福斯 (FLS) 2025 Q3 法說會逐字稿

Good day and welcome to the quarter three 2025 earnings call. Please note that this conference is being recorded.

大家好，歡迎參加2025年第三季財報電話會議。請注意，本次會議正在錄影。

At this time, I'd like to turn the conference over to Brian Ezzell, Vice President, Investor Relations, Treasurer and Corporate Finance. Please go ahead.

此時，我謹將會議交給投資人關係、財務主管兼企業融資副總裁布萊恩‧埃澤爾 (Brian Ezzell)。請繼續。

Thank you, and good morning, everyone. Welcome to Flowserve's third quarter 2025 business update. I'm joined by Scott Rowe, Flowserve's President and Chief Executive Officer; and Flowserve's Chief Financial Officer, Amy Schwetz. Following Scott Name's prepared remarks, we'll open the call for questions.

謝謝大家，大家早安。歡迎閱讀福斯公司2025年第三季業務更新報告。與我一同接受訪問的還有福​​斯公司總裁兼執行長斯科特·羅威，以及福斯公司財務長艾米·施韋茨。在史考特·納姆作完準備好的發言後，我們將開始接受提問。

Turning to slide 2. 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, refer to additional information, including our note on non-GAAP measures in our press release, earnings presentation and SEC filings, which are available on our website.

翻到第二張幻燈片。我們的討論將包含基於截至今日可獲得的資訊而作出的前瞻性陳述。實際結果可能因風險和不確定性而有所不同，請參閱我們新聞稿、收益報告和美國證券交易委員會文件中關於非GAAP指標的補充說明，這些文件可在我們的網站上查閱。

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

接下來，我將把麥克風交給史考特。

Thank you, Brian, and good morning, everyone. I'll start on slide 3. The momentum we built in the first half of the year continued in the third quarter as we delivered exceptional results across bookings, margin expansion, earnings and cash flow. We remain focused on driving growth while leveraging the Flowserve business system to accelerate margin expansion. With three quarters of the year now behind us, we have increased confidence in our ability to meet our 2025 objectives and we are raising our adjusted EPS guidance range for the second time this year to $3.40 to $3.50.

謝謝你，布萊恩，大家早安。我將從第三張投影片開始。我們在上半年建立起來的發展勢頭在第三季度得以延續，我們在預訂量、利潤率擴張、盈利和現金流方面都取得了優異的成績。我們將繼續專注於推動成長，同時利用福斯（Flowserve）的業務系統來加速利潤率的提升。今年已經過去了三個季度，我們對實現 2025 年目標的能力更有信心，因此我們將今年第二次上調調整後的每股收益預期範圍至 3.40 美元至 3.50 美元。

The midpoint of our revised guidance represents a 31% increase from last year and an increase of more than 60% from 2023 and highlights consistent execution of our strategy and our confidence in the growth opportunities ahead. In the quarter, we delivered bookings of $1.2 billion and revenue growth of 4%. We also continued our enduring margin expansion journey with adjusted gross margins increasing 240 basis points to 34.8%. While adjusted operating margins were 14.8%, driven by incremental margins of 115% during the quarter.

我們修訂後的業績指引中位數較去年增長 31%，較 2023 年增長超過 60%，凸顯了我們策略的持續執行以及我們對未來成長機會的信心。本季度，我們實現了 12 億美元的訂單金額和 4% 的營收成長。我們也持續維持利潤率持續成長的勢頭，調整後的毛利率成長了 240 個基點，達到 34.8%。經調整後的營業利潤率為 14.8%，主要得益於本季利潤率成長了 115%。

Adjusted earnings per share was $0.90, an impressive increase of 45% compared to the prior year period. We also returned $173 million of cash to shareholders in the quarter, including $145 million of share repurchases. We have a healthy balance sheet, low leverage, and we continue to see improved cash flow performance from the business. This coupled with what we viewed as a discounted share price relative to intrinsic value makes repurchasing shares an attractive capital allocation decision.

經調整後的每股收益為 0.90 美元，與上年同期相比增長了 45%，增幅顯著。本季我們也向股東返還了 1.73 億美元現金，其中包括 1.45 億美元的股票回購。我們擁有健康的資產負債表、較低的槓桿率，我們看到業務現金流表現持續改善。這一點，再加上我們認為該股股價相對於其內在價值而言是折價的，使得回購股票成為一項有吸引力的資本配置決策。

Later in the call, Amy will provide more detail on our full year guidance and our approach to capital allocation. She also provide more details on the separately announced divestment of our legacy asbestos liabilities, which will further enhance our capital allocation optionality on a go-forward basis. I'm proud of all the Flowserve associates for continuing to navigate a dynamic environment while driving relentless execution of the Flowserve business system to expand margins, drive growth, simplify our product portfolio and ultimately deliver enhanced value for our customers and shareholders.

在稍後的電話會議中，Amy 將詳細介紹我們的全年績效指引和資本配置方法。她還提供了更多關於我們另行宣布剝離遺留石棉負債的細節，這將進一步增強我們未來資本配置的選擇權。我為所有福斯員工感到驕傲，他們不斷適應動態環境，同時不懈地執行福斯業務系統，以擴大利潤率、推動成長、簡化產品組合，並最終為我們的客戶和股東創造更大的價值。

Now to slide 4. Bookings for the quarter were $1.2 billion, improving sequentially by over $130 million and growing 1% versus the prior year. Our strong aftermarket franchise continued to deliver with Q3 representing the sixth consecutive quarter of bookings greater than $600 million. In fact, two of the last three quarters have seen aftermarket bookings above $650 million. I remain excited about the opportunity to leverage our capabilities to drive further aftermarket growth.

現在來看第四張投影片。本季預訂額為 12 億美元，季增超過 1.3 億美元，比上年同期成長 1%。我們強大的售後市場業務持續保持強勁勢頭，第三季連續第六個季度訂單超過 6 億美元。事實上，過去三個季度中有兩個季度的售後市場訂單額超過 6.5 億美元。我仍然對有機會利用我們的能力來推動售後市場進一步成長感到興奮。

Project activity in the quarter was steady and improved sequentially with strong growth in the power markets and solid trends across most other end markets. For the quarter, we delivered over $140 million of nuclear bookings, a record for the company. Our two largest bookings in the quarter were both nuclear awards related to two separate new reactors in Europe. Each of these bookings was approximately $30 million. Many of the project delays we saw in the second quarter did come to market in the third quarter.

本季專案活動穩步推進，並逐季改善，電力市場實現強勁成長，其他大多數終端市場也呈現穩健發展趨勢。本季度，我們完成了超過 1.4 億美元的核電訂單，創下公司紀錄。本季我們最大的兩筆訂單都是與歐洲兩座新建反應器相關的核能項目。每筆訂單金額約為 3000 萬美元。我們在第二季度看到的許多專案延誤，都在第三季推向了市場。

However, we continue to see some slowness in project timing for larger engineered projects, primarily in the energy end market. Over the last five years, we have evolved Flowserve into a more resilient business. 10 years ago, large engineered projects often represented 20%-plus of our bookings which naturally led to more cyclicality based on project investment cycles.

然而，我們仍然看到大型工程項目（主要集中在能源終端市場）的專案進度有所放緩。過去五年，我們已將福斯發展成為更具韌性的企業。十年前，大型工程項目通常占我們訂單量的20%以上，自然導致了業務波動性較大，與專案投資週期密切相關。

Today, engineered projects remain an important part of our business, but this mix is typically around a mid-single-digit percentage of our bookings. The shift in mix is driving more consistency in our bookings and revenue, allowing us to manage more effectively through cycles. We have also sharpened our focus on capturing more aftermarket opportunities while selectively pursuing the most attractive engineered projects that deliver better margins and a healthy aftermarket entitlement. For the quarter, if we were to exclude engineered pump original equipment bookings, our bookings growth was an impressive 9% across the remaining portfolio.

如今，工程項目仍然是我們業務的重要組成部分，但這類項目通常只占我們訂單量的個位數百分比左右。產品組合的轉變使我們的預訂量和收入更加穩定，使我們能夠更有效地應對週期性變化。我們也更專注於抓住更多售後市場機會，同時有選擇地追求最具吸引力的工程項目，這些項目能夠帶來更高的利潤率和健康的售後市場權益。如果排除工程幫浦原始設備訂單，本季剩餘產品的訂單成長了令人矚目的 9%。

Turning to slide 5. Our end markets remain stable with strength in areas, including traditional power and nuclear. Power demand continues to represent an exciting and significant opportunity while General Industries is benefiting from continued industrial build-out in emerging areas of opportunities like pharmaceuticals, food and beverage. Mining has been an area of excitement for us, though project deferrals have happened bookings over the past 12 months.

翻到第5張投影片。我們的終端市場保持穩定，傳統電力和核能等領域表現強勁。電力需求持續帶來令人興奮且意義重大的機遇，而通用工業則受益於製藥、食品和飲料等新興領域的持續工業建設。採礦業一直是我們感興趣的領域，儘管在過去 12 個月中，專案有所延期，預訂也受到影響。

In the third quarter, we saw mining project activity start to pick up with overall mining increasing over 60% versus last year. Within energy, asset utilization for large process industries remains elevated and maintenance spending has continued as expected. Chemical remains our lowest growth end market. However, we were encouraged by improvement in North America Chemical in the quarter and the potential for an improved outlook in this space. With our year-to-date book-to-bill at 1.0 times and a strong project funnel, we are optimistic about delivering on a full year book-to-bill of approximately 1.0 times. Additionally, our commitment to the Flowserve business system should drive growth in 2026 and beyond as we leverage commercial excellence and 80/20 principles to further grow our business.

第三季度，我們看到採礦計畫活動開始回升，整體採礦量比去年同期成長超過 60%。在能源領域，大型製程工業的資產利用率仍然很高，維護支出也如預期般持續。化工產品仍然是我們成長速度最低的終端市場。然而，北美化工產業在本季有所改善，這令我們感到鼓舞，也預示著該領域前景將有所改善。今年迄今為止，我們的訂單出貨比為 1.0 倍，且項目儲備充足，因此我們樂觀地認為，全年訂單出貨比將達到 1.0 倍左右。此外，我們對福斯商業體系的承諾應該會在 2026 年及以後推動成長，因為我們將利用卓越的商業表現和 80/20 原則來進一步發展我們的業務。

Moving to slide 6. Let me take a moment to highlight the significant opportunities we see ahead in the power space and specifically nuclear. Our offering of pumps, valves, seals and actuators play an important role across the nuclear spectrum. Today, we have content in over 75% of the roughly 400 nuclear reactors operating across the globe. Our mainstream isolation valves and actuators play a critical safety role in the nuclear island with other types of valves used across the balance of the nuclear facility.

切換到第6張投影片。我想花一點時間重點介紹我們在電力領域，特別是核能領域看到的巨大機會。我們提供的泵浦、閥門、密封件和執行器在核能領域發揮重要作用。如今，我們在全球約 400 座運作中的核反應器中，超過 75% 都擁有我們的產品。我們的主流隔離閥和執行器在核島中發揮至關重要的安全作用，而其他類型的閥門則用於核設施的其他部分。

Our pumps are often found in the turbine island, helping to ensure the cooling process runs as intended with additional legacy pumps within the containment zone itself. Importantly, we have the critical quality assurance certificates and customer approvals necessary to leverage our technology across the global nuclear landscape. We also maintained great relationships with key industrial partners and customers around the world as Flowserve's nuclear equipment is essential to their operations. This set of key capabilities and domain expertise that we bring to the nuclear space makes us one of a few preferred vendors for valve seal and actuation content worldwide positioning Flowserve for leadership and nuclear flow control for decades Sika.

我們的泵浦通常安裝在渦輪島內，與圍護區內的其他傳統泵浦一起，有助於確保冷卻過程能如預期運作。重要的是，我們擁有必要的品質保證證書和客戶認可，可以在全球核能領域推廣我們的技術。由於福斯公司的核能設備對世界各地的重要工業合作夥伴和客戶至關重要，因此我們也與他們保持著良好的關係。我們為核能領域帶來的這些關鍵能力和專業知識，使我們成為全球少數幾個閥門密封和驅動部件的首選供應商之一，使福斯在核能流體控制領域保持領先地位數十年，並與西卡建立了合作關係。

Moving to slide 7. Today, Power represents roughly 7% of our revenue. with about half of that coming from traditional power and the other half coming from nuclear. Our bookings show an evolving picture with accelerating growth across all power and nuclear growing at the fastest rate. On a year-to-date basis, our total power book-to-bill is 2.0 times. The expansion of artificial intelligence, cloud computing, data centers and broad scale electrification are creating significant growth for power broadly and specifically within nuclear power generation.

切換到第7張投影片。目前，電力業務約占我們收入的7%，其中約一半來自傳統電力，另一半來自核能。我們的預訂情況顯示，電力產業的成長正在加速，其中核能的成長速度最快，整體情況正在改變。今年迄今為止，我們的電力訂單與帳單總額比率為 2.0 倍。人工智慧、雲端運算、資料中心和大規模電氣化的擴張，正在為電力行業，特別是核電行業，帶來顯著的成長。

Looking forward, we see the potential for 40 new large nuclear reactors to be under construction in the next 10 years across North America, Europe and parts of Asia. In addition, technology for SMRs or small modular reactors, continues to progress, and we believe this technology represents an additional growth driver as the expansion for the global nuclear fleet begins to accelerate. While the technology still is in the development phase, many of our SMR partners are making significant progress and industry data suggests as many as 30 SMRs could be under construction in the next five years.

展望未來，我們預計未來 10 年內，北美、歐洲和亞洲部分地區可能會有 40 座新的大型核反應爐開工。此外，小型模組化反應器（SMR）技術也不斷進步，我們相信，隨著全球核電廠規模的擴張開始加速，這項技術將成為另一個成長動力。雖然該技術仍處於發展階段，但我們的許多小型模組化反應器合作夥伴正在取得重大進展，行業數據顯示，未來五年內可能有多達 30 個小型模組化反應器正在建設中。

The existing fleet of nuclear reactors is also aging, and we expect almost all existing large reactors will go through life extension upgrades over the next decade, providing further opportunity for Flowserve. We are working very closely with nuclear power operators to refurbish and supply equipment to enable life extensions, power uprates, refurbishments and restarts of reactors that have previously shut down.

現有的核反應爐也正在老化，我們預計未來十年內幾乎所有現有的大型反應爐都將進行延壽升級，這將為福斯公司提供更多機會。我們正與核電運營商密切合作，翻新和供應設備，以實現先前已關閉的反應器的延壽、功率提升、翻新和重啟。

Turning to slide 8. Power Nuclear represents one of the most compelling multiyear growth opportunities for Flowserve. With our strong market position, differentiated product portfolio in decades of domain expertise, we are exceptionally well positioned to capitalize on the accelerating investment in this space. As global electrification advances and new nuclear capacity expands to meet AI, data center and energy security demands, we see a sustained growth cycle emerging with nuclear becoming a larger contributor to our business over the next 5 to 10 years.

翻到第8張幻燈片。核電業務是福斯公司最具吸引力的多年成長機會之一。憑藉我們強大的市場地位、差異化的產品組合以及數十年的行業專業知識，我們擁有得天獨厚的優勢，能夠充分利用該領域不斷增長的投資。隨著全球電氣化進程的推進和新的核能產能的擴張以滿足人工智慧、資料中心和能源安全的需求，我們看到一個持續成長的周期正在形成，核能將在未來 5 到 10 年內成為我們業務中更大的貢獻者。

Based on our current content opportunity of approximately $100 million plus per gigawatt, we believe that nuclear flow control opportunity set could be $10 billion plus over the next decade. Importantly, nuclear carries attractive, accretive margins, offering the potential to drive substantial value creation for Flowserve over the long term.

根據我們目前每吉瓦約 1 億美元以上的市場機會，我們認為未來十年核電流量控制市場機會可能超過 100 億美元。重要的是，核能具有有吸引力的、不斷增長的利潤率，從長遠來看，有可能為福斯公司創造巨大的價值。

With the potential for double-digit growth in the nuclear and power and our non-power business benefiting from healthy demand and reindustrialization, we believe we are well positioned to continue driving long-term growth. Before I turn it over to Amy, I will conclude by saying that Flowserve is in a strategically advantaged position. We have a robust and expanding aftermarket franchise with additional upside and capture rates, balanced by a diverse mix of industries that includes both high-growth power demand opportunities and stable recurring end markets. The Flowserve Business System is driving quantifiable improvement in execution and margin expansion and we see significant runway ahead.

核能和電力業務預計將實現兩位數成長，而我們的非電力業務也受益於強勁的需求和再工業化，我們相信我們已做好充分準備，並繼續推動長期成長。在將發言權交給艾米之前，我最後要說的是，福斯公司處於戰略優勢地位。我們擁有強大且不斷擴張的售後市場特許經營權，具有額外的成長空間和市場份額，同時兼顧多元化的產業組合，包括高成長的電力需求機會和穩定的經常性終端市場。Flowserve 業務系統正在推動執行力和利潤率的顯著提升，我們看到了巨大的發展空間。

Our cash flow generation continues to strengthen, enabling greater capital deployment and incremental returns to shareholders. We remain focused on driving sustainable growth, expanding margins and enhancing cash flow, all with the goal of delivering superior value for our shareholders.

我們的現金流量持續增強，從而能夠進行更多資本部署，並為股東帶來更多回報。我們將繼續專注於推動永續成長、擴大利潤率和增強現金流，所有這些目標都是為了為我們的股東創造卓越的價值。

With that, I'll turn the call over to Amy.

這樣，我就把電話交給艾米了。

Thank you, Scott, and good morning, everyone. Turning to slide 9. We delivered another strong performance in the third quarter, an outcome of our growth strategy and exceptional delivery through the Flowserve business system. Third quarter revenues were $1.2 billion, a 4% increase versus last year. In the quarter, organic sales were flat, while the Mogas acquisition contributed 3 points of growth. We continue to see strong growth from aftermarket, while revenue from original equipment was slightly lower in the quarter due to the timing and composition of projects in the backlog. Our profit performance in the quarter demonstrates our execution focus.

謝謝你，斯科特，大家早安。翻到第9張投影片。第三季我們再次取得了強勁的業績，這得益於我們的成長策略以及福斯業務系統的出色執行。第三季營收為12億美元，比去年同期成長4%。本季有機銷售額持平，而收購 Mogas 帶來了 3 個百分點的成長。售後市場持續強勁成長，而由於積壓項目的進度和組成，本季原始設備收入略有下降。本季獲利表現反映了我們對執行力的重視。

Adjusted gross margins increased 240 basis points, driven by actions taken under the Flowserve business system including improvements in operational excellence, our 80/20 complexity reduction program and improved cost performance. With additional leverage from SG&A, adjusted operating margins increased 370 basis points to 14.8%. This represents the second consecutive quarter of operating margins within our long-term targeted range of 14% to 16%, which we originally set out to deliver by 2027. Our ability to continue to deliver in this range well in advance of initial expectations is a testament to the more resilient business model we have created and an impressive execution by our associates around the world.

經調整後的毛利率提高了 240 個基點，這得益於 Flowserve 業務系統下採取的各項措施，包括提升卓越營運水準、實施 80/20 複雜性降低計畫以及改善成本績效。加上銷售、一般及行政費用的額外槓桿作用，調整後的營業利潤率提高了 370 個基點，達到 14.8%。這是公司連續第二個季度實現營業利潤率在 14% 至 16% 的長期目標範圍內，我們最初的目標是在 2027 年實現這一目標。我們能夠繼續按時交付，遠遠超出預期，這證明了我們所創建的更具韌性的商業模式，以及我們全球員工令人印象深刻的執行力。

Moving to the performance of our segments on slide 10. I'll start with FPD. FPD continues to deliver strong performance with another quarter of adjusted operating margins around 20%, and in line with best-in-class peers. The 80/20 program is driving clear results for FPD with the year-to-date benefits from 80/20 pacing ahead of our initial expectations coming into the year. Aftermarket also remains a strength with bookings growing in the mid-single digits for the quarter.

接下來，我們來看第 10 張投影片中各部分的表現。我先從FPD開始。FPD 持續保持強勁的業績，第二季的調整後營業利潤率約為 20%，與業界最佳同業持平。80/20 計畫為 FPD 帶來了明顯的成果，今年迄今 80/20 計畫帶來的收益已經超過了我們年初的預期。售後市場依然保持強勁勢頭，本季訂單量實現了中等個位數的成長。

We continue to improve our aftermarket capabilities, and we see further opportunity to capture more from our large base of installed equipment over time. Bookings in the quarter were negatively impacted by lower engineered pump projects, which Scott referenced earlier as well as some year-over-year timing of project awards. Overall, FPD book-to-bill for the quarter was 1.02 times, a healthy level as we continue to grow the business even with lower levels of large energy project activity.

我們將持續提升售後市場能力，隨著時間的推移，我們看到了從龐大的已安裝設備基礎中獲得更多收益的機會。本季的預訂量受到工程泵項目減少的負面影響，斯科特之前也提到過這一點，此外，一些項目授予的時間也與往年有所不同。總體而言，FPD 本季訂單出貨比為 1.02 倍，這是一個健康的水平，即使大型能源項目活動減少，我們仍然保持業務成長。

Turning to the FCD segment. We delivered strong performance in the quarter with bookings growth of 24%, sales growth of 7% and adjusted operating margins expanding 230 basis points. Bookings in the quarter benefited from strong aftermarket growth as well as a large nuclear award and project activity in the Middle East. FCD adjusted gross margins increased 220 basis points year over year and 130 basis points sequentially, largely driven by improved execution and better performance from Mogas. Combined with improved SG&A leverage and accelerated synergy realization from Mogas. Adjusted operating margins improved 410 basis points sequentially.

接下來進入FCD部分。本季業績表現強勁，預訂量成長 24%，銷售額成長 7%，調整後營業利潤率成長 230 個基點。本季訂單量受惠於強勁的售後市場成長以及中東地區的大型核能專案訂單和專案活動。FCD 調整後的毛利率年增 220 個基點，較上季成長 130 個基點，主要得益於 Mogas 業務執行力的提高和績效的改善。結合提高銷售、一般及行政費用槓桿率及加速汽車天然氣綜效。經調整後的營業利益率較上月提高了410個基點。

For the quarter, Mogas operating margins were accretive to FCD, consistent with our expectations for the business when it was acquired. The fabricated modules that hampered Mogas and FCD margins in the first half of the year have been shipped with the remaining exposure related to final installation and completion. With these projects largely behind us, synergies accelerating and the Mogas business now fully on the Flowserve business system. The team is focused on driving growth opportunities across the globe through our expanded offering of severe service fallouts. I'll add that Alice D. Bazio joined the company as our new President of FCD. We're excited to have her on board and look forward to leveraging her unique set of industrial experiences across product management, software solutions and engineering to continue the progress in FCD.

本季度，Mogas 的營運利潤率提升了 FCD 的業績，這與我們收購該業務時的預期一致。今年上半年阻礙 Mogas 和 FCD 利潤的已製造模組已發貨，剩餘的風險敞口與最終安裝和完成有關。隨著這些專案基本完成，協同效應正在加速發揮，Mogas 業務現在已完全融入 Flowserve 的業務系統。團隊致力於透過擴大嚴重服務故障的應對範圍，在全球範圍內推動成長機會。我還要補充一點，Alice D. Bazio 已加入公司，擔任 FCD 的新總裁。我們很高興她能加入我們，並期待利用她在產品管理、軟體解決方案和工程方面的獨特行業經驗，繼續推動 FCD 的發展。

Turning to slide 11. I'll take a moment to highlight one of the many areas of significant progress within the Flowserve business system. When we launched our 80-20 complexity reduction program in 2024, we had conviction around the opportunity to drive significant value and margin improvement over time. We were intentional with the approach focusing on individual business units within our segments and ensuring we let data lead the way. From the start, we view this as a way of doing business, a process and not a project and something we wanted to embed in our culture. Our industrial pumps business unit was the first to come into the program and is now in its second year of driving 80/20 actions. The team has made tremendous progress on a number of 80/20 pillars.

翻到第11張幻燈片。我將花一點時間重點介紹福斯業務系統取得重大進展的眾多領域之一。2024 年，我們啟動了 80/20 複雜性降低計劃，當時我們堅信，隨著時間的推移，這將帶來顯著的價值和利潤提升。我們採取的方法有意識地專注於我們各個業務部門內部的各個業務單元，並確保讓資料引領方向。從一開始，我們就將此視為一種經營方式、一個流程而不是一個項目，並且我們希望將其融入我們的企業文化中。我們的工業泵浦業務部門是第一個加入該計劃的部門，現在已進入推進 80/20 行動的第二年。團隊在 80/20 原則的多個方面取得了巨大進展。

First, within industrial pumps, we reduced our original equipment SKU count by 45% leading to a more efficient manufacturing process, less working capital and importantly, better value for our customers. While the SKU reduction had some initial impact on top line performance, the team has quickly pivoted to maximize opportunities with a core set of products. These target selling efforts led to a 21% increase in year-to-date bookings for key customers. By reducing SKUs and focusing efforts on our best products, the team has made a difference for both our customers and shareholders, improving gross margins by roughly 150 basis points compared to last year.

首先，在工業泵浦領域，我們將原始設備 SKU 數量減少了 45%，從而提高了生產效率，減少了營運資金，更重要的是，為我們的客戶帶來了更高的價值。雖然 SKU 減少對營收業績產生了一些初步影響，但團隊迅速調整策略，最大限度地利用核心產品組合的機會。這些有針對性的銷售措施使主要客戶的年初至今預訂量增加了 21%。透過減少 SKU 並集中精力於我們最好的產品，團隊為我們的客戶和股東都帶來了改變，與去年相比，毛利率提高了約 150 個基點。

In addition to these efforts, the 80/20 program led us to a decision to divest a small gear pump business within the industrial pumps business unit. This decision was made using our analysis of the market opportunity, our right to win and our ability to deliver profits in line with our expectations. After analyzing this business closely, we determined it was better off in someone else's hands. While this divestiture was immaterial to our overall financials, it is a decision that ultimately improves our profitability, working capital and cash flow. We are focused on continuing to execute utilizing the 80/20 methodology, not only in industrial pumps but across our entire portfolio, and we'll share more details over time.

除了這些努力之外，80/20 計畫還促使我們決定剝離工業幫浦業務部門內的小型齒輪幫浦業務。我們做出這個決定是基於對市場機會的分析、我們獲勝的把握以及我們實現預期利潤的能力。經過仔細分析，我們認為這家企業交給其他人經營會比較好。雖然此次資產剝離對我們的整體財務狀況影響不大，但這項決定最終提高了我們的獲利能力、營運資本和現金流。我們將繼續致力於運用 80/20 方法論，不僅在工業泵浦領域，而且在我們的整個產品組合中，我們將在適當的時候分享更多細節。

Turning now to slide 12. Our continued focus on managing working capital and converting more profits into cash, combined with the merger termination payment, led to significant cash from operations of $402 million in the quarter. For the quarter, adjusting to exclude the net impact of the merger termination payment, our free cash flow conversion was an impressive 174%. As I look at our year-to-date cash flow performance, our improved working capital management under the Flowserve Business System, and our healthy leverage level. I'm encouraged by our ability to allocate capital in growth-enhancing ways. In the quarter, we returned $173 million to shareholders including $145 million of share repurchases.

現在翻到第12張投影片。我們持續專注於管理營運資金並將更多利潤轉化為現金，再加上合併終止付款，使得本季經營活動產生的現金流達到 4.02 億美元。本季度，經調整排除合併終止付款的淨影響後，我們的自由現金流轉換率達到了令人矚目的 174%。當我審視我們今年迄今為止的現金流表現、在 Flowserve 業務系統下改善的營運資本管理以及我​​們健康的槓桿水平時。我對我們能夠以促進成長的方式配置資本的能力感到鼓舞。本季度，我們向股東返還了 1.73 億美元，其中包括 1.45 億美元的股票回購。

We continued share repurchases into October for an incremental $55 million bringing our year-to-date repurchases through October to $253 million, with $200 million remaining on our share repurchase authorization. Looking ahead, we'll continue to allocate capital in a disciplined manner with continued commitment to our investment-grade rating.

我們在 10 月繼續回購股票，新增回購金額為 5,500 萬美元，使截至 10 月的今年迄今的回購金額達到 2.53 億美元，而我們的股票回購授權額度還剩下 2 億美元。展望未來，我們將繼續以嚴謹的方式配置資本，並繼續致力於維持我們的投資等級。

On slide 13, in another example of our disciplined approach to capital allocation, we are excited to announce today that we have reached an agreement to divest our legacy asbestos liabilities. The transaction simplifies our capital structure, reduces volatility and improves our annual cash flow, all of which will enhance our ability to focus capital allocation on growth opportunities. We have found a great partner for this transaction, and we look forward to closing the transaction in the fourth quarter.

在第 13 張幻燈片中，作為我們嚴謹的資本配置方法的另一個例子，我們很高興地宣布，我們已達成協議，剝離我們遺留的石棉債務。此交易簡化了我們的資本結構，降低了波動性，並改善了我們的年度現金流，所有這些都將增強我們集中資本配置於成長機會的能力。我們為這筆交易找到了一個非常好的合作夥伴，期待在第四季完成交易。

Turning to our outlook on slide 14. As a result of strong year-to-date performance and increased confidence in executing through the Flowserve business system, we have increased our earnings outlook for the second time this year. We continue to deliver strong year over year margin expansion and now expect to deliver over 200 basis points of margin improvement for the full year. The midpoint of our full year guidance represents a 31% increase in EPS year over year and an impressive increase of more than 60% since 2023. I'm proud of our teams, their strong delivery and our focus on execution.

接下來我們來看第 14 張投影片。由於今年迄今的強勁業績以及對透過福斯業務系統執行的信心增強，我們今年第二次提高了獲利預期。我們持續保持強勁的同比利潤率成長，預計全年利潤率將提高 200 個基點以上。我們全年業績指引的中點意味著每股盈餘年增 31%，比 2023 年成長超過 60%，增幅驚人。我為我們的團隊感到自豪，他們表現出色，並且注重執行。

In closing, our performance in the third quarter and year-to-date in 2025 has been outstanding. Adjusted EPS for the first three quarters of the year is up 31% versus prior year. Aftermarket growth is strong, margin expansion is accelerating and cash flow performance continues to outpace historical levels. The 80/20 program is early in its life cycle, but we are seeing tangible benefits with performance in the quarter in line with our long-term margin targets. And while we execute using the business system we have been able to allocate capital to opportunistic share repurchases to drive shareholder value.

總之，我們在2025年第三季和年初至今的表現都非常出色。今年前三個季度的調整後每股收益比去年同期成長了 31%。售後市場成長強勁，利潤率擴張加速，現金流表現持續超過歷史水準。80/20 計劃尚處於早期階段，但我們已經看到了切實的好處，本季的業績符合我們的長期利潤目標。在我們利用業務系統執行的同時，我們能夠將資金分配給機會性股票回購，進而提升股東價值。

These efforts, combined with healthy end markets and significant expansion in power, including nuclear, creates a compelling opportunity for profitable growth in 2026 and beyond. We look forward to providing a more robust view of 2026 including our financial outlook for the year on our fourth quarter earnings call.

這些努力，加上健康的終端市場和電力（包括核能）的顯著擴張，為 2026 年及以後的獲利成長創造了令人矚目的機會。我們期待在第四季財報電話會議上，對 2026 年做出更全面的展望，包括我們對這一年的財務展望。

And with that, I'll turn the call back over to the operator for Q&A.

接下來，我將把電話轉回給接線生進行問答環節。

(Operator Instructions)

（操作說明）

Mike Halloran, Baird.

麥克哈洛蘭，貝爾德。

Thank you. Good morning, everyone. And going do you put in context what you're seeing from an environment perspective, more of a pipeline funnel thought process. I know you mentioned some of the larger projects may be pushing to the side a little bit, a lower percentage of the portfolio today. But if you think about what the underlying trajectory looks like, both from an order perspective, from a funnel perspective, how that's converting? Are we talking about a framework on a forward basis '26 specifically or however you want to think about it. That's pretty consistent with what your long-term thought process here is? Or do you think there's something in the environment that pushes you one way or another relative to that framework?

謝謝。各位早安。然後，你要從環境的角度，多從管道漏斗的角度來思考你所看到的內容，並將其置於上下文中。我知道您提到過一些較大的項目可能會被稍微擱置，目前它們在投資組合中所佔的比例較低。但如果你從訂單角度、從銷售漏斗角度來思考其潛在軌跡，以及轉換率如何，就會發現這一點：我們是在討論一個以2026年為基礎的未來框架，還是你想怎麼理解都行？這和你一直以來的思考思路大致一致吧？或者你認為環境中的某些因素會推動你朝著與該框架相關的某個方向發展嗎？

Sure, Mike. Let me start by just breaking this into aftermarket and then kind of our OE business because I think it's really important. On the aftermarket side, we delivered another very strong quarter at $650 million. That's two out of the last three now. And we've got a street going over $600 million a quarter now for many quarters.

當然可以，麥克。首先，我想把這個業務分成售後市場和我們的原廠配套業務兩部分，因為我認為這非常重要。在售後市場方面，我們又取得了非常強勁的季度業績，銷售額達到 6.5 億美元。最近三場比賽中，已經贏了兩場了。而且，這條街的季度銷售額已經連續好幾季超過 6 億美元了。

And so we feel really confident that, that continues, right? And that work is on the back of refinery utilization, chemical plant utilization, desalination plants operating, just general health of the macro environment allows that business to continue to grow. And then additionally, we continue to drive our capture rate up. We're doing that through a lot of different levers in terms of making sure that we can be responsive to our customers.

因此我們非常有信心，這種情況會繼續下去，對吧？而這項工作的開展，離不開煉油廠的利用率、化工廠的利用率、海水淡化廠的運營，宏觀環境的整體健康狀況，才能使該產業持續發展。此外，我們還在不斷提高捕獲率。我們正在透過多種不同的手段來確保能夠及時回應客戶的需求。

We're in the proximity with them with our quick response centers, but then we're also doing really good things to make sure that we're providing the support and service then ultimately, we think we can continue to grow that by moving more from just parts and service and repair to driving full-scale solutions. And so I would say long-term growth there is tremendous, and we feel really good about our ability to continue to capitalize on aftermarket. And then if you go to OE and projects, and we put this in the slides, like that's this becoming less important for us than ever before. And so historically, this was roughly 20% of our business, so large kind of OE projects. Now we're talking roughly high single digits, less than 10% of our business.

我們透過快速回應中心與他們保持密切聯繫，同時我們也在努力確保提供支援和服務，最終，我們認為可以透過從單純的零件、服務和維修轉向提供全面的解決方案來繼續發展壯大。因此，我認為該領域的長期成長潛力巨大，我們對繼續從售後市場獲利的能力感到非常樂觀。然後，如果你去了解 OE 和項目，我們會把這個放在幻燈片裡，就好像這對我們來說變得比以往任何時候都不那麼重要了。因此，從歷史上看，這大約占我們業務的 20%，也就是大型的 OE 專案。現在我們說的大概是接近百分之十的比例，不到我們業務的 10%。

And we're doing that deliberately. That's part of our diversification strategy. And it's really something that we're looking to do to drive cycle resiliency as we go on the forward look. With that said, we're still very much in the project game. We feel that projects -- the project environment is reasonably constructive. We talked in Q2 about project slippage. Some of those came to fruition in Q3 and I would just say the Q3 environment was slightly more constructive than what we saw in Q2. And then on the forward look, if we break this down to end markets, we're obviously very excited about power and nuclear.

我們是故意這麼做的。這是我們多元化策略的一部分。展望未來，這正是我們努力提升週期韌性的目標之一。話雖如此，我們仍然全心投入專案。我們認為專案－專案環境相當具有建設性。我們在第二季討論過專案延期問題。其中一些目標在第三季得以實現，我認為第三季的環境比第二季更具建設性。展望未來，如果我們把目光聚焦到終端市場，我們顯然對電力和核能領域感到非常興奮。

We think that is a significant growth rate going forward at a tune of double-digit growth. We put out some markers there that I can talk about maybe in a follow-up question. But we also think the rest of the markets are generally in a good space. And then the other thing I would point to is in 2025, the Middle East Energy projects are at a very low level. And for us, it's roughly a five-year low.

我們認為，未來這一成長率將非常顯著，並有望實現兩位數的成長。我們在那裡設置了一些標記，我或許可以在後續問題中談到這些標記。但我們認為其他市場整體上也處於良好狀態。此外，我想指出的是，到 2025 年，中東能源專案將處於非常低的水平。對我們來說，這大約是五年來的最低水準。

We believe that, that doesn't go down from here. There's a lot of opportunities in our funnel there. They just got to work through some of the larger projects and some of the diverse projects as we turn the corner to 2026. And so all of that said, I think we're in a good position to grow our business. The geopolitical and macro environment needs to settle down a little bit to give operators confidence in their ability to cost projects and ultimately move things over the financial investment decision line. But overall, we feel constructive about 2026 and beyond.

我們認為，情況不會再惡化了。我們的銷售漏斗中有很多機會。在邁向 2026 年之際，他們只需要完成一些較大的專案和一些不同的專案。綜上所述，我認為我們目前處於發展業務的良好位置。地緣政治和宏觀環境需要稍微穩定下來，才能讓營運商對專案成本會計能力有信心，並最終推動專案越過財務投資決策線。但總體而言，我們對 2026 年及以後持樂觀態度。

And then follow-up question is just maybe a thought on pricing. How pricing looks in the marketplace, receptivity, competitive dynamics and how we should think about price cost on a forward basis? Appreciate it.

那麼，接下來的問題或許是關於定價方面的一些想法。市場定價情況如何？市場接受度如何？競爭動態如何？我們該如何從遠期角度考慮價格成本？非常感謝。

Sure. Yeah. You can't talk pricing without tariffs sadly. And so we've really hammered price in the US on the back of all of the tariff changes. I think we've done three or four price increases this year. What we're finding is in the run rate business, the aftermarket business, our MRO replacement business, that price been incredibly sticky. We're seeing the peer group and the other industrial is doing very similar things that we're doing there. And we feel very good that we're at a price cost neutral basis, if not slightly positive on the forward look. And so I'd say that's working, and that obviously is more of a US phenomenon than anything else.

當然。是的。遺憾的是，不談關稅就談不了定價。因此，由於關稅政策的變化，我們確實大幅降低了美國的價格。我想我們今年已經漲價三、四次了。我們發現，在日常營運業務、售後市場業務以及我們的MRO更換業務中，價格一直非常穩定。我們看到同行和其他工業企業也在做和我們正在做的事情非常相似的事情。我們感覺目前價格處於成本中性水平，甚至對未來前景略有樂觀。所以我覺得這種做法是有效的，而且這顯然更多的是一種美國現象，而不是其他任何現象。

And then as we think about the project pricing, this has always been the case since I've been here, the bigger the project, the more exciting or flagship the name of the customer or what it's doing, it seems to just attract more attention. there's always an element of competitiveness. And so that's kind of the nature of the game there, the EPCs make sure there's several bidders. But I would say we're not seeing anything fundamentally different than what we've seen in the last couple of years or anything in my tenure here. And so we believe that the environment is constructive for us to be selective with our bidding, especially with the large projects.

然後，當我們考慮專案定價時，自從我來這裡以來，情況一直如此：專案越大，客戶的名字或業務越引人注目或具有旗艦意義，似乎就越能吸引人們的注意。競爭因素始終存在。所以這就是遊戲的本質，EPC 確保有多個競標者。但我認為，我們目前看到的情況與過去幾年或我任職期間的情況並沒有什麼根本性的不同。因此，我們認為，在投標過程中，尤其是在大型專案投標方面，採取選擇性投標的方式是有益的。

And when we say selective, it's making sure that we have the right to win. We're working with customers that we know we can execute on we know there's a large aftermarket content where they support that and then ultimately bringing margins in that will drive value creation for Flowserve. And so I think we're in a good place there. We're more focused on pricing than ever before, and we feel we can be on the positive side of price cost as we go forward.

我們所說的“選擇性”，是指確保我們有獲勝的權利。我們正在與我們知道能夠執行的客戶合作，我們知道他們擁有龐大的售後市場內容支持，最終帶來利潤，這將為福斯公司創造價值。所以我覺得我們在這方面處境不錯。我們比以往任何時候都更加重視定價，我們相信，隨著我們不斷前進，價格成本方面我們可以保持優勢。

(Operator Instructions)

（操作說明）

Andy Kaplowitz, Citi Group.

安迪‧卡普洛維茨，花旗集團。

Good morning, everyone. Scott, can you give us a little more color into the margin inflection you saw in FCD this quarter. How much of the improvement was Mogas improving versus core FCD? And you mentioned that both of your segments are in line to at least make the range of 16% to 18% segment adjusted operating margin that you set for FY27. But as you know, FPD is already higher than that. So could that range end up being conservative?

各位早安。Scott，你能否更詳細地解釋一下你在本季 FCD 中觀察到的利潤率轉折點？與核心FCD相比，Mogas的改進幅度有多大？您提到，您的兩個業務部門都有望至少達到您為 2027 財年設定的 16% 至 18% 的部門調整後營業利潤率目標。但如你所知，FPD 已經高於這個值了。那麼這個範圍最終會不會是保守的呢？

Sure. Maybe I'll hit the Mogas piece because I was there last week, and then I'll let Amy talk about just the margin progression in general and FCD, and we can touch on the pump division as well. Look, Mogas is going incredibly well. I was able to -- I was in their site last week and with Alice and we had a fantastic visit. And I'd say some of the takeaways there is the integration has gone incredibly well.

當然。也許我會談談 Mogas 部分，因為我上週去過那裡，然後我會讓 Amy 談談利潤率的整體進展和 FCD，我們也可以談談泵部門。你看，Mogas 的發展非常順利。我去了——我上周和愛麗絲一起去了他們的網站，我們度過了一段美好的時光。我認為其中一些重要結論是，整合工作進展得非常順利。

The Flowserve business system is fully embedded. And when I mean business system, the operational excellence is in place, shop for daily management, problem-solving, how we do inventory -- all of that is now embedded and operating at a level that I would say is equivalent to the rest of the Flowserve Peer Group.

Flowserve業務系統已完全嵌入。而我所說的業務系統，指的是卓越的運營，包括日常管理、問題解決、庫存管理等等——所有這些都已融入到我們的日常運營中，並且我認為其水平與福斯同行集團的其他公司相當。

We've really pushed the portfolio excellence side, and so they're on the 80/20 program now, and we look at that as a severe service kind of ball valve offering, and we're now making -- we've been making rationalization-type decisions with our other offering. And now we're moving into commercial excellence. And so the commercial excellence is about driving growth and making sure that we get clean orders into the facility itself. But I couldn't have been more pleased with the progress that they've made. And so in the quarter, Mogas margins were accretive to FCD.

我們確實大力推進了產品組合的卓越性，所以他們現在正在執行 80/20 計劃，我們將其視為一種嚴苛工況下的球閥產品，而我們現在正在對我們的其他產品做出合理化決策。現在，我們正邁向商業卓越。因此，商業卓越在於推動成長，並確保我們收到進入工廠的乾淨訂單。但我對他們所取得的進展感到無比滿意。因此，本季 Mogas 的利潤率提升了 FCD 的利潤率。

As Amy said in the prepared remarks, the modules that had given us some concern and maybe a little bit of -- we're lower to deliver than what we had expected when we signed up the deal. Those have now shipped in the third quarter, and then there's minimal revenue from the modules in Q4 and Q1. And that's associated with the installation and commissioning work.

正如艾米在準備好的演講稿中所說，那些讓我們有些擔憂的模組，以及我們交付的成果可能比我們簽訂合約時預期的要少一些。這些產品已於第三季發貨，但第四季度和第一季這些模組的收入微乎其微。這與安裝和調試工作有關。

And so now the focus is on bookings and driving growth, and we're excited about what that product offering could be. And as a reminder to everybody that the end markets here are mining and refining. And what we've seen in the mining space is that funnel has increased. We had a pretty decent booking number in the quarter, but the outlook continues to improve. And so structurally, we think the end markets will support Mogas growth and leaning in with commercial excellence and the 80/20 principles, we believe that we'll get to that $200 million that we keep talking about.

因此，現在的重點是預訂和推動成長，我們對產品可能帶來的成果感到興奮。提醒大家，這裡的最終市場是採礦和煉油。我們在挖礦領域看到的是，這種漏斗效應已經增強。本季我們的預訂量相當不錯，而且前景持續改善。因此，從結構上看，我們認為終端市場將支持汽車汽油的成長，並且憑藉卓越的商業表現和 80/20 原則，我們相信我們將實現我們一直在談論的 2 億美元目標。

And then lastly, I would just say this is a great example where we're applying the business system as part of an integration. And what we saw and what we see now is in a relatively short period of time. We can take a family-owned business that maybe wasn't highly focused on business process and turn that into something that we're extremely proud of, that we know can drive enhanced margins to the FCD portfolio, but also drive enhanced growth with our customers and outlook here.

最後，我想說，這是一個很好的例子，展示了我們如何將業務系統作為整合的一部分進行應用。我們所看到的以及我們現在所看到的，都是在相對較短的時間內發生的。我們可以將一家可能不太注重業務流程的家族企業，轉變為我們引以為傲的企業，我們知道這不僅可以提高 FCD 產品組合的利潤率，還可以提高我們客戶的成長和前景。

Yeah. And Andy, I'd just add with respect to FCD, we improved 410 basis points sequentially. You don't do that without all boats rising within the FCD platform. And we've been talking about some of the levers that we had available to us, whether or not that's operational excellence and some footprint decisions that had been executed in late 2024 going into 2025 as well as other tenets of the operational excellence program. 80/20 is taking hold in the platform. We're seeing that start to contribute as well. And then obviously, the story behind Mogas as well.

是的。安迪，我還要補充一點，關於 FCD，我們環比提高了 410 個基點。如果 FCD 平台內的所有船隻都沒有上漲，你就無法做到這一點。我們一直在討論一些我們可以利用的手段，包括卓越營運、2024年底到2025年期間執行的一些佈局決策，以及卓越營運計畫的其他原則。 80/20法則正在平台中應用。我們也看到這種情況開始有所改善。當然，還有 Mogas 背後的故事。

And so we continue to think that there's runway with respect to FCD margins and then once again, with respect to FPD, obviously, a great story there as well in terms of both platforms being within the range of their long-term targets, actually FPD being on the outside in a good way of that range. And so I think we'll go through our annual -- our annual planning process this year knowing the additional levers that we have to pull from a margin expansion standpoint, both in 2026 and beyond, and we'll look to reset those long-term targets in 2026.

因此，我們仍然認為 FCD 利潤率還有成長空間，而就 FPD 而言，顯然也是一個很好的例子，因為這兩個平台都在其長期目標範圍內，實際上 FPD 已經很好地超出了該範圍。因此，我認為我們今年在進行年度規劃時，會了解我們在 2026 年及以後在利潤率擴張方面可以採取的其他措施，並考慮在 2026 年重新設定這些長期目標。

And Scott, you talked about that $10 billion nuclear flow control opportunity over the next decade. What do you think your share could be of that opportunity? And then nuclear bookings per quarter, we know are lumpy, but they seem to be rising overall, think they've averaged higher than your specific nuclear sales exposure that you mentioned, maybe close to high single digits of bookings, a single-digit percentage of your bookings each quarter over the last year. So could we continue to average that amount or even more over the next couple of years?

史考特，你之前提到未來十年價值 100 億美元的核子流體控制機會。你認為你能從這個機會中分得多少份額？我們知道每個季度的核電訂單量波動較大，但總體而言似乎在上升，我認為它們的平均水平高於您提到的特定核電銷售敞口，可能接近個位數的訂單量，也就是過去一年中每個季度訂單量的個位數百分比。那麼，在接下來的幾年裡，我們能否繼續保持這個平均水平，甚至更高呢？

Sure. So let's look back first, and then we'll talk about the forward look. The nuclear bookings are rising. Power in general, has been up double digits for us. And we've had three quarters now over $100 million in the last -- of the last four quarters for our nuclear bookings.

當然。那麼，我們先回顧過去，然後再展望未來。核能預訂量正在上升。總體而言，我們的電力供應一直保持兩位數的成長。在過去的四個季度中，我們有三個季度的核電訂單金額超過 1 億美元。

And so I would just say with all the noise in the nuclear space in a positive way, the noise in a positive way at all the recent announcements we only see nuclear starting to move forward in a -- with a trajectory and an inflection higher than what we have today. And so we're incredibly excited about the nuclear opportunity. That's why we put three slides in our presentation. But maybe to frame up the $10 billion a little bit, we do have substantial share within the nuclear space. And so we're leveraging our domain expertise we're leveraging our installed base.

因此，我想說，從積極的角度來看，核能領域的所有喧囂，從最近的所有公告來看，核能正開始向前發展——其軌跡和拐點比我們今天所看到的要高。因此，我們對核能領域的機會感到無比興奮。這就是為什麼我們的簡報只用了三張投影片的原因。但或許為了更能理解這 100 億美元的意義，我們在核能領域確實佔有相當大的份額。因此，我們正在利用我們的領域專業知識和現有用戶基礎。

We're leveraging the partnerships and the quality certifications that we have around the world that put us in the forefront and allow us the opportunity to do this work as we go forward. And so we're -- and I would just say the barriers to entry here are really, really high, right? The quality plans and what our customers are looking for are pumps and valves and actuators that will work for 30-year planning life, and they take it very, very seriously and getting an in stamp in the US is incredibly hard. And so we just feel like we're in a great position to carry on with this work with companies that we've worked for, for decades.

我們正在利用我們在世界各地建立的合作夥伴關係和品質認證，這使我們處於領先地位，並使我們能夠在未來開展這項工作。所以，我想說，這裡的進入門檻真的非常非常高，對吧？品質計畫和客戶的需求是泵浦、閥門和執行器能夠滿足 30 年的規劃壽命，他們對此非常非常重視，而在美國獲得認證非常困難。因此，我們感覺自己處於非常有利的位置，可以繼續與我們合作了幾十年的公司進行這項工作。

And so we're excited about the price. We did put some kind of market share numbers in there and to orient folks, there's a roughly 400-plus nuclear reactors out there in the world today. We have equipment in 75% of those. And we called out some geographies because it is important. In North America and Europe, we do incredibly well.

所以我們對這個價格感到很興奮。我們確實在其中加入了一些市佔率數據，為了讓大家有個概念，目前世界上大約有 400 多座核反應爐。我們在其中75%的地方都配備了設備。我們特別提到了一些地區，因為這很重要。我們在北美和歐洲的業績非常出色。

We do really well in Korea. And then we believe we can do well in India as they're going forward. And so those are the areas that we'll target. Obviously, China is a massive market and putting -- growing more reactors than any other region at this point. With China, we have installed base in the early reactors and the early facilities.

我們在韓國發展得非常好。我們相信，隨著印度的發展，我們也能在那裡取得成功。所以，這些就是我們將要重點關注的領域。顯然，中國是一個巨大的市場，目前建造的反應爐數量比其他地區都多。我們在中國已經建立了早期反應器和早期設施的基地。

But over time, they've shifted to a more nationalistic approach on all of their equipment. And so that's why we -- that's why we've deliberately kind of excluded that as we talk about our numbers. And then as you build to the kind of the $10 billion prize, we put some numbers out there around 40 reactors in the next 10 years that could have up to $100 million of content for Flowserve.

但隨著時間的推移，他們在所有裝備上都轉向了更民族主義的做法。所以這就是為什麼我們在談論我們的數據時，特意將其排除在外的原因。然後，隨著獎金達到 100 億美元，我們預測未來 10 年內將有大約 40 個反應堆，其中 Flowserve 的獎金可能高達 1 億美元。

We talk about SMRs progressing and moving forward, and we believe we're well positioned with what we think are some of the winners in the SMR technology. And so there's a large contribution in the $10 billion number on the back of SMR. And then our aftermarket today is roughly $100 million of bookings a year. That number only grows with our increased installed base. And so we feel very comfortable that continues, if not grows pretty aggressively over the 10-year period.

我們談論 SMR 的發展和進步，我們相信，憑藉我們認為 SMR 技術領域的一些成功案例，我們已經佔據了有利地位。因此，SMR 技術為 100 億美元的數字做出了巨大貢獻。如今，我們的售後市場每年訂單額約為 1 億美元。隨著用戶群的擴大，這個數字只會持續成長。因此我們非常有信心，這種情況將在未來 10 年內持續下去，甚至可能大幅成長。

And then finally, on the last category there would be extensions and re-rates and then kind of where we're bringing assets back to life. And this week, both Google and Brookfield announced two projects of bringing existing sites back online over time. And I would just say those are incredible opportunities for Flowserve. And so one of those examples, we have valves installed and we will absolutely be a part of that project. And then the other one, the pumps and valves that we did manufacture got pushed to a different site, or actually two different sites but we're confident that we'll pick back up that work. And so again, we feel like we're in an advantaged position. We've got the expertise, and we're leaning in to make sure that we'll position our offering to capture the full benefit of this nuclear growth.

最後，在最後一個類別中，會有延期和重新評級，也就是我們讓資產重獲新生。本週，Google和布魯克菲爾德都宣布了兩個項目，旨在逐步恢復現有網站的線上運作。我想說，這些對福斯來說是絕佳的機會。例如，我們已經安裝了閥門，我們一定會參與這個專案。還有，我們之前生產的泵浦和閥門的生產被轉移到了另一個地點，或者實際上是兩個不同的地點，但我們有信心重新接手這項工作。所以，我們再次覺得自己處於優勢地位。我們擁有專業技術，並且正在全力以赴，確保我們的產品和服務能夠充分利用核能成長帶來的好處。

Deane Dray, RBC Capital Markets.

迪恩德雷，加拿大皇家銀行資本市場。

I'll start with congratulations on the announcement regarding the legacy asbestos it's such a smart move here. We've seen companies like Honeywell do this successfully. And if you just take us through, like, am I correct that you paid sub paying less than $200 million to resolve this? And could you just clarify what the cash flow implications are?

首先，我要祝賀你們宣布了有關遺留石棉問題的方案，這真是一個明智之舉。我們已經看到像霍尼韋爾這樣的公司成功地做到了這一點。如果你給我們詳細解釋一下，我理解的沒錯吧，你們支付給分包商不到 2 億美元來解決這個問題？能否請您具體說明現金流方面的影響？

Sure. So one, thanks, Deane. This is something that we were excited to get done. It just made sense given our cash position and obviously puts us in a great position going forward to have a more simplified approach to capital allocation. And so think that the benefits are -- will range from a cash flow perspective between $15 million and $20 million a year. Going forward, we do have about $200 million, $199 million of cash that we'll allocate to the sale in the fourth quarter of the year. But for us, this is about really simplification of the capital structure, doing in 80/20 on the administrative work that we do in the Flowserve corporate office and taking out some volatility for our investors in the process.

當然。好的，謝謝，迪恩。這是我們一直期待完成的事。鑑於我們目前的現金狀況，這樣做是合理的，而且顯然也讓我們在未來能夠以更簡化的方式進行資本配置，從而處於非常有利的地位。因此，我認為收益——從現金流的角度來看——每年將在 1500 萬美元到 2000 萬美元之間。展望未來，我們手頭上有大約 2 億美元到 1.99 億美元的現金，我們將在今年第四季將其分配給此次出售。但對我們來說，這確實關乎簡化資本結構，將我們在福斯總部所做的行政工作按 80/20 的比例進行，並在此過程中為我們的投資者減少一些波動。

Great to hear. And Amy, just sticking with the free cash flow. It's outstanding this quarter and you were clearly -- you laid out how you were excluding the windfall from the deal termination. Is there anything else within the free cash flow, the working capital, any kind of improvements that you would cite there? And what does this mean for free cash flow for the year? Because it looks -- this puts you ahead of plan?

聽到這個消息真是太好了。而艾米則堅持只關注自由現金流。本季業績非常出色，而且你也清楚地說明了你是如何將這筆意外之財排除在交易終止之外的。在自由現金流、營運資本方面，還有其他需要改進的地方嗎？那麼，這對本年度的自由現金流意味著什麼？因為看起來──這能讓你提前完成計畫？

Yeah. So I think that as we look at free cash flow now, targeting something at the 100% level or a little bit better. I think for us, really free cash flow starts with margin expansion. That's the quickest way to improve the free cash flow any company, but working capital has been a huge focus. And we've made some improvements there. 80/20 is actually helping us with the process, even decisions that we made during the quarter around the small divestiture. Pay dividends in terms of simplifying the inventory that we need to that we need to keep on hand.

是的。所以我認為，當我們現在審視自由現金流時，目標是達到 100% 的水平或略高於此。我認為對我們來說，真正的自由現金流始於利潤率的提升。這是改善任何公司自由現金流的最快方法，但營運資本一直是關注的焦點。我們在這方面已經取得了一些改進。 80/20 法則實際上對我們有所幫助，甚至包括我們本季圍繞小規模資產剝離所做的決定。簡化我們需要保留的庫存，就能帶來豐厚的報酬。

But I'll just point out with working capital. And if I didn't remind you, Scott would remind me to remind you that our work is not done. And so we continue to have a substantial amount of improvement that can be made in this area, and we are focused on it. We are focused on it. At the leadership team level, we're focused on it at the platform level and at the BU level. And so we're going to continue to do everything that we need to do to make free cash flow a real strength for Flowserve and its investors.

但我只想指出一點，關於營運資金。即使我不提醒你，史考特也會提醒我提醒你，我們的工作還沒完成。因此，我們在這一領域仍有很大的進步空間，我們也正致力於此。我們正專注於此。在領導團隊層面，我們將重點放在平台層面和業務單位層面。因此，我們將繼續盡一切努力，使自由現金流成為福斯及其投資者的真正優勢。

And Deane, just to reiterate, we talked about this last month, but 80/20 helps on working capital dramatically plus the operational excellence program. And so we're not done. We've made progress. We're not celebrating our working capital numbers right now. But we feel like we're moving in the right direction in a very positive manner.

迪恩，我再重申一下，我們上個月討論過這個問題，80/20 法則對營運資金有很大的幫助，再加上卓越營運計畫。所以，我們還沒完。我們已取得進展。我們現在並不為營運資金數據感到高興。但我們感覺我們正朝著正確的方向，以非常積極的方式前進。

Damian Karas, UBS.

Damian Karas，瑞銀集團。

Good morning, everyone. Scott, I appreciate your comments on the certifications required to compete in nuclear pumps and valves. But I just wanted to ask how you're thinking about the profitability of these awards. When I just think about how your industry has sometimes behaved in the past, it's gotten pretty competitive when you have the mega growth cycles, just like thinking about past oil and gas booms where the OE margins were slim to none. So could you maybe just talk a little bit about where you are projecting these nuclear awards you've been winning to line up kind of relative to the rest of your project base? And just as a capacity build-out for nuclear continues, how you're thinking about how to price that in your bidding process?

各位早安。Scott，我很感謝你對核泵和閥門行業競爭所需認證的評論。但我只是想問您如何看待這些獎項的獲利前景。當我回想起你們產業過去的表現時，就會發現，在經濟高速成長週期中，競爭會變得非常激烈，就像過去的石油和天然氣繁榮時期一樣，原始設備製造商的利潤率非常低甚至為零。那麼，您能否稍微談談您預計您贏得的這些核能項目在您其他項目基礎中的排名情況？隨著核能產能的不斷提升，您在招標過程中是如何考慮核能定價的呢？

Yeah. I think it might be helpful to just kind of walk through the life of a new build nuclear reactor. And I would just say, these are very different than even kind of an oil and gas project or a water project or anything like that. the amount of years on the front end to get the process dialed in fully and to ensure that the quality requirements are at a place that they're comfortable with is multiyears. And so when we win work on a new reactor somewhere.

是的。我認為，大致了解新建核反應器的生命週期可能會有所幫助。我想說的是，這些項目與石油天然氣項目、水利項目或其他類似項目都非常不同。前期需要數年時間才能將流程完全調整到位，並確保品質要求達到他們滿意的水平。所以，當我們贏得在某個地方建造新反應爐的工作時。

The time horizon for us is somewhere in that kind of four to five year mark to where we before we can start shipping equipment. And those first three years are all about engineering and quality. And so I just feel like as we go forward and we think about the folks that are designing these type of reactors, that's a Westinghouse, it's your EDF, it's your Korean nuclear authorities like for them to make a change in terms of what they've been doing historically and introduce a new supplier is really -- it's really, really difficult to do. And so the barriers to entry here are incredibly high. With that said, obviously, we have to perform and we have to perform with delivery.

我們預計需要四到五年才能開始出貨。前三年主要專注於工程和品質。所以我覺得，當我們向前看，當我們想到那些設計這類反應器的人，比如西屋公司、法國電力公司、韓國核能機構，要讓他們改變以往的做法，引入新的供應商，這真的非常非常困難。因此，這裡的准入門檻非常高。話雖如此，很顯然，我們必須拿出成績，而且必須拿出實實在在的成績。

We have to perform within increasing our capacity to support the nuclear growth and we've got to perform with our ability to be competitive to allow their financial decision to get over the line. But again, we've worked with these players for decades. We're very confident in our ability to retain that type of work. It's not grow that work. And so we're leaning in on our opportunities. We're making sure that we can support the industry, and we're making sure that we can support our customers in the regions where they're operating.

我們必須提升自身能力以支持核能發展，我們必須提升自身競爭力，才能使他們的財務決策最終獲得通過。但話說回來，我們和這些球員已經合作了幾十年了。我們非常有信心能夠保留這類工作。這不是成長的問題。所以我們要抓住機會。我們正在確保能夠為行業提供支持，並且我們正在確保能夠為客戶在其營運所在地區提供支援。

Yeah. And Damian, I'd just add one thing from a color perspective, I was with sales leadership team on the pump side as well as our BU leaders last week. And there is focus on two things in this space. One, making sure that we have the resources in place to support these opportunities and that includes adding nuclear expertise at the corporate level within Flowserve but it also means that we're making sure that we remain competitive, and that we're doing things to not be complacent about our cost structure where we can to really continue to protect this business the margins and keep those barriers to entry as strong as we can.

是的。達米安，我還要從顏色角度補充一點，上週我和泵浦部門的銷售領導團隊以及我們的業務部門領導在一起。這個領域主要關注兩件事。第一，確保我們擁有足夠的資源來支持這些機遇，這包括在福斯公司內部增加核能方面的專業知識，但這同時也意味著我們要確保保持競爭力，並且要採取措施，在成本結構方面不自滿，盡可能地繼續保護這項業務的利潤率，並儘可能地保持這些進入障礙。

That's all really helpful. And I wanted to ask a follow-up question on the asbestos transaction. Are you anticipating that is going to have any impact on your cost of financing? And curious what you plan to do with this new found increased balance sheet flexibility.

這些都很有幫助。我想就石棉交易再問一個後續問題。您預計這會對您的融資成本產生任何影響嗎？我很想知道您打算如何利用這筆新獲得的更大資產負債表彈性。

Sure. So probably from a financing perspective, I would say it's credit enhancing. But given the size probably not too terribly impactful. I think overall, we find ourselves in a position at Flowserve where we have more opportunities for capital allocation than ever before. We've made some of those decisions in the fourth quarter already with some opportunistic share repurchases in October as well as earmarking a little under $200 million towards this transaction.

當然。所以從融資的角度來看，我認為這可以提高信用評分。但考慮到其規模，可能不會造成太大的影響。我認為總體而言，Flowserve 目前擁有比以往任何時候都多的資本配置機會。我們在第四季度已經做出了一些決定，包括在 10 月進行了一些機會性股票回購，以及為這項交易撥出了近 2 億美元。

I think what you've seen us do over the last several quarters is pretty indicative of the disciplined approach that we'll take. We're focused on sort of growth opportunities and earnings enhancing opportunities around capital allocation. And so it's going to be environmental specific. It made a lot of sense for us to buy back shares over the last few months. We'll continue to keep that at the ready.

我認為你們在過去幾個季度看到的我們所做的事情，這很好地表明了我們將採取的嚴謹態度。我們專注於資本配置方面的成長機會和提高獲利能力的機會。因此，這將取決於具體的環境。過去幾個月裡，我們回購股票是非常明智的選擇。我們會繼續保持這種準備狀態。

We've got about $200 million of authorization still available to us under our share repurchase plan. But over time, we're also interested in growing the business. And as Scott pointed out, the Mogas -- the kind of the Mogas turning point in the third quarter, their adoption of the Flowserve business system, us now turning our attention to really growing that business. Over time gives us more and more confidence that M&A, utilizing our strict criteria around value creation can be a powerful tool for us over time with respect to capital allocation.

根據我們的股票回購計劃，我們還有大約 2 億美元的授權額度可供使用。但隨著時間的推移，我們也希望能發展壯大這項業務。正如 Scott 指出的那樣，Mogas 業務在第三季度迎來了轉折點，他們採用了 Flowserve 業務系統，我們現在將注意力轉向真正發展這項業務。隨著時間的推移，我們越來越有信心，併購，並運用我們嚴格的價值創造標準，可以成為我們進行資本配置的有力工具。

Brett Linzey, Mizuho Securities.

Brett Linzey，瑞穗證券。

Congrats. then come back to the energy business and apologies if I missed it, I jumped on late, but the bookings down 19%. I was just hoping you could drill down a bit on some of the moving pieces there. And does any of the quoting in that segmentation and form this could be snapping back in the coming quarters here?

恭喜。然後回到能源產業去吧。如果我錯過了什麼，請見諒，我加入得比較晚，但預訂量下降了 19%。我只是希望你能更深入地探討其中的一些環節。那麼，這種細分市場和形式中的報價，是否有可能在未來幾季出現反彈？

Sure. Yeah. When we think about the compare versus last year, it was a difficult comp. We had three large projects in the Middle East that were all energy a year ago, and then those didn't repeat this year. And so I think that's the easiest way to describe that Energy on the OE side for us is primarily Middle East. It's a lot of that kind of midstream processing storage and then also on the downstream side. And we had a lot of activity last year. And quite frankly, we're in a little bit of a lull right now with the Middle East energy-type project bookings.

當然。是的。如果將今年的數據與去年進行比較，就會發現這是一個很難比較的情況。一年前我們在中東有三個大型能源項目，但今年這些項目都沒有再出現。所以我覺得，對我們來說，OE方面的能源主要來自中東，這是最簡單的描述方式。很多都是這種中游加工存儲，下游方面也是如此。去年我們開展了很多活動。坦白說，目前我們在中東能源類專案預訂方面處於一段低迷期。

With that said, I feel confident that there is work to do in the Middle East. There are a lot of plans to move forward with some of the investments that have already been made public but have been delayed in terms of that project timing. And so we're incredibly well positioned to capitalize on that growth. And I would say with just a little bit of stability in the system, maybe oil pricing coming back a little bit to provide them a little bit more cash flow to fund new projects, we could see a positive trajectory here in 2026 and beyond.

儘管如此，我仍然相信在中東地區有很多工作要做。有很多計劃正在推進，其中一些投資項目已經公開，但由於專案時間表的原因而被推遲了。因此，我們擁有得天獨厚的優勢，能夠充分利用這成長機會。我認為，只要係統稍微穩定一些，例如石油價格稍微回升一些，為他們提供更多現金流來資助新項目，我們就能在 2026 年及以後看到積極的發展軌跡。

Yeah, that's great. And I appreciate the detail on nuclear. I guess as thinking about the content and some of the ramp over the first three years, is there anything to be aware of in terms of development costs and how that might play out as you're ramping for some of these opportunities? Or do you think you can simply just repurpose some of the R&D to these areas?

是的，太棒了。我很欣賞你對核武的詳細論述。我想，在考慮內容以及前三年的發展規劃時，在開發成本上有什麼需要注意的地方嗎？以及在抓住這些機會的過程中，開發成本可能會如何改變？或者您認為可以直接將部分研發成果應用到這些領域嗎？

Yeah. For us, it's a relatively low development cost. We are working with some of the SMRs on maybe some modifications to our existing products to support a slightly different reactor. But overall, this is not big dollars for us in terms of needing to redevelop our products. And so a lot of this is just making sure that we're meeting the current requirements and that we can adapt to the -- what's happening in the space. And so I wouldn't expect to see from massive incremental expense to make sure that we're positioned to win this work.

是的。對我們來說，開發成本相對較低。我們正在與一些小型模組化反應器 (SMR) 製造商合作，探討對我們現有產品進行一些修改，以支援略有不同的反應器。但總的來說，就我們需要重新開發產品而言，這並不是一筆很大的錢。因此，許多工作都是為了確保我們滿足當前的需求，並且能夠適應該領域正在發生的事情。因此，我不認為需要投入巨額資金來確保我們能夠贏得這項工作。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

One I guess I'll dig a little bit more on the nuclear side of it. billion of flow control opportunity over 10 years, maybe looking for a little bit more color on what your expected market share is I know Andy asked about it, but I'll see if we can get a little bit more color on it. I mean when you look at large utility scale reactors that have been out there for decades now, I'm sure you understand what your market share is on that, maybe a little less so on the SMRs given they're really still under development. I'm just hoping you could give us any color on what your expected win rate on that kind of $10 billion worth of content over that time period was, because 5% market share is very different to 50% market share of that opportunity.

我想我會更深入地了解核能方面的情況。未來十年，核能領域蘊藏著數十億美元的流量控制機會。我想了解你們預期的市場份額，我知道安迪問過這個問題，但我會看看我們能否獲得更多資訊。我的意思是，看看那些已經運行了幾十年的大型公用事業規模反應堆，我相信你很清楚你在該領域的市場份額，但對於小型模組化反應堆，你可能不太清楚，因為它們實際上仍在開發中。我只是希望您能透露一下，在那個時期內，對於價值 100 億美元的內容，您預期的勝率是多少，因為 5% 的市場份額與 50% 的市場份額是截然不同的。

Yeah. This is Nathan. I'll point to slide 6, where we talk about the current market share, and I'll try to give some color on the go-forward basis. And so of the 416 reactors that are out there, we have content in 75% of that. And so that could be a pump. It could be a valve. It could be our in seals, but we're very well positioned. And in my comments earlier, we do really well in North America with the Westinghouse technology. We do really well in Europe with Westinghouse and EDF technology. We do really well in Korea what -- where we don't do well today is in China.

是的。這是內森。我將指出第 6 張投影片，其中我們討論了當前的市場份額，我將嘗試對未來的發展趨勢進行一些展望。因此，在現有的 416 個反應器中，我們有 75% 的產物。所以那可能是一台幫浦。可能是閥門。這可能是我們在海豹方面的劣勢，但我們的處境非常有利。正如我之前所說，西屋電氣的技術在北美市場表現非常出色。我們憑藉西屋電氣和法國電力公司的技術在歐洲取得了非常好的成績。我們在韓國做得很好，但我們目前在中國做得不好。

And historically, we have done well in China, but just because of their policy and moving to domestic supply even though we have a strong presence in China, we typically will not win the new Chinese work. And so then if you think on a go-forward basis, who is involved with the North America growth, the forward Europe growth, what's happening in potentially India, in China -- sorry, in Japan and in Korea, we're incredibly well positioned there with those operators.

從歷史上看，我們在中國做得很好，但由於他們的政策以及轉向國內供應，即使我們在中國擁有強大的影響力，我們通常也無法贏得新的中國項目。因此，從長遠來看，誰參與了北美的成長，歐洲的未來成長，印度、中國——抱歉，是日本和韓國——的潛在發展趨勢，我們與這些營運商的合作讓我們在這些地區佔據了非常有利的地位。

And so on the valve side, I would be disappointed if we did not have the highest share of mainstream isolation valves, where we have the primary product globally for the main the safety valve and all of the nuclear reactors. We have large content on the cooling pumps. We put a number out there at kind of I think we can maintain that on a go-forward basis.

因此，在閥門方面，如果我們沒有佔據主流隔離閥的最大份額，我會感到失望，因為我們是全球主要安全閥和所有核反應器的主要產品。我們有大量關於冷卻泵的內容。我們公佈了一個數字，我認為我們可以在未來保持這個數字。

And then we are moving back into some of the reactors with the primary coolant pumps within the reactor itself. We have done that work in a long time just given the lack of some of the newer builds, but we're starting to secure our position there. And so I fundamentally believe that our market share could actually go up as we reposition some of our products to take on the balance of plant. But I think you could expect us to be a market leader here, certainly within pumps and valves on the go-forward basis.

然後，我們將回到一些反應器內部，那裡裝有主冷卻劑泵。由於缺乏一些新建項目，我們已經很久沒有做這項工作了，但我們正在開始鞏固我們在那裡的地位。因此，我從根本上相信，隨著我們重新定位一些產品以佔據工廠其他領域的市場，我們的市場份額實際上可能會上升。但我認為，未來我們肯定會成為泵浦和閥門領域的市場領導者。

And so the $10 billion excludes China?

所以這100億美元不包括中國嗎？

We did not put China in our estimates.

我們的估算中沒有將中國納入考量。

Got it. I would figure the biggest ticket item coming out of here would be the pump at that greater than 50% of currently operating reactors with flows or pops would probably be reflective of the biggest dollar opportunity. Is that correct?

知道了。我認為這裡最大的支出項目應該是水泵，因為超過 50% 的當前運作反應器存在流量或爆裂現象，這可能反映了最大的獲利機會。對嗎？

I think that's fair. Yes.

我認為這是公平的。是的。

Okay. I think that gives a bit more color on potential win rates. So I'll leave it there.

好的。我認為這能更清楚地展現潛在的勝率。所以我就把它留在那裡。

Joe Giordano, TD Cowen.

喬喬丹諾，TD Cowen。

Good morning. So I think we all appreciate the need for the power gen pickup here and nuclear is a logical way to do this. Like as you chase this business we're throwing around a lot of numbers, right? All the companies like $80 billion here, $100 billion all these gigawatts. Like how do you -- one, like can we build all this stuff? And do how do you have to think about who's backstopping this? Like on the SMR side, we're talking a lot of new companies making big commitments with like no revenues at this point. So as you kind of judge where you want to chase like how solid is the ground that you're walking on when you do it?

早安.所以我覺得我們都明白這裡需要提高發電量，而核能是實現這目標的合理途徑。就像你在追逐這個目標的過程中，我們一直在談論很多數字，對吧？所有公司都喜歡這裡800億美元、1000億美元，所有這些千兆瓦的電力。例如，我們該如何建造這些東西？那麼，你該如何考慮誰在背後支持這項計畫呢？就像 SMR 方面一樣，我們現在看到的是許多新公司在幾乎沒有任何收入的情況下做出重大承諾。所以，當你判斷你想追逐的目標時，就像在判斷腳下的地面是否堅實一樣？

Yeah. Those are really important questions. Let me start with capacity, and then we'll start and then we'll go to our customers and how we think about that. On the capacity side, we -- again, we've been doing this for decades, have a designated facility for valves in North America. We have a designated facility for pumps in Europe. We can expand capacity at both of those sites. We're looking at making nuclear center of excellences where we can put all of our product together into a site that then allows us to leverage engineering, the project management, the quality and things like that.

是的。這些都是非常重要的問題。讓我先談談產能，然後我們再來談談我們的客戶以及我們是如何看待這個問題的。在產能方面，我們——再說一遍，我們從事這項工作已經幾十年了——在北美有一個專門生產閥門的工廠。我們在歐洲設有專門的泵浦廠。我們可以擴建這兩個廠址的產能。我們正在考慮建立一個核能卓越中心，將我們所有的產品集中到一個地方，這樣我們就可以充分利用工程、專案管理、品質等方面的優勢。

And so I would say we're confident in our ability to ramp back to some of my previous comments on this is when you win an award, you've got three years of kind of office type work and engineering and quality before you start your delivering the equipment. And so you do have lots of visibility in terms of making sure that you've got the capacity and the other thing I would just say is on the supply chain. That is an area that we're working today to make sure that we are investing in our suppliers to ensure that they can come along on the journey with us. To be -- to participate and allow us to deliver as expected. And so I'm highly confident in our ability to expand capacity and to keep up with the industry at least at this point in time.

所以我想說，我們有信心恢復到我之前的一些評論中提到的水平，那就是當你贏得一個獎項時，你需要三年時間進行辦公室工作、工程和質量方面的改進，然後再開始交付設備。因此，在確保產能方面，您有很多可視性；另外，我想說的是供應鏈方面。這是我們目前努力的方向，我們要確保對供應商進行投資，以確保他們能夠與我們共同成長。參與其中，才能讓我們如預期完成任務。因此，我對我們擴大產能並至少在目前階段跟上產業發展步伐的能力非常有信心。

And then on the customer side, it is -- I would -- this is a dynamic landscape, and there's announcements it feels like every week or every month in terms of some of the players here obviously, it's attracting a lot of money and names like Brookfield and Google and Amazon that are funding and backing some of these projects with large dollars just to make sure that these reactors can get back online and be a part of the power on a go-forward basis. With that said, we have been selective in who we are working with. And we have hired what I'll call as a nuclear expert that worked with the NRC for a couple of decades. And then worked in the White House. And so he is helping us to be really selective on where we put our resources and where we put our efforts.

而在客戶方面，我認為這是一個動態變化的領域，感覺幾乎每週或每月都會有相關消息公佈。顯然，一些參與者正在吸引大量資金，像 Brookfield、Google 和 Amazon 這樣的公司正在投入大量資助和支持這些項目，以確保這些反應器能夠恢復運行，並持續為電力系統做出貢獻。也就是說，我們在選擇合作夥伴方面一直非常謹慎。我們還聘請了一位我稱為核能專家的人士，他曾在美國核管會工作過二十年。之後在白宮工作。因此，他幫助我們更有選擇性地分配資源和精力。

And so we identified a few of those customers on our slide here. But I would say on the SMR side, we've narrowed that list down to kind of 10 to 12 players that we're actively engaged with we believe will be successful in the long run. I don't think we'll be 100% right there. But if we're at least 60% or 70% right on who we've chosen them we're in a really, really good place from a partnership perspective. And so I'd say we've been very methodical about our approach in making sure that we're not overburdening some of our business development and engineering resources on the front end of this to get locked in into the future.

因此，我們在幻燈片上列出了其中的一些客戶。但就SMR而言，我們已經將名單縮小到大約10到12名玩家，我們正在積極與他們接洽，我們相信他們從長遠來看會取得成功。我認為我們無法百分之百確定這一點。但如果我們選擇的合作夥伴至少有 60% 或 70% 的準確率，那麼從合作關係的角度來看，我們就處於非常非常有利的位置。因此，我認為我們採取的方法非常有條不紊，以確保我們不會為了鎖定未來而過早佔用過多的業務開發和工程資源。

And then as a follow-up on that, are there any obvious gaps in the portfolio where you can tuck in new product that would be like specifically geared towards nuclear? And is it fair to think that given your commentary about the timing, like as you guys report as in the coming years, would we expect like the percentage that -- of delivery over the next 12 months out of backlog to kind of move down commensurate with the amount of bookings you're doing in this sector.

那麼，作為後續討論，產品組合中是否存在明顯的空白，可以插入專門針對核能領域的新產品？鑑於你們對時間安排的評論，就像你們報道的那樣，在未來幾年裡，我們是否可以預期，未來 12 個月內積壓訂單的交付百分比會隨著你們在該領域的預訂量而下降？

Yeah, I'll let Amy hit the backlog conversion. I'll start with the other one.

好的，我請艾米去處理積壓的轉換工作。我先從另一個開始。

Yeah. So I think from a capital allocation standpoint, as we look at attractive -- as we look at attractive end markets, nuclear is certainly one of them. We try and take a pretty good product approach for all we do on the M&A front. And so that sort of starts with mapping what we have, what we don't have. And although we are pleased with our product portfolio at this point in time, I think there's always ways that we can look to strengthen that portfolio through M&A.

是的。所以我認為，從資本配置的角度來看，當我們審視有吸引力的終端市場時，核能無疑是其中之一。我們在併購方面所做的一切都力求採取良好的產品導向方法。因此，這一切首先要從梳理我們擁有什麼、缺少什麼開始。雖然我們對目前的產品組合感到滿意，但我認為我們總是可以透過併購來加強這個組合。

Yeah. And so I think the thing for us is we may have some pumps on a facility. We may have a main steam isolation valve but not have the control valves or not have the butterfly valves. And so really, the focus is making sure that we can package more of our content together as we work on these new projects. And so that's the effort right now. There's a huge opportunity in front of us. And then to Amy's point, what we are looking to do is potentially on the programmatic M&A side is acquire other companies that may have the certifications and may have that installed base already in there where you're not having to work through some of those barriers to entry that I talked about before.

是的。所以我覺得對我們來說，問題在於我們可能在某個設施裡有一些水泵。我們可能有一個主蒸汽隔離閥，但沒有控制閥或蝶閥。因此，真正的重點是確保我們在進行這些新專案時，能夠將更多的內容打包在一起。這就是我們目前努力的方向。我們面前有一個巨大的機會。就像艾米說的那樣，我們正在考慮在程序化併購方面收購其他公司，這些公司可能已經擁有相關認證和用戶基礎，這樣我們就無需克服我之前提到的那些准入門檻。

And then on the backlog conversion?

那麼，積壓工作的轉換呢？

On backlog conversion, I would say, overall, last year, you started to see this in the context of our backlog that ticking down from -- to kind of mid-80s overall for Flowserve. And I think we'll see that continue in some ways around the nuclear portfolio. I will say that, that is being slightly offset by the strength of our aftermarket business. So our aftermarket business, which converts relatively quickly is at historical highs. And so -- and we're continuing to be focused on that. So those two tend to offset a bit, but I would say there's probably a slight pressure on backlog conversion with the nuclear content.

關於積壓訂單轉換率，我想說，總體而言，去年，你開始看到我們的積壓訂單數量從——下降到 Flowserve 整體的 80 多。我認為這種情況在某些方面還會在核能領域持續下去。我要說的是，我們售後市場業務的強勁表現在一定程度上抵消了這一影響。因此，我們的售後市場業務轉換速度相對較快，目前處於歷史最高水準。所以——我們將繼續專注於此。所以這兩者之間往往會有些抵消，但我認為核能內容可能會對積壓訂單的轉換造成輕微壓力。

Andrew Obin, Bank of America.

安德魯‧奧賓，美國銀行。

Can you hear me?

你聽得到我嗎？

Yeah, we can hear you.

是的，我們能聽到你的聲音。

Excellent. So just nuclear bookings have been great, but if you look at underlying power bookings ex nuclear, it seems that they've been quite weak this year. I think we calculate down high teens. What is this a reflection of and the core power pick back up? Because I would imagine the power gen trend is broader than nuclear?

出色的。所以，單就核電訂單而言，情況一直很好，但如果你看一下剔除核電後的基礎電力訂單，你會發現今年的電力訂單相當疲軟。我認為我們應該向下計算十幾分。這反映了什麼，以及核心力量是如何恢復的？因為我認為發電趨勢比核能更廣？

Yeah. I think in the quarter for the traditional power, it might just be a little bit of a timing impact. We are seeing investments in all forms of power. And so you're seeing coal-fired power plants get extended where we have a lot of content on both pumps and the valves we're seeing new kind of single cycle combined cycle plants going forward, where we may not have as much content, but we do have content there. And I would say this phenomenon is happening all over the world.

是的。我認為對於傳統電力產業來說，本季可能只會受到一些時間上的影響。我們看到對各種能源領域的投資。因此，你會看到燃煤發電廠不斷擴建，我們在泵浦和閥門方面有很多內容；我們也會看到新型的單循環聯合循環發電廠，雖然我們在這方面的內容可能沒有那麼多，但我們仍然有一些內容。而且我認為這種現像在世界各地都在發生。

And so we're excited about that opportunity. It is a more competitive type environment. And so we've got to be really selective in terms of making sure that we can get the right product in front of the right customers, the folks that value our aftermarket. And so I'd just say that's -- we're a little bit more selective here just given the wider, the broader kind of competitive offering with the traditional power set.

因此，我們對這個機會感到非常興奮。這是一個競爭更加激烈的環境。因此，我們必須非常謹慎地選擇，確保能夠將合適的產品送到合適的客戶手中，也就是那些重視我們售後市場的客戶手中。所以我想說的是——鑑於傳統電源組更廣泛的競爭產品，我們在這裡會更加挑剔一些。

Got you. And just to help us understand, last year, bookings grew 9%. This year, bookings are sort of flattish. So how do we think about the relationship, given that you're changing a business model. How should we think about the relationship between bookings and revenue? And just how did this year's bookings translate into hitting the 5% revenue target next year, right? Because the 9% bookings growth last year have really flowed through the P&L as top line. And no complaint --

抓到你了。為了幫助我們理解，去年預訂量增加了 9%。今年預訂量略顯平淡。鑑於您正在改變商業模式，我們應該如何看待這種關係？我們該如何看待預訂量和收入之間的關係？那麼，今年的預訂量究竟是如何轉化為明年實現 5% 的收入目標的呢？因為去年 9% 的預訂量成長確實反映在了損益表的營收。沒有抱怨--

I'll let Amy talk about the conversion to revenue. I'll talk a little bit about the growth. And so we're obviously right at kind of a book-to-bill at 1.0 is what we're committing to, which and the growth this year on bookings is lower. And we said this earlier, but a lot of that's your Middle East kind of OE project business has come down. When we think about the rest of the business, all other aspects, excluding kind of OE, Middle East or OE Energy projects, grown at 9%. And so we actually feel like we're doing a nice job growing and leaning into that growth. We need that kind of energy bookings to come back in 2026 to kind of get us back to what we want.

我讓艾米來談談如何轉化為收入。我來簡單談談成長情況。因此，我們顯然正朝著 1.0 的訂單出貨比目標努力，這是我們承諾的目標，而且今年的預訂量增長較低。我們之前也說過，很多中東地區的OE專案業務都減少了。當我們考慮業務的其他方面時，除 OE、中東或 OE 能源項目外，所有其他方面均增長了 9%。因此，我們感覺我們在發展壯大和順應發展趨勢方面做得很好。我們需要這種能源預訂量在 2026 年恢復，才能讓我們回到我們想要的狀態。

And the last thing I would say is on the commercial excellence in 80/20. The teams are incredibly focused on growth. So commercial excellence is 100% about growth and aligning the sales organization the right way with the right incentive structure and the right project pursuit strategy and all of that good stuff to capture more share. And then on 80/20, we're now starting to move more and more into the growth side of 80/20 we showed some numbers with our industrial pumps that's growing our target selling accounts at 21% this year. And so I do feel like that we can -- with this kind of renewed commercial excellence and the 80/20 focus, we get back to this kind of 5% kind of -- on over time, a 5% growth rate feels right for me.

最後我想說的是 80/20 的商業卓越性。各個團隊都非常注重發展。因此，商業卓越 100% 是關於成長，以及透過正確的激勵機制、正確的專案拓展策略等各種好方法，使銷售組織以正確的方式進行調整，從而獲得更大的市場份額。然後，在 80/20 方面，我們現在開始越來越多地轉向 80/20 的成長方面，我們展示了一些工業泵浦的數據，今年我們的目標銷售客戶成長了 21%。因此，我覺得憑藉這種重新煥發的商業卓越性和 80/20 的重點，我們可以回到 5% 的成長率——隨著時間的推移，5% 的成長率對我來說感覺很合適。

Yeah. The only thing I'm going to add there is, I think, overall, our conversion rates on sort of this quicker turn business is actually improving over time. The efforts that we've made around commercial excellence are reducing or around operational excellence are actually reducing our lead times. And so that, combined with our aftermarket strength, which we have no intention of slowing the intensity of those efforts does help with conversion. And so as Scott pointed out, with the overall health of a number of the end markets that we're focused on in addition to the efforts around commercial excellence, and target selling. We see those things in conjunction with some Middle East opportunities not just in traditional energy, but within Power and Water, moving into 2026 as sort of more than offsetting headwinds that we see from 80/20.

是的。我唯一要補充的是，我認為，總體而言，我們這種週轉速度較快的業務的轉換率實際上正在隨著時間的推移而提高。我們在商業卓越和營運卓越方面所做的努力，實際上正在縮短我們的交貨週期。因此，再加上我們在售後市場的實力（我們無意放慢這方面的努力力度），確實有助於提高轉換率。正如 Scott 指出的那樣，除了商業卓越和目標銷售方面的努力之外，我們還要關注我們關注的許多終端市場的整體健康狀況。我們認為，這些因素與中東的一些機會相結合，不僅在傳統能源領域，而且在電力和水務領域，到 2026 年，這些機會將足以抵消 80/20 帶來的不利影響。

We have no further questions. I'll turn the call back to Brian Ezzell for any additional or closing remarks.

我們沒有其他問題了。我將把電話轉回給布萊恩·埃澤爾，讓他補充或作總結發言。

Great. Well, thank you, everyone, for joining the call today. We look forward to seeing many of you at upcoming conferences and investor events. And then, of course, we'll provide another update early next year. In the meantime, if you have any questions, please feel free to reach out to the Investor Relations team, and we'll be happy to talk through anything.

偉大的。謝謝大家今天參加電話會議。我們期待在即將舉行的會議和投資者活動中見到各位。當然，明年年初我們還將提供另一次更新。同時，如果您有任何疑問，請隨時聯繫投資者關係團隊，我們很樂意與您討論任何問題。

And with that, we hope you have a great day.

祝您今天過得愉快！

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

今天的會議到此結束。感謝您的參與。您現在可以斷開連線了。