福斯 (FLS) 2024 Q4 法說會逐字稿

Good day, and welcome to the Flowserve fourth quarter and year-end 2024 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brian Ezzell, VP, Investor Relations, Treasurer and Corporate Finance. Please go ahead.

大家好，歡迎參加 Flowserve 2024 年第四季和年終收益電話會議。今天的會議正在錄製。現在，我想將會議交給投資者關係、財務主管和公司財務副總裁 Brian Ezzell。請繼續。

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

謝謝大家，早安。歡迎閱讀 Flowserve 2024 年第四季業務更新。今天早上與我一起參加活動的有福斯公司總裁兼執行長 Scott Rowe；和財務長艾米‧施韋茨 (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. I'll ask that you please keep to one question and one follow-up question and then return to the queue.

今天，史考特和艾米將介紹我們的整體業務表現和本季的亮點。根據他們的評論，我們將開始提問。我請您只問一個問題和一個後續問題，然後返回隊列。

Turning to slide 2. 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. Our comments today also include non-GAAP financial measures.

翻到幻燈片 2。提醒一下，我們的討論將包含基於今天可用的資訊的前瞻性陳述。由於風險和不確定性，實際結果可能有所不同，這些風險和不確定性在我們的美國證券交易委員會文件中進行了討論，您可以在我們的網站上找到。我們今天的評論還包括非公認會計準則財務指標。

Additional details and reconciliations to the most directly comparable GAAP financial measures can be found in our fourth quarter press release and today's earnings presentation both of which are on our website.

更多詳細資訊和與最直接可比較的 GAAP 財務指標的對帳表可參閱我們第四季度新聞稿和今天的收益報告，這兩份報告均發佈在我們的網站上。

With that, I'll turn it over to Scott.

說完這些，我會把話題交給史考特。

Thank you, Brian, and good morning, everyone. I'll begin on slide 3. We delivered strong results in the fourth quarter capping a year of improved execution and significant progress towards our 2027 targets. Bookings were nearly $1.2 billion for the quarter, with strong growth in both original equipment and aftermarket bookings. Adjusted gross margins expanded 300 basis points to 32.8%. This marked the eighth consecutive quarter of year-over-year margin expansion and with additional leverage from SG&A, we delivered adjusted operating margins of 12.6% in the quarter.

謝謝你，布萊恩，大家早安。我將從幻燈片 3 開始。我們在第四季度取得了強勁的業績，為一年來的執行力提升和 2027 年目標的實現取得了重大進展畫上了句號。本季的訂單金額接近 12 億美元，原始設備和售後市場訂單均強勁成長。調整後毛利率擴大300個基點至32.8%。這是利潤率連續第八個季度同比增長，加上銷售、一般及行政費用的額外影響，我們在本季度實現了 12.6% 的調整後營業利潤率。

Book-to-bill was 1.0 times as we continue to drive revenue conversion while exiting the year with near record backlog of $2.8 billion. Our disciplined focus on working capital supported strong operating cash flow of $197 million in the quarter.

訂單出貨比為 1.0 倍，我們繼續推動營收轉換，同時年末積壓訂單接近創紀錄的 28 億美元。我們對營運資本的嚴格關注支持了本季 1.97 億美元的強勁營運現金流。

Operationally, performance in the quarter was largely as we anticipated when we provided our third quarter update in October. The strengthening of the US dollar drove incremental currency translation headwind, along with higher interest expense related to the MOGAS acquisition. Amy will provide more detail on this later in the call. Overall, our team executed to our plan delivering improved results in order and completing an outstanding year for Flowserve in 2024.

從營運角度來看，本季的業績與我們 10 月提供第三季更新時所預期的大致相同。美元走強導致貨幣換算面臨增量阻力，同時與 MOGAS 收購相關的利息支出增加。艾米將在稍後的通話中提供有關此事的更多詳細資訊。總體而言，我們的團隊嚴格按照計劃執行，並有序地交付了更好的成果，為福斯在 2024 年創造了輝煌的一年。

Turning to slide 4. Q4 bookings grew 13% versus last year, driven by continued strength in our end markets and strong execution by our commercial teams. We continue to see robust growth from our strategy with 3D bookings representing 31% of our total awards for the quarter.

翻到幻燈片 4。由於終端市場的持續強勁表現和商業團隊的強大執行力，第四季的訂單量較去年同期成長了 13%。我們的策略持續實現強勁成長，3D 預訂量佔本季總獎勵的 31%。

We generated $618 million of aftermarket bookings, which was the third consecutive quarter above $600 million. We are laser-focused on continuing to grow our aftermarket franchise our dedicated aftermarket teams are driving higher levels of service and value to our customers at margins accretive to the Flowserve portfolio.

我們產生了 6.18 億美元的售後市場訂單，這是連續第三個季度超過 6 億美元。我們專注於繼續發展我們的售後市場特許經營權，我們專業的售後市場團隊正在為我們的客戶提供更高水準的服務和價值，從而增加福斯產品組合的利潤。

Fourth-quarter original equipment bookings grew 14% versus last year with a healthy mix of activity across traditional process industries as well as within new energy markets. Our largest award in the quarter was approximately $60 million in order to supply pumps for a new nuclear power plant in Europe. For the quarter, nuclear awards totaled more than $110 million representing the second consecutive quarter of nuclear bookings greater than $100 million.

第四季原始設備訂單量較去年同期成長 14%，傳統流程工業和新能源市場的業務組合呈現良好勢頭。本季我們獲得的最大合約金額約為 6,000 萬美元，用於為歐洲一座新核電廠供應泵浦。本季度，核電合約總額超過 1.1 億美元，這是核電合約連續第二季超過 1 億美元。

Our power bookings, which included both traditional power and nuclear, were up more than 40% versus the prior year period. The power end market continues to be a significant opportunity, and Flowserve participates in virtually all forms of power generation from traditional hydrocarbon power like coal and combined cycle natural gas to nuclear and newer energy technologies like concentrated solar power or battery storage.

我們的電力訂單（包括傳統電力和核能）比去年同期增加了 40% 以上。電力終端市場仍然是一個重大機遇，福斯幾乎參與了所有形式的發電，從傳統的碳氫化合物能源（如煤炭和聯合循環天然氣）到核能和較新的能源技術（如聚光太陽能或電池儲存）。

Our next largest project awards were in the range of $10 million to $15 million. our selective bidding approach to large projects continues to deliver growth with our preferred customers and products at margins that create more value for Flowserve.

我們的下一個最大項目獎項的金額在 1000 萬美元到 1500 萬美元之間。我們對大型專案採取的選擇性投標方式繼續幫助我們的優先客戶和產品實現成長，並為福斯創造更多價值。

Additionally, we continue to see strength in our foundational core business of aftermarket MRO and short-cycle activities driven by stable asset utilization rates at our customers' operations and improved capture rates across our expansive installed base.

此外，我們繼續看到售後 MRO 和短週期活動的基礎核心業務的強勁增長，這得益於我們客戶營運中穩定的資產利用率以及我們廣泛的安裝基礎的捕獲率的提高。

Turning now to slide 5. Looking back on 2024, we meaningfully grew bookings, expanded gross and operating margins, generated strong adjusted EPS growth, and delivered substantial cash flow, reflecting the strong execution and hard work of our associates around the world. We all sit on significant steps in 2024 to strategically position the company and enable further value creation for our customers and shareholders.

現在翻到投影片 5。回顧 2024 年，我們的預訂量顯著增長、毛利率和營業利潤率擴大、調整後每股收益實現強勁增長並實現了可觀的現金流，這反映了我們全球員工的強大執行力和辛勤工作。2024 年，我們都邁出了重要的一步，以策略性地定位公司，並為我們的客戶和股東創造更多價值。

The MOGAS acquisition, which we completed during the fourth quarter, expands our offering and exposure to mining and minerals, an important and growing end market that enhances our diversification efforts. We also launched the Flowserve Business System, a comprehensive framework to further improve our execution with consistent operating processes across the Flowserve enterprise.

我們在第四季度完成的 MOGAS 收購擴大了我們在採礦和礦產領域的產品和業務範圍，這是一個重要且不斷增長的終端市場，可增強我們的多元化努力。我們還推出了福斯業務系統，這是一個全面的框架，旨在透過整個福斯企業的一致操作流程進一步提高我們的執行力。

We made significant progress last year in the areas of operational excellence and portfolio excellence, our 80/20 framework, both of which are improving the way we run our company and delivering margin expansion.

去年，我們在卓越營運和卓越投資組合（我們的 80/20 框架）方面取得了重大進展，這兩項都改善了我們的公司運作方式並實現了利潤率的提高。

Let me now address our 3D strategy and the market outlook for 2025 as we turn to slide 6. Our significant progress in 2024 gives us further confidence and our ability to deliver on our 2027 targets, and we fully anticipate continuing with this momentum in 2025. Our 3D strategy is well positioned to deliver growth and capitalize on macro trends including ongoing energy transition as well as global regionalization.

現在，請看第 6 頁，讓我來談談我們的 3D 策略和 2025 年的市場前景。我們在 2024 年取得的重大進展使我們更有信心和能力實現 2027 年的目標，我們完全期待在 2025 年繼續保持這一勢頭。我們的 3D 策略有利於實現成長並利用宏觀趨勢，包括正在進行的能源轉型以及全球區域化。

Diversification and decarbonization remain critical strategic initiatives for Flowserve in 2025 we expect to build on the strength of 2024 where diversification bookings grew 9% and decarbonization bookings grew 36% driven by nuclear and new energy activities. On digitization, we believe we have the most advanced monitoring and prediction system within the full control space.

多元化和脫碳仍然是福斯在 2025 年的關鍵戰略舉措，我們預計將在 2024 年的基礎上再接再厲，在核能和新能源活動的推動下，2025 年多元化訂單增長了 9%，脫碳訂單增長了 36%。在數位化方面，我們相信我們擁有全控制空間內最先進的監控和預測系統。

We continue to demonstrate the value of our digital capabilities on a regular basis with our customers, improving their overall operability in reducing the cost to run their assets. In the year, we increased RedRaven monitoring assets by 14%.

我們持續定期向客戶展示我們的數位化能力的價值，提高他們的整體可操作性並降低資產營運成本。今年，我們將RedRaven監控資產增加了14%。

We believe there are scaled pathways to utilize the predictive capabilities that our domain expertise provides to generate recurring revenue and position ourselves for even higher aftermarket capture rates in 2025 and beyond. Our 3D strategy continues to be the right one in today's environment, and we expect to see strong 3D growth trends in 2025.

我們相信，可以透過多種途徑利用我們領域專業知識所提供的預測能力來創造經常性收入，並在 2025 年及以後實現更高的售後市場佔有率。在當今環境下，我們的 3D 策略仍然是正確的，我們預計 2025 年 3D 將呈現強勁成長趨勢。

Turning to slide 7. With strength in our traditional and 3D oriented end markets, our outlook remains constructive for projects, MRO and aftermarket activity across industries and end markets. These opportunities continue to support our long-term organic target of 5% growth.

翻到幻燈片 7。憑藉我們在傳統和 3D 導向的終端市場的優勢，我們對跨行業和終端市場的項目、MRO 和售後市場活動的前景仍然看好。這些機會持續支持我們實現 5% 的長期有機成長目標。

Key global megatrends of energy security, regionalization and electrification continue to attract significant global investments. Our overall 12-month project opportunity funnel is roughly flat to last year. However, the funnel remains at an elevated and healthy level, particularly in some of our strongest end markets and with more projects in the smaller to mid-size range.

能源安全、區域化和電氣化等全球主要趨勢持續吸引大量全球投資。我們整體的 12 個月專案機會漏斗與去年基本持平。然而，通路仍然處於較高且健康的水平，特別是在我們一些最強大的終端市場，以及更多中小型項目。

The opportunity funnel in power is up more than 20% versus the prior year period, driven by the increased need for new power generation on the back of data center growth and electrification trends. We expect the world's existing traditional process industries to remain at solid utilization levels and we believe we are well positioned to capitalize on these aftermarket opportunities as we have demonstrated over the last several quarters.

隨著資料中心的成長和電氣化趨勢的出現，對新型發電的需求不斷增加，推動了電力領域的機會漏斗比去年同期成長了 20% 以上。我們預計世界現有的傳統流程工業將保持穩定的利用率水平，並且我們相信，正如我們在過去幾季所展示的那樣，我們有能力利用這些售後市場機會。

Moving to slide 8. Innovation remains critical to differentiate our products in the market as we leverage technology to deliver our 3D strategy. During the year, we introduced 11 new products to the market. To highlight an example of how our innovation supports our customers in the energy transition journey, we are collaborating with a customer in Denmark on the world's first molten hydroxide energy storage plant called the Molten Salt Storage or MOSS project. The MOSS process heats sodium hydroxide to over 1,300 degrees Fahrenheit.

移至幻燈片 8。當我們利用技術實現我們的 3D 策略時，創新對於在市場上脫穎而出我們的產品仍然至關重要。年內，我們向市場推出了11款新產品。為了強調我們的創新如何在能源轉型過程中為客戶提供支援的例子，我們正在與丹麥的一家客戶合作建立世界上第一個熔融氫氧化物儲能工廠，稱為熔鹽儲能或 MOSS 專案。MOSS 製程將氫氧化鈉加熱至華氏 1,300 度以上。

The heated salt then generate steam, which can be converted to electricity. Specialized flow control equipment is essential in this severe service, high-temperature environment. Additionally, this technology can be used in concentrated solar power, carbon capture and potentially used in future applications like small module nuclear reactors.

加熱的鹽會產生蒸汽，然後可以轉化為電能。在這種嚴苛的高溫環境下，專門的流量控制設備至關重要。此外，該技術還可用於聚光太陽能發電、碳捕獲，並可能用於小型模組核反應器等未來應用。

We also launched another innovative offering, enabling emissions reductions of up to 80% through our Gaspac ZE seal. A dry gas seal technology that enables operators to achieve zero emissions from blowdowns and standstill conditions supporting our customers' decarbonization goals.

我們還推出了另一項創新產品，透過我們的 Gaspac ZE 密封可減少高達 80% 的排放量。乾氣密封技術使操作員能夠實現排污和停機條件下的零排放，從而支援客戶的脫碳目標。

Finally, we continue to expand our capabilities of our solutions offering by combining our extensive domain expertise in fluid control with new analytical and modeling tools and enhanced digitization through RedRaven. We believe this combination uniquely positions Flowserve to help our customers with their biggest flow control challenges. Altogether, we remain focused and committed to delivering unparalleled innovation for our customers, which we believe will deliver consistent growth and value creation for Flowserve.

最後，我們將在流體控制領域擁有豐富的專業知識，並透過 RedRaven 將新的分析和建模工具以及增強的數位化相結合，繼續擴展我們提供的解決方案的能力。我們相信，這項組合將使福斯擁有獨特的優勢，能夠幫助我們的客戶解決最大的流量控制挑戰。總而言之，我們將繼續專注並致力於為客戶提供無與倫比的創新，我們相信這將為福斯帶來持續的成長和價值創造。

I will now turn to slide 9 and the Flowserve Business System. With a strong market backdrop and an effective long-term strategy in place, we are now leveraging the Flowserve Business System to deliver strong execution.

現在我將轉到第 9 張投影片和福斯業務系統。憑藉強大的市場背景和有效的長期策略，我們現在正在利用福斯業務系統來實現強大的執行力。

The Flowserve Business System defines our approach to running the organization across five critical functional disciplines to deliver excellence. These disciplines drive consistency in how we work together across our seven business units, connecting business processes through our desired outcomes of profitable growth, margin expansion, superior customer experience, and cycle resiliency.

福斯業務系統定義了我們透過五個關鍵職能學科來運作組織以實現卓越績效的方法。這些學科推動了我們在七個業務部門之間協同工作的一致性，透過我們期望的獲利成長、利潤率擴大、卓越客戶體驗和週期彈性等結果將業務流程連接起來。

Our operational excellence program is now hitting its stride. We have improved delivery performance and shop floor productivity while capitalizing on opportunities to further reduce our roof line. While we have made great progress operationally, we believe we have more opportunities in 2025 and beyond.

我們的卓越營運計劃目前正在順利推進。我們提高了交付性能和車間生產力，同時利用機會進一步降低屋頂線。雖然我們在營運上取得了巨大進步，但我們相信 2025 年及以後我們還有更多的機會。

Our portfolio excellence program is in its early stages. Our 80/20 effort, which we've named CORE for complexity reduction was launched over a year ago, and we are continuing to advance the program in 2025 and by adding the remaining two product business units.

我們的投資組合卓越計劃尚處於早期階段。我們的 80/20 計劃於一年前啟動，我們將該計劃命名為 CORE，以減少複雜性，我們將在 2025 年繼續推進該計劃，並增加剩下的兩個產品業務部門。

Early analysis from the three business units launched in 2024 are very encouraging. We have identified opportunities to reduce the complexity in our overall offering as we eliminate and rationalize products and services that aren't fully contributing, applying a more deliberate approach to pricing and improve our service levels for our best customers.

2024 年成立的三個業務部門的早期分析非常令人鼓舞。我們發現了降低整體產品複雜性的機會，例如淘汰和合理化那些沒有充分貢獻的產品和服務，採用更謹慎的定價方式，並提高我們為最佳客戶提供的服務水準。

Our current expectation is that the revenue impact from the program will be negligible in 2025, while the actions we are taking will benefit gross margins by roughly 50 basis points this year at the Flowserve level and then accelerate in 2026 as the program is fully implemented across all product business units.

我們目前的預期是，該計劃對 2025 年的收入影響將可以忽略不計，而我們所採取的行動將使今年福斯的毛利率提高約 50 個基點，並隨著該計劃在所有產品業務部門的全面實施，在 2026 年加速。

We remain confident in our ability to generate 200 basis points of margin expansion from the portfolio excellence program by 2027 as we move all five product business units fully into the CORE program.

隨著我們將所有五個產品業務部門全面納入 CORE 計劃，我們仍然有信心到 2027 年透過投資組合卓越計劃實現 200 個基點的利潤率擴張。

Commercial excellence will be the next program to launch, which we anticipate will kick off during the second half of this year. Commercial excellence will focus on pricing discipline, account management and funnel management to drive profitable growth and continue to improve our customer experience.

商業卓越將是下一個啟動的項目，我們預計它將在今年下半年啟動。商業卓越將專注於定價紀律、帳戶管理和管道管理，以推動獲利成長並繼續改善我們的客戶體驗。

In summary, we made significant progress in 2024, and I'm excited about the opportunities to continue to create significant value in 2025. With that, I'll turn the call over to Amy to discuss our financial results and outlook in greater detail.

總而言之，我們在 2024 年取得了重大進展，我對 2025 年繼續創造重大價值的機會感到興奮。說完這些，我將把電話轉給艾米，更詳細地討論我們的財務表現和前景。

Thank you, Scott, and good morning, everyone. First, let me echo Scott's comments. We are very pleased with our results in the quarter and for the full year and are excited about the opportunities to further accelerate our progress in 2025.

謝謝你，斯科特，大家早安。首先，讓我重申一下斯科特的評論。我們對本季和全年的業績非常滿意，並對 2025 年進一步加快進展的機會感到興奮。

Turning to the fourth quarter in greater detail on slide 10. We delivered another strong operational performance with nearly $1.2 billion of bookings, adjusted operating margin of 12.6%, $0.70 of adjusted earnings per share, and $197 million of operating cash flow.

在第 10 張投影片中我們將更詳細地介紹第四季。我們再次取得了強勁的營運業績，訂單量接近 12 億美元，調整後營業利潤率為 12.6%，調整後每股收益為 0.70 美元，營運現金流為 1.97 億美元。

Relative to our plans coming into the quarter, the underlying operations were in line with our expectations. Beyond our operational performance, adjusted EPS was negatively impacted $0.02 by foreign currency translation.

相對於我們本季的計劃，基本營運符合我們的預期。除了我們的營運績效外，調整後的每股盈餘還因外幣折算而受到 0.02 美元的負面影響。

In addition, MOGAS and the related interest expense was not included in our guidance shared in October. In the quarter, MOGAS was roughly neutral to our adjusted operating profit. MOGAS adjusted operating profit in the quarter was negatively impacted by the timing of shipments with higher margin shipments occurring in October prior to the acquisition close. This led to lower sales and fixed cost absorption in our results. I'll share more in a minute about the strong outlook we have for MOGAS in 2025.

此外，我們 10 月發布的業績指引中並未包含 MOGAS 及其相關利息費用。本季度，MOGAS 對我們的調整後營業利潤影響大致為中性。MOGAS 本季調整後的營業利潤受到出貨時間的負面影響，因為利潤較高的出貨時間是在收購完成前的 10 月。這導致我們的銷售額和固定成本吸收下降。稍後我將進一步分享我們對 2025 年 MOGAS 的強勁前景。

Acquisition-related financing costs negatively impacted earnings by about $0.02. For the quarter, overall revenues grew 1% versus last year. The MOGAS acquisition contributed approximately 300 basis points to sales growth, while foreign currency translation negatively impacted reported sales growth by about 100 basis points.

與收購相關的融資成本對收益產生了約0.02美元的負面影響。本季總營收較去年同期成長了 1%。MOGAS 收購為銷售額成長貢獻了約 300 個基點，而外幣折算則對報告的銷售額成長產生了約 100 個基點的負面影響。

Sales growth was muted in the quarter due to the meaningful percentage of completion revenue from Phase I of the Jafurah project in last year's fourth quarter, which did not repeat in the fourth quarter of this year. Aftermarket revenues grew 4% in the quarter, which was partially offset as expected by original equipment revenues down 2%.

由於去年第四季 Jafurah 專案一期的完工收入佔比很大，而今年第四季卻沒有出現這樣的情況，導致本季銷售額成長乏力。本季售後市場收入成長了 4%，但如預期的那樣，原始設備收入下降了 2%，部分抵消了這一增長。

Shifting to margins. We generated an adjusted gross margin of 32.8%, representing a 300 basis point year-over-year increase and our fifth consecutive quarter of sequential margin improvement. The launch of our Flowserve Business System, which includes our operational and portfolio excellence efforts, positions us well to deliver continued gross margin expansion.

轉向邊緣。我們調整後的毛利率為 32.8%，年成長 300 個基點，這是我們連續第五個季度實現利潤率的提高。我們福斯業務系統的推出，包括我們的營運和產品組合卓越努力，使我們能夠持續實現毛利率的擴大。

Fourth-quarter adjusted SG&A increased by $12 million versus last year, largely due to adding MOGAS in the quarter, along with the phasing of incremental corporate R&D investments. Adjusted operating margin increased 210 basis points versus the prior year period to 12.6%. Our best of the year and representing our highest quarterly incremental margin of the year at more than 175%.

第四季調整後的銷售、一般及行政開支較去年同期增加 1,200 萬美元，主要由於本季增加了 MOGAS，以及企業逐步增加研發投資。調整後營業利益率較去年同期增加 210 個基點，達到 12.6%。這是我們今年最好的成績，也是今年季度增量利潤率最高的成績，超過 175%。

Adjusted operating income was $149 million, a 22% increase versus last year. Our adjusted tax rate for the quarter was in line with expectations at 21%. Compared to the prior year fourth-quarter adjusted tax rate of 8%, which benefited from the release of certain valuation allowances, this year's fourth-quarter tax rate was more in line with our structural rate. The change in tax rate versus fourth quarter last year negatively impacted adjusted EPS by approximately $0.13.

調整後營業收入為 1.49 億美元，較去年同期成長 22%。我們本季的調整後稅率符合預期，為 21%。與去年第四季 8% 的調整後稅率相比，受益於部分估值準備金的釋放，今年第四季的稅率更符合我們的結構性稅率。與去年第四季相比，稅率的變化對調整後的每股盈餘產生了約 0.13 美元的負面影響。

With these items, combined with the additional modest headwinds in other expense and non-controlling interests, we delivered adjusted earnings per share of $0.70 for the fourth quarter.

由於這些項目，再加上其他費用和非控制權益的額外適度阻力，我們第四季度的調整後每股收益為 0.70 美元。

Turning to our segments, starting with FPD on slide 11. The strong momentum continued in FPD, with bookings increasing 13% versus last year. As expected, FPD sales declined 5% in the quarter due to a combination of the phasing of large projects in the last year comparison period and the negative impacts of foreign currency translation.

轉向我們的細分市場，從幻燈片 11 上的 FPD 開始。FPD 持續保持強勁勢頭，訂單量較去年同期增長了 13%。如預期，由於去年同期大型專案的分階段實施以及外幣換算的負面影響，FPD 銷售額本季下降了 5%。

Despite the sales decline, FPD generated adjusted gross margins of 33.4%, an increase of 450 basis points versus last year, coupled with meaningful SG&A leverage, FPD delivered exceptional adjusted operating margin of 17.5%, a 570 basis point increase versus last year.

儘管銷售額下滑，FPD 的調整後毛利率仍達到 33.4%，較去年同期增長 450 個基點，再加上有意義的銷售、一般及行政費用槓桿，FPD 實現了 17.5% 的出色調整後營業利潤率，較去年同期增長 570 個基點。

We are very pleased with the significant progress FPD has made this year. For the full year, FPD's adjusted operating margin of 16.5% was within the targeted range of 16% to 18%, which we set out to deliver by 2027.

我們對FPD今年的重大進展感到非常高興。全年而言，FPD 調整後營業利潤率為 16.5%，處於我們計劃於 2027 年實現的 16% 至 18% 的目標範圍內。

FPD continues to generate benefits from a more selective approach to bidding while also driving productivity through our operational excellence program. We expect to see further margin expansion in FPD in 2025 from the continued maturity of these programs and our 80/20 complexity reduction program.

FPD 繼續透過更有選擇性的投標方式獲取收益，同時透過我們的卓越營運計劃提高生產力。隨著這些專案的不斷成熟和我們的80/20複雜性降低計畫的實施，我們預計2025年FPD的利潤率將進一步擴大。

Turning to slide 12. FCD, including MOGAS, delivered sales and bookings growth of 15% and 11%, respectively. MOGAS contributed 11 points of sales growth in the quarter. In FCD, aftermarket bookings increased 20% in the quarter, while original equipment bookings were up 8%, driven by strength in both general industries and oil and gas.

翻到第 12 張投影片。包括 MOGAS 在內的 FCD 銷售額和訂單量分別成長了 15% 和 11%。MOGAS 本季貢獻了 11 個百分點的銷售成長。在 FCD，售後市場訂單量在本季度增長了 20%，而原始設備訂單量增長了 8%，這得益於一般工業和石油天然氣市場的強勁增長。

FCD adjusted growth and adjusted operating margins were 31.8% and 15.3%, respectively, for the quarter, a sequential improvement versus the third quarter. MOGAS was a slight drag for FCD's margins in the quarter given the timing and mix of shipments and related under absorption that I mentioned earlier. [After] MOGAS, FCD's underlying operational margins were roughly flat year over year.

本季 FCD 調整後成長率和調整後營業利潤率分別為 31.8% 和 15.3%，較第三季有所改善。考慮到我之前提到的出貨時間和組合，以及相關的吸收不足，MOGAS 對 FCD 本季的利潤率造成了輕微的拖累。[在] MOGAS 之後，FCD 的基礎營運利潤率與去年同期相比基本持平。

FCD exits 2024 with improving momentum. We're benefiting from solid revenue conversion, improved mix and enhanced execution. We are focused on expanding FCD margins and driving growth as we leverage the Flowserve Business System to improve execution while also accelerating opportunities through the integration of MOGAS.

FCD 將於 2024 年退出，勢頭強勁。我們受惠於穩健的收入轉換、改善的產品組合和增強的執行力。我們專注於擴大 FCD 利潤率和推動成長，利用福斯業務系統來提高執行力，同時透過整合 MOGAS 來加速機會。

Turning now to cash flow on slide 13. During the quarter, we generated very strong cash from operations of $197 million, bringing our full year cash from operations to $425 million. As a percent of sales, fourth quarter adjusted primary working capital was 28%, on par with last year. We continue to see improvements in our cash conversion cycle which improved by roughly one day in 2024.

現在轉到幻燈片 13 上的現金流量。在本季度，我們產生了非常強勁的 1.97 億美元經營現金流，使我們的全年營運現金流達到 4.25 億美元。作為銷售額的百分比，第四季度調整後的主要營運資本為 28%，與去年持平。我們的現金轉換週期持續改善，到 2024 年將改善約一天。

Working capital efficiency is a continued area of focus for our team. And while we have seen the benefits of improving our operations management system, we see more runway ahead as we leverage the Flowserve Business System to drive a standard inventory strategy.

營運資金效率是我們團隊持續關注的領域。雖然我們已經看到了改進營運管理系統的好處，但隨著我們利用福斯業務系統推動標準庫存策略，我們看到了更大的發展空間。

For the full year, with capital expenditures of $81 million, we generated strong free cash flow of $344 million, our highest level in more than a decade. Free cash flow conversion ratio of 99% was significantly higher than our target of 85% or more for the year and a strong indicator that our efforts in this area have momentum. Other sources and uses of cash during the quarter included increasing our term loan in conjunction with the MOGAS acquisition and a combined $37 million for dividends and a term loan reduction.

全年而言，我們的資本支出為 8,100 萬美元，產生了 3.44 億美元的強勁自由現金流，這是十多年來的最高水準。99%的自由現金流轉換率明顯高於我們今年85%以上的目標，有力地表明我們在這方面的努力勢頭強勁。本季的其他現金來源和用途包括結合 MOGAS 收購增加定期貸款，以及總計 3,700 萬美元的股息和定期貸款減少。

Turning to our 2025 outlook on slide 14. As Scott outlined, we are well positioned to once again make significant progress towards our 2027 targets. In 2025, we expect organic sales growth of 3% to 5%, which reflects the strong momentum from 2024, a healthy starting backlog, a supportive end markets, and further advancing of our 80/20 effort. We expect reported net sales growth to benefit roughly 300 basis points from the MOGAS acquisition.

請看第 14 張投影片上的 2025 年展望。正如斯科特所概述的，我們已做好準備，再次朝著 2027 年的目標取得重大進展。到 2025 年，我們預計有機銷售額將成長 3% 至 5%，這反映了 2024 年以來的強勁勢頭、健康的起始積壓訂單、支持性的終端市場以及我們 80/20 努力的進一步推進。我們預計，MOGAS 收購將使報告的淨銷售額成長約 300 個基點。

Currency will somewhat offset sales growth as we continue to see headwinds from the stronger US dollar. Based on recent prevailing foreign currency exchange rates, we expect reported sales to be negatively impacted by approximately 100 basis points. We anticipate a full-year book-to-bill ratio of over 1.0 given the constructive market backdrop.

由於我們繼續看到美元走強帶來的阻力，貨幣因素將在一定程度上抵消銷售成長。根據近期的外匯匯率，我們預期報告的銷售額將受到約 100 個基點的負面影響。鑑於良好的市場背景，我們預計全年訂單出貨比將超過 1.0。

Turning to profits. We anticipate continuing to expand gross and operating margins as we drive higher volumes and leverage our 80/20 program to reduce costs through a more simplified product portfolio.

轉向利潤。我們預計，隨著銷售量的提高和利用 80/20 計劃透過更簡化的產品組合來降低成本，毛利率和營業利潤率將繼續提高。

MOGAS is also expected to drive profit growth in 2025. Our guidance assumes MOGAS operations will benefit adjusted earnings by an estimated $0.16 on which includes $7 million of in-year cost synergy benefit. Incremental interest expense related to financing the acquisition is expected to partially offset the operational benefits.

預計 MOGAS 也將在 2025 年推動獲利成長。我們的指導假設是，MOGAS 營運將使調整後收益受益約 0.16 美元，其中包括 700 萬美元的年內成本協同效益。與收購融資相關的增量利息支出預計將部分抵銷營運收益。

Overall, we expect adjusted earnings per share of $3.10 to $3.30. This includes absorbing an estimated $0.05 headwind from foreign currency translation. At the midpoint, our adjusted earnings guidance represents an increase of 22% versus the prior year.

總體而言，我們預計調整後每股收益為 3.10 美元至 3.30 美元。這包括吸收因外幣折算而產生的預計 0.05 美元的不利影響。從中間值來看，我們的調整後獲利預期較上年同期成長了 22%。

In contrast to 2024, we anticipate the profile of our 2025 quarterly revenue and earnings results will be similar to historical trends with first quarter earnings the lowest and fourth quarter earnings the highest. The impact of MOGAS, including the benefit of synergies, along with the benefits from our portfolio excellence initiative will accelerate through the year. We expect first quarter sales and earnings to be similar to the first quarter of 2024 as strong aftermarket growth is offset by lower percentage of completion revenue on a year-over-year basis.

與 2024 年相比，我們預計 2025 年季度營收和獲利結果將與歷史趨勢相似，第一季獲利最低，第四季獲利最高。MOGAS 的影響（包括協同效應的好處）以及我們卓越投資組合計劃帶來的好處將在今年加速顯現。我們預計第一季的銷售額和收益將與 2024 年第一季相似，因為強勁的售後市場成長被同比較低的完成收入百分比所抵消。

Turning to capital allocation on slide 15. We continue to leverage our framework to deploy excess cash to the highest long-term return. Our Board has authorized a quarterly dividend of $0.21 per share. We also expect to leverage our cash to repurchase shares to offset equity compensation.

轉向第 15 張投影片上的資本配置。我們將繼續利用我們的框架來部署多餘的現金，以獲得最高的長期回報。我們的董事會已批准派發每股 0.21 美元的季度股息。我們也希望利用現金回購股票來抵銷股權補償。

We are focused on continuing to invest in the business for growth, both organically and through M&A. We have a strong M&A pipeline and continue to actively review opportunities that would accelerate our 3D strategy, further diversify the portfolio, leverage our scale, and drive both margin and EPS expansion. For the year, capital expenditure investments to further grow the business and drive efficiency in our operations are expected to be $80 million to $90 million.

我們專注於透過有機成長和併購方式繼續投資於業務成長。我們擁有強大的併購管道，並將繼續積極尋找機會加速我們的 3D 策略，進一步實現投資組合多樣化，利用我們的規模，並推動利潤率和每股盈餘的擴大。今年，為進一步發展業務和提高營運效率，我們預計資本支出將達到 8,000 萬至 9,000 萬美元。

As I close, let me reiterate how proud I am of the Flowserve team. We delivered significant value in 2024 across all metrics: bookings, sales, earnings, and cash flow. Our 2025 guidance is another step towards unlocking further value creation for our shareholders.

最後，請容許我重申我對福斯團隊的自豪。2024年，我們在預訂量、銷售、收益和現金流量等所有指標上都實現了顯著的價值。我們的 2025 年指引是朝著為股東創造更多價值邁出的又一步。

With that, let me now turn the call back to Scott.

說完這些，我現在把電話轉回給史考特。

Thanks, Amy. Before we open the call for questions, let's go to slide 16. We made tremendous progress in 2024, and we believe 2025 represents another meaningful step towards delivering our 2027 financial targets. Our end markets are healthy and growing. Our 3D strategy is working.

謝謝，艾米。在我們開始提問之前，讓我們先看第 16 張投影片。我們在 2024 年取得了巨大進步，我們相信 2025 年將是我們朝著實現 2027 年財務目標邁出的另一個重要步伐。我們的終端市場健康且不斷成長。我們的 3D 策略正在發揮作用。

Our execution has improved significantly, and we are seeing the early benefits of our Flowserve Business System. Overall, we are pleased with the remarkable progress in 2024 and but we know there is more opportunity in front of us, and our work is not done.

我們的執行力已顯著改善，我們正在看到福斯業務系統的早期效益。總的來說，我們對 2024 年取得的顯著進展感到滿意，但我們知道我們面前還有更多的機會，我們的工作還未完成。

Our 2025 guidance represents another step to achieving our 2027 targets and I have more confidence today than ever before in our team and our approach to deliver these results. We are excited about the journey ahead and have a clear road map to deliver significant value for our customers, our associates and our shareholders.

我們的 2025 年指引代表著我們向實現 2027 年目標又邁進了一步，今天，我對我們的團隊和實現這些成果的方法比以往任何時候都更有信心。我們對未來的道路充滿期待，並制定了清晰的路線圖，為我們的客戶、員工和股東創造巨大的價值。

Operator, we'll now open the call for questions. Thank you.

接線員，我們現在開始問答環節。謝謝。

(Operator Instructions) Nathan Jones, Stifel.

（操作員指示）Nathan Jones，Stifel。

I guess I'll start with a question on the aftermarket bookings. They've certainly ramped up over the last few years and our two levels higher than they ever been historically. I wonder if you could just talk a little bit more about the strategies that you've deployed to really drive the aftermarket capture rates to drive the growth in bookings around aftermarket to start with.

我想我將從關於售後預訂的問題開始。過去幾年，他們的水平確實有所提高，比歷史上任何時候都高出了兩個級別。我想知道您是否可以再多談談您部署的策略，以真正提高售後市場的佔有率，從而推動售後市場預訂量的成長。

Sure. We're super excited about the aftermarket bookings $618 million in the quarter. It's several quarters in a row now that we've been over $600 million. And I don't know if that's the new floor, but I would say certainly, a [$550 million] number would be the floor on aftermarket bookings. And as you said, Nathan, this is absolutely a result of the good work from the teams.

當然。我們對本季 6.18 億美元的售後市場訂單感到非常興奮。我們已經連續幾季超過 6 億美元。我不知道這是否是新的底線，但我可以肯定地說，5.5 億美元將是售後預訂量的底線。正如你所說，內森，這絕對是團隊出色工作的結果。

And so, we have a massive installed base of both pumps and valves. We've got a great local presence with our quick response centers. We've got strong customer relationships. And what we're really focused on is that high level of customer service. The mantra within our teams is speed wins.

因此，我們擁有龐大的泵浦和閥門安裝基礎。我們的快速反應中心在當地具有很強的影響力。我們擁有牢固的客戶關係。我們真正關注的是高水準的客戶服務。我們團隊的口號是速度取勝。

And so we focus substantially on reducing the cycle time of our quotes, reducing the cycle time of getting parts to our customers, reducing cycle times of repairs, and just being available to service them. And so we've got a nice card that we use within the aftermarket teams. We can see that the capture rates are continuing to move up, and we're confident that we can continue to make progress with this.

因此，我們主要致力於縮短報價週期、縮短向客戶提供零件的週期、縮短維修週期，並提供客戶服務。因此，我們得到了一張不錯的卡，可以在售後市場團隊中使用。我們可以看到捕獲率正在持續上升，我們有信心能夠繼續取得進展。

And then I'll just add that the macro backdrop is reasonably good. The utilization around the world on these big plants and infrastructures are at a relatively high level, and we expect those levels to maintain in 2025 and beyond. And so -- we like where we are with aftermarket. We've got aggressive growth targets on all of our aftermarket type businesses. And we feel like if we keep executing like we are, we'll continue to move that capture rate up.

然後我只想補充一點，宏觀背景相當好。全球這些大型工廠和基礎設施的利用率都處於相對較高的水平，我們預計這些水平在2025年及以後仍將保持下去。所以——我們喜歡我們在售後市場的現狀。我們對所有售後市場類型的業務都制定了積極的成長目標。我們覺得，如果我們繼續像現在這樣執行，我們將繼續提高捕獲率。

Awesome. I guess my follow-up question is going to be around the 80/20 framework, your CORE initiatives. One of the -- with the comments are in the slide that I found interesting was that you don't expect it to really be a negative headwind on the sales side.

驚人的。我想我的後續問題將圍繞 80/20 框架，即您的核心舉措。我發現幻燈片中的一則評論很有趣，那就是你不認為這會對銷售方面造成真正的負面影響。

Pretty much every company I have covered that has deployed this kind of system has always seen a headwind to revenue from getting out of products that aren't profitable or getting out of customers that aren't profitable it's accretive to EPS to see those headwinds in sales.

我所調查過的幾乎每一家部署了此類系統的公司，都因退出無利可圖的產品或失去無利可圖的客戶而面臨收入阻力，銷售阻力的增加有利於每股收益的增加。

I'm just wondering if you can comment on -- and maybe why you're not seeing a revenue headwind from these 80/20 initiative, is that something that we should expect in the future or just your approach to that?

我只是想知道您是否可以評論一下——也許您為什麼沒有看到這些 80/20 計劃帶來收入逆風，這是我們未來應該預料到的事情還是您對此採取的方法？

Sure. Let me provide a little context for just to get everyone kind of grounded. You know this well on the 80/20 journey, but just as a reminder for everyone else, we launched three of our business units within 80/20 last year. We call our initiative CORE for complexity reduction because essentially, that's what you're doing.

當然。讓我提供一些背景信息，以便讓大家有個了解。你們在 80/20 旅程中很清楚這一點，但是為了提醒其他人，我們去年在 80/20 的範圍內推出了三個業務部門。我們將我們的計劃稱為“CORE”，以減少複雜性，因為從本質上講，這就是你正在做的事情。

You're using a Pareto type approach to reduce the complexity in your business and Flowserve has been around for a long, long time, and we have a lot of complexity. And so this initiative in this effort is something that's really impactful to Flowserve, and we've got high expectations as we go forward.

您正在使用帕累托類型的方法來降低業務的複雜性，而福斯已經存在很長很長時間了，我們也面臨許多複雜性。因此，這項努力中的舉措對福斯來說確實影響深遠，我們對其未來抱持著很高的期望。

As we think about the two business units that are now kind of a full year into this, what we're seeing is SKU reduction by somewhere in the magnitude of 10% to 15% in the year. Nathan, as you indicate, like that is going to be a little bit of a headwind to our revenue as those SKUs are out of our offering.

當我們想到這兩個業務部門現在已經開展了一年之久時，我們看到 SKU 在今年減少了 10% 到 15% 左右。內森，正如您所說，這會對我們的收入造成一點阻力，因為這些 SKU 不在我們的供應範圍內。

The philosophy is that we take those resources that were used to sell that product or that channel to market. we're repositioning them to our best products and our best customers. And at this point, at least in 2025, we feel like that revenue impact is negligible as we start to invest in our best products and our best customers.

我們的理念是，我們將那些用於銷售該產品或該通路的資源推向市場。我們正在將它們重新定位為我們最好的產品和最好的客戶。而目前，至少在 2025 年，我們覺得收入影響可以忽略不計，因為我們開始投資我們最好的產品和最好的客戶。

And so we're one year in with two business units. That's how we see things today. And I think we'll be able to maintain that into 2025. As we kick off to more business units in 2025, we'll see the dynamics of what the data shows us and what we think the revenue impact will be. But again, that probably won't show up until 2026.

一年之後，我們又擁有了兩個業務部門。這就是我們今天看到的情況。我認為我們能夠將這一狀況保持到 2025 年。隨著我們在 2025 年啟動更多業務部門，我們將看到數據展現的動態以及我們認為的收入影響。但這可能要到 2026 年才會出現。

And then on the margin side, I'll add that in the two business units that are now kind of a full year in here, we fully expect in 2025, 100 basis points on the gross margin level because of the efforts that we're doing with 80/20. And I guess in closing on 80/20, I'll just say we are following the methodology very rigidly and we are on track with our expectations and what other companies have done when they use the 80/20 framework.

在利潤率方面，我要補充一點，在這兩個業務部門中，由於我們按照 80/20 所做的努力，我們完全預計到 2025 年，毛利率將達到 100 個基點。我想，在結束對 80/20 的討論時，我只想說，我們非常嚴格地遵循這一方法論，並且我們正在實現我們的預期，以及其他公司在使用 80/20 框架時所做的事情。

And so -- we're pretty excited about that. We'll see modest improvements in 2025, and we'll start to accelerate those improvements in 2026 and beyond. Just reiterate that we remain confident that this initiative, which we put under our portfolio excellence, we'll continue to drive kind of 200 basis points plus as we reach our long-term goals to 2027.

所以——我們對此感到非常興奮。我們將在 2025 年看到適度的改善，並將在 2026 年及以後開始加速這些改善。我再次重申，我們仍然相信，這項舉措（我們將其納入我們的卓越投資組合）將繼續推動 200 個基點以上的成長，以實現我們到 2027 年的長期目標。

Yeah. And Nathan, I might just add there that as we talk about sort of negligible impact, I think another way to say that is it's factored into our organic revenue guidance that we've put out of 3% to 5%. So what would a 3% year look like? And it could look like more revenue loss from 80/20 that doesn't necessarily sacrifice our potential to reach our EPS guidance.

是的。內森，我還要補充一點，當我們談論這種可以忽略不計的影響時，我認為另一種說法是，它已經計入了我們的有機收入預期中，我們已將其定為 3% 至 5%。那麼 3% 的年增率將會是怎麼樣呢？而且，80/20 可能會造成更多收入損失，但不一定會犧牲我們實現 EPS 指引的潛力。

Deane Dray, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Deane Dray。

Maybe we'll start on the '25 guide with the expectation that you think you'll be above 1 on book-to-bill. Just how calibrated are you on that so far? I mean you do have some good earnings visibility on some of these longer-cycle projects. So is there a front log that's giving you that confidence that you'll be able to? And do you have confidence in maintaining the streak of over $1 billion of orders? And at some point, is that going to come to an end and maybe some observations there?

也許我們會從 25 年的指南開始，期望您認為您的訂單出貨比將超過 1。到目前為止，您對此的認識如何？我的意思是，你對這些較長週期的專案確實有一些良好的獲利前景。那麼，是否有一個前端日誌可以給您信心，讓您能夠做到這一點？您有信心維持10億美元以上的訂單量嗎？在某個時候，這一切都會結束嗎？

Sure. I just hit the aftermarket in great detail, so I'll focus on kind of the OE and the projects. Our forward -- when we look at our forward funnel within our CRM system, it's essentially flat year over year. It doesn't give us substantial cost per concern. It's at a very elevated level.

當然。我剛剛詳細了解了售後市場，因此我將重點放在 OE 和專案。當我們查看 CRM 系統中的前瞻漏斗時，會發現它與去年同期相比基本持平。它並沒有為我們帶來每個問題所需的大量成本。它處於非常高的水平。

I would say oil and gas is a little bit down. Powers, up substantially. Chemicals, down just a fraction. General industry is up. With all of that said, we feel like we've got great visibility to the project universe out there and driving growth within the OE bookings. And as I said previously, the aftermarket, we're very confident in our ability to continue to grow that.

我想說石油和天然氣價格略為下跌。權力大幅上升。化學品僅下降了一小部分。一般工業上漲。綜上所述，我們感覺我們對外面的專案領域有了很大的了解，並且推動了 OE 預訂量的成長。正如我之前所說，我們對售後市場持續成長的能力非常有信心。

And so right now, everything we see is a book-to-bill over 1.0. The megatrends that we continue to refer to are decarbonization. And despite some of the rhetoric maybe in the US kind of shifting away from that, we continue to see a lot of projects in the decarbonization space, we booked carbon capture in the fourth quarter. We've got carbon capture visibility in Q1. We've got more carbon capture for the rest of the year.

所以現在，我們看到的所有產品的訂單出貨比都超過 1.0。我們繼續提到的大趨勢是脫碳。儘管美國的一些言論可能正在轉變，但我們仍然看到脫碳領域的許多項目，我們在第四季度預訂了碳捕獲項目。我們在第一季度獲得了碳捕獲的可見性。我們在今年剩餘時間內將捕獲更多的碳。

There's other things in decarbonization that we're pretty excited about. The nuclear outlook is incredibly strong on the power side. So the power electrification continues to go forward. And so we've got great ability there. And the general industry and kind of run rate business for us has been reasonably strong as well.

我們對脫碳領域的其他事情也非常興奮。在電力方面，核能的前景非常強勁。因此，電力電氣化仍在持續進行中。因此我們擁有強大的能力。我們的整體產業和運行率業務也相當強勁。

And so when we think about the trends in the end markets, it's all relatively stable. The soft spot, we said this before, is chemicals in Europe. That remains a little bit soft. We're kind of 1.5 years now with that softness. And so I would expect at some point, we start to see an inflection to growth.

因此，當我們考慮終端市場的趨勢時，一切都相對穩定。我們之前說過，其軟肋是歐洲的化學品。它仍然有點軟。我們已經擁有這種柔軟度一年半了。因此我預計，在某個時候，我們會開始看到成長的轉折點。

And then, Deane, maybe the last thing I'll add is what we saw with the January order rate was reasonably healthy. Our run rate business, our aftermarket business, both in North America, Europe, and around the world, it all looks good, and we've got real nice visibility to project-type awards.

然後，迪恩，也許我要補充的最後一件事是，我們看到一月份的訂單率相當健康。我們的運行率業務、售後市場業務，無論是在北美、歐洲或世界各地，看起來都很好，而且我們對專案類型獎項的了解也很好。

And so, at this point, it's a dynamic world out there. There's a lot of things going on, whether it's in the political arena or the geopolitics. But we've got good visibility to a sustainable growth rate and at this point, committing to book-to-bill over 1.0

所以，從目前來看，外面的世界是充滿活力的。有很多事情正在發生，無論是在政治舞台還是地緣政治領域。但我們對於永續成長率有著清晰的認知，目前我們承諾訂單出貨比超過 1.0

That's really helpful. And Amy knows this would typically be the time I would ask about free cash flow, but it was really strong in the quarter. So that -- I think I'll leave that one there.

這真的很有幫助。艾米知道這通常是我詢問自由現金流的時候，但本季的自由現金流確實強勁。所以 — — 我想我還是把它留在那裡吧。

But Scott, you mentioned the geopolitical side. Just is there anything as you see the businesses today that would be impacted on tariffs and just in terms of what headlines you've seen, any kind of preparation of playbook that you have that would -- that you need to have to put into play here?

但是史考特，你提到了地緣政治面。正如您所看到的，今天的企業是否會受到關稅的影響？

Sure. We've obviously gone through this once before with the Trump administration in the first pass. And then quite frankly, the Biden administration moved tariffs up even further. So we've got a good view of what to do with the tariffs. It's obviously a very dynamic situation, and there's still some uncertainty in terms of exactly what happens.

當然。顯然，我們第一次與川普政府經歷過一次這樣的事。坦白說，拜登政府進一步提高了關稅。因此，我們對如何處理關稅有了很好的看法。這顯然是一個非常動態的情況，對於究竟會發生什麼仍然存在一些不確定性。

But what I would add is that we are incredibly confident in our ability to manage this. Flowserve historically has not been the most nimble company. I believe we're changing that pretty dramatically. We've got great visibility not only to our -- where our supply chain is coming from, but also what the impact would be at a product line level in any tariff scenario.

但我想補充的是，我們對自己管理這個問題的能力非常有信心。從歷史上看，福斯並不是最靈活的公司。我相信我們正在徹底改變這一現狀。我們不僅對我們的供應鏈來自哪裡有很好的了解，而且也知道在任何關稅情境下，對產品線層面的影響會是什麼。

And so that visibility is allowing us to move much quicker in terms of actions and actions would be repositioning the supply chain, raising prices as we feel impacted. And so our teams are very geared up with this. We've modeled out more scenarios than I want to talk about on the call. But I'd say, given what we know today, we feel really good about our ability to manage this.

因此，這種可見性使我們能夠更快採取行動，這些行動將重新定位供應鏈，並在我們感受到影響時提高價格。所以我們的團隊對此做好了充分的準備。我們已經模擬了比我想在電話中談論的更多的場景。但我想說，根據我們今天所了解的情況，我們對自己處理此事的能力感到非常滿意。

And then just maybe some grounding for others. Two-thirds of our revenue is outside of the US for the work that is in the United States, we still have a significant manufacturing presence in the US in all of our products, so pumps, valves, and seals. And our exposure in the US is more supply chain related than finished goods.

然後也許可以為其他人提供一些基礎。我們三分之二的收入來自美國以外，而我們的工作都在美國，我們所有產品（包括泵浦、閥門和密封件）的製造業務仍然在美國佔有重要地位。我們在美國的業務更涉及供應鏈而非成品。

And so where we're getting impacted is our importing of castings and forgings and bar stock. And so we'll continue to work through this. At this point, I feel very confident in our ability to do that. and the impact historically has been very moderate to a very low number, obviously, with the new scenarios that goes up, though.

我們受到影響的是鑄件、鍛造件和棒料的進口。因此，我們將繼續努力解決這個問題。目前，我對我們做到這一點的能力非常有信心。從歷史上看，其影響一直都是非常溫和到非常低的，但顯然，在新的情景下，影響會上升。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Talking through a couple of things here. First, when you look at the 100 to 200 basis points plus you threw out on the slide on the 80/20 and then the commercial excellence program you're about to launch. I know you guys said on the prepared remarks like 200 plus.

這裡談論一些事情。首先，當您查看 80/20 幻燈片中列出的 100 到 200 個基點以及您即將啟動的商業卓越計劃時。我知道你們在準備好的發言中說了 200 多個。

But when you think about those, just a reminder, how much of that is embedded in -- was previously embedded in the guidance for 2027? And then also a reminder, what is the volume component of that 2027 guidance as we sit here today or the revenue growth component and how much is firmly within your control versus market factors?

但是當您考慮這些時，只需提醒一下，其中有多少是嵌入的——之前已經嵌入在 2027 年的指導中了？然後也要提醒一下，我們今天所處的 2027 年指引中的銷售部分是什麼，或者收入增長部分是什麼，以及相對於市場因素，有多少是您可以完全控制的？

Sure. So maybe starting with the 80/20 work and what we're seeing with that. As we laid out our 2027 targets, we'd envision sort of 200 basis points from portfolio management. And I would think of 80/20 as the process that we're using to drive that portfolio management improvement, I think we've also made it pretty clear with the 2027 targets that we don't intend on stopping there.

當然。因此也許可以從 80/20 的工作開始，看看我們現在看到的。當我們制定 2027 年目標時，我們預計投資組合管理將實現 200 個基點左右的成長。我認為 80/20 是我們用來推動投資組合管理改進的過程，我認為我們在 2027 年的目標中也明確表示我們不會止步於此。

And so we felt confident in November as we started to see the results of 80/20, that really that 200 basis points becomes a 200 basis points plus related to these programs. So we're bullish on the benefits that we could see from them.

因此，當我們在 11 月開始看到 80/20 的結果時，我們充滿信心，即與這些計劃相關的 200 個基點實際上會變成 200 個基點以上。因此，我們對從它們身上看到的利益充滿信心。

And then I think the other 200 basis points that we saw as we looked at is we looked at our ability to hit those long-term targets was really around operational excellence. And so I think we've made tremendous progress on the ops excellence side, particularly if you look at the results that we've seen running through the FPD segment. We've laid the groundwork for that within FCD.

然後我認為我們看到的另外 200 個基點是，我們看到實現這些長期目標的能力實際上取決於卓越營運。因此，我認為我們在營運卓越方面取得了巨大進步，特別是如果你看看我們在 FPD 領域看到的結果。我們已經在 FCD 內部為此奠定了基礎。

And so I think really the top end of our range, if you look at kind of where we want to be from an OI segment, I would think of that as the operating leverage from volume that we would anticipate getting. So overall, just to reiterate what Scott said in his remarks, what I have commented on feel really good about hitting these 2027 targets. And we think we have the tools in place to do it.

因此，我認為，如果您看一下我們想要從 OI 細分市場達到的目標，那麼我們範圍的最高端實際上是我們預期從數量中獲得的營業槓桿。所以總的來說，只是想重申斯科特在他的演講中所說的話，我對實現這些 2027 年目標感到非常高興。我們認為我們已經擁有實現這一目標的工具。

And then maybe a question on the guidance then and making sure I understand the cadence thing. So if I heard the prepared remarks correctly, first-quarter revenue and earnings are roughly similar to last year. Just making sure on that.

然後可能會問一個關於指導的問題，並確保我理解節奏的事情。因此，如果我沒有聽錯的話，第一季的營收和收益與去年大致相同。只是想確認一下。

And then as you think about the year, is this cadencing expectation for relatively normal seasonality, relatively normal balance conversion on some of these -- some of the backlog through the year. Any other nuances we should think about through the year? And any thoughts on the corporate expense side?

然後，當您思考這一年時，這是對相對正常的季節性、相對正常的平衡轉換的節奏預期，其中一些是全年的一些積壓。今年我們還應該考慮哪些其他細微差別？對公司費用方面有什麼看法？

Sure. So a little bit unpack there. I'd start with kind of as we think about 2025, you're right, that we look at that phasing as being closer to our historical seasonality. And I say that it's being impacted by a couple of reasons from an earnings perspective. To start with, we've commented throughout kind of 2024 on the phasing of that large deferral contract that we shift across 2024 and to a certain extent, recognized revenue in 2023. So the first quarter of last year was our highest revenue quarter from that. And so that does impact what we see in the first quarter.

當然。因此，稍微解開一下。我首先會思考 2025 年，您說得對，我們認為這個階段更接近我們的歷史季節性。我認為從獲利角度來看它受到了幾個原因的影響。首先，我們對 2024 年左右大規模延期合同的分階段實施進行了評論，我們將在 2024 年轉移該合同，並在一定程度上在 2023 年確認收入。因此，去年第一季是我們收入最高的一個季度。這確實會影響我們第一季的表現。

Secondarily, I think we've got the impacts of 80/20 that are impacting our profitability and will ramp throughout year. And the third is really around MOGAS, that I expect that as we progress through the year and begin to recognize synergies to get to our ultimate run rate of kind of that $15 million plus of synergies that we'll see the fourth quarter be our best quarter of the year. And so those are the things that are working that I see playing out over the course of the year.

其次，我認為 80/20 的影響正在影響我們的獲利能力，並且將在全年不斷增加。第三個實際上是關於 MOGAS 的，我預計，隨著我們在這一年中不斷進步並開始認識到協同效應，我們的最終運行率將達到 1500 萬美元以上的協同效應，我們將看到第四季度成為我們今年最好的一個季度。所以，這些都是我看到今年內在發揮作用的事情。

And I do want to comment on the first quarter overall from the standpoint that you will see improvement embedded in the quarter from an operating performance perspective. We expect that gross margin will be improving again year over year to reflect the programs that we've made part of the way that we run the business going forward. But we see a few things embedded in there that are going to be offsets. And that's really around the additional interest expense from MOGAS, which is roughly $0.02 a quarter, so $0.08 for the year and the ramp-up of those synergies.

我確實想從整體上對第一季進行評論，從營運業績的角度來看，本季將有所改善。我們預計毛利率將逐年提高，以反映我們在未來業務運作中所製定的計劃。但我們看到其中嵌入的一些東西將會被抵消。這實際上是圍繞 MOGAS 的額外利息支出，約為每季 0.02 美元，因此全年為 0.08 美元，以及這些協同效應的提升。

And then I'll just touch briefly on corporate expense, sorry. I think overall, we see corporate expenses being neutral in total over the course of 2025. So similar levels to what we see as saw in 2024. The phasing of that can change based on the kind of lumpiness of some of those expenses. But overall, in total, that number will be pretty close to what we saw in 2024.

然後我將簡單談談公司費用，抱歉。我認為總體而言，我們認為 2025 年企業支出總體上將保持中性。與我們在 2024 年看到的水平相似。根據某些費用的嚴重程度，其分階段實施可能會發生變化。但總體而言，這個數字將非常接近我們在 2024 年看到的數字。

Joe Giordano, TD Cowen.

喬·吉奧達諾（Joe Giordano），TD Cowen。

I wanted to unpack that corporate expense a bit. You mentioned it's tied to like specific R&D and things like that. I mean it was definitely higher and now we're saying that 2025 is neutral. I just want to know what's kind of -- what's causing this ramp, how long does it kind of stay at that level? And when you say it's neutral in 2025, like the 2024 number had like $12 million of extra cost from asbestos. Is it like you're saying it's going to be equal to that inclusive of that extra $12 million and then we'll see what asbestos is for this year?

我想要稍微解釋一下公司開支的問題。您提到它與特定的研發等相關。我的意思是它肯定更高，現在我們說 2025 年是中性的。我只是想知道是什麼原因導致了這種上升趨勢，它會在這個水平上維持多久？當您說 2025 年是中性的時，例如 2024 年的數字，石棉帶來了 1200 萬美元的額外成本。是不是像您說的，它將等於包含額外的 1200 萬美元，然後我們才能知道今年的石棉價格是多少？

Sure. So the corporate cost -- just in general in terms of the basket of costs. So corporate costs that we do not allocate out to the divisions. So think in terms of corp dev, R&D costs that are not necessarily attributed specifically to either segment. And it also includes elements of incentives, including both annual incentives and in the mix, and it does include the IBNR true-up that we do every year.

當然。因此，企業成本 — — 只是一般意義上的一籃子成本。因此，我們不會將公司成本分配給各部門。因此，從公司發展的角度來考慮，研發成本不一定是特別歸因於任何一個部分。它還包括激勵元素，包括年度激勵和組合激勵，並且還包括我們每年進行的 IBNR 調整。

We have included a placeholder for IBNR in the third quarter of this year. And so absent that, I would anticipate the costs would go down year over year, Joe.

我們已在今年第三季為 IBNR 添加了佔位符。因此，如果沒有這個因素，我預計成本會逐年下降，喬。

But I think one thing to point out just about these elevated costs is given that incentive element as we look at 2023 and 2024, as the company has begun to perform closer to targeted levels, both share-based compensation, which includes a performance component, and annual incentives are higher than what we might have seen in 2022 and 2021.

但我認為，關於這些成本上漲，有一點需要指出，那就是考慮到激勵因素，當我們展望 2023 年和 2024 年時，隨著公司業績開始接近目標水平，包括績效部分在內的股權薪酬和年度激勵都高於我們在 2022 年和 2021 年可能看到的水平。

That's fair. And then just if I could follow up on some of the in-process R&D that you bought on the cryo side of things. Where are those today in terms of like commercial deployment?

這很公平。然後，我是否可以跟進一下您在低溫方面購買的一些正在進行的研發成果。就商業部署而言，它們目前處於什麼位置？

Sure. We remain very excited about the LNG market in general. Obviously, with the new administration, there's new life to new build LNG in the United States. We've got a very global look on the LNG side, and we're able to put a lot of our valves and other products in there.

當然。總體而言，我們仍然對液化天然氣市場感到非常興奮。顯然，在新政府的領導下，美國新建液化天然氣計畫將迎來新的生命。我們對液化天然氣方面有非常全球化的視野，並且能夠在其中投放大量閥門和其他產品。

And so now obviously, we have to commercialize our pump. That is making very good progress. And I would say it's somewhere kind of in the second half of the year. We've gotten through our testing and we're starting to bring that to market.

所以現在顯然我們必須將我們的泵浦商業化。這是取得了非常好的進展。我想說的是，這大概是在今年下半年的某個時候。我們已經完成測試並開始將其推向市場。

On a positive side, we're already seeing our ability to support the aftermarket business in LNG. And so the technology that we've developed, we're now out there, repairing and installing some of our product and replacement opportunities on existing LNG.

從積極的一面來看，我們已經看到了我們支持液化天然氣售後市場業務的能力。我們開發的技術現在已經投入使用，用於修復和安裝現有液化天然氣的一些產品和替代品。

And so we're already starting to see revenue come in the door on the back of this technology acquisition, and we're confident that over the long term, this will be a really nice addition to the overall portfolio supporting what we believe is a really strong end market for us.

因此，我們已經開始看到透過這項技術收購帶來的收入，我們相信，從長遠來看，這將對我們的整體投資組合形成一個很好的補充，支持我們認為真正強大的終端市場。

(Operator Instructions) Brett Linzey, Mizuho.

（操作員指示）瑞穗的 Brett Linzey。

I wanted to come back to the SKU reduction. You noted the two business units are underway. I think commensurate 10% to 15% reduction there, two more being reviewed this year. Where do you see the reduction ultimately landing at the end of the program on a SKU basis? And should we think of potentially more benefit above just 80/20 practice as you get better throughput on what would be a more standardized simplified SKU count?

我想重新回到 SKU 減少的話題。您注意到這兩個業務部門正在進行中。我認為那裡應該減少 10% 到 15%，今年還會再審查兩個。您認為在該計劃結束時，SKU 的減幅最終會達到多少？而且，當您在更標準化、簡化的 SKU 數量上獲得更高的吞吐量時，我們是否應該考慮比 80/20 實踐可能帶來的更多好處？

Sure. Let me just start. I'll answer the SKU person, and then we'll talk about just the other benefits related to 80/20 because there's a long list of that.

當然。讓我先開始吧。我會回答 SKU 人員的問題，然後我們會討論與 80/20 相關的其他好處，因為這個好處有很多。

But on the SKU, the first two business units, again, they're about a year through the program now. And what we're seeing is that 10% to 15% reduction in the first year. As we recut the data in year two, that number only gets bigger. And so there will be further reduction as we go forward. I don't think we're going to double the size of the SKU reduction, but I think you could see those numbers going up to kind of a 15% to 20% within each of those first business units.

但就 SKU 而言，前兩個業務部門現在已經完成該計劃約一年了。我們看到第一年​​就減少了 10% 到 15%。當我們在第二年重新整理數據時，這個數字只會變得更大。因此，隨著我們前進，還會進一步減少。我認為我們不會讓 SKU 的減少幅度翻倍，但我認為你可以看到在每個首批業務部門中，SKU 的減少幅度會上升到 15% 到 20%。

And so we'll continue to follow the methodology. Every time you recut your quads, you're moving products and potentially customers out of the mix and repurposing your resources to the ones that create value for the enterprise.

因此我們將繼續遵循該方法。每次你重新切割四邊形時，你都會將產品和潛在客戶從組合中移出，並將資源重新用於為企業創造價值的資源。

Again, we'll follow that pretty religiously as we go forward. There's a lot of little caveats in terms of aftermarket and a product that supports one of your best customers maybe keep that a little bit longer as you're repositioning them to a different type of a product.

再次強調，我們將繼續嚴格遵守這項原則。在售後市場方面有很多小警告，而支持您最好的客戶之一的產品可能會保留更長時間，因為您正在將其重新定位為不同類型的產品。

And then to the second part of your question, which is a really important one, as we continue to reduce complexity, there's all kinds of knock-on benefits. And whether that's your overhead type cost in the manufacturing or in the quoting side that starts to get a lot a lot simpler because you're quoting less products and you're more focused on your best products, you can start to drive efficiencies in these different kind of work centers or different population groups.

然後回到你問題的第二部分，這是一個非常重要的問題，隨著我們不斷降低複雜性，將會產生各種連鎖效益。而且，無論是製造方面的間接成本還是報價方面的間接成本，都會變得簡單得多，因為您對更少的產品進行報價，而您更專注於最好的產品，您可以開始提高這些不同類型的工作中心或不同人群的效率。

And then on the shop floor, we haven't modeled any of this to date, but we do believe, and we've seen other companies that do get a productivity uplift with the simplification of what's going through the manufacturing process.

然後在車間，到目前為止我們還沒有對這方面進行任何建模，但我們確實相信，我們已經看到其他公司確實透過簡化製造流程提高了生產力。

And so, there's a ton of knock-on benefits. It goes all the way through the process from quoting to engineering the shop floor, your supply chain gets simplified as well. And so as we continue to work through the initiatives, we'll continue to make sure that we are getting the benefits in each step of the manufacturing process.

因此，這會帶來大量的連鎖效益。它貫穿從報價到車間工程的整個過程，您的供應鏈也得到了簡化。因此，在我們繼續實施這些措施的同時，我們將繼續確保在製造過程的每一步都能獲得效益。

That's very helpful. Maybe just one on inventory. So it still looks pretty lean to us. What's your assessment on inventories in the channels. And I guess if we're entering a modestly more favorable operating backdrop for just traditional energy deregulation, et cetera, should we look to the channel to maybe gain some comfort holding more inventory over the next couple of years or still stay pretty lean?

這非常有幫助。也許庫存只有一個。因此，對我們來說，它看起來仍然很精簡。您如何評價通路中的庫存？我想，如果我們進入一個對傳統能源放鬆管制等更為有利的營運背景，我們是否應該透過管道在未來幾年持有更多庫存以獲得一些安慰，或者仍然保持精簡？

Yeah. I'll keep this discussion in the US because that's where we typically will see our stocking distributors. The stocking distributors have pulled back on inventory pretty substantially. And they're at a reasonably low level. They've managed their working capital very well. They put a lot of pressure on us to reduce our lead times and be there for them in a much quicker response.

是的。我會在美國繼續這個討論，因為我們通常會在那裡看到我們的庫存分銷商。庫存分銷商已大幅削減庫存。而且這些水平相當低。他們對營運資金的管理非常好。他們對我們施加了很大的壓力，要求我們縮短交貨時間並更快地做出回應。

And so I think at this point forward, my view would be that their inventory does start to come up. I think the North American outlook across the energy sector and across some of the general industry is -- remains relatively bullish. And so I would expect a little bit of inventory build here in the coming quarters. I wouldn't expect anything crazy like a 15% to 20% build, but I don't think they're cutting inventory. And again, I would expect modest growth on inventory levels as we progress forward.

因此我認為從現在來看，我的觀點是他們的庫存確實開始增加。我認為北美整個能源產業以及部分一般產業的前景仍然相對樂觀。因此我預計未來幾個季度這裡會增加一些庫存。我不會期望出現 15% 到 20% 這樣的瘋狂成長，但我也不認為他們會削減庫存。而且，我預計隨著我們不斷前進，庫存水準將會適度成長。

As there are no further questions at this time, we will now conclude today's conference call. Thank you for your participation. You may disconnect, and have a great day.

由於目前沒有其他問題，我們現在結束今天的電話會議。感謝您的參與。您可以斷開連接並享受美好的一天。