%，是由 4 月宣布的沙烏地阿拉伯 Emerald 綠地石化計畫推動的。我們持續預期中東化學品產能將大幅增加，全球化學品整體需求將略有改善。

We are also making good progress with all aspects of the 3D strategy diversifying into specialty chemicals and plastic recycling, decarbonizing existing petrochemical facilities and adding Red Raven to flow control products in both existing and new chemical plants.

我們在 3D 策略的各個方面也取得了良好進展，包括特種化學品和塑膠回收、現有石化設施脫碳以及在現有和新化工廠的流量控制產品中添加 Red Raven。

Last quarter, I highlighted the expectation for increases in power generation, driven by the growth in data center capacity fueled by ever-increasing artificial intelligence activity. Second quarter power bookings were $153 million, which represents a 34% increase year-over-year. Additionally, nuclear activity saw particular strength this quarter with more than $70 million in bookings. We continue to be optimistic about nuclear power generation growth for new projects in life cycle extensions in various parts of the world.

上個季度，我強調了對發電量增加的預期，這是由不斷增加的人工智慧活動推動的資料中心容量成長所推動的。第二季電力預訂量為 1.53 億美元，年增 34%。此外，本季核能活動尤其強勁，預訂量超過 7,000 萬美元。我們繼續對世界各地生命週期延長的新項目的核電增長持樂觀態度。

Another end market we are seeing encouraging signals is the mining industry. As more rare earth minerals and other mine products are needed for batteries, electrical transmission, energy storage and grid hardening, we see stable long-term growth in this sector. Currently, our efforts in mining are included in our general industries bookings and amount to roughly $100 million a year of activity.

我們看到的另一個令人鼓舞的終端市場是採礦業。由於電池、電力傳輸、能源儲存和電網加固需要更多的稀土礦物和其他礦產品，我們看到該行業的長期穩定成長。目前，我們在採礦方面的努力已包含在我們的一般行業預訂中，每年的活動金額約為 1 億美元。

We plan to increase our organic efforts in mining to capture a larger portion of this expected growth through enhanced channels to market and further new product development. Additionally, as we evaluate inorganic opportunities to create value for our shareholders, further mining exposure would be one area of interest to help fortify our existing offering and achieve our stated goal of diversifying our portfolio of products and services.

我們計劃加大採礦方面的有機努力，透過加強市場通路和進一步新產品開發來獲取預期成長的更大一部分。此外，當我們評估為股東創造價值的無機機會時，進一步的採礦業將是我們感興趣的領域之一，有助於加強我們現有的產品和實現我們的產品和服務組合多元化的既定目標。

Turning now to second quarter bookings by region. We saw strong growth in the Middle East on the back of the three large projects as well as modest growth in the Americas. Europe and Asia-Pacific bookings declined slightly year-over-year. Our overall project funnel is up 8% year-over-year, reflecting the continued visibility into significant project opportunities in the Middle East and other parts of the world. Our traditional short-cycle MRO and aftermarket business has proven quite durable, and we expect to see continued growth on this side of the business.

現在轉向按地區劃分的第二季預訂情況。在三個大型計畫的支持下，我們看到中東地區的強勁成長以及美洲地區的溫和成長。歐洲和亞太地區的預訂量較去年同期略有下降。我們的整體專案漏斗年增 8%，反映出對中東和世界其他地區重大專案機會的持續關注。事實證明，我們傳統的短週期 MRO 和售後業務相當持久，我們預計這方面的業務將持續成長。

As a result, we believe the macro environment and outlook remains favorable for the full control space. We continue to see positive signals driven by the key global megatrends from energy transition and decarbonization to energy security and regionalization to electrification and digitization. Combined, these current and potential megatrends are attracting significant investments. Flowserve is well positioned to capitalize on these trends and drive further growth.

因此，我們認為宏觀環境和前景仍然有利於全面控制空間。我們繼續看到由能源轉型和脫碳、能源安全、區域化、電氣化和數位化等全球主要大趨勢所驅動的正面訊號。結合起來，這些當前和潛在的大趨勢正在吸引大量投資。Flowserve 處於有利位置，可利用這些趨勢並推動進一步成長。

In the second quarter, we grew our backlog sequentially by over $70 million to $2.7 billion, positioning us for continued revenue growth. We expect our full year book-to-bill ratio in 2024 will exceed 1.0x and we are off to a good start to the first half of the year with a book-to-bill ratio of 1.02x.

第二季度，我們的積壓訂單季增了 7,000 萬美元以上，達到 27 億美元，為我們的營收持續成長奠定了基礎。我們預計 2024 年全年訂單出貨比將超過 1.0 倍，上半年訂單出貨比達到 1.02 倍，開了個好頭。

Combining our solid performance for the first half of the year with expectations for continued improvement, we have increased our full year adjusted EPS guidance range for the second time this year to $2.60 to $2.75, which at the midpoint represents a nearly 27% increase year-over-year.

結合我們上半年的穩健業績和持續改善的預期，我們今年第二次將全年調整後每股收益指導範圍提高至 2.60 美元至 2.75 美元，這意味著今年增長了近 27%。

We are making significant progress at Flowserve, and we believe we are well on our way to achieving the 2027 financial targets that we communicated at last year's investor event.

Flowserve 正在取得重大進展，我們相信我們正在順利實現我們在去年投資者活動中傳達的 2027 年財務目標。

I will now turn the call over to Amy to address our second quarter results in greater detail. Amy?

我現在將把電話轉給艾米，更詳細地討論我們第二季的業績。艾米？

Thanks, Scott, and good morning, everyone. Looking at our financial results in more detail. We generated another quarter of strong sales, nearly $1.2 billion, which combined with improved margins, delivered adjusted earnings per share of $0.73, a 40% increase versus last year. I want to echo Scott in thanking our associates for their continued efforts and execution, which were instrumental in driving both top and bottom line growth during the quarter.

謝謝斯科特，大家早安。更詳細地了解我們的財務表現。我們又一個季度實現了強勁的銷售額，接近 12 億美元，加上利潤率的提高，調整後每股收益達到 0.73 美元，比去年增長 40%。我想與斯科特一樣，感謝我們的員工的持續努力和執行力，這對於推動本季營收和利潤的成長發揮了重要作用。

Our support of end markets, robust asset utilization by our customers and focused efforts from our sales team led to record quarterly aftermarket bookings of $614 million. Coupled with strong revenue conversion, our operational excellence led margin improvement initiatives and ongoing cost discipline, we generated adjusted operating margins of 12.5%, which represented year-over-year and sequential improvement of 210 basis points and 160 basis points, respectively.

我們對終端市場的支持、客戶強勁的資產利用率以及銷售團隊的專注努力，導致季度售後市場預訂額達到創紀錄的 6.14 億美元。加上強勁的收入轉換、我們卓越的營運帶動了利潤率改善計劃和持續的成本控制，我們的調整後營運利潤率為 12.5%，同比和環比分別提高了 210 個基點和 160 個基點。

With $0.18 of net adjusted items, our reported earnings per share was $0.55. The largest adjusted item was realignment expense, and it was primarily related to our divestiture of the NAF AB control valve business, which principally serves the pulp and paper market. The largely non-cash charge from the divestiture was $13 million or over half the total adjusted amount.

調整後淨額為 0.18 美元，我們報告的每股收益為 0.55 美元。最大的調整項目是調整費用，主要與我們剝離 NAF AB 控制閥業務有關，該業務主要服務於紙漿和造紙市場。此次剝離產生的大部分非現金費用為 1,300 萬美元，即調整後總金額的一半以上。

The NAF business had modest and cyclical annual revenues and was breakeven at best. This transaction is indicative of how we are optimizing the portfolio by proactively taking action with respect to end markets and products dilutive to the overall business and it's just one example of how we intend to drive further margin improvement across our business.

NAF 業務的年收入適中且具有週期性，充其量只能達到收支平衡。這項交易顯示我們如何透過針對最終市場和稀釋整體業務的產品積極採取行動來優化投資組合，這只是我們打算如何進一步推動整個業務利潤率提高的一個例子。

On the strength of our first half results, combined with opportunities we see ahead for the rest of the year, we are narrowing and increasing our full year adjusted earnings guidance range to $2.60 to $2.75 per share. At the new midpoint, this would represent a 27% increase compared to last year's adjusted EPS. To provide context to the phasing of guidance for the balance of the year, we still expect a stronger second half of this year compared to the $1.31 of adjusted EPS we delivered through June 30.

憑藉我們上半年業績的強勁表現，再加上我們在今年剩餘時間裡看到的機遇，我們正在縮小並提高全年調整後盈利指導範圍至每股 2.60 美元至 2.75 美元。按照新的中點計算，這將比去年​​調整後的每股收益成長 27%。為了為今年剩餘時間的分階段指引提供背景，我們仍然預計今年下半年的業績將比我們截至 6 月 30 日交付的調整後每股收益 1.31 美元更強勁。

Over the past several quarters, we have highlighted steps taken to smooth the quarterly seasonality of our business. And looking ahead, we do expect less differentiation in 2024 than in past years. As you can calculate from our full year revenue guidance, we do expect our year-over-year growth rates to moderate in the second half as we encounter tougher comps.

在過去的幾個季度中，我們強調了為平滑業務季度季節性而採取的措施。展望未來，我們預期 2024 年的差異化程度將低於過去幾年。正如您可以從我們的全年收入指引中計算出來的那樣，我們確實預計，隨著我們遇到更嚴峻的競爭，我們的年成長率將在下半年放緩。

Additionally, while we typically don't provide quantitative EPS, I will say that the third quarter should look operationally very similar to our solid second quarter performance.

此外，雖然我們通常不提供定量的每股收益，但我想說，第三季的營運情況應該與我們穩健的第二季業績非常相似。

Our third quarter results could be impacted by the annual true-up of certain incurred but not recognized liabilities. We are considering the next-gen purchase announced last week to be akin to M&A, and we will exclude the Q3 related expenses from adjusted EPS. We continue to expect our fourth quarter to be our best performing quarter.

我們第三季的業績可能會受到某些已發生但未確認負債的年度調整的影響。我們正在考慮上周宣布的下一代收購類似於併購，我們將從調整後的每股盈餘中排除第三季的相關費用。我們仍然預計第四季將是我們表現最好的季度。

Let me now turn to the second quarter in greater detail. Our 7% year-over-year revenue increase was comprised of FCD's and FPD's growth rates of 9% and 6%, respectively. The increase was also driven by both our original equipment and aftermarket activities, with revenue increases of 9% and 5%, respectively. All regions also contributed to the top line improvement with notable year-over-year percentage improvements in Latin America, the Middle East and Africa and Europe of 13%, 11% and 7%, respectively.

現在讓我更詳細地談談第二季。我們的營收年增 7%，其中 FCD 和 FPD 的成長率分別為 9% 和 6%。這一增長也受到我們的原始設備和售後市場活動的推動，收入分別增長了 9% 和 5%。所有地區都對收入成長做出了貢獻，拉丁美洲、中東、非洲和歐洲的年比百分比顯著提高，分別為 13%、11% 和 7%。

Shifting to margins. We generated adjusted gross margins of 32.3%, representing a 200 basis point increase year-over-year and 60 basis points sequentially. As Scott mentioned, our improvement was largely driven by our operational excellence program, solid execution and top line leverage. We expect this, in combination with our product management efforts will expand margins even further as we progress towards our 2027 target level.

轉向邊緣。我們的調整後毛利率為 32.3%，較去年成長 200 個基點，較上季成長 60 個基點。正如史考特所提到的，我們的進步很大程度上是由我們的卓越營運計劃、紮實的執行力和頂線槓桿所推動的。我們預計，隨著我們朝著 2027 年的目標水準邁進，這一點與我們的產品管理工作相結合將進一步擴大利潤率。

By segment, FPD's adjusted gross margin of 32.9% was a 300 basis point year-over-year improvement. This progress is encouraging, especially considering a nearly 6% increase in generally lower-margin original equipment revenue. FCD also improved their adjusted gross margin to 30.6%, a sequential improvement of 140 basis points.

以細分市場劃分，FPD 調整後毛利率為 32.9%，較去年同期提高 300 個基點。這項進展令人鼓舞，特別是考慮到利潤普遍較低的原始設備收入成長了近 6%。FCD 調整後毛利率也提高至 30.6%，較上季提高 140 個基點。

For the first half of the year, FCD's gross margin was impacted by product mix. So we are pleased to see the quarter-over-quarter improvement. We believe FCD's margins will improve substantially in the second half of the year due to improved product mix and more effective demand planning at facilities.

上半年，FCD的毛利率受到產品結構的影響。因此，我們很高興看到季度環比的改善。我們相信，由於產品組合的改善和工廠更有效的需求規劃，FCD 的利潤率將在今年下半年大幅提高。

On a reported basis, second quarter consolidated gross margins increased by 170 basis points to 31.6%, despite net adjusted items within cost of sales increasing by $2.6 billion versus prior year. Second quarter SG&A increased $17 million year-over-year to $236 million. Despite this dollar increase, adjusted SG&A as a percent of sales was up modestly 20 basis points to 20.4% driven by solid top line growth during the quarter and our ongoing cost discipline actions.

根據報告，第二季綜合毛利率成長 170 個基點，達到 31.6%，儘管銷售成本中的淨調整項目比去年同期增加了 26 億美元。第二季 SG&A 較去年同期增加 1,700 萬美元，達到 2.36 億美元。儘管美元有所增長，但由於本季營收穩健成長以及我們持續的成本紀律行動，調整後的銷售及管理費用佔銷售額的百分比小幅上升了 20 個基點，達到 20.4%。

On a reported basis, second quarter SG&A increased by about $9 million, primarily due to a lower level of adjusted items. At 20.6% of sales, SG&A actually decreased by 70 points versus the comparable period. Our adjusted operating income in the quarter was $144 million, an increase of nearly $32 million year-over-year. Our robust adjusted operating margin of 12.5% was a 210 basis point expansion and delivered an exceptional incremental margin exceeding 41% year-over-year.

根據報告，第二季 SG&A 增加約 900 萬美元，主要是由於調整專案水準較低。SG&A 佔銷售額的 20.6%，實際上比同期下降了 70 個百分點。本季調整後營業收入為 1.44 億美元，年增近 3,200 萬美元。我們強勁的調整後營業利潤率為 12.5%，成長了 210 個基點，並實現了同比超過 41% 的非凡增量利潤。

As we indicated earlier in the year, we expect our 2024 performance to be a margin-first story, driven by improvements from our new operating model and discrete actions we're taking, combined with revenue leverage. We expect that as we continue to perform, we will be well positioned to achieve our 2027 adjusted operating margin target of 14% to 16%.

正如我們今年稍早表示的那樣，我們預計 2024 年的業績將是利潤第一的故事，這得益於我們新的營運模式和我們正在採取的離散行動的改進，再加上收入槓桿。我們預計，隨著我們繼續表現，我們將有能力實現 2027 年調整後營業利潤率 14% 至 16% 的目標。

By segment, FPD delivered a very strong adjusted operating margin of 16.9%, representing a 370 basis points and 200 basis points year-over-year and sequential improvement, respectively.

按細分市場劃分，FPD 的調整後營業利潤率為 16.9%，年比和季比分別提高 370 個基點和 200 個基點。

FCD also increased its adjusted operating margin to 13.4%, which was up 230 basis points on a sequential basis. We also expect to see continued adjusted operating margin expansion in FCD during the second half of the year, primarily as a result of higher gross margins from operational efficiencies.

FCD 也將其調整後營業利潤率提高至 13.4%，較上季上升 230 個基點。我們也預計，FCD 下半年調整後的營業利潤率將繼續擴大，這主要是由於營運效率提高了毛利率。

On a reported basis, second quarter operating margins increased 160 basis points year-over-year to 10.5%, driven by our operating leverage and higher realized margins, despite the $7 million increase in adjusted items.

根據報告，儘管調整項目增加了 700 萬美元，但在我們的營運槓桿和更高的已實現利潤率的推動下，第二季度營運利潤率同比增長 160 個基點，達到 10.5%。

Our second quarter adjusted and reported tax rates were approximately 21.3% and 23.8%, respectively. This quarter's reported tax rate was elevated considering the loss on sale of NASS and no associated tax benefit. We now expect the full year 2024 adjusted tax rate of around 21% higher than a year ago when we saw the release of discrete valuation allowances in certain jurisdictions.

我們第二季的調整後稅率和報告稅率分別約為 21.3% 和 23.8%。考慮到 NASS 的銷售損失以及沒有相關的稅收優惠，本季報告的稅率有所提高。我們現在預計 2024 年全年調整後稅率將比一年前高出 21% 左右，當時我們看到某些司法管轄區發布了離散估值補貼。

Turning now to cash flow. After six consecutive quarters of consistent cash generation from operations, the second quarter was an operating cash use of $13 million, driven by working capital requirements, primarily in accounts receivable and accrued liabilities.

現在轉向現金流。在連續六個季度持續從營運中產生現金之後，第二季的營運現金使用量為 1,300 萬美元，這主要是由營運資金需求（主要是應收帳款和應計負債）推動的。

Our receivables increased as a result of the timing of this quarter's strong revenue performance, which was partially offset by an over $27 million sequential reduction in inventory, including net contract assets. Additionally, as expected and in line with previous practice, we paid our 2023 performance based incentive compensation this quarter impacting the accrued liabilities account.

由於本季營收表現強勁，我們的應收帳款有所增加，但庫存（包括淨合約資產）連續減少超過 2,700 萬美元，部分抵銷了這一成長。此外，如預期並符合先前的做法，我們在本季支付了 2023 年基於績效的激勵薪酬，這影響了應計負債帳戶。

As a percent of sales, we saw our second quarter adjusted primary working capital become more efficient and decreased by 260 basis points year-over-year, as the 7% top line growth outpaced the 4% increase in our adjusted primary working capital accounts.

從佔銷售額的百分比來看，我們看到第二季調整後的主要營運資金變得更加高效，年比下降了260 個基點，因為7% 的營收成長超過了調整後的主要營運資金帳戶4 % 的增幅。

On a sequential basis, this ratio increased a modest 90 basis points to 29.3%. For the remainder of the year, we expect our cash generation generated from operations to accelerate. As such, we anticipate our free cash flow generation to adjusted net income conversion rate of around 80% or more for the full year.

環比來看，這比率小幅上升 90 個基點，達到 29.3%。在今年剩餘時間內，我們預計營運產生的現金將加速成長。因此，我們預計全年自由現金流產生的調整後淨利轉換率約為 80% 或更高。

Other uses of cash during the quarter included $71 million for dividends, capital expenditures and a term loan reduction and share repurchases. Through the first half of the year, we repurchased about 340,000 shares of our common stock for a little over $60 million in addition to returning $55 million in dividends to shareholders. As we execute our capital allocation commitments we announced last fall.

本季的其他現金用途包括 7,100 萬美元用於股息、資本支出以及定期貸款減少和股票回購。今年上半年，我們以略高於 6,000 萬美元的價格回購了約 34 萬股普通股，此外還向股東返還了 5,500 萬美元的股息。當我們執行去年秋天宣布的資本配置承諾。

As I referenced earlier, last week, we announced the acquisition of in-process LNG pump technology, which we believe will further accelerate our 3D strategy. This transaction exemplifies our capital allocation approach.

正如我早些時候提到的，上週我們宣布收購過程中液化天然氣泵技術，我們相信這將進一步加速我們的 3D 策略。此次交易體現了我們的資本配置方法。

Our inorganic pipeline is robust, and we remain interested in targets that will drive long-term returns and enhance our 3D strategy. We will remain disciplined with our capital allocation, and we believe our framework will guide us to direct our investment dollars to the highest return and long-term returns for our shareholders.

我們的無機管道很強大，我們仍然對能夠推動長期回報並增強我們的 3D 策略的目標感興趣。我們將繼續嚴格控制資本配置，我們相信我們的框架將指導我們將投資資金用於為股東帶來最高回報和長期回報。

In summary, while we are proud of the results we delivered this quarter and through the first half of the year, we continue to see opportunities to expand margins and earnings during the rest of the year. We also remain confident in our progress and ability to achieve our 2027 goals.

總之，雖然我們對本季和上半年的業績感到自豪，但我們仍然看到在今年剩餘時間內擴大利潤和收益的機會。我們對實現 2027 年目標的進展和能力仍然充滿信心。

Let me now return the call to Scott.

現在讓我回電給史考特。

Great. Thank you, Amy. I would now like to provide an update on our R&D activities across the LNG and hydrogen end markets that support our decarbonization growth strategy. In the third quarter of 2022, we acquired Chart Industries in-process hydrogen distribution pumping technology. We were able to commercialize the technology last year, and we are now receiving ongoing orders for the pumps. Our technology enables safe and reliable hydrogen fueling.

偉大的。謝謝你，艾米。我現在想介紹一下我們在液化天然氣和氫氣終端市場上支持我們脫碳成長策略的研發活動的最新情況。2022 年第三季度，我們收購了 Chart Industries 的製程氫氣分配泵送技術。我們去年將該技術商業化，現在我們正在不斷收到泵的訂單。我們的技術可實現安全可靠的加氫。

In the second quarter, we booked $7.5 million related to the construction of 10 new fueling stations in the United States. We're excited about the opportunity to support the expansion of this green fuel source. Additionally, we believe the technology that we developed for hydrogen fueling can be used in other cryogenic gas applications.

第二季度，我們預訂了 750 萬美元，用於在美國建造 10 個新加油站。我們很高興有機會支持這種綠色燃料來源的擴張。此外，我們相信我們開發的氫燃料技術可以用於其他低溫氣體應用。

Last week, we announced the purchase of in-process R&D for submerged cryogenic pumps for liquid natural gas from a start-up company called NextGen Cryogenic Solutions. Flowserve has a significant presence in LNG across our pump, valve and mechanical seal portfolio, but we were missing the submerged cryogenic pump offering, which sits at the heart of the liquefaction and regasification processes.

上週，我們宣布從一家名為 NextGen Cryogenic Solutions 的新創公司購買液態天然氣液下低溫泵的研發過程中的產品。福斯在液化天然氣領域的泵浦、閥門和機械密封產品組合中佔有重要地位，但我們缺少液下低溫泵浦產品，它是液化和再氣化過程的核心。

This acquisition from NextGen fills this gap with differentiated technology in a technically difficult space. We expect to fully commercialize our first variation of these pumps in the second half of the year, and we expect to generate bookings in 2025. We remain excited about the growth of LNG and we believe we will capture additional market share with a more comprehensive suite of pump products.

此次對 NextGen 的收購透過在技術困難的領域提供差異化技術填補了這一空白。我們預計將在今年下半年將這些幫浦的第一個版本完全商業化，並預計在 2025 年產生預訂。我們對液化天然氣的成長仍然感到興奮，我們相信我們將透過更全面的泵浦產品套件獲得更多的市場份額。

In summary, we have made great progress to enhance our product portfolio through small technology acquisitions that built on our flow control competence and domain expertise. Diversification also remains an important part of the 3D strategy, and we continue to drive growth through enhanced focus, improved channel strategy and new product development. Our diversified bookings grew sequentially again in the second quarter, and we continue to apply our portfolio into end markets that present an above-average growth profile.

總之，透過基於我們的流量控制能力和領域專業知識的小型技術收購，我們在增強我們的產品組合方面取得了巨大進展。多元化仍然是 3D 策略的重要組成部分，我們繼續透過加強重點、改善通路策略和新產品開發來推動成長。我們的多元化預訂量在第二季度再次環比增長，我們繼續將我們的投資組合應用於呈現高於平均增長狀況的終端市場。

During the quarter, we were awarded a contract from a major global chemical company to supply pumps and valves in the construction of a new commercial scale molecular recycling facility in Germany. This facility will convert over 50,000 tons of plastic waste annually into new polymers for use as feedstock into food safety, healthcare and other diverse industries.

本季度，我們獲得了一家全球大型化學公司的合同，為在德國建設一座新的商業規模的分子回收設施提供泵和閥門。該工廠每年將超過 50,000 噸塑膠廢物轉化為新聚合物，用作食品安全、醫療保健和其他不同行業的原料。

Lastly, on digitize, our ability to instrument our products with our Red Raven IoT offering positions Flowserve to provide true solutions for our customers through monitoring and predictive analytics, but also ensuring that we are in the best position possible to provide aftermarket services and solutions for these customers.

最後，在數位化方面，我們能夠使用Red Raven IoT 產品來檢測我們的產品，這使得Flowserve 能夠透過監控和預測分析為我們的客戶提供真正的解決方案，同時也確保我們處於最佳位置，為客戶提供售後服務和解決方案。

In the second quarter, Red Raven helped one of our customers save millions of dollars by minimizing production downtime. Our predictive analytics notified our customer of an unstable operating condition in their process and advise them to promptly modify the dry vacuum system operating parameters.

在第二季度，Red Raven 透過最大程度地減少生產停機時間，幫助我們的一位客戶節省了數百萬美元。我們的預測分析通知客戶其製程中存在不穩定的運作狀況，並建議他們立即修改乾真空系統運作參數。

As a result, we were able to help our customers avoid significant unplanned downtime that would have cost an estimated $1 million per day in lost revenue. Examples like this increasingly demonstrate the value of our digital capabilities and the possibility of providing solutions to drive flow loop optimization. The Flowserve dry vacuum pump offering is now available and ready to be shipped Red Raven compatible.

因此，我們能夠幫助客戶避免嚴重的非計劃性停機，預計每天會造成 100 萬美元的收入損失。這樣的例子越來越多地展示了我們數位能力的價值以及提供驅動流程循環優化解決方案的可能性。福斯乾式真空幫浦產品現已上市，並準備好與 Red Raven 相容。

In conclusion, Flowserve is well positioned for another strong year of financial and operating performance, which supports our second increase to our full year 2024 adjusted EPS guidance. We are confident in the macro backdrop of our served industries as well as in our ability to capture both the run rate business and large project orders under our disciplined bidding approach.

總之，福斯已做好充分準備，迎接又一個強勁的財務和營運業績年，這支持我們第二次上調 2024 年全年調整後每股收益指引。我們對我們所服務行業的宏觀背景以及我們透過嚴格的招標方式獲取運行率業務和大型項目訂單的能力充滿信心。

We are executing well, and we are excited by the opportunities ahead of us. We are confident in our ability to deliver at least 200 basis points of full year operating margin improvement in 2024 versus the prior year, primarily through our operational excellence efforts as well as the early benefits from our product excellence program.

我們執行得很好，我們對眼前的機會感到興奮。我們有信心在 2024 年全年營業利潤率比上一年提高至少 200 個基點，這主要是透過我們卓越營運的努力以及我們卓越產品計劃的早期效益。

Lastly, we believe we are ahead on the journey to our long-term goals that we communicated at our September Analyst Day last year. Our near-term focus is to further build upon our operational momentum and continue to enhance our margins with operational and product excellence initiatives. We remain committed to our 3D strategy to deliver growth and catalyze on the macro drivers that exist today.

最後，我們相信我們在實現去年 9 月分析師日傳達的長期目標的道路上取得了進展。我們近期的重點是進一步鞏固我們的營運勢頭，並透過卓越營運和產品計劃繼續提高我們的利潤率。我們仍然致力於我們的 3D 策略，以實現成長並促進當今存在的宏觀驅動因素。

We are pleased with our progress in the first half of the year, confident in our ability to build upon the success and are increasingly optimistic about our outlook. We remain committed to further capitalizing on the growth opportunities in the market today, and into the future that will deliver long-term value creation for our customers, our associates and our shareholders.

我們對上半年的進展感到高興，對我們在成功的基礎上再接再厲的能力充滿信心，並對我們的前景越來越樂觀。我們仍然致力於進一步利用當今市場和未來的成長機會，為我們的客戶、員工和股東創造長期價值。

Operator, this concludes our prepared remarks, and we would now like to open the call to questions.

接線員，我們準備好的發言到此結束，現在我們開始提問。

(Operator Instructions)

（操作員說明）

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Let me just talk through the thought process in the second half of the year here and what it means for next year. So certainly understanding these comments that you've been talking about the last few quarters about how the seasonality is a little bit more level relative to history. Could you just give some more context there? And then more specifically, talk to some of the margin moves. It feels like there's some conservatism embedded in the margins in the back half, but I want to make sure I understand how the mix is moving around between aftermarket OE or any other variables that might hit that?

我在這裡簡單說一下下半年的想法以及對明年的意義。因此，當然可以理解您在過去幾個季度一直在談論的這些評論，即季節性相對於歷史水平如何更高。您能否提供更多背景資訊？然後更具體地說，談談一些保證金變動。感覺後半部分的利潤中嵌入了一些保守主義，但我想確保我了解售後 OE 或任何其他可能影響這一點的變數之間的組合是如何變化的？

Sure. I'll let Amy start and then I'll probably add a few comments. Go ahead, Amy.

當然。我會讓艾米開始，然後我可能會添加一些評論。繼續吧，艾米。

Sure. I'll start with revenue. And I think as we've entered into 2024, we are coming off a year with really strong revenue growth. We knew that this was going to be a year about margin expansion rather than outsized revenue growth. And so you're seeing that play out in 2024. The first and second quarter up against easier comps, I would say, are supporting really nice revenue growth, and we'll see that moderate in the back half of the year.

當然。我將從收入開始。我認為，隨著我們進入 2024 年，我們將迎來收入成長非常強勁的一年。我們知道，今年將是利潤率擴張而不是收入大幅成長的一年。所以你會在 2024 年看到這種情況的發生。我想說，第一季和第二季相對於更容易的比較，正在支持非常好的收入成長，我們將在今年下半年看到這種溫和的成長。

As we think about how this plays out into 2025. These large projects that we booked in Q2 are really going to be a 2025 revenue story versus a 2024. And so although we see those growth rates moderating, we think that we are building the type of backlog that positions us well going into 2025.

當我們思考 2025 年情況會如何發展。我們在第二季預訂的這些大型專案實際上將是 2025 年的收入故事，而不是 2024 年的收入故事。因此，儘管我們看到這些成長率正在放緩，但我們認為我們正在建立一種積壓訂單類型，使我們能夠在 2025 年順利進入。

And then I'll just comment overall that the internal messaging and push is really around leaning into growth in the second half of the year. So continuing to do what we've done, particularly around those higher-margin pieces of the business and you see that coming through in our aftermarket bookings in the second quarter at the level above $610 million.

然後我會總體評論一下，內部訊息傳遞和推動實際上是圍繞下半年的成長進行的。因此，繼續做我們已經做的事情，特別是圍繞那些利潤率較高的業務部分，你會看到我們第二季的售後市場預訂量超過 6.1 億美元。

From a margin expansion perspective, we're really pleased with how we've moved through the second half of the -- or the first half of the year. And I'll comment specifically on FPD, which we really thought had an outstanding quarter from a margin expansion perspective. There was nothing special in there, Mike, but it was a well-executed quarter.

從利潤率擴張的角度來看，我們對今年下半年或上半年的表現感到非常滿意。我將具體評論 FPD，從利潤擴張的角度來看，我們確實認為該季度表現出色。麥克，那裡沒有什麼特別的，但這是一個執行良好的季度。

So we saw mix shifting slightly favorably for us with the ability to drive aftermarket revenue slightly higher than we expected based on the strength of those bookings. And then our project revenue actually shifted a bit towards higher-margin projects that we see.

因此，我們看到組合的變化對我們來說略有有利，有能力推動售後市場收入略高於我們基於這些預訂的強勁預期。然後我們的專案收入實際上有點轉向我們看到的利潤率較高的專案。

So although I don't want to call that 16.9% operating margin as the new normal, I think you will definitely see Q1 margins as the low watermark. And so I would expect for the rest of the year that we'll deliver at sort of a 15.5% operating margins or better in the back half of the year, as we continue to really lean into operational excellence and growing the profitable pieces of that business within FPD.

因此，儘管我不想將 16.9% 的營業利潤率稱為新常態，但我認為您肯定會將第一季利潤率視為低水位。因此，我預計今年下半年我們的營業利潤率將達到 15.5% 或更高，因為我們將繼續真正致力於卓越營運並增加其中的盈利部分FPD 內的業務。

From an FCD perspective, we performed a little bit better than we thought we would in the second quarter of this year and that was driven in part by operational execution. It was driven in part by a slightly more favorable mix than we anticipated with more services and solutions revenue in the quarter than we'd expected when we began.

從 FCD 的角度來看，今年第二季我們的表現比我們想像的要好一些，這在一定程度上是由營運執行所推動的。這在一定程度上是由於比我們預期稍微有利的組合推動的，本季度的服務和解決方案收入比我們開始時的預期要多。

That said, we still see room for further margin expansion in the back half of the year. That's driven partially by mix and more sort of automation and control valve type work, less project type work. But more importantly, by operational efficiencies we see coming through in the back half of the year. So bottom line margins this year are progressing nicely. The 12.5% that we saw this quarter was very strong, but we see the opportunity, as we've indicated to grow operating margins by 150 basis points or more in 2024.

儘管如此，我們仍認為下半年利潤率還有進一步擴大的空間。這部分是由混合和更多類型的自動化和控制閥類型的工作驅動的，更少的項目類型的工作。但更重要的是，從營運效率來看，我們預計將在今年下半年實現。因此，今年的利潤率進展順利。本季我們看到的 12.5% 非常強勁，但我們看到了機會，因為我們已表示 2024 年營業利潤率將成長 150 個基點或更多。

And then maybe the only thing I'll add would be that we've worked really hard to minimize the variability between Q1 and Q4. The last two years, we've come out really strong in the first quarter of the year, including this year. And so that seasonality will still play out. The Q1 will be the lowest of the year for us. Q4 will still be the highest. But the variability between those quarters will be much smaller and we'll continue to work to close that gap.

然後，也許我要補充的唯一一件事是，我們非常努力地工作以盡量減少第一季和第四季之間的變異性。過去兩年，我們在今年第一季表現非常強勁，包括今年。因此季節性仍將發揮作用。第一季對我們來說將是今年最低的。第四季仍將是最高的。但這些季度之間的差異將會小得多，我們將繼續努力縮小這一差距。

So second question, Scott, you were talking about a more formal product line review launch, so a couple of questions related to that. One, was that embedded in the expectations you laid out at the Analyst Day? And two, maybe just a little bit more color, and I know you only launched on one, you're broadening it out. But a little more color on what you're seeing or early feedback of what the magnitude of the opportunity might look like and how that could be prioritize your time and capital internally?

第二個問題，史考特，你正在談論更正式的產品線審查啟動，所以有幾個與此相關的問題。第一，這是否包含在您在分析師日提出的預期中？還有兩種，也許只是多一點顏色，我知道你只推出了一種，你正在擴大它的範圍。但是，對您所看到的內容或關於機會的大小的早期反饋以及如何在內部優先考慮您的時間和資本？

Yes, absolutely. And so at the Analyst Day, we laid out kind of two big growth levers. One was operational excellence, where we committed 100 basis points to 200 basis points improvement and I'll just start there. That's gone incredibly well. We're seeing that in the results this year and we continue to see further upside to operational excellence.

是的，絕對是。因此，在分析師日，我們提出了兩大成長槓桿。一是卓越運營，我們承諾改進 100 個基點到 200 個基點，我將從這裡開始。一切進展得非常順利。我們在今年的業績中看到了這一點，並且我們繼續看到卓越營運的進一步優勢。

And then on the product excellence, we also committed to 100 basis points to 200 basis points of margin improvement. And within product excellence, we talked about two categories. One was product management and one was portfolio optimization.

然後在產品卓越方面，我們也承諾將利潤率提高100個基點到200個基點。在卓越產品中，我們討論了兩個類別。一是產品管理，一是投資組合優化。

And so last year, at the beginning of the year, when we did our reorganization, we recommitted I will say, to really driving product excellence with a dedicated product management organization. And so that essentially unlock this capability to really review our product families and product portfolios in a much more robust fashion within each of the seven business units.

因此，去年年初，當我們進行重組時，我會說，我們再次承諾，透過專門的產品管理組織真正推動產品卓越。因此，這基本上釋放了這種能力，可以在七個業務部門中以更強大的方式真正審查我們的產品系列和產品組合。

And so the exercise that we kicked off at the beginning of this year in the first business unit is really on the product optimization. And so looking at the different product families within a business unit, understanding what we really like from a margin standpoint, a product SKU standpoint and a customer standpoint, and then taking decisive actions to either invest in products, move products out, raise prices and do all the things that we need to do to maximize the ability to generate value within those product families.

因此，我們今年年初在第一個業務部門啟動的工作實際上是關於產品優化的。因此，審視業務部門內的不同產品系列，從利潤角度、產品 SKU 角度和客戶角度了解我們真正喜歡什麼，然後採取果斷行動，要么投資產品、將產品移出、提高價格，做我們需要做的所有事情，以最大限度地提高這些產品系列中創造價值的能力。

And so the first business unit has been kind of in flight now for about four to five months. We've got clear visibility to the actions and margin improvement and what I'm really excited about is we believe we can move the margins up while continuing to drive focus on growth. And so we don't think we compromise growth with this program, but drive margins up substantially.

因此，第一個業務部門現在已經運作了大約四到五個月。我們對行動和利潤率改善有清晰的了解，我真正興奮的是我們相信我們可以在繼續關注成長的同時提高利潤率。因此，我們認為該計劃不會影響成長，而是會大幅提高利潤率。

And so we've got one business unit in flight. We'll launch the second business unit. We've already done all of the data analysis. We'll launch that next month in terms of starting to develop that action plan. And then we've got the third business unit going in flight by the end of the year.

因此，我們有一個正在運作的業務部門。我們將推出第二個業務部門。我們已經完成了所有的數據分析。我們將在下個月開始製定行動計畫。然後我們的第三個業務部門將在今年年底投入使用。

So in summary, we're excited about product excellence. We're still committed to 100 basis points and 200 basis points from the product excellence initiative. And I would say we haven't really seen the benefit of that year-to-date. And so that starts to show up at the end of this year but more predominantly into 2025. And then ultimately, that will continue into 2026 as well.

總而言之，我們對卓越的產品感到興奮。我們仍然致力於產品卓越計劃的 100 個基點和 200 個基點。我想說的是，我們還沒有真正看到今年迄今為止的好處。因此，這種情況將在今年年底開始顯現，但更主要的是 2025 年。最終，這種情況也將持續到 2026 年。

(Operator Instructions)

（操作員說明）

Joe Giordano, TD Cowen.

喬·佐丹奴，TD·考恩。

Can you talk about like where the jumping off point from 4Q, right? So the margins of 4Q would be your best quarter. You talked about compressing this. So this -- how do you see that as like compared to it early and early thoughts on margin for '25? It's been a pretty big jump down each year. It's getting less, but like I just want to like bring this appropriately for people as we kind of set new expectations from here?

能談談 4Q 的出發點嗎？因此，第四季度的利潤率將是您最好的季度。你談到了壓縮這個。那麼，與 25 年早期關於利潤率的想法相比，您如何看待這一點？每年都有相當大的跳躍。它越來越少了，但就像我只是想把它適當地帶給人們，因為我們從這裡設定了新的期望？

Yes. So I think, Joe, as we look at finishing up 2024 and kind of moving into 2025, we're going to be focused on the things that we've been focused on the last two years. So really minimizing that differential between Q4 and Q1 and using that exit rate from an OI perspective to really drive performance in that coming year. That said, I don't think that we've fully solved the seasonality issue, particularly as a business that's looking to grow revenue. So I think that we'll continue to see the first quarter of the year.

是的。所以我認為，喬，當我們展望 2024 年的結束並進入 2025 年時，我們將專注於過去兩年一直在關注的事情。因此，真正最小化第四季度和第一季之間的差異，並從 OI 角度使用退出率來真正推動來年的業績。也就是說，我認為我們還沒有完全解決季節性問題，特別是作為一家尋求增加收入的企業。所以我認為我們將繼續看到今年第一季的情況。

We are lightest from both a revenue and an earnings perspective, as we move forward. But as we look at the phasing of some of these larger projects, we'll continue to focus on how do we manage that top line revenue in a way that really maximizes earnings, but also helps us on our working capital journey as well, which the more steady levels of revenue certainly helps with.

隨著我們的前進，從收入和利潤的角度來看，我們都是最輕的。但是，當我們考慮其中一些較大項目的分階段時，我們將繼續關注如何以真正實現收益最大化的方式管理頂線收入，同時也幫助我們進行營運資金之旅，這更穩定的收入水平肯定會有所幫助。

So I will just add, we're on this progression to the targets we laid out in -- for 2027 last year at the Analyst Day. And so everything we're doing is geared to driving towards the 14% to 16%. We made great progress this year. And so I'd say, while first quarter next year will come down slightly the full year, we should see another substantial step toward achieving these targets.

所以我想補充一點，我們正在朝著去年分析師日所製定的 2027 年目標邁進。因此，我們所做的一切都是為了實現 14% 到 16% 的目標。今年我們取得了很大進步。因此，我想說，雖然明年第一季全年業績將略有下降，但我們應該會看到朝著實現這些目標又邁出了實質的一步。

Yes, absolutely. I think Scott's kind of laid out the road map in terms of how we see that with continued work on operational excellence, where we feel like we've done a lot of work and we're seeing it at the gross margin level, but with product excellence, really, really kicking in, in 2025 and providing us an opportunity to expand margins and get us even closer to our long-term target.

是的，絕對是。我認為斯科特就我們如何看待持續卓越運營的工作制定了路線圖，我們覺得我們已經做了很多工作，我們在毛利率水平上看到了它，但隨著到2025 年，卓越的產品將真正發揮作用，為我們提供擴大利潤率、更接近長期目標的機會。

And then it was interesting to see like the targeted divestment there in the quarter. Are there more opportunities for stuff like that? Like how much of your portfolio do you feel like you've analyzed with that sort of lens at this point?

然後有趣的是看到本季有針對性的撤資。類似的事情還有更多機會嗎？您覺得目前您已經用這種視角分析了您的投資組合中有多少？

We're going to continue to look through that. And some of the data analysis that Scott referenced is going to continue to help us do this. This was a relatively easy call for us to make. It allowed us to reduce our footprint, it was dilutive to earnings and it was something that once we found the right buyer it was easy for us to make that call. We're going to continue to look for those opportunities, although this was one that was probably a little bit easier than others might be as we continue to get better at both product management and portfolio optimization.

我們將繼續研究這個問題。斯科特引用的一些數據分析將繼續幫助我們做到這一點。對我們來說，這是一個相對容易的決定。它使我們能夠減少足跡，稀釋收益，一旦我們找到合適的買家，我們就很容易做出決定。我們將繼續尋找這些機會，儘管隨著我們在產品管理和產品組合優化方面不斷進步，這可能比其他機會更容易一些。

(Operator Instructions)

（操作員說明）

Andy Kaplowitz, Citigroup.

安迪‧卡普洛維茨，花旗集團。

Scott, so you mentioned the bookings pipeline for Flowserve is up 8%, I think. So maybe you could elaborate on that pipeline. Do you still see other large projects out there in addition to what you booked last quarter? And then do you think book-to-bill can still average over 1 over the next few quarters or at least in the second half of this year?

Scott，您提到 Flowserve 的預訂管道成長了 8%，我想。所以也許你可以詳細說明該管道。除了上季預訂的項目之外，您還看到其他大型項目嗎？那麼您認為在接下來的幾季或至少在今年下半年，訂單出貨比平均仍能超過 1 嗎？

Sure. Yes. In the prepared remarks, we did say the project funnel is up 8% year-over-year, giving us really good visibility to project work. And when we talk about the project funnel, it really is projects greater than kind of $5 million. And so we're talking about the larger type projects. Q2 obviously was really good. We had three very large projects in there. I don't see another incredibly large kind of near that $100 million mark in the near-term funnel.

當然。是的。在準備好的發言中，我們確實說過專案漏斗年增了 8%，這讓我們對專案工作有了很好的了解。當我們談論專案漏斗時，它實際上是大於 500 萬美元的專案。所以我們談的是較大型的專案。Q2 顯然非常好。我們在那裡有三個非常大的項目。我在短期漏斗中沒有看到另一個接近 1 億美元大關的令人難以置信的大類型。

But we have a long list of opportunities, let's just call it, kind of $25 million to $50 plus million. And where we see those opportunities, we've got primarily Middle East. And so there's still a lot of activity in the Middle East, Saudi, UAE, Qatar. We've got some work that we've got visibility to in Oman, in Kuwait and so there's a substantial build out there of gas processing and then further downstream activities like refining and petrochemical. And so our outlook there is incredibly positive.

但我們有一長串機會，我們就這麼稱呼它吧，大概是 2500 萬美元到 50 美元以上。在我們看到這些機會的地方，主要是中東。因此，中東、沙烏地阿拉伯、阿聯酋、卡達仍然有很多活動。我們在阿曼和科威特開展了一些工作，因此我們在天然氣加工以及煉油和石化等進一步的下游活動方面進行了大量建設。因此，我們的前景非常樂觀。

On the power side, we saw our funnel up 22%. That's on the forward look one year out. And so a lot of that activity is around nuclear. And we've got very strong visibility to nuclear build-out in Europe and parts of North America as well. And so, we're pretty excited about the power outlook.

在電力方面，我們的漏斗成長了 22%。這是一年後的展望。因此，許多活動都是圍繞著核能展開的。我們對歐洲和北美部分地區的核能建設有非常強烈的了解。因此，我們對電力前景感到非常興奮。

And then on the energy transition funnel, it's up 40% year-over-year and kind of that new energy and energy transition for us is the fastest-growing end market. And while the projects aren't in the super large size of kind of greater than $50 million, we do see very robust project activity within energy transition funnel. And so the average size of that would be anywhere between $5 million and $20 million.

然後在能源轉型漏斗中，它比去年同期成長了 40%，對我們來說，新能源和能源轉型是成長最快的終端市場。雖然這些項目的規模並不超過 5000 萬美元，但我們確實看到能源轉型漏斗中的專案活動非常強勁。因此，平均規模在 500 萬美元到 2000 萬美元之間。

So long story short, the funnel is up. We've got good visibility. We believe the full year book-to-bill is greater than one, which implies kind of a second half of the year at over one as well. And I think that given the project outlook in some of the mega trends that we're following, we feel pretty good about certainly, our visibility through the end of the year but into 2025 and 2026 as well.

長話短說，漏斗已經上來了。我們有很好的能見度。我們認為全年訂單出貨比大於 1，這表示下半年也將超過 1。我認為，考慮到我們所關注的一些大趨勢的專案前景，我們對今年年底以及 2025 年和 2026 年的能見度感到非常滿意。

And then can you talk about the return on investment that you expect from the new cryo pump acquisition that you made in LNG, at least versus that $0.05 that you're going to take that you talked about last week in the release, do you see sort of an immediate return in the form potentially more significant wins in LNG, either here in the second half of '24 or '25. How should we think about the returns?

然後您能否談談您對 LNG 領域新的低溫泵收購的預期投資回報，至少與您上週在新聞稿中談到的 0.05 美元相比，您看到了嗎？在液化天然氣領域取得更重大的勝利，無論是在24 年下半年或25 年。我們該如何看待回報？

Yes. I'll talk about kind of our outlook there and then maybe Amy can talk about our returns profile against some of the other acquisitions and things that we look at from a capital allocation standpoint. But on the LNG side, we're very excited about LNG as kind of this transition fuel. It's not going away anytime soon. And with our pumps, valves and mechanical sealing offering, we get all -- we get a front row seat to all of the projects and the aftermarket activity.

是的。我將在那裡談論我們的前景，然後也許艾米可以談論我們相對於其他一些收購的回報情況以及我們從資本配置角度看待的事情。但在液化天然氣方面，我們對液化天然氣作為這種過渡燃料感到非常興奮。它不會很快消失。憑藉我們的泵浦、閥門和機械密封產品，我們得到了一切——我們在所有項目和售後市場活動中佔據了前排席位。

And when we looked at the portfolio of what we can provide within LNG, what we were missing was the submersible cryogenic pump, and it truly is the heart of the process for both the regasification side and the liquefaction side. So this is something that's been on the product development side for years at Flowserve. It's been something that we wanted to do.

當我們審視我們可以在液化天然氣中提供的產品組合時，我們缺少的是潛水式低溫泵，它確實是再氣化側和液化側過程的核心。因此，福斯多年來一直致力於產品開發。這是我們想做的事。

And what we found was kind of a creative path to acquire the in-process R&D or the license and technology of the cryogenic pump. And so we've got some further product development work to do through the end of the year. But we've got a clear path to doing those prototypes and the testing before end of the year and beginning to commercialize the product into next year.

我們發現這是一種獲得低溫泵的正在進行的研發或許可和技術的創造性途徑。因此，到今年年底，我們還有一些進一步的產品開發工作要做。但我們已經有了明確的途徑，可以在年底前完成這些原型和測試，並在明年開始將產品商業化。

We think submersible cryogenic pumps is at least $250 million a year of kind of new equipment, but our pump can also be retrofitted into existing facilities. And so we're actually really excited about the opportunity to put our pump into existing applications that we didn't participate in because we didn't have that product. And so this is something that we can easily see a $50 million a year of kind of revenue, maybe not next year, but certainly into 2026 and 2027 and we're excited about the growth of this product.

我們認為潛水低溫泵是每年至少需要 2.5 億美元的新設備，但我們的泵浦也可以改裝到現有設施中。因此，我們實際上非常興奮有機會將我們的泵投入到我們沒有參與的現有應用中，因為我們沒有該產品。因此，我們可以輕鬆地看到每年 5000 萬美元的收入，也許不是明年，但肯定會持續到 2026 年和 2027 年，我們對該產品的成長感到興奮。

And just from a return standpoint, we would look at this through the lens of likely would any sort of inorganic growth. So does it fit the strategy, which Scott's clearly outlined, is it accretive to margins? We believe it will be. And then are the long-term returns there. The one comment that I would make is something like this that we need to commercialize, we would actually expect slightly -- well, we would expect higher returns than we would on an existing business that may have less risk in terms of that commercialization period.

僅從回報的角度來看，我們會從任何形式的無機成長的角度來看這個問題。那麼它是否符合斯科特明確概述的策略，是否會增加利潤？我們相信會的。然後是長期回報。我要發表的一個評論是，我們需要商業化，我們實際上會稍微期待 - 嗯，我們會期望比現有業務更高的回報，而現有業務在商業化期間的風險可能較小。

So we're really excited about the potential returns that are out there. And in this instance, we are able to finish the acquisition of this in a way that actually sort of limits the risk going forward in terms of commercialization. So something we're very excited about.

因此，我們對潛在的回報感到非常興奮。在這種情況下，我們能夠以一種實際上限制了商業化方面未來風險的方式完成對它的收購。這是我們非常興奮的事情。

And then the last comment that I would make is what we've not included in the economics of a transaction like this is the ability for this product to help us lead pull-through of other Flowserve products into LNG facilities, which is an added benefit, we believe it may provide longer term.

我要說的最後一點是，我們在此類交易的經濟學中沒有考慮到該產品能夠幫助我們將其他福斯產品引入液化天然氣設施，這是一個額外的好處，我們相信它可以提供更長的期限。

Deane Dray, RBC Capital Markets.

迪恩德雷 (Deane Dray)，加拿大皇家銀行資本市場。

Scott, I'm always interested in hearing your take on the composition of the orders in the quarter. You highlighted the three large ones. But just looking deeper into that order book, what's your take in terms of the size and what that means? And then can you also give some color on the record aftermarket, is that the installed base coming through? Or are you doing something extra in terms of getting your access to those aftermarket orders?

史考特，我一直很想聽聽您對本季訂單構成的看法。您突出顯示了三個大的。但只要更深入地研究訂單簿，您對規模的看法是什麼？然後您能否對記錄在案的售後市場進行一些說明，這是安裝基礎嗎？或者您正在做一些額外的事情來獲得這些售後訂單？

Sure. I'll start with projects and then I'll talk about aftermarket and quite frankly, after a market was the highlight. So I'll spend a little more time on that. On the project side, we had three large orders, roughly $200 million across all three of those. They're in the Middle East, mostly around gas processing but also a chemical award.

當然。我將從專案開始，然後坦率地說，在市場成為亮點之後，我將談論售後市場。所以我會花更多的時間在這上面。在項目方面，我們有三筆大訂單，三筆訂單總金額約為 2 億美元。他們位於中東，主要從事天然氣加工，但也涉及化學獎。

And again, we've got incredibly strong connections in the Middle East. We have a strong presence with the ability to make pumps, valves and seals in the Middle East, and then we've got an amazing team that's doing a good job with the end users there.

再說一遍，我們在中東有著非常強大的聯繫。我們在中東擁有強大的影響力，有能力製造泵浦、閥門和密封件，而且我們有一支出色的團隊，與那裡的最終用戶合作得很好。

We've got continued outlook and visibility to projects in the Middle East, and we're confident in our ability to continue to drive that business forward. When you get beyond those three awards, we did have a long list of project awards in kind of the $5 million to $15 million range. We had significant power bookings $70 million plus on the nuclear side. We had a lot of energy transition type work. And so a really nice balance across industries within the project bookings.

我們對中東項目有持續的展望和知名度，我們對繼續推動該業務向前發展的能力充滿信心。當你獲得這三個獎項之外的獎項時，我們確實有一長串項目獎項，金額從 500 萬美元到 1500 萬美元不等。我們在核電方面有超過 7000 萬美元的大量電力預訂。我們有很多能源轉型類型的工作。因此，專案預訂中跨行業的平衡非常好。

But let me turn to aftermarket. We booked $614 million in the quarter. That's the highest level of aftermarket bookings we've ever had. It's the seventh consecutive quarter now over $550 million work. And I'd say there's two big drivers here. One, on the market side. Clearly, high utilizations across where our installed base is, so refining plants -- petrochemical plants, chemical facilities, power facilities, all running at reasonably high utilization levels, which is driving parts and service on our side.

但讓我談談售後市場。本季我們預訂了 6.14 億美元。這是我們有史以來售後市場預訂量最高的一次。這是連續第七個季度的工作量超過 5.5 億美元。我想說這裡有兩個重要的驅動因素。一是在市場方面。顯然，我們的安裝基地的利用率很高，因此煉油廠、石化廠、化工廠、電力設施都以相當高的利用率水準運行，這推動了我們這邊的零件和服務。

There's also some pent-up demand just -- I don't know if it's the COVID side, but just some deferred maintenance that's still coming through the system. And so that's helping us as well. But I'd say the second big driver for us was -- is really on the back of our new ore design last year, where we clearly segmented services and solutions in the pumps division and we segmented in a separate BU within our valve business.

還有一些被壓抑的需求——我不知道是否是新冠疫情的原因，但只是一些仍在通過系統進行的延期維護。這也對我們有幫助。但我想說，對我們來說，第二大驅動因素實際上是去年我們新礦石設計的支持，我們在泵部門明確劃分了服務和解決方案，並在閥門業務內劃分了一個單獨的業務部門。

And so what we've seen by this enhanced focus is our ability to move up our capture rate on our installed base. And so through deliberate actions around quoting quicker, providing shorter lead times being more responsive in general, the mantra, quite frankly, is speed wins in our aftermarket business and so what we're seeing is our capture rates continue to move up within the aftermarket business.

因此，透過這種增強的關注，我們看到我們有能力提高我們的安裝基礎的捕獲率。因此，透過圍繞更快報價、提供更短的交貨時間、總體上更具響應性的刻意行動，坦白說，我們的售後市場業務的口號是速度製勝，所以我們看到的是我們的捕獲率在售後市場內持續上升商業。

And so if we look forward, obviously, record bookings at $614 million in Q2. But we believe that we can continue to move this up. Our capture rates still have opportunity for improvement as we continue to drive speed in all aspects of the aftermarket business. We believe that we can continue to grow this side of the aftermarket side of our business.

因此，如果我們展望未來，顯然，第二季的預訂量將創下 6.14 億美元的紀錄。但我們相信我們可以繼續推動這項進程。隨著我們繼續提高售後市場業務各個方面的速度，我們的捕獲率仍有改進的機會。我們相信我們可以繼續發展售後市場方面的業務。

And so we're excited about what the teams have done. The new org design is, quite frankly, is unlocked some of this capability and provided more of a global perspective across both valves and pumps, and we believe we can continue to drive initiatives that lead to enhanced growth within the aftermarket business.

因此，我們對團隊所做的事情感到興奮。坦白說，新的組織設計解鎖了部分功能，並提供了更多關於閥門和泵的全球視角，我們相信我們可以繼續推動可促進售後市場業務成長的舉措。

That's exactly what I was looking for in terms of what was the drivers around the capture rate. And then second question, nuclear has come up a handful of times. You talked about opportunities and some activity in Europe and North America. Is there anything that you've seen so far related to power needs for data centers. That's -- we're hearing a lot more of that as an opportunity as Amazon making an investment in a nuclear plant. Anything on the small modular reactor side? And what are your opportunities?

這正是我所尋找的捕獲率驅動因素。第二個問題，核子問題已經出現好幾次了。您談到了歐洲和北美的機會和一些活動。到目前為止，您是否看到與資料中心電力需求相關的任何內容？那就是——隨著亞馬遜投資核電廠，我們聽到了更多這樣的機會。小型模組化反應器方面有什麼嗎？你的機會是什麼？

Sure. I'll start power and general, I'll go to nuclear. I'll end with SMRs or small module reactors. So power outlook for us is we feel pretty good about what we're seeing there. I'm laughing because last year at our Analyst Day, we committed to -- was at 3.2%, Jay. We committed to 3.2% on the forward look. Clearly, we were understated there and missed some of the trends on the data center and AI.

當然。我將從電力和通用開始，我將轉向核能。我將以 SMR 或小型模組反應器結束。因此，我們對電力前景的看法是，我們對在那裡看到的情況感到非常滿意。我笑是因為去年在我們的分析師日，我們承諾——是 3.2%，傑伊。我們承諾 3.2% 的前瞻性。顯然，我們低估了資料中心和人工智慧的一些趨勢。

We'll put out some kind of new work on what we see that growth rate is. But power for us is a $400 plus million business a year. We're in pretty much all of the power applications, whether it's coal-fired power plants, whether it's natural gas, nuclear, everything else. So we have a massive installed base. And what we believe over the next couple of years is an inflection to increased power demand, both in the Americas and in Europe.

我們將針對我們所看到的成長率推出一些新的工作。但電力對我們來說是每年 400 多萬美元的業務。我們幾乎涉及所有的電力應用，無論是燃煤電廠、天然氣、核能或其他一切。所以我們擁有龐大的安裝基礎。我們相信，未來幾年美洲和歐洲的電力需求都會增加。

Ultimately, we see that across other parts of the world. But after decades of power demand being relatively stable, we're now seeing, what I'll call, reasonably substantial growth and that growth is driven on the back of everything being electrified and this new kind of data center demand driven on the back of artificial intelligence. And so we feel that the outlook in power is substantial.

最終，我們在世界其他地區也看到了這一點。But after decades of power demand being relatively stable, we're now seeing, what I'll call, reasonably substantial growth and that growth is driven on the back of everything being electrified and this new kind of data center demand driven on the back of人工智慧.因此，我們認為執政前景是巨大的。

We see existing power generation facilities, we see the utilization rates start to increase. We're seeing plans for expansions and capability or increases in generation within the US And then we're also seeing substantial build-out across Europe and other parts of, well, India and other parts of Asia Pacific as well. And so we're excited about what we can do in power. We've got a pretty good lineup of products across pumps, valves and seals that supports traditional power and nuclear.

我們看到現有的發電設施，我們看到利用率開始增加。我們看到了美國境內的擴張和能力或增加發電量的計劃，然後我們也看到歐洲和印度其他地區以及亞太地區其他地區的大規模建設。因此，我們對我們能在權力上做的事情感到興奮。我們擁有一系列非常好的泵浦、閥門和密封件產品，支援傳統電力和核能。

Then on the nuclear side, we believe that this is an area to provide incredibly clean and reliable and safe fuel regardless of any condition. What we're seeing is expansions in Europe, primarily on the back of EDF, the French nuclear authority that has the license for a lot of different nuclear applications in Europe, and they're moving into India as well. We've got strong relations with them on both our pumps and valve portfolio. And we're pretty excited about their plans as they go forward and pulling our product into their expansions.

然後在核子方面，我們相信這是一個無論在任何條件下都可以提供極其清潔、可靠和安全的燃料的領域。我們看到的是歐洲的擴張，主要是在法國核電管理局的支持下，法國核電管理局擁有在歐洲進行許多不同核應用的許可證，他們也正在進入印度。我們在泵浦和閥門產品組合方面與他們建立了牢固的關係。我們對他們的計劃感到非常興奮，因為他們正在推進並將我們的產品納入他們的擴張。

And then also in Europe and certainly in the Americas, what we're seeing is life extensions on existing nuclear assets. And so they're taking the existing life of that asset and adding a 20- or 30-year life extension to the nuclear facility and when they do that, it's a substantial aftermarket effort on our side to rerate pumps and valves and replace a lot of the existing equipment to make sure that our equipment is working for the full life of that extension that they've defined.

然後在歐洲，當然還有美洲，我們看到的是現有核資產的壽命延長。因此，他們正在利用該資產的現有壽命，為核設施延長20 或30 年的壽命，當他們這樣做時，我們需要在售後市場上做出巨大的努力，重新評估泵和閥門並更換很多部件。

And so overall, we see nuclear generation as something that will continue to grow. It doesn't happen fast, but we are now seeing substantial signs in our forward funnel of significant growth as we go forward. The power funnel overall is up 22% year-on-year. Our nuclear funnel is kind of right at that 20 plus percent a year. And so I think you can expect us to talk about nuclear for many quarters to come as we go forward.

總的來說，我們認為核電發電將持續成長。這不會很快發生，但隨著我們的前進，我們現在在我們的前向漏斗中看到了顯著增長的實質跡象。整體電力通路較去年同期成長 22%。我們的核漏斗每年的成長率就在 20% 以上。因此，我認為您可以期待我們在未來的許多季度中談論核能。

And then on the last question with small modular reactors. We are participating in several of the kind of the R&D or the technology development to support SMRs, but my view is that's still many years away until we get to a commercialized product and that becomes a meaningful part of our business.

然後是關於小型模組化反應器的最後一個問題。我們正在參與多項支援中小型反應器的研發或技術開發，但我認為，距離我們推出商業化產品並成為我們業務中有意義的一部分，還需要很多年的時間。

So what we're doing is we're working with a very select few players that we believe we're in an advantaged position with their technology. And our hopes are that by working with them, we'll get our pumps and valves spec into their process. But again, I'm not optimistic on the time line, that's probably still kind of 5 to 10 years out until it's commercialized.

因此，我們正在做的是與一些經過精心挑選的參與者合作，我們相信我們在他們的技術方面處於優勢地位。我們希望透過與他們合作，我們能夠將泵浦和閥門的規格納入他們的流程中。但同樣，我對時間線並不樂觀，距離商業化可能還需要 5 到 10 年的時間。

One comment I'll just add into that is that the hype is happening. So the first half of the year, we've seen a 20% increase in power bookings year-over-year. So this is not just a trend that we see playing out in the future, it really started in the first half of the year.

我要補充的一條評論是，炒作正在發生。今年上半年，我們看到電力預訂量年增了 20%。因此，這不僅僅是我們看到的未來​​趨勢，它實際上是從今年上半年開始的。

Damian Karas, UBS.

達米安卡拉斯，瑞銀。

I'm hopping on late from another call. So probably, if you touched on it, but I didn't hear anything about price. So I was wondering if you could maybe just give us some perspective on the pricing environment you're seeing. How much are you realizing to date? And in terms of the funnel, the order, the bookings, are you still kind of seeing some incremental value from kind of that value-added pricing or is that mostly normalized?

我接到另一個電話要遲到了。所以很可能，如果你談到它，但我沒有聽到任何關於價格的消息。所以我想知道您是否可以給我們一些關於您所看到的定價環境的看法。到目前為止你意識到了多少？就通路、訂單、預訂而言，您是否仍然從增值定價中看到一些增量價值，或者這基本上已經標準化？

Sure. I'd say we're in a much better place than we've been in the last two years, and I'm happy that this hasn't been the first question out of the gate. But I'd say we're doing a much better job on pricing. Our cost inflation has moderated or subside in many parts of our business.

當然。我想說，我們現在的處境比過去兩年好得多，而且我很高興這不是第一個出現的問題。但我想說我們在定價方面做得更好。我們業務的許多部分的成本通膨已經放緩或消退。

We did announce the price increase at the beginning of the year, roughly kind of what I'll call more normal price increase in that 4% to 5% and we believe that we're doing a much better job kind of realizing that price increase, making sure that it sticks and making sure that we're on the positive side of the price/cost curve. And so that would be for our general business.

我們確實在今年年初宣布了價格上漲，大致相當於我所說的 4% 到 5% 的更正常的價格上漲，我們相信我們在實現價格上漲方面做得更好，確保它堅持下去並確保我們處於價格/成本曲線的積極一側。這就是我們的一般業務。

The mechanical seals are kind of run rate valve business and then the more industrial-type pumps. And then on project pricing, we've talked last quarter and even the quarter before about our selective bidding and making sure that we get the margins that we deserve for large complex projects.

機械密封是一種運行速率閥門業務，然後是更多工業類型的泵浦。然後在專案定價方面，我們在上個季度甚至前一個季度討論了我們的選擇性投標，並確保我們獲得大型複雜專案應得的利潤。

And what I would say is that our team has done a really, really good job working through a very complicated landscape with EPC and end users, but we're really making sure that we can deliver the price and the margins that we think are acceptable for some of the risks that we take on in the larger projects.

我想說的是，我們的團隊在與 EPC 和最終用戶解決非常複雜的環境方面做得非常非常好，但我們確實確保我們能夠提供我們認為可以接受的價格和利潤我們在大型項目中承擔的一些風險。

And I'd say the overall project pricing environment has gotten better. It's still not perfect, but it's allowing us to continue to walk up our project pricing. And so overall pricing environment has improved substantially from a year ago. We continue to see this as constructive as we move into the back half of the year and into 2025.

我想說的是，整體專案定價環境已經變得更好。它仍然不完美，但它使我們能夠繼續提高專案定價。因此，整體定價環境比一年前有了很大改善。隨著下半年和 2025 年的到來，我們仍然認為這一點具有建設性。

And then I'd just say as part of the product excellence initiative, pricing is a big component there. And I think what you'll see over the next year or so is that we get a lot more disciplined on pricing. We'll be more specific in product families and customers on pricing and so just a more mature approach to pricing as we kind of roll out the product excellence initiative.

然後我想說，作為卓越產品計劃的一部分，定價是一個重要組成部分。我認為在接下來的一年左右你會看到我們在定價方面會更加嚴格。我們將在產品系列和客戶方面更具體地定價，因此在我們推出產品卓越計畫時，我們將採用更成熟的定價方法。

And then you called out the 3D bookings growth above 25%. So I'm kind of curious on the 3D. Maybe you could just give us an update on Red Raven, how the adoption is tracking? Any updated views on what you think is possible there?

然後您提到 3D 預訂量成長超過 25%。所以我對 3D 有點好奇。也許您可以向我們介紹一下 Red Raven 的最新情況，其採用情況追蹤情況如何？您認為那裡可能發生的事情有什麼最新的看法嗎？

Sure. Yes. We continue to make really solid progress here. I do wish it was faster. We're up to kind of 2,250 assets that we've now instrumented. What I would say on a very positive note is the system is working incredibly well. The customer feedback is really high. And what we're finding is when we do instrument pumps or valves within a customer facility, we typically get repeat orders or asking to kind of add more assets to our monitoring program and our prediction.

當然。是的。我們繼續在這裡取得真正堅實的進展。我確實希望它更快。我們現在已經偵測了多達 2,250 項資產。我想說的是，非常積極的是，該系統運行得非常好。客戶的回饋確實很高。我們發現，當我們在客戶設施內生產儀表泵或閥門時，我們通常會收到重複訂單或要求在我們的監控計劃和預測中添加更多資產。

And then the other thing I'd say is the algorithms that we developed, it's been almost kind of five years now. They continue to get better with all of the data that we're collecting and what we're finding is that the system is doing a really good job on predictive analytics and allowing our customers to avoid unplanned downtime.

我要說的另一件事是我們開發的演算法，現在已經快五年了。他們利用我們收集的所有數據不斷變得更好，我們發現系統在預測分析方面做得非常好，並允許我們的客戶避免非計劃性停機。

So in my prepared remarks, we talked about this happening with a dry vacuum product, where we saved the customer $1 million a day of potential lost revenue because we're able to alert them to a process condition that they weren't aware of through their traditional DCS system.

因此，在我準備好的發言中，我們談到了乾式真空產品發生的這種情況，我們每天為客戶節省了100 萬美元的潛在收入損失，因為我們能夠透過以下方式提醒他們注意他們不知道的過程條件：他們傳統的 DCS 系統。

And so I'm still very excited about this. I do think if we fast forward 10 to 20 years, I think most, if not all, full control will be instrumented. So I feel like we're doing the right things. I also feel like we're at an inflection point in terms of Red Raven adoption. We've got some great case studies now, and I think we'll see this growth rate pick up even more than what it is.

所以我對此仍然非常興奮。我確實認為，如果我們快進 10 到 20 年，我認為大多數（如果不是全部）完全控制將被儀器化。所以我覺得我們正在做正確的事。我還覺得我們正處於 Red Raven 採用的轉折點。我們現在已經有了一些很棒的案例研究，我認為我們會看到這個成長率甚至比現在還要快。

And then finally, I'll just say we believe that the digital side, the ability to instrument our equipment, the ability to understand kind of flow conditions and provide these predictive analytics truly allows us to be a much better solutions provider when it comes to full control.

最後，我只想說，我們相信數位方面、儀表化設備的能力、了解流動條件並提供這些預測分析的能力確實使我們能夠成為更好的解決方案提供者完全控制。

And so when we add this system to a facility, we become very close with the operating team, and it allows us to pull through parts and incremental services. And so we're already seeing a tremendous benefit on our aftermarket when we do have Red Raven installed at sites. And so we're going to keep focusing on this. I expect the inflection rate to come up, and I do expect us to talk more and more about our ability to generate solutions within a full-loop environment.

因此，當我們將該系統添加到設施中時，我們與營運團隊變得非常密切，它使我們能夠完成零件和增量服務。因此，當我們在現場安裝 Red Raven 時，我們已經看到了售後市場的巨大優勢。所以我們將繼續關注這一點。我預計拐點率將會上升，我確實希望我們能夠越來越多地談論我們在全循環環境中產生解決方案的能力。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

I wanted to go back to gross margins. I guess the first question here is, if I look back at 2019, you had gross margins heading in the right direction at that point. And then obviously, COVID derailed everything. And we saw compression from there. In '23, '24, you're back to a point where revenue is higher than it was in 2019, but gross margins are still 100 basis points or so lower.

我想回到毛利率。我想第一個問題是，如果我回顧 2019 年，當時的毛利率正朝著正確的方向發展。顯然，新冠疫情讓一切都脫軌了。我們從那裡看到了壓縮。在 23 年、24 年，你又回到了收入高於 2019 年的水平，但毛利率仍然低了 100 個基點左右。

Can you talk about what the difference is in the business today versus five years ago that still has gross margins slightly below where they were in 2019 on higher revenue?

您能談談現在的業務與五年前相比有什麼不同嗎？

So I'll start with -- I mean, we think that we can get back there, Nathan. And so I appreciate the question in terms of how we're thinking through the operating margin expansion that we've got embedded in our long-term targets. So we've talked this year about expanding gross margins 150 basis points or I'm sorry, expanding operating margins by more than 150 basis points.

所以我首先——我的意思是，我們認為我們可以回到那裡，內森。因此，我很欣賞這個問題，即我們如何考慮我們已納入長期目標的營業利潤率擴張。因此，我們今年討論了將毛利率擴大 150 個基點，或者抱歉，將營業利潤率擴大 150 個基點以上。

As you can see in Q2, the majority of that is coming from gross margin expansion. And so we believe that the levers that we've outlined in terms of operational excellence, which is already showing dividends and product excellence can work to further expand those margins and get us back to those 2019 levels or, frankly, higher than that as we move forward.

正如您在第二季所看到的，其中大部分來自毛利率擴張。因此，我們相信，我們在卓越營運方面概述的槓桿已經顯示出紅利和產品卓越性，可以進一步擴大這些利潤率，讓我們回到2019 年的水平，或者坦率地說，比我們現在的水平更高。

The one thing that I would point out with respect to 2019 is operating margins in 2019 were 11.3% versus the 12.5% that we saw in the second quarter of this year. So I believe we'll end 2024 at an operating margin higher than what we saw in 2019, which frankly puts us on solid footing to continue to deliver value to our shareholders both via gross margin expansion and cost control within other cost categories to make the company stronger than what we've seen in those previous years.

關於 2019 年，我要指出的一件事是，2019 年的營業利潤率為 11.3%，而今年第二季為 12.5%。因此，我相信到2024 年年底，我們的營業利潤率將高於2019 年的水平，坦白說，這使我們有堅實的基礎，可以透過毛利率擴張和其他成本類別內的成本控制，繼續為股東創造價值，從而使公司比我們前幾年看到的更強大。

I guess the follow-up then is going to be gross margin. Just specifically on FCD, because if you look back historically, that's where gross margins have typically been higher. FPD is actually kind of back to where it has been historically on gross margins, but FCD is the one lagging.

我想接下來的就是毛利率。特別是 FCD，因為如果你回顧歷史，那是毛利率通常較高的地方。FPD 的毛利率實際上已經回到了歷史水平，但 FCD 卻落後了。

So can you maybe talk about if there's something structural that's changed in the business? You used to be able to kind of get towards mid-30s gross margins for FCD. And if there's nothing that structurally changed, what's the path to getting that business back to mid-30s gross margin?

那麼您能否談談業務中是否發生了結構性變化？FCD 的毛利率過去可以達到 30 多歲。如果沒有發生任何結構性變化，那麼如何才能使該業務的毛利率恢復到 30 多歲呢？

Yes. So I would say our long-term targets for FCD from an operating margin perspective, we're a little bit lighter than where we've seen that historically. And that is due to a mix shift in that business, both in industry, but in the balance that we're providing.

是的。因此，我想說，從營業利潤率的角度來看，我們對 FCD 的長期目標比歷史上看到的要輕。這是由於該業務的混合轉變，無論是在行業中，還是在我們提供的平衡中。

So more of a focus on really the isolation valve piece of the business, and we want to continue to grow our ACV, our automation business, but isolation balance have been growing a little bit faster. So that mix has been impacting us.

因此，我們更專注於真正的隔離閥業務，我們希望繼續發展我們的 ACV、我們的自動化業務，但隔離平衡的成長速度要快一些。所以這種混合一直在影響我們。

And I'll just comment as we talk about power generation, that is isolation valves that are driving some of that growth that we see over time. That said, we see a tremendous opportunity for growth in the valve business moving forward.

當我們談論發電時，我將發表評論，即隔離閥正在推動我們隨著時間的推移看到的一些成長。也就是說，我們看到了閥門業務向前發展的巨大機會。

And frankly, FPD, we're not stopping on margin expansion, but we're at our long-term targets in the second quarter in terms of operating margins. So what do we need to do with FPD. The start is in the second half of the year, the operational excellence and execution will get better. We'll see that kick in, in a bigger way than what we've seen in the first half of the year.

坦白說，FPD，我們不會停止利潤率擴張，但我們在第二季度實現了營業利潤率的長期目標。那我們需要用 FPD 做什麼呢？下半年開始，卓越的營運和執行力將會變得更好。我們將看到這種情況的發生，其程度將比今年上半年更大。

And as Scott pointed out, product excellence is really going to be a 2025 story, but that journey starts this next quarter for our valves business. So we're confident that those margins will be expanding not just in the back half of the year, but as we move into 2025.

正如 Scott 指出的那樣，產品卓越確實將成為 2025 年的故事，但我們的閥門業務的旅程將從下個季度開始。因此，我們相信，這些利潤率不僅會在今年下半年擴大，而且在進入 2025 年時也會擴大。

Eric Look, Mizuho.

艾瑞克·看，瑞穗。

This is Eric Look on for Brett Linzey. Focusing on Asia-Pacific, it's nice to see a tick up 5%, improving from last quarter's 1% growth. How should we think about China's contribution to the region in terms of sales and bookings and maybe some color on Asia-Pacific outside of China as well?

我是埃里克·盧克（Eric Look），替補布雷特·林澤（Brett Linzey）。重點關注亞太地區，很高興看到成長 5%，較上季 1% 的成長有所改善。我們應該如何看待中國在銷售和預訂方面對該地區的貢獻，或許還有中國以外的亞太地區的一些色彩？

Sure. Within China, we've got two large facilities that essentially do China for China, both on the pump side and the FCD side. And so we feel like we're reasonably well positioned there. I would say, at this point, we're not investing in China, but those teams are clearly geared towards winning projects within China and then I'd say probably more importantly, capturing the aftermarket within our installed base. And so, I'd say that's kind of the focus area for China at this point.

當然。在中國，我們有兩個大型設施，基本上是為中國服務，分別位於泵側和 FCD 側。所以我們覺得我們在這方面處於相當有利的位置。我想說，目前我們還沒有在中國投資，但這些團隊顯然致力於贏得中國境內的項目，然後我想說可能更重要的是，佔領我們安裝基礎中的售後市場。因此，我想說這是中國目前的重點領域。

And then broader Asia-Pacific, when we look at that year-over-year, we look at it even compared to years ago. That business is slightly down. I'd say it's the investment across Asia-Pacific is a little lower than what we would expect. But I do still believe that there is optimism in terms of projects and run rate increases, as we kind of move forward into 2025 and 2026.

然後是更廣泛的亞太地區，當我們逐年比較時，我們甚至會與幾年前相比。該業務略有下降。我想說的是，整個亞太地區的投資略低於我們的預期。但我仍然相信，隨著我們進入 2025 年和 2026 年，專案和運行率成長方面存在樂觀情緒。

And so well represented in Greater Asia-Pacific. We've got teams in most countries. And I think we've got an amazing installed base. And so the aftermarket business continues to perform reasonably well, but we haven't seen the project business like we expect. And so again, I think on the forward look, I think it comes up from here. But the China growth and commitment is not where we're going to put our focus and efforts in the foreseeable future.

在大亞太地區也有很好的代表性。我們在大多數國家都有團隊。我認為我們擁有令人驚嘆的安裝基礎。因此，售後業務繼續表現良好，但我們還沒有看到專案業務像我們預期的那樣。因此，我認為從長遠來看，我認為它是從這裡開始的。但在可預見的未來，中國的成長和承諾並不是我們的重點和努力的方向。

Joe Ritchie, Goldman Sachs.

喬·里奇，高盛。

So Scott, your comments on the aftermarket business for like super positive. And I'm kind of trying to think through this beyond 2024. And so is it right to consider $600 million is kind of like the new quarterly run rate, and that's something that we should basically capitalized into next year? Or just any thoughts around the sustainability of the current orders and how that translates into revenue going forward?

斯科特，您對售後市場業務的評論非常積極。我正在嘗試在 2024 年之後思考這個問題。那麼，認為 6 億美元有點像新的季度運行率，我們基本上應該在明年將其資本化，是否正確？或者只是關於當前訂單的可持續性以及如何將其轉化為未來收入的任何想法？

Sure. Like I said, we haven't seen anything crazy here or one-off or anything that's like juicing the bookings in the second quarter. And what we've seen, if you kind of projected this out over the last 18 months quarter-over-quarter, what we've seen is just nice, steady progression here.

當然。就像我說的，我們沒有看到任何瘋狂的事情或一次性的事情，或者任何像第二季度一樣增加預訂的事情。我們所看到的，如果你按季度預測過去 18 個月的情況，我們所看到的就是良好、穩定的進展。

And again, I think there's a market element to this with higher utilization rates, a little bit of pent-up demand but not a ton. We did have spring turnarounds. And so there was an uplift in the second quarter around that. But I'd say overall, the market activity should continue as we look into the forward quarters here.

再說一次，我認為這有一個市場因素，即更高的利用率，一點點被壓抑的需求，但不是很多。我們確實在春季出現了轉變。因此，第二季的情況有所改善。但我想說，總的來說，當我們展望未來幾季時，市場活動應該會繼續。

And then secondly and probably the biggest driver is the new organization design creating enhanced focus on both pumps and our valve business to really make sure that we're winning our entitlement here. And so we have a massive installed base of pumps and valves around the world.

其次，可能最大的驅動力是新的組織設計，它增強了對泵浦和閥門業務的關注，以真正確保我們在這裡贏得我們的權利。因此，我們在世界各地擁有龐大的泵浦和閥門安裝基地。

We do track our capture rate, our ability to get the aftermarket on that installed base and I'd just say there's lots of room for improvement on moving this capture rate up. And with all of the initiatives around being more responsive, quoting quickly, shorter lead times, what we're seeing is those capture rates move up.

我們確實追蹤我們的捕獲率，我們在該安裝基礎上進入售後市場的能力，我只想說，在提高捕獲率方面還有很大的改進空間。隨著所有圍繞提高響應速度、快速報價、縮短交貨時間的舉措，我們看到捕獲率有所上升。

And so, I think this is sustainable. We may tick down a little bit maybe in the third quarter or something as we look forward. But I'd say that overall trend in growth rates should continue at a nice steady progressive rate as we go forward.

因此，我認為這是可持續的。我們可能會在第三季或未來的某個時間點稍微下調。但我想說，隨著我們的前進，成長率的整體趨勢應該會繼續保持良好且穩定的進步速度。

And then my one follow-up for Amy. Just on free cash flow for the quarter was a tad bit lighter, but I know that there's sometimes timing issues. It seems like receivables uptick this quarter. So is it right to just kind of think about that as a timing issue? And then what are just your expectations for free cash flow for the year?

然後是我對艾米的後續行動。只是本季的自由現金流有點少，但我知道有時會出現時間問題。本季應收帳款似乎有所上升。那麼，將其視為時間問題是否正確？那麼您對今年自由現金流的預期是多少？

Yes, absolutely. So we knew that Q2 was going to be a challenge from a free cash flow perspective. The accounts receivable build we saw was not as a result of any collection issues but more timing related in terms of when those products went out the door when we hit milestones on percentage of completion projects.

是的，絕對是。因此，我們知道從自由現金流的角度來看，第二季將是一個挑戰。我們看到的應收帳款成長並不是任何收款問題的結果，而是與當我們達到專案完成百分比里程碑時這些產品何時上市有關。

So we think we're set up for a really strong second half from a cash flow generation standpoint. And in fact, really picked up our guidance a little bit on our first half results. So we were previously anticipating kind of 70% to 80% free cash flow conversion in the year. And we're now thinking more of some level of 80% or better for the full year.

因此，我們認為從現金流生成的角度來看，我們已經為下半年的強勁表現做好了準備。事實上，我們對上半年業績的指導確實有所提升。因此，我們先前預計今年自由現金流將實現 70% 至 80% 的轉換。我們現在更多地考慮全年達到 80% 或更好的水平。

So it points to a really strong cash flow generation in the second half of the year as we collect on the strong revenue conversion that we've had in the first half of the year and expect in the second half and importantly, continue to make progress with respect to inventory management. So we're excited about where we're going, both with primary working capital management and free cash flow generation more broadly.

因此，這表明下半年將產生非常強勁的現金流，因為我們收集了上半年的強勁收入轉換，並預計下半年將繼續取得進展。因此，我們對我們的發展方向感到興奮，無論是主要營運資本管理還是更廣泛的自由現金流產生。

This concludes today's conference. We thank you for your participation. You may disconnect your lines at this time.

今天的會議到此結束。我們感謝您的參與。此時您可以斷開線路。