福斯 (FLS) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good day, and welcome to the Q3 2024 Flowserve Corporation earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brian Ezzell, Vice President, Investor Relations, Treasury and Corporate Finance. Please go ahead, sir.

女士們、先生們，美好的一天，歡迎參加福斯公司 2024 年第三季財報電話會議。今天的會議正在錄製中。這次，我想將會議交給投資者關係、財務和公司財務副總裁 Brian Ezzell。請繼續，先生。

Thank you, Lisa, and good morning, everyone. Welcome to Flowserve's third-quarter 2024 business update. I'm joined this morning by Scott Rowe, Flowserve's President and Chief Executive Officer; and Amy Schwetz, our Chief Financial Officer.

謝謝你，麗莎，大家早安。歡迎閱讀 Flowserve 2024 年第三季業務更新。今天早上福斯總裁兼執行長 Scott Rowe 也加入了我的行列。以及我們的財務長 Amy Schwetz。

Today, Scott and Amy will provide an update on our overall business performance and highlights from the quarter. Following their comments, we'll open the call for questions. As a reminder, our discussion will contain forward-looking statements that are based upon information available as of today. Actual results may differ due to risks and uncertainties, and these are discussed in our SEC filings which can be found on our website.

今天，史考特和艾米將提供有關我們整體業務業績的最新資訊以及本季的亮點。根據他們的評論，我們將開始提問。提醒一下，我們的討論將包含基於今天可獲得的資訊的前瞻性陳述。由於風險和不確定性，實際結果可能會有所不同，這些內容在我們的 SEC 文件中進行了討論，這些文件可以在我們的網站上找到。

Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our Q3 press release and today's earnings presentation, both of which are our on our website. And with that, I'll turn it over to Scott.

我們今天的評論還包括非公認會計準則財務指標。有關最直接可比較的 GAAP 財務指標的更多詳細資訊和調整表，請參閱我們的第三季新聞稿和今天的收益演示，這兩個內容均位於我們的網站上。有了這個，我會把它交給史考特。

Thank you, Brian, and good morning, everyone. I want to start by saying thanks to Jay Roueche for over 12 years of service at Flowserve, including two different opportunities to be our interim CFO. Jay did nearly 50 Flowserve earnings calls and he was our conduit to the investor and banking communities. Jay, thank you for everything that you do -- have done for Flowserve and making it a better company. And I wish you and your family the very best in the next chapter of your life.

謝謝你，布萊恩，大家早安。首先，我要感謝 Jay Roueche 在 Flowserve 超過 12 年的服務，其中包括兩次擔任我們臨時財務長的不同機會。Jay 參加了近 50 場 Flowserve 財報電話會議，他是我們與投資者和銀行界溝通的管道。Jay，感謝您為 Flowserve 所做的一切，並使其成為一家更好的公司。我祝福您和您的家人在人生的下一個篇章中一切順利。

I would also like to welcome Brian Ezzell to Flowserve. Brian will lead Investor Relations, Treasury, and FP&A. Brian brings significant experience and a wealth of knowledge to our team, and there will be several opportunities in the coming weeks for many of you to meet Brian in person.

我還要歡迎 Brian Ezzell 加入福斯。Brian 將領導投資者關係、財務和 FP&A。Brian 為我們的團隊帶來了豐富的經驗和豐富的知識，在接下來的幾週內，你們中的許多人將有很多機會親自見到 Brian。

Let me now turn to our prepared remarks. We delivered another strong result in the third quarter, underscoring the positive momentum with our operations and end markets. I want to thank our associates around the world for their dedication to our customers and our company. They are truly what makes Flowserve an outstanding enterprise. Also want to welcome the associates of MOGAS to our Flowserve family as we kick off an exciting journey together.

現在讓我談談我們準備好的發言。我們在第三季再次取得了強勁的業績，凸顯了我們的營運和終端市場的積極勢頭。我要感謝我們世界各地的員工為我們的客戶和公司所做的奉獻。他們確實讓 Flowserve 成為一家傑出的企業。也要歡迎 MOGAS 的員工加入我們的福斯大家庭，我們一起開啟令人興奮的旅程。

We are pleased with results from the quarter, and we believe there are substantial opportunities ahead, to further improve our operational and financial performance to continue to deliver progress toward our 2027 financial targets. With bookings of $1.2 billion, our book-to-bill ratio in the quarter was over 1.06 times. We grew our backlog by $100 million sequentially, ending the quarter at $2.8 billion in laying the foundation for continued growth into 2025.

我們對本季的業績感到滿意，我們相信未來存在大量機會，可以進一步改善我們的營運和財務業績，繼續實現我們的 2027 年財務目標。本季的預訂量為 12 億美元，預訂出貨比超過 1.06 倍。我們的積壓訂單季增了 1 億美元，本季末訂單達到 28 億美元，為 2025 年的持續成長奠定了基礎。

We delivered 240 basis points of year-over-year adjusted operating margin expansion, resulting in an 81% incremental margin in the quarter. Our successful efforts with our customers generated both healthy project awards and strong aftermarket bookings of $650 million. We delivered nearly 30% growth in power bookings year over year, which brings the year-to-date bookings growth to 23%.

調整後營業利益率年增 240 個基點，本季利潤率增量達 81%。我們與客戶的成功合作不僅獲得了良好的專案獎項，還獲得了 6.5 億美元的強勁售後市場預訂。我們的電力預訂量年增近 30%，這使得年初至今的預訂量成長達到 23%。

We are optimistic about the power markets and full-service well-positioned take advantage of the global increase in electrical demand. I'll discuss this in more detail shortly.

我們對電力市場持樂觀態度，並充分利用全球電力需求成長的優勢提供全方位服務。我很快就會更詳細地討論這個問題。

We generated sales of $1.1 billion, which represented solid year-over-year top line growth of 3.5%. Our third quarter adjusted EPS of $0.62 was a $0.12 or 24% increase versus prior year. Lastly, cash from operations of $178 million was particularly healthy, driven by working capital efficiency and earnings improvements.

我們的銷售額達 11 億美元，營收年增 3.5%。第三季調整後每股收益為 0.62 美元，比去年同期成長 0.12 美元，成長 24%。最後，在營運資本效率和獲利改善的推動下，1.78 億美元的營運現金尤其健康。

While our operating performance was certainly strong in the third quarter, and earnings per share were higher year over year, both our reported and adjusted earnings per share were tempered by a discrete $0.07 charge in the quarter, which Amy will describe in more detail.

雖然我們第三季的經營業績確實強勁，每股收益同比也更高，但我們的報告和調整後每股收益都受到了本季度0.07 美元的離散費用的影響，艾米將對此進行更詳細的描述。

All said, our second and third quarter results were operationally consistent and in line with the commentary we provided during last quarter's earnings call with healthy project in aftermarket bookings, strong revenue conversion, and expanded margins.

總而言之，我們第二季和第三季的業績在營運上保持一致，並與我們在上季財報電話會議上提供的評論一致，售後市場預訂專案健康，收入轉換強勁，利潤率擴大。

Our improved results throughout 2024 reflect the initial progress from the new Flowserve business system. The business system helps to define how we operate consistently across our two divisions and seven business units. We are seeing early results from the operational excellence program, which is improving our delivery consistency, shortening lead times, and enhancing our product margins.

我們 2024 年業績的改善反映了新 Flowserve 業務系統的初步進展。此業務系統有助於定義我們在兩個部門和七個業務部門之間的一致運作方式。我們看到了卓越營運計劃的早期成果，該計劃正在提高我們的交付一致性、縮短交貨時間並提高我們的產品利潤。

Earlier this year, we formally launched our portfolio excellence program with the goal of optimizing Flowserve's 200-year legacy of brands and product families. Using a data driven approach, we are undertaking a comprehensive portfolio review across three dimensions, products, customers, and profitability.

今年早些時候，我們正式啟動了卓越產品組合計劃，目標是優化 Flowserve 200 年的品牌和產品系列傳統。使用數據驅動的方法，我們正在對產品、客戶和盈利能力三個維度進行全面的投資組合審查。

Our ultimate goal is to reduce complexity in our overall offering, improve our customer service, and significantly expand our product margins without compromising our focus on growth. We remain committed to an incremental 100 to 200 basis points of margin improvement from the portfolio excellence program by 2027, and we expect to begin seeing results from this effort starting in 2025.

我們的最終目標是降低整體產品的複雜性，改善客戶服務，並在不影響我們對成長的關注的情況下顯著擴大我們的產品利潤。我們仍然致力於在 2027 年將卓越投資組合計畫的利潤率提高 100 到 200 個基點，並預計從 2025 年開始看到這項努力的成果。

We are excited about the progress we're making with the Flowserve business system. The early results we are seeing are promising and give us confidence that our 2027 targets are very achievable.

我們對 Flowserve 業務系統所取得的進展感到非常興奮。我們看到的早期結果令人鼓舞，讓我們相信 2027 年的目標是可以實現的。

Earlier this month, we completed our acquisition of MOGAS Industries and are excited to officially begin the integration process. We believe this transaction positions Flowserve to further grow with our severe service, valve offering that is complementary to the FCD's expansive valve in the automation portfolio.

本月早些時候，我們完成了對 MOGAS Industries 的收購，並很高興正式開始整合程序。我們相信，這項交易將使 Flowserve 能夠透過我們嚴格的服務和閥門產品進一步發展，該產品與 FCD 自動化產品組合中的廣泛閥門相輔相成。

With the annual revenues of roughly $200 million that are balanced relatively evenly between mining and process industries, and with EBITDA margins that are accretive to our FCD segment, we expect MOGAS would enhance our 3D strategy be a strong addition for Flowserve and support long-term value creation.

年收入約為2 億美元，在採礦業和加工行業之間相對平衡，並且EBITDA 利潤率對我們的FCD 部門有所增加，我們預計MOGAS 將增強我們的3D 策略，成為Flowserve 的有力補充，並支持長期發展價值創造。

Our thorough integration plan is intended to preserve and protect the legacy that MOGAS has created and build upon all the qualities that made MOGAS successful. From its people and brands to its unwavering commitment to customers. Leveraging our combined size and scale, we intend to utilize Flowserve's commercial relationships and aftermarket capabilities to capitalize on future market opportunities.

我們全面的整合計畫旨在保留和保護 MOGAS 所創造的遺產，並建立在使 MOGAS 成功的所有品質之上。從其人員和品牌到對客戶堅定不移的承諾。憑藉我們的綜合規模和規模，我們打算利用 Flowserve 的商業關係和售後市場能力來抓住未來的市場機會。

We are committed and have a clear path to $15 million of cost synergies by the end of year two and expect to have incremental revenue synergies by pulling through actuation, pumps, and mechanical seals on the back of the MOGAS project work.

我們致力於並有明確的途徑，到第二年年底實現 1500 萬美元的成本協同效應，並期望透過 MOGAS 專案工作的支持，透過驅動、泵浦和機械密封來實現增量收入協同效應。

Let me now turn to bookings in our end markets in more detail. Overall, our market outlook remains constructive for projects, MRO, and aftermarket activity across industries and end markets. We delivered bookings of $1.2 billion during the third quarter and have averaged more than $1.1 billion per quarter in 2024, resulting in strong year-over-year bookings growth.

現在讓我更詳細地談談我們終端市場的預訂。總體而言，我們對跨行業和終端市場的項目、MRO 和售後市場活動的市場前景仍然具有建設性。我們在第三季交付的預訂量為 12 億美元，到 2024 年，每季平均交付量超過 11 億美元，預訂量較去年同期強勁成長。

The ongoing success of our 3D growth strategy generated appeal approximately 34% of our total bookings in the quarter, reaching the highest level in both absolute dollars and as a percentage of total bookings since we launched the strategy in 2022. These results confirm the merits and timing of the 3D approach with strong bookings obtained from both diversification and decarbonization activity.

我們的 3D 成長策略持續取得成功，吸引了本季總預訂量的約 34%，無論是絕對金額還是佔總預訂量的百分比都達到了自 2022 年推出該策略以來的最高水準。這些結果證實了 3D 方法的優點和時機，並從多元化和脫碳活動中獲得了強勁的預訂。

Our bookings were balanced in the third quarter with original equipment and aftermarket work each representing about half of the total. We secured six midsize original equipment awards ranging from roughly $15 million to $35 million. Combined, these project awards represent about $130 million of our total bookings. Further demonstrating that foundational core business of aftermarket MRO in short-cycle activities is exceeding the $1 billion threshold on its own.

我們的預訂在第三季保持平衡，原始設備和售後工作各佔總數的一半左右。我們獲得了六個中型原始設備獎項，金額從大約 1500 萬美元到 3500 萬美元不等。這些項目獎項加起來約占我們總預訂額的 1.3 億美元。進一步證明，短週期活動中售後 MRO 的基礎核心業務本身已突破 10 億美元的門檻。

This activity is driven by stable asset utilization rates at our customer operations and our growing success, capturing the aftermarket on our substantial installed base. We delivered our second consecutive quarter of extremely strong aftermarket bookings at approximately $615 million. We have now delivered two consecutive quarters above the $600 million level, demonstrating the strength of our aftermarket franchise.

這項活動的推動因素是我們客戶營運中穩定的資產利用率以及我們不斷取得的成功，佔領了我們龐大的安裝基礎的售後市場。我們連續第二季的售後市場預訂量非常強勁，約為 6.15 億美元。現在，我們已連續兩個季度交付超過 6 億美元的水平，展示了我們售後市場特許經營權的實力。

Our customers have awarded their trust and this work to us due to our high levels of service, local presence, and healthy relationships. We believe that we can continue to grow our aftermarket business with improved service levels in further commitment to increasing our capture rate.

由於我們的高水準服務、本地業務和健康的關係，我們的客戶將他們的信任和這項工作授予了我們。我們相信，我們可以透過提高服務水準來繼續發展我們的售後業務，進一步致力於提高我們的捕獲率。

Turning the Oil & Gas, our bookings were up 7% versus the prior period to almost $455 million, driven by significant and broad-based activity throughout the Middle East region, from Saudi Arabia, to the UAE, and Qatar. We continue to see elevated levels of project activity in the region despite the ongoing conflict in other parts of the region.

說到石油和天然氣，我們的預訂量較上一期增長了 7%，達到近 4.55 億美元，這得益於整個中東地區（從沙烏地阿拉伯到阿聯酋和卡達）的重大且廣泛的活動。儘管該地區其他地區持續存在衝突，但我們仍然看到該地區的計畫活動水準不斷提高。

Let me take a minute to provide more detail on our power end markets, including traditional power and nuclear. As mentioned earlier, power bookings were up nearly 30% to $155 million in the quarter, and were up 23% year to date. We participate in virtually all forms of power generation, including traditional hydrocarbon forms like coal, in combined cycle natural gas as well as nuclear and newer energy technologies like concentrated solar power, wind, and hydrogen. As a result, we have significant power installed base across pumps, valves, and seals.

讓我花一點時間提供更多有關我們電力終端市場（包括傳統電力和核電）的詳細資訊。如前所述，本季電力預訂量成長了近 30%，達到 1.55 億美元，年初至今成長了 23%。我們幾乎參與所有形式的發電，包括煤炭等傳統碳氫化合物形式、複合循環天然氣以及核能和聚光太陽能、風能和氫能等新能源技術。因此，我們在泵浦、閥門和密封件方面擁有重要的電力安裝基礎。

Power bookings have historically comprised 10% to 15% of our total bookings in any given year, driven primarily by aftermarket MRO in some expansion activities. We believe we are at an important inflection point in the power markets with macro factors supporting projections for global power demand to grow significantly over the next decade.

歷史上，電力預訂量一直占我們每年總預訂量的 10% 至 15%，這主要是由一些擴張活動中的售後 MRO 推動的。我們相信，我們正處於電力市場的一個重要轉折點，宏觀因素支持全球電力需求在未來十年大幅成長的預測。

Power demand has largely been flat in Europe and North America for the last 15 years due to significant efficiency improvements. However, new power generation is now needed to support the growing demand for electricity in data centers to support AI as well as the electrification of nearly everything.

由於效率顯著提高，過去 15 年歐洲和北美的電力需求基本上持平。然而，現在需要新的發電來滿足資料中心不斷增長的電力需求，以支援人工智慧以及幾乎所有事物的電氣化。

These trends support the projections for power demand to grow steadily over the next decade. In particular, we see nuclear power growing substantially going forward due to its carbon-free emissions and baseload generating characteristics.

這些趨勢支持了未來十年電力需求穩定成長的預測。特別是，我們看到核電由於其無碳排放和基本負載發電特性而大幅成長。

In the quarter, nuclear activity saw particular strength with more than $100 million in bookings. We are currently seeing a combination of life extensions on existing assets and North America and Europe, combined with new nuclear capacity being built in Europe and in Asia.

本季度，核子活動尤其強勁，預訂量超過 1 億美元。目前，我們看到北美和歐洲現有資產的壽命延長，同時歐洲和亞洲正在建造新的核電容量。

Life extension activities created substantial aftermarket opportunity for Flowserve to rerate pumps and upgrade valves. Our project funnels for both total power and nuclear are up more than 20% versus this time last year. Affirming the strong bookings, we delivered in the third quarter and year to date. We believe this trend is in the early innings, and we are confident Flowserve will see growth over a long period of time as we build on our existing nuclear product and service expertise.

壽命延長活動為福斯重新評估幫浦和升級閥門創造了大量售後機會。與去年同期相比，我們的總電力和核電項目管道成長了 20% 以上。我們在第三季和今年迄今的交付量證明了強勁的預訂量。我們相信這一趨勢還處於早期階段，我們相信福斯將在我們現有的核子產品和服務專業知識的基礎上實現長期成長。

We believe the overall macro environment and outlook remain favorable for the Flowserve -- for the flow control space. We continue to see positive signals driven by key global megatrends from energy transition and decarbonization, to energy security and regionalization, and an increasing strength in the power markets.

我們認為，整體宏觀環境和前景仍然有利於福斯——流量控制領域。我們繼續看到能源轉型和脫碳、能源安全和區域化等全球主要大趨勢以及電力市場實力不斷增強所驅動的正面訊號。

Combined, these current and potential megatrends are attracting significant investments. Our traditional short cycle MRO and aftermarket business has proven resilient, and we are well positioned to drive further growth from our large installed base. Through the first nine months of the year, our book-to-bill ratio was 1.03 times, and we continue to expect that our full yearbook-to-bill ratio in 2024 will exceed 1.0.

結合起來，這些當前和潛在的大趨勢正在吸引大量投資。事實證明，我們傳統的短週期 MRO 和售後業務具有彈性，我們已做好充分準備，可以推動我們龐大的安裝基礎的進一步成長。今年前 9 個月，我們的訂單出貨比為 1.03 倍，我們繼續預期 2024 年的完整年鑑出貨比將超過 1.0。

Our backlog grew almost 4% sequentially to a near record level of 2.8 billion, positioning us well for growth in 2025. I will now turn the call over to Amy to address our third quarter results in greater detail.

我們的積壓訂單季增了近 4%，達到接近創紀錄的 28 億，這為我們在 2025 年的成長做好了準備。我現在將把電話轉給艾米，更詳細地討論我們第三季的業績。

Thanks, Scott, and good morning, everyone. Looking at our third quarter financial results in more detail, we generated revenue of $1.1 billion with an 11.1% adjusted operating margin, resulting in $0.62 of adjusted earnings per share, a 24% increase versus last year.

謝謝斯科特，大家早安。更詳細地看我們第三季的財務業績，我們的營收為 11 億美元，調整後營業利潤率為 11.1%，調整後每股收益為 0.62 美元，比去年增長 24%。

We delivered another strong operational quarter and higher adjusted earnings, which were tempered by the discrete $12 million charge to operating income related to the annual actuarial assessment of certain undiscounted long-term liabilities. This third quarter expense impacted reported and adjusted earnings by $0.07 and reduced our operating margin by more than 100 basis points.

我們又實現了強勁的營運季度和更高的調整後收益，但由於與某些未折現長期負債的年度精算評估相關的營運收入的 1,200 萬美元的離散費用，這一點受到了影響。第三季的費用對報告和調整後的收益產生了 0.07 美元的影響，並使我們的營業利潤率降低了 100 多個基點。

We also had $0.18 of net adjusted items, bringing our reported earnings per share to $0.44. The two largest contributing categories of adjusted items were related to the realignment expenditures and acquisition expenses at $0.07 and $0.05, respectively.

我們還有 0.18 美元的淨調整項目，使我們報告的每股收益達到 0.44 美元。調整項目的兩個最大貢獻類別與重組支出和採購支出相關，分別為 0.07 美元和 0.05 美元。

Given our results through the first nine months of the year, we are reaffirming our full year guidance metrics, including adjusted earnings between $2.60 and $2.75 per share. This guidance includes the impact from the third quarter discrete charge for certain long-term liabilities and excludes the recently completed MOGAS acquisition.

鑑於今年前 9 個月的業績，我們重申全年指引指標，包括調整後每股收益 2.60 美元至 2.75 美元。該指引包括第三季對某些長期負債的離散費用的影響，但不包括最近完成的 MOGAS 收購。

Our full year 2025 guidance, when restated in Q1 will include MOGAS. With year-to-date adjusted earnings of $1.93 per share, we recognize our full year guidance implies a wide range of outcomes for the fourth quarter. Based on our current outlook, we expect continued modest sequential improvement in our adjusted gross and operating margins, with our full year adjusted earnings per share likely closer to the midpoint of our stated range.

我們在第一季重申的 2025 年全年指引將包括 MOGAS。年初至今調整後每股收益為 1.93 美元，我們意識到我們的全年指引意味著第四季度的結果多種多樣。根據我們目前的前景，我們預計調整後毛利率和營業利潤率將繼續小幅改善，全年調整後每股收益可能接近我們規定範圍的中點。

Our more consistent quarterly performance this year is driven in part by the steps we have taken over the past several quarters to smooth the historic quarterly seasonality in our business, and partially by the mix of our backlog. In the fourth quarter, for example, we expect less revenue from percentage of completion activities versus last year, which included the (technical difficulty) sales and earnings from phase one of the large (inaudible) project. This softened some of our traditional seasonality and creates less variation in our results quarter to quarter from less of a ramp in Q4 revenue.

我們今年更穩定的季度業績，部分是由於我們在過去幾季為平滑業務歷史性季度季節性而採取的措施，部分是由於我們的積壓訂單。例如，我們預計第四季度的完成活動百分比收入將少於去年，其中包括（技術難度）銷售和大型（聽不清楚）專案第一階段的收入。這軟化了我們的一些傳統季節性因素，並因第四季度收入增幅較小而導致季度與季度業績變化較小。

Let me now turn to the quarter in greater detail. Both our FCD and FPD segments contributed to our 3.5% revenue increase, generating growth of 7% and 2%, respectively. By mix, we delivered year-over-year top line growth of 5% in original equipment and 2% in aftermarket activities, respectively. Almost all serve regions increased sales year over year as well. We generated 11% growth in the Middle East and Africa region as well as in Latin America. Europe contributed with a 6% increase compared to last year.

現在讓我更詳細地談談本季的情況。FCD 和 FPD 部門為我們的收入成長 3.5% 做出了貢獻，分別實現了 7% 和 2% 的成長。按組合劃分，我們的原始設備收入年增 5%，售後市場活動收入較去年同期成長 2%。幾乎所有服務區域的銷售額都較去年同期成長。我們在中東和非洲地區以及拉丁美洲實現了 11% 的成長。歐洲的貢獻比去年增長了 6%。

Shifting to margins, we generated adjusted gross margins at 32.4%, representing a 270-basis points year-over-year increase and 10 basis points sequentially. The improvement was largely driven by solid execution and top line leverage. We are particularly pleased with this margin expansion, given the higher revenue from original equipment work, which tends to have a lower margin profile than aftermarket. We expect these actions, coupled with our operational and portfolio excellence efforts to deliver further gross margin expansion as we progress towards our 2027 target levels.

轉向利潤率，我們的調整後毛利率為 32.4%，較去年同期成長 270 個基點，較上季成長 10 個基點。這項改進很大程度上是由紮實的執行力和營收槓桿所推動的。考慮到原始設備工作的收入較高，而原始設備工作的利潤率往往低於售後市場，我們對這種利潤率的擴張感到特別滿意。我們預計這些行動，再加上我們在營運和投資組合方面的卓越努力，將在我們向 2027 年目標水準邁進的過程中實現毛利率進一步擴大。

By segment, FPDs adjusted gross margin was 33.7%, representing a 410-basis point year over year increase. This robust segment performance is a result of improved execution, largely derived from the new operating model and divisional operational excellence initiative. FCD delivered a 10-basis point year over year for improvement with an adjusted gross margin at 29.9%. We believe FCD will deliver further sequential margin expansion in the fourth quarter due to improved revenue conversion, product mix and cost-out activities.

以細分市場劃分，FPD 調整後毛利率為 33.7%，較去年同期成長 410 個基點。這種強勁的分部業績是執行力提高的結果，很大程度上源自於新的營運模式和部門卓越營運計畫。FCD 年比改善 10 個基點，調整後毛利率為 29.9%。我們相信，由於收入轉換、產品組合和成本削減活動的改善，FCD 將在第四季度實現進一步的連續利潤率擴張。

On a reported basis, third quarter consolidated gross margins increased by 250 basis points to 31.5% as improved operational execution more than offset the $2.3 million increases in net adjusted items within cost of sales.

根據報告，第三季綜合毛利率成長了 250 個基點，達到 31.5%，因為營運執行的改善抵消了銷售成本中淨調整項目 230 萬美元的成長。

This quarter adjusted SG&A of $246 million increased $11 million years over year, which included the increased annual true up of the previously mentioned actuarially determined long-term liability. Despite the dollar increase, adjusted SG&A as a percentage of sales was up only a modest 30 basis points year over year to 21.7%, reflecting the quarter's top line growth and our ongoing cost discipline efforts.

本季調整後的 SG&A 為 2.46 億美元，年增 1,100 萬美元，其中包括前面提到的精算確定的長期負債的年度真實增加。儘管美元上漲，調整後的 SG&A 佔銷售額的百分比僅同比小幅增長 30 個基點，達到 21.7%，反映了本季度的收入增長和我們持續的成本控制努力。

On a reported basis, third quarter SG&A was higher by about $7 million. As a percent of sales, reported SG&A was 22.9%, a 10-basis point improvement versus the comparable period. Our adjusted operating income in the quarter was $126 million, a $31 million increase year over year.

根據報告，第三季 SG&A 增加了約 700 萬美元。報告的 SG&A 佔銷售額的百分比為 22.9%，比同期提高了 10 個基點。本季調整後營業收入為 1.26 億美元，年增 3,100 萬美元。

Our strong adjusted operating margin of 11.1% was at 240-basis point expansion and represented incremental margin over 80%. Absent the actuarially determined charge I referenced earlier, adjusted operating margins in the quarter would have exceeded 12%.

我們調整後的營業利益率為 11.1%，擴張了 240 個基點，增量利潤率超過 80%。如果沒有我之前提到的精算費用，本季調整後的營業利益率將超過 12%。

On a year-to-date basis, we have delivered an 11.5% adjusted operating margin, representing a 230-basis point improvement versus the prior year. We continue to expect our full year adjusted operating margin to increase by at least 200-basis points compared to 2023 levels. This level of performance has Flowserve well on its way to achieving our 2027 adjusted operating margin target of 14% to 16%.

今年迄今，我們的調整後營業利益率為 11.5%，比前一年提高了 230 個基點。我們仍預計全年調整後營業利潤率將比 2023 年水準增加至少 200 個基點。這種業績水準使 Flowserve 預計將實現 2027 年調整後的 14% 至 16% 的營業利潤率目標。

By segment, FPD delivered a strong adjusted operating margin at 16.4%, which is a 410-basis point improvement over prior year. For two consecutive quarters, FPD is now generated adjusted operating margins of more than 16% within the range of its 2027 adjusted operating margin target. Still FPD has further opportunities to accelerate growth and expand its adjusted operating margin to the high end of the 16% to 18% targeted range.

以細分市場劃分，FPD 調整後營業利潤率強勁，達到 16.4%，比上年提高 410 個基點。FPD 目前已連續兩季調整後營業利潤率在 2027 年調整後營業利潤率目標範圍內超過 16%。FPD 仍然有進一步的機會加速成長，並將其調整後的營業利潤率擴大到 16% 至 18% 目標範圍的高端。

FCD's adjusted operating margin of 14% was lower by 70 basis points, but it is a 60-basis point sequential improvement. We expect to generate continued adjusted operating margin expansion in FCD during the fourth quarter, primarily derived from the expected increase in gross margin.

FCD 的調整後營業利潤率為 14%，下降了 70 個基點，但較上季提高了 60 個基點。我們預計第四季度 FCD 的調整後營業利潤率將持續擴張，這主要源自於毛利率的預期成長。

On a reported basis, third quarter consolidated operating margins increased 270-basis points year over year to 9.1%, driven by improved operating leverage. Our third quarter adjusted and reported tax rates were 19.7% and 22.8%, respectively. This quarter's reported tax rate was higher than the adjusted rate considering realignment activities, and the below-the-line foreign exchange had unfavorable tax impacts on the rate.

根據報告，在營運槓桿改善的推動下，第三季綜合營運利潤率年增 270 個基點至 9.1%。我們第三季的調整後稅率和申報稅率分別為 19.7% 和 22.8%。本季的報告稅率高於考慮到調整活動的調整後稅率，且線下外匯對稅率產生了不利的稅收影響。

Turning now to cash flow. We generated record third quarter cash from operations of $178 million, driven by strong earnings and substantial working capital improvements, particularly in accounts receivable. During the second quarter, our receivables were negatively impacted by the timing or revenues. As expected, this impact reversed during the third quarter, and we generated strong cash flow from our collections.

現在轉向現金流。在強勁的獲利和顯著的營運資本改善（尤其是應收帳款方面）的推動下，我們第三季的營運現金達到創紀錄的 1.78 億美元。在第二季度，我們的應收帳款受到時間或收入的負面影響。正如預期的那樣，這種影響在第三季度發生了逆轉，我們從收藏中產生了強勁的現金流。

Additionally, our cash conversion cycle declined by nine days year over year, driven by improved inventory turns and payables. As a percentage of sales, our third quarter adjusted primary working capital improved year over year and sequentially by 260- and 140-basis points respectively, to 27.9%.

此外，由於庫存週轉率和應付帳款的改善，我們的現金週轉週期比去年同期減少了 9 天。從佔銷售額的百分比來看，我們第三季調整後的主要營運資本年比和上一季分別提高了 260 和 140 個基點，達到 27.9%。

With capital expenditures of $24 million our third quarter free cash flow to adjusted net earnings was 189%. Historically, the fourth quarter has been our strongest cash generation quarter, and we expect to free cash flow to adjusted net earnings conversion rate at 85% or more for the full year.

我們第三季的資本支出為 2,400 萬美元，自由現金流佔調整後淨利的比例為 189%。從歷史上看，第四季度是我們現金產生最強勁的季度，我們預計全年自由現金流與調整後淨利潤的轉換率達到 85% 或更高。

Altogether, we are pleased with the third quarter's operating cash flow results and our efforts this moves the seasonality of our performance. Which provide more opportunities to strategically deploy cash under our capital allocation framework.

總而言之，我們對第三季的營運現金流結果以及我們為改變業績季節性所做的努力感到滿意。這為我們在資本配置架構下策略性部署現金提供了更多機會。

Other uses of cash during the quarter include a combined $46 million for dividends, a term loan reduction, and share repurchases. As Scott highlighted earlier, we successfully completed the acquisition of MOGAS Industries earlier this month. I want to thank all our Flowserve and MOGAS Associates who worked tirelessly on the transaction.

本季現金的其他用途包括總計 4,600 萬美元的股息、定期貸款減少和股票回購。正如斯科特之前強調的那樣，我們本月早些時候成功完成了對 MOGAS Industries 的收購。我要感謝所有為此交易不懈努力的 Flowserve 和 MOGAS 員工。

Additionally, we appreciate the support of our banking partners as we amended and restated Flowserve's credit agreement by extending its maturity to 2029 and increasing our term loan component to provide additional flexibility and liquidity. The MOGAS transaction checked all the boxes in our capital allocation criteria: portfolio diversification, aftermarket opportunity, strong financial returns, and straightforward integration. Demonstrating our commitment to value creating inorganic growth through disciplined capital allocation approach.

此外，我們感謝銀行合作夥伴的支持，我們修改並重申了 Flowserve 的信貸協議，將其期限延長至 2029 年，並增加了定期貸款部分，以提供額外的靈活性和流動性。MOGAS 交易滿足了我們資本配置標準中的所有要求：投資組合多元化、售後市場機會、強勁的財務回報和直接整合。展示我們對透過嚴格的資本配置方法創造價值的無機成長的承諾。

Our inorganic pipeline remains robust, and we expect to continue exploring acquisitions to further diversify our business and accelerate our 3D strategy. When considering the strategic use of capital, our framework will guide us in directing investment dollars to the highest long-term return on our option, including acquisitions, share buybacks, and prepayable debt like our term loan.

我們的無機管道仍然強勁，我們預計將繼續探索收購，以進一步實現業務多元化並加速我們的 3D 策略。在考慮資本的策略使用時，我們的框架將指導我們將投資資金引導至我們選擇的最高長期回報，包括收購、股票回購和定期貸款等可預付債務。

In closing, we are proud of the results we delivered this quarter and through the nine months of the year. We look forward to executing on the substantial opportunities ahead to further improve our financial performance. We are committed and focused on finishing the year strong and are confident that our continued progress will enable us to achieve our 2027 targets. Let me now return the call to Scott.

最後，我們對本季和今年九個月所取得的成果感到自豪。我們期待抓住未來的重大機遇，進一步改善我們的財務表現。我們致力於並專注於強勁地結束這一年，並相信我們的持續進步將使我們能夠實現 2027 年的目標。現在讓我回電給史考特。

Great. Thank you, Amy. I want to provide a few comments on our 3D strategy. We delivered record bookings in the quarter from our 3D strategy, representing nearly $410 million. Our strategy is working in today's environment, we fully expect continued growth in our 3D bookings, looking forward.

偉大的。謝謝你，艾米。我想就我們的 3D 策略提供一些評論。我們的 3D 策略在本季創造了創紀錄的預訂量，相當於近 4.1 億美元。我們的策略在當今的環境下發揮作用，我們完全期待 3D 預訂量的持續成長，並展望未來。

Our focus remains on supporting our existing customers in the energy transition journey through decarbonization initiatives, as well as adding value to new energy technologies like hydrogen and carbon capture. We intend to further diversify our portfolio into attractive markets like specialty chemicals and mining as we did in the MOGAS transaction.

我們的重點仍然是透過脫碳措施來支持現有客戶的能源轉型之旅，以及為氫和碳捕獲等新能源技術增加價值。我們打算進一步將我們的投資組合多元化，進入特種化學品和採礦等有吸引力的市場，就像我們在 MOGAS 交易中所做的那樣。

Additionally, we continue to make progress with our digital offering RedRaven. We believe we have a differentiated technology and extensive domain expertise to monitor pump and valve performance, prevent unplanned downtime through predictive analytics, and ultimately help our customers optimize their flow loops.

此外，我們的數位產品 RedRaven 繼續取得進展。我們相信，我們擁有差異化的技術和廣泛的領域專業知識來監控泵浦和閥門的性能，透過預測分析防止意外停機，並最終幫助我們的客戶優化其流動迴路。

Let me highlight a few examples of our 3D strategy in action. Our focus on specialty chemicals is an example of our diversification efforts. During the quarter, we received an order to supply vacuum pumps for a US-based pharmaceutical company. To keep up with the growing demand, our equipment offers process efficiency to help increase the supply of critical medication to patients across the country.

讓我重點介紹我們 3D 策略的幾個實際例子。我們對特種化學品的關注是我們多元化努力的一個例子。本季度，我們收到了為一家美國製藥公司供應真空幫浦的訂單。為了滿足不斷增長的需求，我們的設備提高了流程效率，有助於增加對全國患者的關鍵藥物的供應。

In the decarbonization lane, we won a contract to supply pumps and valves for the construction of a new nuclear power station in the United Kingdom. The nuclear facility is expected to generate enough low-carbon electricity to power 6 million homes. We are excited to participate in this flagship project in the UK, which will provide reliable and clean energy to support the growing demands.

在脫碳領域，我們贏得了為英國新建核電廠供應泵浦和閥門的合約。該核設施預計將產生足夠的低碳電力，為 600 萬戶家庭供電。我們很高興參與英國的這項旗艦項目，該項目將提供可靠和清潔的能源來滿足不斷增長的需求。

Lastly, on digitize. Our ability to instrument our products with our RedRaven IoT offering positions Flowserve to provide true solutions for our customers and demonstrates the value of our digital capabilities. In the third quarter, we won a three-year contract to monitor dry vacuum pumps for a leading global soft drink company. With our 24/7 monitoring and predictive analytics, we expect to improve the uptime and productivity for this global customer.

最後，關於數位化。我們能夠使用 RedRaven IoT 產品來檢測我們的產品，這使得 Flowserve 能夠為我們的客戶提供真正的解決方案，並展示了我們數位能力的價值。第三季度，我們贏得了為期三年的合同，為一家全球領先的軟飲料公司監控乾式真空幫浦。透過我們的 24/7 監控和預測分析，我們希望提高該全球客戶的正常運作時間和生產力。

In conclusion, we delivered another strong operational quarter and are confident in our ability to build on these results. The macro backdrop remains positive, and we believe we can continue to drive growth in both our new and aftermarket business. We remain committed to through the growth strategy as it has proved successful over the past two years.

總之，我們實現了又一個強勁的營運季度，並對我們在這些成果的基礎上再接再厲的能力充滿信心。宏觀背景依然樂觀，我們相信我們可以繼續推動新業務和售後業務的成長。我們仍然致力於實施成長策略，因為它在過去兩年中被證明是成功的。

Lastly, we believe we are currently ahead of pace on the journey towards our long-term financial goals. We have made great progress in the past two years, and we have a clear road map utilizing the Flowserve business system to deliver our growth and margin targets that we define for you last year. Operator, this now concludes our prepared remarks, and we would now like to open the call for questions.

最後，我們相信我們目前在實現長期財務目標的道路上處於領先地位。我們在過去兩年中取得了巨大進步，並且我們擁有清晰的路線圖，利用 Flowserve 業務系統來實現我們去年為您定義的成長和利潤目標。接線員，我們準備好的發言到此結束，我們現在開始提問。

Thank you, sir. (Operator Instructions)

謝謝您，先生。（操作員說明）

Andy Kaplowitz, Citi.

安迪‧卡普洛維茨，花旗銀行。

Good morning, everyone. Scott, can you give us more color into what you're seeing in terms of bookings? At least one of your competitors I think talked about some slowing in process, and I think there is some concern regarding slowed spending in the Middle East, both of which it doesn't seem like you're seeing. So, do you see continued strength in Middle East in your overall process markets? And I know you reiterated closer to bookings should exceed one times for the year, but you still believe your markets overall relatively early in their upcycle and book-to-bill could be over one times for the next several quarters.

大家早安。Scott，您能給我們更多關於您所看到的預訂情況的資訊嗎？我認為至少你們的一位競爭對手談到了進程的一些放緩，而且我認為人們對中東支出放緩感到擔憂，而這兩種情況你們似乎都沒有看到。那麼，您認為中東在整個加工市場中持續走強嗎？我知道您重申，今年的預訂量應該會超過一倍，但您仍然相信，您的市場總體處於升級週期的早期，並且預訂到賬單在接下來的幾個季度可能會超過一倍。

Sure, Andy. I'm happy to talk about that. Let me start with aftermarket, then I'll go to projects. The aftermarket business is incredibly healthy. Two quarters in a row now at $600 million. And I'd say that the underlying health [share] is twofold. One, the process industry is the utilization rates, while maybe not at record levels, are incredibly healthy. And what we're seeing is the operator spending money to maintain those levels of operation. So turnarounds are back to kind of a more normalized level. We're getting parts pull through. We're getting service work.

當然，安迪。我很高興談論這個。讓我從售後市場開始，然後我將討論項目。售後市場業務非常健康。目前已連續兩季達到 6 億美元。我想說，潛在的健康[份額]是雙重的。第一，流程工業的使用率雖然可能沒有達到創紀錄的水平，但卻非常健康。我們看到的是營運商花錢來維持這些營運水準。因此，扭虧為盈回到了更正常化的水平。我們正在讓零件通過。我們正在進行服務工作。

And then the second part of this is, we have got a significant focus with the new org design on two of our business units, which are services and solutions for pumps, and services and solutions for the FCD segment. And that is all around capture rate in making sure that we get the value from our extensive installed base. And so, we were tracking essentially market share gains with improved capture rate on both the pump side and the valve side.

第二部分是，我們將重點放在兩個業務部門的新組織設計，即泵浦的服務和解決方案，以及 FCD 部門的服務和解決方案。這一切都圍繞著捕獲率，以確保我們從廣泛的安裝基礎中獲得價值。因此，我們主要透過泵浦側和閥門側捕獲率的提高來追蹤市場份額的成長。

And so, I would say, normalized levels of utilization with the process industry, combined with our ability to drive capture rate up, we're confident that we can continue to see very healthy aftermarket work. And in theory, continue to grow that businesses as we move forward.

因此，我想說，流程工業的利用率正常化，再加上我們提高捕獲率的能力，我們有信心能夠繼續看到非常健康的售後市場工作。理論上，隨著我們的前進，業務將繼續發展。

And then maybe move into projects. Right now, we see a very healthy pipeline for the foreseeable future. Project activity has been robust this year, primarily oil and gas, Middle East has been one of the biggest drivers. That's what this -- those awards made up a lot of the bookings -- the project bookings in the third quarter.

然後也許會進入項目。目前，我們在可預見的未來看到了一個非常健康的管道。今年的專案活動非常活躍，主要是石油和天然氣，中東是最大的推動因素之一。這就是這些獎項構成了第三季專案預訂的大部分。

We still have visibility to very strong Middle Eastern work. And so, despite some of the hostilities in the region or in other parts, we're seeing Saudi Arabia, UAE, Qatar, Oman, Kuwait, continuing to invest and progress forward. And well, a lot of our work is in the oil and gas side. It is the process industries like gas processing, LNG, refining expansion, we believe there's more work and substantial opportunities as that region continues to diversify.

我們仍然可以看到非常強大的中東工作。因此，儘管該地區或其他地區存在一些敵對行動，但我們看到沙烏地阿拉伯、阿聯酋、卡達、阿曼、科威特仍在繼續投資並取得進展。嗯，我們很多的工作都是在石油和天然氣方面。正是天然氣加工、液化天然氣、煉油擴建等製程工業，我們相信，隨著該地區的不斷多元化，將會有更多的工作和大量的機會。

And so, we know there's a strong need for power generation next year, we've got very good visibility to that. We also know that the water demands in the Middle East continue to grow. And so, there's desalination opportunities, there are municipal water opportunities. And then the chemical side is continuing to expand as well. And so, I'm excited about the Middle East. We're there -- we visit regularly. I was supposed to go last week but went to Europe instead. But I'll be back in January and at this time, we don't see any slowdown.

因此，我們知道明年對發電的需求非常強烈，我們對此有很好的了解。我們也知道中東地區的用水需求持續成長。因此，存在海水淡化機會和市政供水機會。然後化學方面也在持續擴張。因此，我對中東感到興奮。我們在那裡——我們定期拜訪。我本來上週應該要去的，但我去了歐洲。但我會在一月回來，此時，我們沒有看到任何放緩。

And then for rest of the world on projects? Yes, I'd say it's a little bit of a mixed bag. The US and Europe project activity has slowed a little bit, with that said, we still continue to see very healthy activity in anything decarbonization, primarily around carbon capture, some of the biofuel -- biodiesel or bio conversions still happening. Recyclable plastics are still a big thing in the decarbonization lane.

那麼對於世界其他地區的計畫呢？是的，我想說這有點魚龍混雜。美國和歐洲的計畫活動有所放緩，儘管如此，我們仍然繼續看到脫碳領域的非常健康的活動，主要圍繞碳捕獲，一些生物燃料——生物柴油或生物轉化仍在發生。可回收塑膠仍然是脫碳領域的重要組成部分。

And then probably the next biggest bright star is on power. And I talked about that in the prepared remarks, but our power overall funnel is up 20%. We've got very strong visibility towards next year and the year beyond that. And then we think nuclear is a very long-term play. These projects take a long, long time, but we booked over $100 million of nuclear work in the quarter, and we expect to see continued growth from nuclear as we go forward.

然後下一個最耀眼的明星可能就會上台了。我在準備好的演講中談到了這一點，但我們的整體電力漏斗上升了 20%。我們對明年和之後的一年有非常強烈的預見性。然後我們認為核能是一個非常長期的遊戲。這些項目需要很長很長的時間，但我們在本季度預定了超過 1 億美元的核工程，我們預計隨著我們的進展，核工程將持續成長。

So I say overall, the aftermarket business is healthy, we see growth opportunities there. And then we have got several different levers on the project activity around the world. And today, we feel confident about our project outlook.

所以我說總的來說，售後市場業務是健康的，我們看到了那裡的成長機會。然後我們在世界各地的專案活動上有幾種不同的槓桿。今天，我們對我們的專案前景充滿信心。

Very helpful, Scott. And then, Amy, maybe just in terms of the Q4 EPS guide. I think you guided decently under 30% of the year's EPS in Q4. Historically, I think you decently over 30%. And as you said, is that just kind of just throw one leading to much higher front end, and we know you purposely intending to balance your quarterly earnings, but is there anything else that's a little bit lower slower than you originally thought for Q4?

非常有幫助，斯科特。然後，艾米，也許只是就第四季每股盈餘指南而言。我認為您對第四季度每股收益的指導低於全年每股收益的 30%。從歷史上看，我認為你的比例超過 30%。正如您所說，這是否只是拋出一個導致前端更高的結果，我們知道您故意打算平衡季度收益，但還有其他什麼比您最初想像的第四季度慢一點嗎？

No, you have really hit on it. I think as we look at the fourth quarter this year, our ramp in revenue is a lot smaller than what we've traditionally experienced in the fourth quarter. Some of that is our efforts to improve conversion rates and the strength of the aftermarket business that Scott's referenced. But in 2024, we just don't see that [OE] sales ramp that we saw in 2023, that largely came from Jafurah 1. In fact, Jafurah 1, our heaviest revenue quarters in 2024 were actually Q1, followed by Q2.

不，你真的擊中了它。我認為，當我們回顧今年第四季時，我們的營收增幅比我們傳統上在第四季經歷的增幅要小得多。其中一些是我們為提高轉換率和史考特提到的售後市場業務實力所做的努力。但到 2024 年，我們並沒有看到 2023 年看到的 [OE] 銷量成長，這主要來自 Jafurah 1。事實上，Jafurah 1（我們 2024 年收入最高的季度）實際上是第一季度，其次是第二季度。

I think we'll still see a bit of progression in margins, particularly driven by FCD, where we should see a benefit from mix as well as some of the cost-out activities that they're going through currently. FPD should be relatively aligned with what we have seen.

我認為我們仍然會看到利潤率有所進步，特別是在 FCD 的推動下，我們應該看到混合以及他們目前正在進行的一些成本削減活動的好處。FPD 應該與我們所看到的相對一致。

I will comment that, any opportunity that we have to get to the higher end of the guidance range, which was somewhat mitigated by the size of the discrete charge that we saw in the third quarter would come from hitting the higher end of our revenue guidance range. Right now, I would suspect will be closer to the midpoint of that range.

我要評論的是，我們必須達到指導範圍的高端的任何機會（我們在第三季度看到的離散費用的規模在一定程度上減輕了這一點）將來自於達到我們收入指導的高端範圍。現在，我懷疑會更接近該範圍的中點。

But if we see stronger to ship -- or stronger book-to-ship revenue in the quarter or [POC] performance outpacing what we are currently scheduled to do from a production standpoint that drives sales to the higher end of the range, I think that would be our path to the upper end.

但如果我們看到本季的出貨量更加強勁，或者訂單到出貨收入更加強勁，或者從生產的角度來看，[POC] 業績超過了我們目前計劃的目標，從而推動銷售達到該範圍的高端，我認為這將是我們通往高端的道路。

Appreciate all the color. And my best (inaudible) and welcome, Brian.

欣賞所有的顏色。布萊恩，我致以最誠摯（聽不清楚）的歡迎。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

Good morning, everyone. I wanted to talk a little bit about a comment you made Scott, on your opening remarks on a data-driven approach to portfolio review with products, customers, margins in the 100 to 200 basis points target by 2027. Sounds a lot like an 80-20 quadrant-driven kind of model there.

大家早安。我想談談你對史考特的評論，在你關於數據驅動的投資組合審查方法的開場白中，到 2027 年，產品、客戶、利潤率目標達到 100 到 200 個基點。聽起來很像 80-20 象限驅動的模型。

And I'm interested to see where you think you are in the evolution of that process, are we still segmenting the business in terms of those products, customers, margins, are you through the deployment phase of that yet? And just any color you can give us on how that progresses over the next couple of years.

我很想知道您認為自己在流程的演進中處於什麼位置，我們是否仍在根據這些產品、客戶、利潤來細分業務，您是否已經完成了部署階段？您可以向我們提供有關未來幾年進展情況的任何顏色。

Yeah, absolutely. I'm happy to talk about the Flowserve business system. And we did some kind of a precursor to this last year in the Analyst Day, where we talked about product management and portfolio optimization. And essentially at the beginning of this year, we launched a truly formal portfolio excellence program, and I said, it is truly an 80-20 framework. We're using an incredible data driven approach to look at our products, our customers, and our profitability in making long-term strategic decisions on what is the best products for our customers, but also how do we generate value you for Flowserve.

是的，絕對是。我很高興談論 Flowserve 業務系統。去年我們在分析師日做了一些前奏，我們討論了產品管理和投資組合最佳化。本質上，在今年年初，我們啟動了一個真正正式的投資組合卓越計劃，我說，它確實是一個 80-20 框架。我們使用令人難以置信的數據驅動方法來審視我們的產品、我們的客戶和我們的獲利能力，以製定長期策略決策，確定什麼是最適合我們客戶的產品，以及我們如何為福斯創造價值。

And so, we've launched this formally. We've got three business units in flight right now. And so, we've had one business unit started in January, one started in the second quarter, and we had one just recently start. But we fully expect all of the product business units, all five of them to go through this by 2025.

因此，我們正式啟動了此計畫。我們現在有三個業務部門正在運作中。因此，我們有一個業務部門於一月啟動，一個業務部門於第二季啟動，還有一個業務部門最近剛啟動。但我們完全期望所有產品業務部門（所有五個部門）到 2025 年都能經歷這個過程。

And we're seeing very early results to this, but think about more systematic price increases, eliminating some product that don't necessarily contribute to the overall portfolio of Flowserve. And when you think about Flowserve, right, we did got a very long legacy of product families and substantial complexity within the portfolio itself.

我們看到了非常早期的結果，但考慮更有系統的價格上漲，消除一些不一定對福斯整體產品組合做出貢獻的產品。當你想到 Flowserve 時，對吧，我們確實擁有很長的產品系列遺產和產品組合本身的巨大複雜性。

And so, I'm pretty excited about what that complexity reduction can do in that increased focused on the product families that really do create value for Flowserve and our customers. And so, I would say, will formally launch this a little bit later in the quarter. And so, you'll hear more from us, but we're excited about the early kind of opportunities that were seeing.

因此，我對降低複雜性所帶來的影響感到非常興奮，因為我們更加關注真正為 Flowserve 和我們的客戶創造價值的產品系列。因此，我想說，我們將在本季晚些時候正式推出這項項目。因此，您會從我們那裡聽到更多信息，但我們對所看到的早期機會感到興奮。

And I would just say it reaffirms what we said last year in the analyst day, that we could -- we were expecting 100 to 200 basis points from product management and portfolio excellence. And now given the early results of this, we have got a lot more confidence to hit that as our 2027 target.

我只想說，這重申了我們去年在分析師日所說的話，即我們可以——我們期望產品管理和卓越投資組合能帶來 100 到 200 個基點。現在，鑑於該計畫的早期成果，我們更有信心實現 2027 年的目標。

Yeah, I don't want to get too far ahead of you on promising your target that -- Flowserve has over the years been a very complex organization with a lot of SKUs and different products in it that maybe could be rationalized out of it. And other companies who've gone through this kind of process, and delivered margin expansion that not only would be 100 basis points a year for the next few years, but on -- beyond that. It would seem Flowserve has probably a lot of raw material to work with this or any commentary you can give us on kind of the duration past the targets that you put out there to date or potential for you to outperform those targets over the next few years.

是的，我不想在向您承諾的目標上走得太遠——多年來，福斯一直是一個非常複雜的組織，其中有許多 SKU 和不同的產品，也許可以從中合理化。其他經歷過這種流程的公司不僅在接下來的幾年裡實現了每年 100 個基點的利潤率擴張，而且還超出了這個數字。福斯似乎有很多原材料可以處理這個問題，或者您可以向我們提供任何評論，說明超出您迄今為止設定的目標的持續時間或您在未來幾年超越這些目標的潛力。

I'll just start with kind of the history of this. We started something similar with Flowserve 2.0, and I would say the organization of the time wasn't mature -- fully mature enough to do this. Now is absolutely the right time. The data integrity is better than ever. And so really what I'm trying to say is like we are in a position to truly capitalize on this today, given where we are with the business unit structure in the quality of the data or the improved quality of the data, we still have opportunities there.

我將從這件事的歷史開始。我們開始了與 Flowserve 2.0 類似的事情，我想說當時的組織還不成熟——完全成熟到足以做到這一點。現在絕對是正確的時機。資料完整性比以往任何時候都更好。所以我想說的是，鑑於我們在數據品質或數據品質改進方面的業務部門結構所處的位置，我們今天能夠真正利用這一點，我們仍然有那裡的機會。

But overall, it's far better than what it used to be in. So, to your point, what we have seen as other companies that have launched a very formal 80-20 framework, get substantial margin opportunity and expansion over kind of a, let's call it a two-to-four-year period. And so, we're not -- we're going to stick with our 2027 targets of 100- to 200-basis points. But I would say if that was the in-state for us, I would be incredibly disappointed.

但整體來說，比以前好很多了。因此，就您的觀點而言，我們看到其他公司推出了非常正式的 80-20 框架，在一段時間內（我們稱之為兩到四年）獲得了大量的利潤機會和擴張。因此，我們不會——我們將堅持 2027 年 100 至 200 個基點的目標。但我想說，如果這對我們來說是州內的情況，我會非常失望。

Awesome. Thanks very much for taking my questions.

驚人的。非常感謝您回答我的問題。

Deane Dray, RBC Capital Markets.

迪恩德雷 (Deane Dray)，加拿大皇家銀行資本市場。

Thank you. Good morning, everyone, and I'm sure he's listening well. I wish Jay all the best and a welcome to Brian.

謝謝。大家早安，我確信他聽得很好。我祝傑伊一切順利，並歡迎布萊恩。

Thanks for that, Deane.

謝謝你，迪恩。

Sure. All right. And for Amy, and I guess Scott too, I know you guys don't like to use the word specialist, but let's just confirm that that $0.07 non-cash charge is related to this, what we know as a routine annual accrual true-up to your 30-year undiscounted asbestos liability. Again, I'll emphasize the routine part of it, but that's what we're talking about, right?

當然。好的。對於艾米，我猜斯科特也是，我知道你們不喜歡使用“專家”這個詞，但讓我們確認一下 0.07 美元的非現金費用與此相關，我們所知道的常規年度應計真實-高達您30 年未折算的石棉責任。我將再次強調其中的常規部分，但這就是我們正在討論的，對吧？

Yes, it's a process that we undertake every year in the third quarter of the year based on claims experienced for a number of years including the current year. And that's what the $0.07 is this period. And you're correct, that is an undiscounted number, and the duration of that liability is 30 years.

是的，我們每年第三​​季都會根據多年來（包括今年）經歷的索賠情況進行此流程。這是這一時期的 0.07 美元。你是對的，這是一個未折現的數字，而且該責任的期限是 30 年。

Got it. All right. I just want to make sure that was clear. And then can we talk about free cash flow, and it just -- [I love] the saying that you are so far above your typical third quarter conversion. And Amy, you talked about the day’s improvement in the cycle because when I see change -- a structural change like this, it makes me think that that 85% target conversion eventually going to start inching up, and hopefully we'll get to that 100% threshold at some point. But just kind of take us through what structurally has changed.

知道了。好的。我只是想確保這一點清楚。然後我們可以談談自由現金流，它只是 - [我喜歡]你遠高於典型的第三季轉換率的說法。艾米，你談到了當天的週期改進，因為當我看到變化時——像這樣的結構性變化，它讓我認為 85% 的目標轉換率最終會開始緩慢上升，希望我們能夠在某個時刻達到100% 的閾值。但只是帶我們去了解結構上發生了什麼變化。

Sure. So I think a couple of things, we were pleased actually to start the year relatively strong from a free cash flow conversion standpoint for Flowserve, with positive free cash flow in the first quarter. And the second quarter and -- are at the timing of our sales worked out in a way where we saw an accounts receivable build in the quarter, which is something that we focused on pretty early with respect to our cash conversion efforts, and we did see some of that reverse in the third quarter.

當然。因此，我認為有幾件事，我們很高興從 Flowserve 的自由現金流轉換角度來看，今年伊始相對強勁，第一季自由現金流為正。第二季度，在我們銷售的時間點上，我們看到本季應收帳款的增加，這是我們很早就關注的現金轉換工作，我們做到了第三季度出現了一些逆轉。

So in some ways, I see this performance in the third quarter being a little bit about a full year performance, I mean, in terms of the timing of those cash flows or a year-to-date performance. But I think what we're incredibly pleased to see in the third quarter of this year and that nine-day conversion -- cash conversion cycle improvement is improvement coming from inventory.

因此，在某些方面，我認為第三季的業績在某種程度上與全年業績有關，我的意思是，就這些現金流的時間安排或年初至今的業績而言。但我認為我們非常高興地看到今年第三季的九天轉換——現金轉換週期的改善是來自庫存的改善。

And so as we look at our operational excellence initiatives, that's obviously around margin expansion. Margin expansion does help cash conversion, but operational excellence also goes to how efficiently are we with our inventory processes. And so, we are starting to see that improvement in inventory -- in days sales and inventory. And that's something that we have to stay focused on, we have to stay mindful of, and I do believe is a structural change in the business.

因此，當我們審視我們的卓越營運計劃時，這顯然是圍繞著利潤擴張而展開的。利潤擴張確實有助於現金轉換，但卓越營運也取決於我們庫存流程的效率。因此，我們開始看到庫存的改善——以銷售天數和庫存計算。這是我們必須持續關注、必須牢記的事情，我確實相信這是業務的結構性改變。

And I'll quote Scott here with respect to the margin expansion opportunities that we have, I'd be incredibly disappointed if we stopped at 85% free cash flow conversion. The goal is really to get in [invest in class], with respect to those that the primary working capital performance we have as a percentage of sales, that's something overtime, that we see it's possible to drive more to the mid-20s and even lower than that over time as we expand margins and improve our working capital efficiency.

關於我們擁有的利潤擴張機會，我將在這裡引用斯科特的話，如果我們停止在 85% 的自由現金流轉換，我會非常失望。我們的目標實際上是進入[投資類別]，就我們的主要營運資金績效佔銷售額的百分比而言，這是加班的事情，我們認為有可能將更多的資金推向20多歲甚至20多歲隨著時間的推移，隨著我們擴大利潤率並提高營運資金效率，這一數字將低於這一水平。

All right. That's a great recap there and some good framework for us to monitor. And just as a follow-up for Scott. So you're now 11 quarters above $1 billion in orders. And just kind of reflect here in terms of the duration of the streak, the importance for the organization and just maybe some assurance that you're still being at using selectivity in terms of -- I wouldn't want the streak duration to compromise at all the selectivity that you've been exercising. So going to just take us through the importance of the streak and the importance of selectivity.

好的。這是一個很好的回顧，也是我們可以監控的一些很好的框架。就像斯科特的後續行動一樣。因此，現在已經有 11 個季度的訂單量超過 10 億美元了。在這裡反映一下連續的持續時間，對組織的重要性，以及也許你仍然在使用選擇性方面的一些保證——我不希望連續持續時間妥協你一直在行使的所有選擇性。因此，我們將帶大家了解連勝的重要性和選擇性的重要性。

Yeah. I mean, I don't think we see this as a streak per se. I mean, what we're interested in is its continuing to drive growth at Flowserve. And we put out targets -- long-term targets about a 5% growth rate from an organic perspective, and that's what the organization is fully focused on.

是的。我的意思是，我認為我們並不認為這本身就是一場連勝。我的意思是，我們感興趣的是它繼續推動 Flowserve 的成長。我們設定了目標——從有機角度來看，成長率約為 5% 的長期目標，這也是該組織全力關注的目標。

And so, when we think about the seven business units, each of those seven business units has a growth target, and truly has its growth initiatives that they're working on from either our product portfolio standpoint or customer account management standpoint or market share or parts capture rate, like all of those are deliberate actions.

因此，當我們考慮七個業務部門時，這七個業務部門中的每一個都有一個成長目標，並且確實有他們正在從我們的產品組合角度或客戶帳戶管理角度或市場份額或市場份額角度開展的成長計劃。

And so, I would say we're not waiting for is -- we're not waiting to see what the market gives us. We're truly going out and being aggressive about making sure that we can win the work that we believe we're entitled to.

所以，我想說，我們不是在等待——我們不是在等著看市場給我們什麼。我們真正走出去，積極進取，確保我們能夠贏得我們認為自己有權獲得的工作。

Just the comment on the project side and selectivity, I will say we are absolutely being selective. We are not backing away from that. We're seeing -- our ability to be selective and win the right work, and when we're selective, we're winning work, that one, gives us the margins we believe that we deserve, given the risk of some of those projects, but two, it's with customers that we know we're going to get the aftermarket entitlement over the long term.

只是對項目方面和選擇性的評論，我會說我們絕對是有選擇性的。我們不會放棄這一點。我們看到——我們有能力進行選擇性並贏得正確的工作，當我們有選擇性時，我們就贏得了工作，考慮到其中一些風險，我們可以得到我們認為應得的利潤。二，我們知道，從長遠來看，我們將獲得售後市場的權利。

And so that's not going to change. We continue to be incredibly selective. We passed up on many projects with some of our sales folks are absolutely thrilled about that, but it's the right thing to do for Flowserve and for our shareholders. And so we'll continue that approach. And not just say on the kind of level of bookings, the aftermarket business is incredibly healthy at that $600 million run rate. We expect to see that to continue to kind of tick up as we go forward. Projects always lumpy, but we have got good visibility and a healthy funnel there. I would just say kind of that $1.1 billion level now is something that we aspire to be above on every quarter as we go forward.

所以這不會改變。我們繼續保持令人難以置信的選擇性。我們放棄了許多項目，我們的一些銷售人員對此感到非常興奮，但對於 Flowserve 和我們的股東來說，這是正確的事情。因此我們將繼續這種方法。不僅是預訂量，售後市場業務在 6 億美元的運行率下也非常健康。我們預計隨著我們的前進，這種情況會繼續上升。項目總是不穩定，但我們在那裡擁有良好的可見性和健康的漏斗。我只想說，現在我們希望在未來的每個季度都能超越 11 億美元的水平。

Great to hear. Thank you.

很高興聽到。謝謝。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Good morning, everyone. So just on the power side of things, obviously, the seculars are starting to move in closer, which is great. How do you see that playing out from a duration conversation? Starting to see some of the aftermarket pieces today, but you know, some of that refurb work can take time, the projects can take time, but obviously a ton of excitement, order books, good funnel, funnel is good. So maybe just frame up how that should play out over the next two years here?

大家早安。因此，就權力方面而言，顯然，世俗人士開始走近，這很好。您如何看待持續對話中的這一點？今天開始看到一些售後市場的作品，但你知道，一些翻新工作可能需要時間，項目可能需要時間，但顯然有很多興奮，訂單，良好的漏斗，漏斗很好。那麼，也許只是在這裡框架一下未來兩年該如何發揮作用？

Yeah. I would say that the horizons even longer than two years, Mike. It's a -- this is a really slow to move-in industry in. Certainly, on the nuclear side. And so, we've seen nice growth year to date, up 23%. We like the bookings in the quarter. Powers is at $150-plus million with the $100 million of nuclear, and the composition there was life extension in North America. So we had two nice awards there given us a healthy mix of bookings. And then also the spotlight award that I talked about on the new nuclear power in the UK.

是的。我想說，麥克的視野甚至比兩年還要長。這是一個進入速度非常緩慢的行業。當然，在核方面。因此，今年迄今為止，我們看到了良好的成長，成長了 23%。我們喜歡本季的預訂。鮑爾斯的價格為 1.5 億美元以上，其中核電的價格為 1 億美元，其中的成分是北美的壽命延長。因此，我們在那裡獲得了兩個不錯的獎項，為我們提供了健康的預訂組合。然後還有我談到的關於英國新核電的聚光燈獎。

And then I'd say, just generally, what we are seeing is, we're seeing traditional power discussions about how do we get power into -- so, think about bigger refineries, process industries, desalination plants, so, there's a significant need for power to support those. And that's kind of that, normal baseload, and traditionally has always been the highest, now combined with this new need to power substantially large data centers.

然後我想說，一般來說，我們看到的是，我們看到傳統的電力討論如何獲得電力——所以，想想更大的煉油廠、加工業、海水淡化廠，所以，有一個重要的問題需要力量來支持這些。這就是正常的基本負載，傳統上一直是最高的，現在與為大型資料中心供電的新需求相結合。

And so, you're seeing some pretty crazy stuff, right? Where do you get -- some of the big players in the tech space, securing capacity with traditional power or even with nuclear power plants, and we're seeing different dynamics in this industry than we have ever seen before.

所以，你看到了一些非常瘋狂的東西，對吧？你從哪裡得到的——科技領域的一些大公司，透過傳統電力甚至核電站來確保容量，我們在這個行業看到了前所未有的動態。

And so, I would just say, as we think through short-term and long term, we've got a good healthy funnel around all power activity, both traditional and nuclear. But then over the longer-term kind of the next 10 years, we really believe that nuclear will drive substantial growth.

因此，我只想說，當我們考慮短期和長期時，我們在所有電力活動（傳統和核能）方面都有一個良好的健康漏斗。但從未來 10 年的長期來看，我們確實相信核能將推動大幅成長。

And I think you'll see more life extension in North America. You'll see more kind of plants that have been taken offline, getting moved to go online. All of those facilities in the US have Flowserve content in it. In Europe, you're going to see plans for newbuild that's going to take place over the next 10 to 15 years. India's got plans for new build, and whole of Asia Pacific has plans for newbuild. And so, this is a, I would say, just a very steady kind of a long-term growth outlook for Flowserve and for our product families that support both traditional and the nuclear side.

我認為北美的壽命會延長。你會看到更多種類的工廠從線下轉移到線上。美國的所有這些設施都含有 Flowserve 內容。在歐洲，您將看到未來 10 到 15 年的新建計畫。印度有新建計劃，整個亞太地區都有新建計劃。因此，我想說，對於福斯以及我們支持傳統和核電的產品系列來說，這只是一個非常穩定的長期成長前景。

Thanks for that. Makes a lot of sense there. And then obviously the recent acquisition, really good fit. How are you thinking about the funnel from a year of opportunities, the willingness for you to go after that funnel in light of MOGAS acquisition, bandwidth, anything along those lines, if you could just give some context for how aggressive the funnel looks and your willingness to go after it.

謝謝你。那裡很有意義。顯然，最近的收購確實非常合適。您如何看待一年的機會中的漏斗，您是否願意根據 MOGAS 收購、頻寬以及類似的任何事情來追求該漏斗，如果您能提供一些背景信息來說明該漏斗看起來有多激進，以及您的願意去追求它。

Sure. So I think we continue to be active and grow. Our opportunity funnel from an inorganic standpoint, there's a lot of excitement around the MOGAS transaction, and in part and within our organization because it's such a great fit. And so, I would just highlight the element that we think makes us work. One fits the strategy, helps us diversify, it is an attractive but fair purchase price, synergies available in a kind of at the $15 million, run rate by the end of the second year.

當然。所以我認為我們會繼續活躍並不斷成長。從無機的角度來看，我們的機會漏斗，圍繞 MOGAS 交易有很多令人興奮的事情，部分原因是在我們的組織內部，因為它非常適合。因此，我只想強調我們認為使我們工作的要素。一個符合策略，幫助我們實現多元化，這是一個有吸引力但公平的購買價格，在第二年年底運行速度為 1500 萬美元，可以產生協同效應。

And the last point that I'll make goes to your bandwidth, Mike, which is that it's a relatively straightforward integration for us. And so, we think as we finish out 2024, move into 2025 that we do have bandwidth as an organization, both from the strength of our balance sheet, which continues to get stronger by the day, but also within the organization to integrate acquisitions going forward.

我要說的最後一點是關於你的頻寬，麥克，這對我們來說是一個相對簡單的整合。因此，我們認為，當我們結束 2024 年並進入 2025 年時，我們作為一個組織確實擁有頻寬，這既來自於我們日益強大的資產負債表的實力，也來自於組織內部整合正在進行的收購向前。

Great. Really appreciate it. Thank you.

偉大的。真的很感激。謝謝。

Andrew Obin, Bank of America Global Research

安德魯‧奧賓，美國銀行全球研究部

Hi, guys. Good morning. Just a question on FCD. And not to take away from sort of great progress over the past year plus, but just maybe if you can give us more color on FCD, just margins, and also decline in [OE] bookings in the quarter and year to date, what gets this to inflect positive? And just maybe more color as to what's driving those decline? Thank you.

嗨，大家好。早安.只是關於FCD的問題。並不是要否認過去一年中取得的巨大進步，但也許如果您能給我們更多關於FCD 的信息，只是利潤率，以及本季度和今年迄今為止的[OE] 預訂量的下降，我們會得到什麼這個積極運用嗎？也許更多的顏色可以說明是什麼推動了這些下降？謝謝。

Sure. So I think to start with, one, we were pleased with the operational performance overall of the business in the third quarter. If we had one surprise, we did anticipate seeing a bit more margin expansion in FCD during the quarter. Mix was a little less favorable, than we anticipated. And in the business, determine they were going to undertake some more cost out efforts.

當然。因此，我認為首先，我們對第三季業務的整體營運表現感到滿意。如果說我們有什麼意外的話，我們確實預期 FCD 在本季的利潤率會有所擴大。混合效果比我們預期的要差一些。在業務方面，確定他們將採取更多的成本節約措施。

I'm not concerned about the bookings level that we're seeing, Andrew. We would like to see that mix shift a little bit to the MRO aftermarket side as we move forward to help that marginality. I would say overall, as a business unit, we are focused that -- Scott has laid out that we are focused on both growth and margin expansions.

安德魯，我並不擔心我們所看到的預訂水平。隨著我們繼續努力幫助這種邊緣性，我們希望看到這種組合稍微轉移到 MRO 售後市場方面。我想說，總的來說，作為一個業務部門，我們關注的是——斯科特已經指出，我們關注的是成長和利潤擴張。

Certainly, within our four business units and FPD, we are focused on growth and then margin expansion because we're happy, we're not satisfied, but we're pleased with the progress that we made. As we look at FCD overall, we would like to see margin expansion and then growth.

當然，在我們的四個業務部門和 FPD 中，我們專注於成長和利潤率擴張，因為我們很高興，我們不滿意，但我們對我們的進展感到滿意。當我們整體審視 FCD 時，我們希望看到利潤率擴大，然後實現成長。

And so, the bookings performance in the quarter is not necessarily where we want to be for three or four quarters, but if we can find a way to expand margins over this period of time, we would be more focused on that and then the book-to-bill.

因此，本季的預訂業績不一定是我們希望三、四個季度達到的水平，但如果我們能找到一種方法來擴大這段時間內的利潤率，我們將更加關注這一點，然後是這本書- 到帳單。

And just to add to that. The team's got several initiatives around how to expand margins. We're working on a couple of different things. And so, I think you could expect to see margin progression as we go forward even finishing the year, but also into 2025.

只是為了補充這一點。該團隊針對如何擴大利潤採取了多項措施。我們正在做幾件不同的事情。因此，我認為，隨著我們繼續前進，甚至在今年結束時，甚至到 2025 年，您都可以看到利潤率的成長。

Excellent. And just a follow up question on power. I know people are focused on nuclear, but we're also hearing that people are likely to keep coal plants open for longer. And I was just wondering what are you hearing from your customers about that? And what's potential impact on earnings? I appreciate that nuclear is very profitable, but I would guess that coal is one of these legacy businesses that is profitable as well. Thank you.

出色的。還有一個關於電源的後續問題。我知道人們關注核能，但我們也聽說人們可能會延長燃煤電廠的運作時間。我只是想知道您從客戶那裡聽到了什麼？對收益的潛在影響是什麼？我很欣賞核能非常有利可圖，但我猜煤炭也是這些有利可圖的傳統業務之一。謝謝。

Yeah, absolutely. So in the coal-fired power plants, we actually have a substantial installed base. And so, we benefit when there's a life extension of a full coal-fired power plants. Typically, there is not really any new coal other than potentially some in China, but we are seeing extension of life on the coal side.

是的，絕對是。因此，在燃煤電廠中，我們實際上擁有大量的裝機基礎。因此，當燃煤電廠的使用壽命延長時，我們就會受益。通常情況下，除了中國可能存在的一些煤炭之外，實際上並沒有任何新的煤炭，但我們看到煤炭方面的壽命正在延長。

We're seeing this in Europe as natural gas kind of dried up given Ukraine conflict. We saw several operations in Germany and some other countries where they've extended the life of their coal assets. And then we are seeing a little bit of that in the US, and I would say that's probably more dependent on what happens in the election here.

由於烏克蘭衝突，天然氣逐漸枯竭，我們在歐洲看到了這種情況。我們看到德國和其他一些國家的幾家工廠延長了煤炭資產的使用壽命。然後我們在美國看到了一些這樣的情況，我想說這可能更取決於這裡的選舉發生的情況。

But I would just say the overall comment, and this is probably more US and Europe, given the demand side of power right now, these markets are going to need all forms of electricity. And so, whether that's coming from traditional power of coal or combined cycle with natural gas, or nuclear or some of the greener forms of energy like solar and wind, everything's going to need to contribute to match the demand growth that we're seeing.

但我只想說整體評論，這可能更多是美國和歐洲，考慮到目前電力的需求方面，這些市場將需要各種形式的電力。因此，無論是傳統的煤炭發電、天然氣複合循環發電、核能或太陽能和風能等一些綠色能源形式，一切都需要做出貢獻，以適應我們所看到的需求成長。

That's exactly right. Really appreciate your comment. Thanks so much.

完全正確。非常感謝您的評論。非常感謝。

Joe Giordano, TD Cowen.

喬·佐丹奴，TD·考恩。

Hey, guys. Thanks for taking my questions. I wanted to touch on nuclear, I know we spent a bunch of times in there already. But if you were to think a lot of stuff is being contemplated in that sector now in terms of how to bring on new capacity, whether it's SMRs or things like that. So how should we think about your opportunity set for some of these newer technologies versus like a restart of an old legacy type of nuclear plants?

嘿，夥計們。感謝您回答我的問題。我想談談核能，我知道我們已經在那裡待過很多次了。但如果你認為該領域現在正在考慮如何增加新產能，無論是中小型反應器還是類似的東西。那麼，我們該如何考慮這些新技術的機會，而不是重新啟動舊的傳統核電廠呢？

Yeah. I think that's a really good question. And all of my comments were on what I'll call traditional nuclear. And so, these are big power, nuclear power facilities driving substantial capacity onto the grid. On the SMR side, we are optimistic about more different consortiums, including the Department of Energy on the different technology needed to support small modular reactors.

是的。我認為這是一個非常好的問題。我所有的評論都是關於我所說的傳統核能。因此，這些大型電力、核電設施將大量容量輸送到電網。在SMR方面，我們對更多不同的聯盟持樂觀態度，包括能源部支援小型模組化反應器所需的不同技術。

But what I'll say is like this is not going to happen anytime soon. And so we are still very much in development phase. There's a lot of R&D that still needs to go forward to make this a viable option. I would just say, on Scott's horizon, it is probably not -- you're not going to see SMR be a meaningful part of the Flowserve portfolio for the next decade.

但我要說的是，這種情況不會很快發生。所以我們仍然處於開發階段。仍需要進行大量的研發工作才能使其成為可行的選擇。我只想說，在 Scott 看來，您可能不會看到 SMR 成為未來十年福斯產品組合中有意義的一部分。

Beyond that, though, I'd say is anybody's guess. I think some of the technology is incredibly promising. Some of the different ventures out there, both in the US and in Europe seem to make a lot of sense. But I just say it's just not moving very quickly. And again, we're partnered with kind of three or four different technology players. I think there's -- and I don't know the exact number, but let's say there's kind of 18 to 25 out there. And we hope we're picking winning horses, but it's hard to say right now who the winners will be on the SMR side.

但除此之外，我想說的是任何人的猜測。我認為有些技術非常有前景。在美國和歐洲，一些不同的企業似乎很有意義。但我只是說它進展得不太快。再說一次，我們與三、四個不同的技術參與者合作。我認為有——我不知道確切的數字，但假設有 18 到 25 個。我們希望我們能選出獲勝的馬匹，但現在很難說 SMR 一方的獲勝者是誰。

Just to confirm on that, is there any reason to think that like on a gigawatt basis that you're like opportunity on something like that should be meaningfully different versus the traditional plant? And then I just had one follow-up on the (multiple speakers) is there a way like -- go ahead. Sorry.

只是為了確認這一點，是否有任何理由認為，以吉瓦為基礎，類似的機會與傳統工廠應該有顯著差異？然後我剛剛就（多個發言者）進行了一次跟進，是否有一種類似的方法——繼續。對不起。

No. I was just going to say, on the SMR side, yeah, I think that's a good way to say. I mean, even on a small modular reactor, you're going to have pumps and valves, and I think that's just put it on the ratio of what traditional looks like the SMR for our entitlement.

不。我只是想說，在 SMR 方面，是的，我認為這是一個很好的表達方式。我的意思是，即使在小型模組化反應器上，也會有泵和閥門，我認為這只是將其與傳統的 SMR 的比例作為我們的權利。

Perfect. And then just on the [assessment] side, how are you guys thinking about packaging that up and selling it to -- like any insurance company or something like that? We have seen competitors in other companies take advantage of that. How does the economics of that look currently?

完美的。然後在[評估]方面，你們如何考慮將其打包並出售給任何保險公司或類似的公司？我們已經看到其他公司的競爭對手利用了這一點。目前的經濟效益如何？

Certainly, that's something we take a look at from time to time. In the past, these programs have been fairly well funded by insurance, and we think that well managed within Flowserve. But we are continuing to dust off that analysis and make sure that we are doing the right thing from our shareholders by continuing to manage this internally.

當然，這是我們不時關注的事情。過去，這些計劃得到了相當充足的保險資助，我們認為 Flowserve 內部管理得很好。但我們正在繼續重新進行分析，並透過繼續進行內部管理來確保我們從股東那裡做正確的事情。

Thanks, guys.

謝謝，夥計們。

Damian Karas, UBS.

達米安卡拉斯，瑞銀。

Hi, good morning, everyone. So sorry if I missed this, hopped in over a little late from another call, but just said the updated full year guidance, kind of on the both the sales guide and just EPS implies a pretty wide range of outcomes in the fourth quarter. Would you maybe just comment a little bit on that range and the swing factors from the low end to the high end?

嗨，大家早安。很抱歉，如果我錯過了這個，從另一個電話中跳出來有點晚了，但我只是說更新的全年指導，銷售指南和每股收益都暗示了第四季度相當廣泛的結果。您能否稍微評論一下該範圍以及從低端到高端的波動因素？

Sure. So just to reiterate, I think right now, our outlook would point to something more at the midpoint of the range, midpoint of the revenue guidance range. And that is in part due to the impact of the discrete item in the quarter in terms of that assessment at the midpoint. And really our ability to reach to the higher point of the range would be around revenue. And so right now, we're anticipating not as big a step up as we would generally see going from the third quarter to the fourth quarter.

當然。因此，重申一下，我認為現在我們的前景將指向該範圍的中點，即收入指導範圍的中點。這在一定程度上是由於本季離散專案對中點評估的影響。實際上，我們達到該範圍較高點的能力將取決於收入。因此，目前我們預計第三季到第四季的增幅不會像我們通常看到的那麼大。

That's largely driven by less POC revenue quarter over quarter from the fourth quarter of last year, from the Jafurah project that's coming into play. So touching that kind of 6% at the high end of the revenue guide, would require a really strong book-to-bill quarter or pulling forward some of the POC revenue that we anticipate coming in in 2025. So, looking at something more at the midpoint at this stage in the quarter.

這主要是由於即將投入使用的 Jafurah 項目的 POC 收入較去年第四季逐季減少所致。因此，要達到收入指南高端的 6%，需要一個非常強勁的訂單到賬單季度，或者拉動我們預計 2025 年出現的部分 POC 收入。因此，在本季的這個階段，我們應該關注更多的事情。

Okay. Got it. That's helpful. And then I want to ask you about the water end market, you have some pretty notable bookings strength there. Curious if there are any large project awards that stick out or you just seeing broad-based strength, and given some of the unfortunate damages caused from the hurricanes in the Southeast US, just curious if there's any such associated drivers there may be factoring in.

好的。知道了。這很有幫助。然後我想問水端市場，那裡的預訂量非常顯著。好奇是否有任何突出的大型專案獎項，或者您只是看到了廣泛的實力，並考慮到美國東南部颶風造成的一些不幸的損失，只是好奇是否有任何此類相關驅動因素可能被考慮在內。

Sure. Yes. So, we did have a really healthy water bookings in the quarter, kind of $90 million, which is essentially double from what we saw last year. A lot of that was around flood control and industrial wastewater. And so, we do well as kind of the more complex water where you're moving either a lot of water on flood control or we're working with industrial waste to recycle that or clean that up.

當然。是的。因此，本季我們的水預訂量確實非常健康，約 9,000 萬美元，基本上是去年的兩倍。其中許多都與防洪和工業廢水有關。因此，我們在處理更複雜的水方面做得很好，您可以在防洪方面轉移大量的水，或者我們正在處理工業廢物來回收或清理它們。

And then we also do reasonably well on desalinization, although that's become a very competitive market. And so, what we saw in the quarter were several awards from in North America, and these were around urban areas that were truly around the waste and flood control. And that would be our sweet spot in North America. And so, we had two nice projects there. Nothing too large, but let's call it $5 million to $10 million.

我們在海水淡化方面也做得相當不錯，儘管這已經成為一個競爭非常激烈的市場。因此，我們在本季看到了來自北美的幾個獎項，這些獎項都圍繞著真正圍繞著廢物和洪水控制的城市地區。那將是我們在北美的最佳地點。因此，我們在那裡有兩個很好的項目。沒什麼太大的，但我們稱之為 500 萬到 1000 萬美元。

And then we also won one desalination project in the Middle East that was reasonably large. And we continue to watch the desalination market. We think there's substantial growth opportunities there, although that's become incredibly competitive with some of the peer group. But we do think there's ways to drive more of our system approach when we think about pressure exchange technology, process improvement, RedRaven IOT, and then combining that with some of our high energy pumps.

然後我們也贏得了中東的一個相當大的海水淡化項目。我們持續關注海水淡化市場。我們認為那裡有大量的成長機會，儘管與一些同行相比已經變得非常有競爭力。但當我們考慮壓力交換技術、流程改進、RedRaven IOT，然後將其與我們的一些高能量泵結合時，我們確實認為有辦法推動我們的系統方法的發展。

But I would say overall water is becoming more scarce, so desalination opportunities continue to grow. And then I would say just we are seeing more and more investment with local municipalities around making sure that they can manage either catastrophes from weather, or just upgrading their flood control and industrial systems to make sure that they can support the local populations.

但我想說的是，總體而言，水資源正變得更加稀缺，因此海水淡化的機會持續增加。然後我想說的是，我們看到當地市政當局進行了越來越多的投資，以確保他們能夠應對天氣災難，或者只是升級他們的防洪和工業系統，以確保他們能夠支持當地居民。

Got it. Thanks for your thoughts. I'll pass it along.

知道了。謝謝你的想法。我會把它傳遞下去。

Saree Boroditsky, Jefferies.

薩雷·博羅迪茨基，傑弗里斯。

Hi, thanks for squeezing me in. Just to clarify, the guidance doesn't include the impact from MOGAS, but given that you have closed, could you just update us on the contribution on the fourth quarter and then to start with it in 2025? Thank you.

你好，謝謝你拉我進來。需要澄清的是，該指南不包括 MOGAS 的影響，但鑑於您已經關閉，您能否向我們介紹第四季度的最新貢獻，然後從 2025 年開始？謝謝。

Sure. So just with respect to MOGAS overall, we think this is a business that's about $200 million of revenue annually at margins that are accretive to Flowserve. If you looked at the presentation, you can see the size of the valves and actuation that we're talking about as we look at them. And so as you might anticipate, there is a higher percentage of POC revenue than we have on the rest of the valves portfolio. So, we're going to need to sort through the existing backlog and shipments to understand how that $200 million would have fallen out this year under Flowserve's revenue recognition model.

當然。因此，就 MOGAS 整體而言，我們認為該業務每年的收入約為 2 億美元，其利潤率可為福斯帶來增值。如果您看過演示文稿，您可以看到我們正在討論的閥門的尺寸和驅動裝置。因此，正如您所預料的那樣，POC 收入所佔的比例比我們在閥門產品組合的其他產品中所佔的比例要高。因此，我們需要整理現有的積壓訂單和出貨量，以了解在 Flowserve 的收入確認模型下，今年這 2 億美元的支出將如何減少。

And so, we have stopped short of providing a guide for MOGAS as we work through those details. That said, given 2.5 months of performance, I don't anticipate that it's going to be an incredibly impactful for the first quarter, and we will be able to give a good read through based on what we see this quarter going into 2025.

因此，在研究這些細節時，我們沒有為 MOGAS 提供指南。也就是說，考慮到 2.5 個月的表現，我預計第一季不會產生難以置信的影響，我們將能夠根據本季到 2025 年的情況進行良好的解讀。

Okay. That's helpful. And then just a follow-up, you have mentioned the election, but given that it's next week, one of the items that's come up as the impact of regulation on energy projects, can you just make a comment on if your customers have talked about the impact of regulation? And if this is decreased, would you expect to see higher activity levels and thus sales for you?

好的。這很有幫助。然後是後續行動，您提到了選舉，但鑑於這是下週的事情，作為監管對能源項目的影響而提出的項目之一，您能否就您的客戶是否談論過發表評論監管的影響？如果這種情況減少，您是否會期望看到更高的活動水平和更高的銷售額？

Sure. This is the one question that I didn't want to talk about. But well, what we will say is, obviously there's two different parties, and one party supports less regulation. And so, our customers traditionally in the oil and gas side would prefer less regulation. And they believe that less regulation allows them to move some of the projects forward, particularly the LNG side, and some of the pipeline kind of growth that still need some interconnection across the United States.

當然。這是我不想談論的問題。但是，我們要說的是，顯然有兩個不同的政黨，其中一個政黨支持減少監管。因此，我們傳統上石油和天然氣領域的客戶希望減少監管。他們認為，較少的監管使他們能夠推進一些項目，特別是液化天然氣方面，以及一些仍需要全美範圍內互連的管道類型的增長。

And so, we will see what happens. But I want to say is overall, we are going to keep our head down and we will continue to work on with our customers to drive growth. And we believe regardless of what happens, we will be able to continue to drive success at Flowserve.

所以，我們會看看會發生什麼。但我想說的是，總的來說，我們將保持低調，繼續與客戶合作，推動成長。我們相信，無論發生什麼，我們都將能夠繼續推動 Flowserve 取得成功。

Appreciate the comments.

感謝您的評論。

Joe Ritchie, with Goldman Sachs

喬·里奇（Joe Ritchie），高盛

Hi, good morning, everybody. I guess I work for Flowserve now. (laughter)

嗨，大家早安。我想我現在在 Flowserve 工作。（笑聲）

Good morning, Joe. Welcome to the team, Joe. (laughter)

早安，喬。歡迎加入我們的團隊，喬。（笑聲）

Okay. My first question, Scott, you mentioned, in terms of [FCD] and aftermarket bookings about 600 the last few quarters. You talked about the capture rate, both of the different segments. I'm curious like as you think about the runway to capture your installed base, I don't know if you want to use a baseball analogy or if you want to maybe just like give us a sense for how much room there is to continue to capture more of your installed base.

好的。我的第一個問題，斯科特，你提到過，就過去幾季的 [FCD] 和售後市場預訂量而言，大約有 600 筆。您談到了兩個不同部分的捕獲率。我很好奇，當你考慮跑道來捕捉你的安裝基礎時，我不知道你是否想使用棒球類比，或者你是否想讓我們了解還有多少空間可以繼續贏得更多客戶群。

Sure. I'll just -- I'll give you a specific example. So last week, I was in Europe as with our European services and solutions team on the pump side. And I actually visited one of our pumps parts manufacturing locations in Italy. And that team was incredibly optimistic. And even this year, we've seen growth in what I will call a relatively challenged market with the process industries in Europe.

當然。我只是──我會給你一個具體的例子。上週，我和我們歐洲泵浦的服務和解決方案團隊一起去了歐洲。我實際上參觀了我們在義大利的泵浦零件製造工廠之一。該團隊非常樂觀。即使今年，我們也看到了歐洲流程產業這個我稱之為相對充滿挑戰的市場的成長。

And so, we've been able to move the capture rate up a couple of hundred basis points this year, and I believe there's incredible runway to keep moving that up. And while we would love to say that our pump parts capture rate is in the high 60s or 70s, in reality, we're substantially lower than that, somewhere in that kind of 30% to 40% range.

因此，今年我們已經能夠將捕獲率提高幾百個基點，並且我相信有令人難以置信的跑道可以繼續提高這一點。雖然我們很樂意說我們的泵浦零件捕獲率高達 60 或 70 左右，但實際上，我們遠低於此水平，大約在 30% 到 40% 的範圍內。

And so, I think with the increased focus on our ability to quote incredibly fast, so, think your minutes and hours versus days, and then the ability to generate a part within days and not months is something that can still move the needle for us.

因此，我認為，隨著人們越來越關注我們快速報價的能力，所以，想想你的分鐘和小時與幾天，然後在幾天而不是幾個月內生成零件的能力仍然可以為我們帶來推動。

And so, that team is laser focused on speed, they have a metric called speed wins, and I would just say that the whole team is incredibly passionate and aligned with the strategy to continue to support our customers. And so, we're doing some really innovative stuff there. I'm excited -- I was very excited and pleased with what I saw in Europe last week. And I believe we can continue that success globally from a services and solutions perspective.

因此，該團隊非常關注速度，他們有一個稱為「速度獲勝」的指標，我只想說，整個團隊都充滿熱情，並與繼續支持我們的客戶的策略保持一致。因此，我們正在那裡做一些真正創新的事情。我很興奮——我對上週在歐洲看到的一切感到非常興奮和高興。我相信，從服務和解決方案的角度來看，我們可以在全球範圍內繼續取得成功。

That's super helpful and encouraging. And I guess maybe the follow-on question. I don't know if you guys are willing to lay out any pieces yet on the 2025 framework, but to the extent you are, I would be curious a little bit just broad parameters for how you're thinking about next year.

這非常有幫助和鼓舞人心。我想也許是後續問題。我不知道你們是否願意就 2025 年框架提出任何建議，但就你們願意的程度而言，我很好奇你們對明年的看法。

Yes. Maybe I'll start and Amy can jump in. Really what we're thinking right now is, we put out the 2027 targets last year, we said 5% growth when we talked about some new expanded margin and then an EPS target. And we've made incredible progress over the last 12 months along that, and I would just say, as we think about 2025, that's how we're thinking about it. Then just continuing that momentum, continuing to connect dots to the 2027 long-term targets.

是的。也許我會開始，艾米也可以加入。我們現在真正想到的是，我們去年提出了 2027 年的目標，當我們談到一些新的擴大利潤率和每股盈餘目標時，我們提到了 5% 的成長。在過去 12 個月裡，我們在這方面取得了令人難以置信的進展，我只想說，當我們思考 2025 年時，我們就是這樣思考的。然後繼續保持這種勢頭，繼續將各個點與 2027 年的長期目標連結起來。

Scott hit on it. Maybe just to touch a little bit more on the segments. And I referenced this earlier, I think that in FCD, we have seen tremendous sales growth, coming from '23 to '24, next year is going to be more about margin expansion and sales growth. And versus on the FCD side, where we're not satisfied with margin expansion, but we're pleased with the progress that we've made. So, we're focused on kind of growing that business and you see that within the makeup of our backlog currently. So maybe that's just a little bit more color for you at the segment level.

斯科特擊中了它。也許只是為了更多地接觸這些細分市場。我之前提到過這一點，我認為在 FCD，我們看到了從 23 年到 24 年的巨大銷售成長，明年將更專注於利潤擴張和銷售成長。與 FCD 方面相比，我們對利潤率擴張並不滿意，但我們對所取得的進展感到滿意。因此，我們專注於發展該業務，您可以在我們目前的積壓訂單中看到這一點。所以也許這對你來說只是在細分層面上多了一點色彩。

And then obviously, the next earnings call, we will provide full year guidance and a lot of color on how we see the outlook for 2025.

顯然，在下一次財報電話會議上，我們將提供全年指導以及關於我們如何看待 2025 年前景的大量資訊。

Helpful. Thank you.

有幫助。謝謝。

Brett Linzey, Mizuho.

布雷特·林澤，瑞穗。

Hi, this is Eric Look on for Brett Linzey. Bookings growth appears to be broad-based from what it seems like [within chems], can you maybe double-click into that and the challenges there and when we should expect a rebound in Europe? Thanks.

大家好，我是布雷特·林澤 (Brett Linzey) 的埃里克·盧克 (Eric Look)。從[化學領域內]的情況來看，預訂量增長似乎基礎廣泛，您能否雙擊一下這一點以及那裡面臨的挑戰以及我們何時應該預期歐洲的反彈？謝謝。

Sure. Yeah, the chemical market has been still a little bit challenged that we've seen, I would say, where we are seeing the areas of some concern would be Europe, particularly a little bit in the US, and then we're seeing an oversupply of production chemicals at this point. And we're still highly levered to the chemical industry with our installed base.

當然。是的，化學品市場仍然面臨著我們所看到的一些挑戰，我想說，我們看到一些令人擔憂的領域是歐洲，特別是在美國，然後我們看到目前生產化學品供應過剩。我們的安裝基礎仍然對化學工業具有很高的槓桿率。

And so, the aftermarket is important to us. I will say, and again, I was in Europe last week, I visited with some of our customers, there are real opportunities as they think about how they're going to manage their business differently. And so, I think some of the exciting things are putting recyclable plastics or other recyclables on the front end of their process, which is a change in full loop in their scope control applications for that.

因此，售後市場對我們來說很重要。我要再說一遍，上週我在歐洲拜訪了我們的一些客戶，當他們思考如何以不同的方式管理他們的業務時，存在著真正的機會。因此，我認為一些令人興奮的事情是將可回收塑膠或其他可回收物放在其流程的前端，這是其範圍控制應用程式中全循環的變化。

And then secondly, just really thinking about how they drive more efficiency and productivity at their existing sites. And so, we've talked to them about our energy advantage program, and we're talking to them about RedRaven, and instrumenting and monitoring their pumps and valves. And they were also talking about doing things differently in terms of how do we think about uptime reliability and then more of a long-term service contract and some of the traditional call outs.

其次，真正思考他們如何在現有站點提高效率和生產力。因此，我們與他們討論了我們的能源優勢計劃，我們正在與他們討論 RedRaven，以及安裝和監控他們的泵浦和閥門。他們也討論瞭如何以不同的方式做事，包括我們如何看待正常運作時間的可靠性，以及更多的長期服務合約和一些傳統的要求。

And so even though it's been a challenging time in the chemical space, I think there's opportunities for us as we go forward. On a positive side, we do expect the Middle East to really -- we will start to see some significant investments around the petrochemical and base chemical markets and capacity expansion in the Middle East. And we're well positioned to take advantage of that as we see that growth start in 2025 and beyond.

因此，儘管化學領域正處於充滿挑戰的時期，但我認為在我們前進的過程中，我們仍然有機會。從積極的一面來看，我們確實預計中東將開始看到圍繞石化和基礎化學品市場的一些重大投資以及中東的產能擴張。我們已經做好充分利用這一點的準備，因為我們看到成長將在 2025 年及以後開始。

Okay. I'll leave it at that.

好的。我就這樣吧。

Okay.

好的。

And ladies and gentlemen, this concludes today's question-and-answer session and concludes today's call.

女士們、先生們，今天的問答環節和今天的電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線。