Federal Signal Corp (FSS) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Federal Signal Corporation's second-quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Felix Boeschen, Vice President, Corporate Strategy, Investor Relations. Thank you, Felix. You may begin.

您好，歡迎參加聯邦訊號公司第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人菲利克斯·博申 (Felix Boeschen)，他是負責企業策略和投資者關係的副總裁。謝謝你，菲利克斯。你可以開始了。

Good morning, and welcome to Federal Signal's second-quarter 2024 conference call. I'm Felix Boeschen, the company's Vice President of Corporate Strategy and Investor Relations. Also with me on the call today is Jennifer Sherman, our President and Chief Executive Officer; and Ian Hudson, our Chief Financial Officer.

早安，歡迎參加 Federal Signal 2024 年第二季電話會議。我是 Felix Boeschen，該公司負責企業策略和投資者關係的副總裁。今天與我一起參加電話會議的還有我們的總裁兼執行長 Jennifer Sherman；以及我們的財務長 Ian Hudson。

We will refer to some presentation slides today as well to the earnings release, which we issued this morning. The slides can be followed online by going to our website federalsignal.com, clicking on the Investor Call icon and signing into the webcast. We've also posted the slide presentation and the earnings release under the Investor tab on our website.

我們今天也將參考一些簡報幻燈片以及我們今天早上發布的收益報告。您可以造訪我們的網站 Federalsignal.com，點擊「投資者電話」圖示並登入網路廣播，在線上觀看這些投影片。我們也在網站的「投資者」標籤下發布了幻燈片演示和收益發布。

Before we begin, I'd like to remind you that some of our comments made today may contain forward-looking statements that are subject to the Safe Harbor language found in today's news release and in Federal Signal's filings with the Securities and Exchange Commission. These documents are available on our website.

在開始之前，我想提醒您，我們今天發表的一些評論可能包含前瞻性陳述，這些陳述受到今天的新聞稿和聯邦信號向美國證券交易委員會提交的文件中的安全港語言的約束。這些文件可在我們的網站上找到。

Our presentation also contains some measures that are not in accordance with US generally accepted accounting principles. In our earnings release and filings we reconcile these non-GAAP measures to GAAP measures. In addition, we will file our Form 10-Q later today.

我們的簡報也包含一些不符合美國公認會計原則的措施。在我們的收益發布和文件中，我們將這些非公認會計準則衡量標準與公認會計準則衡量標準進行了協調。此外，我們將於今天晚些時候提交 10-Q 表格。

Ian will start today by providing details on our second quarter financial results. Jennifer will then provide her perspective on our performance, an update on our multiyear growth outlook and our updated guidance for 2024. After our prepared comments, we will open the line for any questions.

伊恩將從今天開始提供有關我們第二季度財務業績的詳細資訊。然後，Jennifer 將提供她對我們業績的看法、我們多年成長前景的最新資訊以及我們更新的 2024 年指導。在我們準備好意見後，我們將開通任何問題的熱線。

With that, I would now like to turn the call over to Ian.

現在，我想將電話轉給伊恩。

Thank you, Felix. Our consolidated second quarter financial results are provided in today's earnings release. In summary, we delivered strong financial results for the quarter with double digit year-over-year organic net sales and earnings growth. Gross margin expansion and a 280 basis point improvement in EBITDA margin.

謝謝你，菲利克斯。我們的第二季綜合財務業績在今天的收益發布中提供。總之，我們本季的財務業績強勁，有機淨銷售額和獲利年增兩位數成長。毛利率擴張，EBITDA 利潤率提高 280 個基點。

Consolidated net sales for the quarter were $490 million, a record high for the company and an increase of $48 million or 11% compared to last year. All of the growth this quarter was organic. Consolidated operating income for the quarter was $81.1 million, up $21.7 million or 37% compared to last year. Consolidated adjusted EBITDA for the quarter was $97.7 million, up $22.2 million or 29% compared to last year. That translates to a margin of 19.9% in Q2 this year, up from 16.1% in Q2 last year.

該季度綜合淨銷售額為 4.9 億美元，創公司歷史新高，比去年增加 4,800 萬美元，即 11%。本季的所有成長都是有機的。本季綜合營業收入為 8,110 萬美元，比去年增加 2,170 萬美元，即 37%。該季度綜合調整後 EBITDA 為 9,770 萬美元，比去年增加 2,220 萬美元，成長 29%。這意味著今年第二季的利潤率為 19.9%，高於去年第二季的 16.1%。

Gaap EPS for the quarter was $0.99 per share, up $0.33 per share or 50% from last year. On an adjusted basis EPS for the quarter was $0.95 per share, up $0.28 per share or 42% from last year. Order intake for the quarter was again strong with second quarter orders of $473 million, contributing to a backlog of $1.08 billion at the end of the quarter, an increase of $73 million or 7% compared to Q2 last year.

本季公認會計準則每股收益為 0.99 美元，較去年增長 0.33 美元，即 50%。經調整後，本季每股收益為 0.95 美元，較去年增長 0.28 美元，即 42%。本季的訂單量再次強勁，第二季訂單量為 4.73 億美元，季末積壓訂單達 10.8 億美元，比去年第二季增加 7,300 萬美元，即 7%。

In terms of our group results, ESG's net sales for the quarter were $409 million, up $36 million or 10% compared to last year. ESG's operating income for the quarter was $72.9 million, up $16.7 million or 30% compared to last year.

就我們的集團業績而言，ESG 本季的淨銷售額為 4.09 億美元，比去年增加 3,600 萬美元，即 10%。ESG 本季營業收入為 7,290 萬美元，比去年增加 1,670 萬美元，增幅為 30%。

ESG's adjusted EBITDA for the quarter was $88.2 million, up $17.5 million or 25% compared to last year. That translates to an adjusted EBITDA margin for the quarter of 21.6%, an improvement of 260 basis points compared to last year and performance towards the upper end of our current target range. ESG reported total orders of $396 million in Q2 this year compared to $409 million last year.

ESG 本季調整後 EBITDA 為 8,820 萬美元，比去年增加 1,750 萬美元，成長 25%。這意味著本季調整後的 EBITDA 利潤率為 21.6%，與去年相比提高了 260 個基點，業績接近我們當前目標範圍的上限。ESG 報告稱，今年第二季的訂單總額為 3.96 億美元，而去年為 4.09 億美元。

SSG's net sales for the quarter were $82 million this year, up $12 million or 18%. SSG's operating income for the quarter was $18.3 million, up $4.2 million or 30% compared to last year. SSG's adjusted EBITDA for the quarter was $19.3 million, up $4.1 million or 27%. That translates to a margin of 23.7% above SSG's current target range and up 180 basis points compared to last year. SSG's orders for the quarter was $77 million, an increase of $5 million or 7% compared to last year. Corporate operating expenses for the quarter were $10.1 million, down from $10.9 million last year.

SSG 今年該季度的淨銷售額為 8,200 萬美元，成長 1,200 萬美元，即 18%。SSG 本季營業收入為 1,830 萬美元，比去年增加 420 萬美元，即 30%。SSG 本季調整後 EBITDA 為 1,930 萬美元，成長 410 萬美元，成長 27%。這意味著比 SSG 目前目標範圍高出 23.7%，比去年高出 180 個基點。SSG本季的訂單量為7,700萬美元，比去年增加了500萬美元，增幅為7%。本季公司營運支出為 1,010 萬美元，低於去年的 1,090 萬美元。

Turning now to the consolidated income statement, where the increase in sales contributed to a $26.7 million improvement in gross profit. Consolidated gross margin for the quarter was 29.4%, a 290 basis point increase over last year.

現在來看合併損益表，銷售額的成長導致毛利增加了 2,670 萬美元。該季度綜合毛利率為 29.4%，比去年同期成長 290 個基點。

As a percentage of sales, our selling engineering, general, and administrative expenses for the quarter were down 20 basis points from Q2 last year. Other items affecting the quarterly results include a $200,000 increase in acquisition related expenses, a $100,000 reduction in amortization expense, a $700,000 decrease in other expense and a $2.4 million reduction in interest expense.

作為銷售額的百分比，我們本季的銷售工程、一般和管理費用比去年第二季下降了 20 個基點。其他影響季度業績的項目包括收購相關費用增加 20 萬美元、攤銷費用減少 10 萬美元、其他費用減少 70 萬美元以及利息費用減少 240 萬美元。

Tax expense for the quarter was $16.7 million, up $4.3 million from the prior year. Our effective tax rate in Q2 this year was 21.5% compared to 23.5% last year with the reduction primarily due to a $2.6 million discrete tax benefit recognized in connection with the amendment of certain state tax returns to claim a worthless stock deduction.

該季度的稅費為 1,670 萬美元，比上年增加 430 萬美元。我們今年第二季的有效稅率為 21.5%，而去年為 23.5%，下降主要是由於修改某些州納稅申報表以申請無價值的股票扣除而確認了 260 萬美元的離散稅收優惠。

At this time, we expect our effective tax rate for the remaining half of the year to be between 25% and 26%, excluding any additional discrete tax benefits. On an overall GAAP basis, we therefore earned $0.99 per share in Q2 this year compared with $0.6 per share -- $0.66 per share in Q2 last year. To facilitate earnings comparisons, we typically adjust our GAAP earnings per share for unusual items recorded in the current or prior quarters.

目前，我們預計今年下半年的有效稅率將在 25% 至 26% 之間，不包括任何額外的離散稅收優惠。因此，按照整體公認會計原則計算，我們今年第二季的每股收益為 0.99 美元，而去年第二季的每股收益為 0.6 美元，即 0.66 美元。為了方便收益比較，我們通常會針對目前或先前季度記錄的異常項目調整 GAAP 每股盈餘。

In the current-year quarter, we made adjustments to GAAP earnings per share to exclude acquisition related expenses and the discrete tax benefits I previously mentioned. On this basis, our adjusted earnings for the quarter were $0.95 per share compared with $0.67 per share last year.

在本年度季度，我們對 GAAP 每股盈餘進行了調整，以排除收購相關費用和我之前提到的離散稅收優惠。在此基礎上，我們本季調整後的收益為每股 0.95 美元，去年為每股 0.67 美元。

Looking now at cash flow, we generated $41 million of cash from operations during the quarter, an increase of $5 million from Q2 last year. That brings the total cash generated from operations in the first half of this year to $72 million, an increase of 67% over the first half of last year.

現在看看現金流，本季我們從營運中產生了 4,100 萬美元的現金，比去年第二季增加了 500 萬美元。這使得今年上半年營運產生的現金總額達到 7,200 萬美元，比去年上半年成長 67%。

We ended the quarter with $207 million of net debt and availability under our credit facility of $533 million. Our current net debt leverage ratio remains low. With our financial position remaining strong, we have significant flexibility to invest in organic growth initiatives, pursue strategic acquisitions and return cash to stockholders through dividends and opportunistic share repurchases.

本季末，我們的淨債務為 2.07 億美元，信貸安排下的可用資金為 5.33 億美元。我們目前的淨債務槓桿率仍然很低。由於我們的財務狀況保持強勁，因此我們可以靈活地投資於有機成長計劃，進行策略性收購，並透過股息和機會性股票回購向股東返還現金。

On that note, we paid dividends of $7.4 million during the quarter, reflecting a dividend of $0.12 per share. And we recently announced a similar dividend for the third quarter.

就此而言，我們在本季支付了 740 萬美元的股息，相當於每股 0.12 美元的股息。我們最近宣布了第三季的類似股息。

That concludes my comments, and I would now like to turn the call over to Jennifer.

我的評論到此結束，現在我想將電話轉給珍妮佛。

Thank you, Ian. Our second quarter results represent another outstanding quarter as our team sent quarterly performance records across many metrics, including net sales, EBITDA margins, and adjusted EPS, all while maintaining a healthy order intake.

謝謝你，伊恩。我們的第二季業績代表了另一個出色的季度，因為我們的團隊發送了許多指標的季度績效記錄，包括淨銷售額、EBITDA 利潤率和調整後的每股收益，同時保持了健康的訂單量。

Within our Environmental Solutions Group, we were able to deliver 10% year-over-year net sales growth and a 25% increase in adjusted EBITDA with increased production at several of our businesses and continued price realization representing meaningful year-over-year drivers. Overall in what is typically a seasonally strong quarter, ESG's adjusted EBITDA margin was up 260 basis points year over year.

在我們的環境解決方案集團內，我們實現了10% 的淨銷售額同比增長和25% 的調整後EBITDA 增長，其中幾個業務的產量增加，並且持續的價格實現代表了有意義的同比驅動因素。總體而言，在通常季節性強勁的季度中，ESG 的調整後 EBITDA 利潤率年增 260 個基點。

We were particularly encouraged with the progress we have made across the enterprise on our build more trucks initiative this quarter. Our dump truck body businesses had another strong quarter with sales up 22% on the back of improving chassis availability and higher build rates.

本季我們在整個企業範圍內建造更多卡車計劃所取得的進展尤其令我們感到鼓舞。我們的自卸車車身業務又迎來了一個強勁的季度，由於底盤可用性的提高和建造率的提高，銷售額增長了 22%。

The increased dump truck body production, coupled with our ongoing 80-20 initiatives at several key facilities, was again a contributing factor in our year-over-year margin improvement within our ESG segment. In fact, monthly chassis received at our Ox Bodies facility grew sequentially throughout the quarter with June chassis deliveries, the highest experienced since the first quarter of 2021.

自卸車車身產量的增加，加上我們在幾個關鍵工廠正在進行的 80-20 計劃，再次成為我們 ESG 部門利潤率同比改善的一個因素。事實上，我們的 Ox Bodies 工廠每月收到的底盤在整個季度中連續成長，其中 6 月的底盤交付量是自 2021 年第一季以來的最高水準。

We remain focused on maintaining our industry-leading lead times in this space as we raise our production levels. Our strategic dump truck growth initiatives are also gaining momentum. Ox Bodies is broadening its geographic reach in key states such as Texas.

隨著我們提高生產水平，我們仍然致力於保持我們在該領域行業領先的交貨時間。我們的自卸車策略成長計畫也正在獲得動力。Ox Bodies 正在擴大其在德克薩斯州等關鍵州的地理覆蓋範圍。

The Rugby team is progressing along its 80-20 journey in the form of product and SKU simplification. And Switch-N-Go is on track to start production of its new Class 3 interchangeable multi body product in August. The Switch-N-Go Class 3 product launch provides customers additional flexibility in what remains a constraint.

Rugby 團隊正在以產品和 SKU 簡化的形式沿著 80-20 旅程前進。Switch-N-Go 預計於 8 月開始生產其新型 3 級可互換多機身產品。Switch-N-Go Class 3 產品的推出為客戶提供了額外的靈活性，解決了仍然存在的限制。

Medium-duty chassis environment at our largest manufacturing facility in Streator, production increased by 15% year-over-year, including the $13 million of sewer cleaner shipments that were affected by the third-party component supply issue that we experienced in March. MRL, our road marking and line removal business is also benefiting from improving supply chain conditions and a constructive demand backdrop as the team was able to drive a 29% year-over-year increase in sales.

我們位於 Streator 的最大製造工廠的中型底盤環境，產量年增 15%，其中包括 1,300 萬美元的下水道清潔器出貨量，這些出貨量受到我們 3 月份經歷的第三方零件供應問題的影響。MRL，我們的道路標記和線路清除業務也受益於供應鏈條件的改善和建設性的需求背景，因為該團隊能夠推動銷售額年增 29%。

In addition to anticipated multiyear benefits stemming from the infrastructure bill, we are also seeing ongoing shift toward early autonomous vehicle functionality and the addition of smart features for passenger cars as a key long-term driver of road striping demand. Big picture, while supply chain performance has not yet fully recovered to pre-pandemic levels, supply chains are consistently improving for our family of specialty vehicle businesses.

除了基礎設施法案帶來的預期多年效益外，我們還看到早期自動駕駛汽車功能的持續轉變以及乘用車智慧功能的增加，成為道路劃線需求的關鍵長期驅動因素。總體而言，雖然供應鏈績效尚未完全恢復到疫情前的水平，但我們的特殊車輛業務家族的供應鏈正在持續改善。

This improvement in supply chain should over time allow us to drive additional output and gain manufacturing efficiencies as we aim to reduce lead times for certain products, including vacuum trucks and street sweepers. From a capacity perspective, our access to labor remains good and our large-scale capacity expansions that we completed between 2019 and 2022 position us well to profitably absorb incremental volumes into the current facility footprint.

隨著時間的推移，供應鏈的改進將使我們能夠提高產量並提高製造效率，因為我們的目標是縮短某些產品（包括真空卡車和街道清潔機）的交貨時間。從產能角度來看，我們獲得勞動力的機會仍然良好，而且我們在 2019 年至 2022 年期間完成的大規模產能擴張使我們能夠很好地將增量吸收到當前設施足跡中，從而實現盈利。

Shifting to aftermarket activity levels remained strong across our offerings. Performance was led by increase in parts sales, service rental and rental income, partially offset by lower used equipment sales as our teams are working diligently to balance rental unit availability and used equipment sales to best serve our customers.

我們的產品向售後市場活動水準的轉變仍然強勁。業績主要由零件銷售、服務租賃和租金收入的成長帶動，但部分被二手設備銷售下降所抵消，因為我們的團隊正在努力平衡租賃單位的可用性和二手設備銷售，以最好地為我們的客戶服務。

In short, rental utilization and demand for our rent-to-own equipment offerings remains high. From a strategic perspective, our growing aftermarket ecosystem allows us to better serve our customer needs throughout the entire business cycle, especially in the higher interest rate environment that we are experiencing today, the option to rent, new or acquire used piece of equipment represents an important alternative for many of our industrial customers to access equipment in a timely and affordable manner.

簡而言之，租賃利用率和我們先租後買設備產品的需求仍然很高。從策略角度來看，我們不斷發展的售後市場生態系統使我們能夠在整個商業週期中更好地滿足客戶需求，特別是在我們今天經歷的利率較高的環境下，租賃、購買新設備或購買二手設備的選擇代表了一種對於我們的許多工業客戶來說，這是及時且經濟實惠地獲取設備的重要選擇。

As we continue to scale our aftermarket business, we see additional long-term growth opportunities. As acquired businesses are integrated into the platform, we further increase our parts capture rate, optimize underserved regions and address nontraditional Federal Signal customer cohorts through our rent own service offerings.

隨著我們繼續擴大售後市場業務，我們看到了更多的長期成長機會。隨著收購的業務整合到該平台中，我們進一步提高了零件捕獲率，優化了服務不足的地區，並透過我們租賃自己的服務產品來滿足非傳統聯邦訊號客戶群的需求。

In total, aftermarket represented approximately 25% of USG revenue in the second quarter of 2024. Shifting to our Safety and Security Systems Group. The team delivered another quarter of outstanding results with 18% top line growth, a 27% increase in adjusted EBITDA and a 180 basis point improvement in adjusted EBITDA margin on the back of sales volume increases and price realization.

2024 年第二季度，售後市場總計約佔 USG 收入的 25%。轉移到我們的安全和安保系統小組。該團隊又在一個季度取得了出色的業績，在銷售成長和價格實現的推動下，營收成長了 18%，調整後 EBITDA 成長了 27%，調整後 EBITDA 利潤率提高了 180 個基點。

Sales of public safety equipment paved the way with 25% year-over-year growth as our light bar and siren products are resonating in the marketplace. This strong underlying demand for our products, coupled with the in-sourcing investments we've made in recent years, and our ongoing 80-20 efforts have contributed to achieving a mid-teens year over year improvement in volume.

隨著我們的燈條和警報器產品在市場上引起共鳴，公共安全設備的銷售額年增了 25%。對我們產品的強勁潛在需求，加上我們近年來進行的內購投資，以及我們持續的 80-20 努力，使得銷量同比實現了十幾歲左右的增長。

Going forward, our teams remain energized to continued execute on a robust NPD pipeline across all of our SSG businesses as we aim to fortify and grow our position as the industry leader of audible and visual safety equipment. We've also been pleased with our cash generation through the first half of the year as cash generated from operations rose 67% compared to last year. On an annual basis, we continue to target 100% cash conversion levels.

展望未來，我們的團隊仍然充滿活力，繼續在我們所有 SSG 業務中執行強大的 NPD 管道，因為我們的目標是鞏固和發展我們作為聽覺和視覺安全設備行業領導者的地位。我們對今年上半年的現金產生也感到滿意，因為營運產生的現金比去年成長了 67%。每年，我們繼續以 100% 現金轉換水準為目標。

Another highlight of the quarter included the publication of our latest sustainability report. In the report, we highlight the ways in which we make a difference to our customers, our communities, our environment. We know that as a global manufacturer of critical infrastructure and safety products, we have the responsibility to operate sustainably with a long term positive impact to our employees, customers, partners, and stakeholders at large.

本季度的另一個亮點包括我們最新可持續發展報告的發布。在報告中，我們強調了我們為客戶、社區和環境帶來改變的方式。我們知道，作為關鍵基礎設施和安全產品的全球製造商，我們有責任可持續運營，為我們的員工、客戶、合作夥伴和廣大利益相關者產生長期的積極影響。

These efforts also position us well in the communities in which we operate and serve as a differentiating factor in our ability to attract labor at most of our facilities. The report also highlights the progress we have made against our sustainability goals that were initially established in 2018 and having achieved our electricity, water, and CO2 intensity reduction goals early, we have announced our new 2030 energy intensity reduction goals.

這些努力也使我們在經營所在的社區中處於有利地位，並成為我們在大多數工廠吸引勞動力的能力的差異化因素。該報告還強調了我們在 2018 年最初制定的永續發展目標方面所取得的進展，在提前實現了電力、水和二氧化碳強度降低目標後，我們宣布了新的 2030 年能源強度降低目標。

Shifting now to current market conditions. demand for our product offerings and services remain high with our second quarter order intake of $473 million, just falling short of last year's record second quarter orders of $480 million. For comparison purposes, please note that last year's orders included approximately $8 million of acquired backlog from the Trackless acquisition.

現在轉向當前的市場狀況。對我們的產品和服務的需求仍然很高，第二季的訂單量為 4.73 億美元，略低於去年第二季創紀錄的 4.8 億美元訂單量。出於比較目的，請注意去年的訂單包括從 Trackless 收購中獲得的約 800 萬美元的積壓訂單。

In recent years, we have supplied a higher concentration of chassis than our customers. But as chassis availability has improved, customer buying patterns have started to revert to the more typical 50-50 split that we have historically experienced. This shift resulted in $9 million fewer chassis orders in Q2 this year compared to last year. This trend is also expected to represent a year-over-year net sales headwind of approximately $10 million in the second half of the year, which should have some nominal margin benefit.

近年來，我們提供的底盤濃度比我們的客戶更高。但隨著底盤可用性的提高，客戶的購買模式已開始恢復到我們歷史上經歷過的更典型的 50-50 分配。這一轉變導致今年第二季的底盤訂單比去年減少了 900 萬美元。預計這一趨勢還將導致今年下半年的淨銷售額年減約 1,000 萬美元，這應該會帶來一些名目利潤率收益。

The composition of orders remains balanced between our publicly funded and industrial end markets as contribution from both subsets were similar on a year-over-year basis. On the publicly funded site demand for our flagship sewer cleaners has remained consistently high throughout 2024 on the back of solid core funding mechanisms.

我們的公共資助市場和工業終端市場之間的訂單組成保持平衡，因為這兩個子市場的貢獻比去年同期相似。在堅實的核心融資機制的支持下，公共資助網站對我們的旗艦下水道清潔劑的需求在整個 2024 年保持在高水準。

Our SSG business is experiencing a similarly stable growth pattern as orders increased 7% in the quarter. This includes a $6 million public safety equipment order from a major municipality slated for delivery in 2025.

我們的 SSG 業務也經歷了類似的穩定成長模式，本季訂單成長了 7%。其中包括一個主要城市定於 2025 年交付的價值 600 萬美元的公共安全設備訂單。

Lastly, resulting from our ongoing and customer and market diversification efforts, our dump truck body business enjoyed double digit order growth with municipal customers in the second quarter. On the industrial side, orders for dump truck bodies continue to lead the charge with orders up 32% year over year. Similar to last quarter, we believe this to be driven by a combination of pent-up replacement debt demand execution on our strategic initiatives across different end markets and high current equipment utilization levels.

最後，由於我們持續的客戶和市場多元化努力，我們的自卸車車身業務在第二季度與市政客戶的訂單實現了兩位數的成長。工業方面，自卸車車身訂單持續領先，訂單較去年同期成長32%。與上季類似，我們認為這是由我們在不同終端市場的策略性舉措執行被壓抑的替代債務需求和當前設備利用率高水準共同推動的。

We are also seeing strong demand for our metal extraction support equipment as we are starting to reap distribution benefits from the combined Ground Force and TowHaul platform. Lastly, our teams remain laser focused on positioning our businesses to be able to capitalize on projects resulting from the $550 billion bipartisan infrastructure bill.

我們也看到對我們的金屬提取支援設備的強勁需求，因為我們開始從地面部隊和拖車聯合平台中獲得分銷優勢。最後，我們的團隊仍然專注於定位我們的業務，以便能夠利用兩黨 5500 億美元基礎設施法案產生的項目。

Although we believe the opportunity still remains in its early stages today, we anticipate many of our special vehicle offerings to participate an array of projects and importantly, a different stage of projects. As an illustrative example, why we expect the use of dump trucks to be fairly consistent throughout the life of a project, we expect road marking or street sweeping demand to be weighted more heavily towards the end of a project with a new road is marked for projects are cleaned.

儘管我們相信這個機會目前仍處於早期階段，但我們預計我們的許多特種車輛產品將參與一系列項目，重要的是，參與不同階段的項目。作為一個說明性的例子，為什麼我們期望自卸卡車的使用在整個項目的整個生命週期中保持相當一致，我們預計道路標記或街道清掃需求在項目結束時會更加重要，因為新道路被標記為項目已清理。

In fact, we have seen some examples of dump truck orders tied to early infrastructure projects, including a multi-unit order for a highway construction project in the Southwest that we booked this quarter. We are also encouraged with early feedback we've received on our Guzzler micro trenching vacuum truck, which is ideally suited for the installation of broadband infrastructure. Our teams will be showcasing our Guzzler micro trencher at the upcoming Fiber Broadband Association Show.

事實上，我們已經看到了一些與早期基礎設施項目相關的自卸車訂單的例子，包括我們本季度預訂的西南高速公路建設項目的多輛訂單。我們也對 Guzzler 微型挖溝真空卡車收到的早期回饋感到鼓舞，該卡車非常適合寬頻基礎設施的安裝。我們的團隊將在即將舉行的光纖寬頻協會展會上展示我們的 Guzzler 微型挖溝機。

In summary, demand for our products remains strong and our teams are focused on executing our growth initiatives and building more trucks while continuing to maintain healthy order intake.

總而言之，對我們產品的需求仍然強勁，我們的團隊專注於執行我們的成長計劃並製造更多卡車，同時繼續保持健康的訂單量。

I now want to take a few minutes to provide an update on our through-cycle revenue targets and growth initiatives. While we have historically talked about a high single digit annual revenue growth target, we are officially raising the bar to a low double digit annual growth target, which is roughly consistent with our actual track record since 2016.

我現在想花幾分鐘時間介紹一下我們整個週期的收入目標和成長計畫的最新情況。雖然我們歷來談論過較高的個位數年度收入成長目標，但我們現在正式將目標提高到較低的兩位數年度成長目標，這與我們自 2016 年以來的實際業績記錄大致一致。

Achieving that growth will be multifaceted as we expect low to single -- low to mid single digit base level end market growth to be supplemented by outsized growth from our organic initiatives and contribution from M&A. In fact, we see opportunities for several businesses to expand their geographic reach as we start to harness the increasing benefits of the power of our growing specialty vehicle platform with our aftermarket operations at the heart of that value proposition.

要實現這一成長將是多方面的，因為我們預計低至個位數的基本水平終端市場成長將得到我們的有機舉措和併購貢獻的大幅成長的補充。事實上，隨著我們開始利用不斷增長的特種車輛平台的力量所帶來的日益增長的優勢，並將我們的售後市場業務作為該價值主張的核心，我們看到了多家企業擴大其地理覆蓋範圍的機會。

An excellent example of the platform power is the 30% year-over-year growth we achieved at trackless in the first year of Federal Signal ownership. We also see these platform benefits fueling other strategic growth initiatives, including new product development, aftermarket support, sales channel, and procurement optimization.

平台力量的一個很好的例子是，在擁有 Federal Signal 的第一年，Trackless 實現了 30% 的同比增長。我們也看到這些平台優勢推動了其他策略性成長舉措，包括新產品開發、售後支援、銷售管道和採購優化。

Shifting to inorganic growth, our M&A pipeline remains active with several opportunities currently under evaluation. in line with our M&A strategy set forth in 2016, we are primarily focused on three types of acquisition opportunities. First, identifying new market adjacencies to penetrate within our ESG and SSG segments. Second, opportunistically adding to verticals in which we already operate. And finally, acquisitions to further accelerate our aftermarket growth.

轉向無機成長，我們的併購管道仍然活躍，目前正在評估多個機會。根據我們2016年制定的併購策略，我們主要關註三類收購機會。首先，確定新的鄰近市場以滲透到我們的 ESG 和 SSG 細分市場。其次，機會主義地增加我們已經經營的垂直領域。最後，透過收購進一步加速我們的售後市場成長。

We remain rigorous and vigorous in our due diligence processes as we aim to identify the right strategic conditions for Federal Signal, but we believe our track record integration process, modest debt profile, and strong free cash flow generation all position us as an acquirer of choice in our markets.

我們在盡職調查過程中保持嚴格和積極的態度，因為我們的目標是為Federal Signal 確定正確的戰略條件，但我們相信我們的整合流程記錄、適度的債務狀況和強勁的自由現金流生成都使我們成為首選收購方在我們的市場。

Lastly, as we indicated, we were pleased with our margin performance in the quarter with performance towards the upper end of our current target range. Recall our stated margin targets are meant to be annual and through the cycle targets when we last raised our target on our third quarter 2023 earnings call, we outlined four foundations supporting the race, including leveraging our capacity expansion, the rollout of our codified federal single operating system, continued growth in our aftermarket business and value added M&A.

最後，正如我們所指出的，我們對本季的利潤表現感到滿意，並且表現接近我們目前目標範圍的上限。回想一下，我們規定的利潤率目標是年度和週期目標，當我們上次在2023 年第三季財報電話會議上提高目標時，我們概述了支持這場競爭的四個基礎，包括利用我們的產能擴張、推出我們的編纂聯邦單一作業系統、售後業務持續成長以及增值併購。

At Elgin, our pilot plant for the rollout of our recently codified Federal Single operating system, we saw some initial productivity and cost optimization benefits associated with this initiative in Q2. We are pleased with the progress we've made on a number of these foundations through the year at many of our businesses, but we are not done here. We see ourselves as being in the early innings of what we view as a multiyear opportunity to drive structural improvements.

在埃爾金，我們推出最近編纂的聯邦單一操作系統的試點工廠，我們在第二季度看到了與這項措施相關的一些初步生產力和成本優化效益。我們對今年許多業務在這些基礎上取得的進展感到高興，但我們的工作還沒有完成。我們認為自己正處於推動結構性改善的多年機會的早期階段。

Turning now to our outlook for the rest of the year, demand for our products in our aftermarket offerings remains high with our strong order intake this quarter contributing to a backlog which provides us with excellent visibility into the second half of the year.

現在轉向我們對今年剩餘時間的展望，我們的售後市場產品的需求仍然很高，本季度我們的訂單量強勁，導致積壓，這為我們提供了下半年的良好可見性。

With our second quarter performance our current backlog and continued execution against our strategic initiatives, we are raising our full year adjusted EPS outlook to a new range of $3.20 to $3.35 from the prior range of $2.95 to $3.15. We are also reaffirming our full year net sales outlook of between $1.85 billion and $1.9 billion.

根據我們第二季度的業績、當前積壓的訂單以及對戰略計劃的持續執行，我們將全年調整後每股收益展望從之前的 2.95 美元至 3.15 美元上調至 3.20 美元至 3.35 美元的新範圍。我們也重申全年淨銷售額預期為 18.5 億美元至 19 億美元。

This outlook, which does not assume any M&A, reflects our view of continued healthy demand for our new equipment parts and aftermarket services and also assumes a continuation of daily build rate increases at several key facilities, somewhat offset by fewer production days in the second half of the year.

這項展望不假設任何併購，反映了我們對新設備零件和售後服務的持續健康需求的看法，並假設幾個關鍵設施的日建造率繼續增長，但下半年生產天數減少在一定程度上抵消了這一增長今年的。

We also continue to expect double digit improvement in pretax earnings and EBITDA margin performance in the upper half of our target range. Lastly, we are maintaining our CapEx outlook of $35 million to $40 million for the year.

我們也繼續預期稅前收益和 EBITDA 利潤率將實現兩位數的改善，達到我們目標範圍的上半部分。最後，我們維持今年 3,500 萬至 4,000 萬美元的資本支出預期。

At this time, I think we are ready for questions. Operator?

現在，我想我們已經準備好提問了。操作員？

(Operator Instructions) Steve Barger, KeyBanc Capital Markets.

（操作員說明）Steve Barger，KeyBanc 資本市場。

Thanks, good morning.

謝謝，早安。

Good morning, Steve.

早安，史蒂夫。

Really strong quarter. I wanted to start with the ESG incremental margin of 46% following 40% in the first quarter. Can you talk through volume mix and price? And just what do you expect for incrementals in the back half?

確實強勁​​的季度。我想從第一季 ESG 增量利潤率 40% 的 46% 開始。能談談銷售組合和價格嗎？您對後半段的增量有何期望？

Yeah. So Steve, I think as we look kind of the breakdown on the top line volume that was 8% of the 10% growth, price was about $2.5. We had a little bit of a headwind from fewer chassis. I think Jennifer talked about that impact. So that was about a 1% drag on the top line there.

是的。所以史蒂夫，我認為當我們查看營業額的細分時，即 10% 增長的 8%，價格約為 2.5 美元。由於底盤較少，我們遇到了一些阻力。我想詹妮弗談到了這種影響。因此，這對營收造成了大約 1% 的拖累。

So as we think about kind of the drivers of the margin improvement volume was the biggest driver of that and just the efficiencies that we get from ramping up production at several of our facilities. We did have very favorable price cost dynamics in the quarter. So that was also a factor.

因此，當我們考慮利潤率改善的驅動因素時，數量是最大的驅動因素，而我們透過提高幾個工廠的產量而獲得的效率。本季我們確實有非常有利的價格成本動態。所以這也是一個因素。

And then the other thing is we have the aftermarkets business as well as some of our recent acquisitions, which have a slightly more attractive margin profile. As those businesses have grown, that pulled up kind of the overall average and so that's had some margin benefits. As well as we think about the back half of the year, I think the guidance that we've given you would indicate that we're still expecting incrementals for ESG to be kind of north of 30%. So that's kind of what's implied in the outlook.

另一件事是我們擁有售後市場業務以及我們最近的一些收購，這些業務的利潤率稍微更具吸引力。隨著這些業務的成長，整體平均值有所提高，因此帶來了一些利潤率效益。除了我們對今年下半年的看法之外，我認為我們給您的指導表明我們仍然預計 ESG 增量將在 30% 以上。這就是前景所暗示的內容。

Yeah, for sure. If I mild to the high end of the new guidance, the quarters in the back half will certainly have good margins, but we're running $0.07 to $0.08 lower than what you just put up. Is mix getting worse? Is it holidays? Can you talk about why $0.95 isn't a sustainable run rate given the backlog and the capacity you have?

是的，當然。如果我溫和地接受新指導的高端，後半段的季度肯定會有不錯的利潤率，但我們的價格比您剛剛提出的價格低 0.07 美元到 0.08 美元。混音是不是越來越差了？是假期嗎？您能談談為什麼考慮到積壓訂單和您擁有的產能，0.95 美元不是可持續的運行費率嗎？

Yeah. A couple of things that I think Jennifer alluded to the fewer production days that we have in the second half of the year versus the first half of the year, that's kind of always something that we face in the second half of the year. There's a couple of other things. We talked about the chassis impact at the $10 million that will impact the top line. That won't be much of an earnings impact because it's typically pass through. So that should have a little bit of a margin benefit that.

是的。我認為珍妮佛提到了我們下半年的製作天數比上半年更少的幾件事，這總是我們下半年面臨的問題。還有其他一些事情。我們討論了底盤對 1000 萬美元的影響，這將對收入產生影響。這不會對盈利產生太大影響，因為它通常會被傳遞。所以這應該會帶來一點利潤。

And then just the other thing to remember, as we talked on our last earnings call about some incremental rental fleet investment that we will making most of that is in the second half of the year. So that will also be a factor.

然後還有另一件事要記住，正如我們在上次財報電話會議上談到的一些增量租賃車隊投資，我們將在今年下半年進行大部分投資。所以這也將是一個因素。

And sorry, if I missed this, what's the difference in production days between the first half and the back half?

抱歉，如果我錯過了這一點，那麼前半部分和後半部分的生產天數有什麼區別？

I think we are in the six to seven range.

我認為我們在六到七的範圍內。

And did you say what the incremental investment in rental is?

你說租金增量投資是多少？

So on the this was on our first quarter call, we talked about a $20 million incremental fleet investments. So that will have some impact with most of that being in the second half of the year. That's nothing new. That's the same as what we talked about in Q1.

因此，在我們第一季的電話會議上，我們討論了 2000 萬美元的增量機隊投資。因此，這將會產生一些影響，其中大部分是在今年下半年。這不是什麼新鮮事。這與我們在第一季討論的內容相同。

Understood. Yeah. Thank you.

明白了。是的。謝謝。

Walt Liptak, Seaport Research.

沃爾特·利普塔克，海港研究中心。

Hey, good morning, guys. Great quarter. I wanted to ask about the dump truck orders were very strong. It's nice to see that recovery happening. I think that's the second or third quarter in a row. I wonder if you could talk a little bit about the cadence of orders. And I think you kind of alluded to some of this in your Jennifer in your presented comments.

嘿，早上好，夥計們。很棒的季度。我想問的是自卸車訂單非常強勁。很高興看到這種復甦的發生。我認為這是連續第二或第三季。我想知道你能否談談訂單的節奏。我認為您在詹妮弗發表的評論中提到了其中的一些內容。

Are those orders -- I mean, at what point do you start getting in to tough comps? Do you see sort of this pent-up demand giving way to sort of a normalized growth rate? How should we think about the second half for dump truck ordering?

這些命令是——我的意思是，你什麼時候開始參加艱難的比賽？您是否認為這種被壓抑的需求正在讓位給某種正常化的成長率？下半年自卸車訂單該如何看待？

Yeah, it is me. First of all, we were pleased with orders overall. And as we noted on the call, some truck orders were strong. I think that was -- it is a combination of execution on strategic initiatives, particularly some of the geographic expansion issues initiatives. The team has done a really nice job. There's pent-up demand, chassis improvement we talked about during this quarter.

是的，是我。首先，我們對整體訂單感到滿意。正如我們在電話中指出的那樣，一些卡車訂單很強勁。我認為這是策略性舉措執行的結合，特別是一些地理擴張問題舉措。該團隊做得非常好。我們在本季談到了被壓抑的需求和底盤改進。

The Ox Bodies, we saw the highest number of chassis available that we've seen for several years. And then finally, there's pent-up demand. And then we're starting -- we have some examples that we cited one on the call of benefits from infrastructure.

Ox Body，我們看到了幾年來數量最多的可用底盤。最後，還有被壓抑的需求。然後我們開始——我們有一些例子，我們在呼籲基礎設施帶來好處時引用了其中一個例子。

And their lead times are much shorter than, for example, right now, sewer cleaners and certain street sweepers. So we're able to, for many of those orders flip those orders with the order comes in and we're able to deliver it within the quarter. The other thing that was encouraging and the dump truck order size was pretty balanced between municipal and industrial.

他們的交貨時間比現在的下水道清潔工和某些街道清潔工短得多。因此，對於其中許多訂單，我們能夠將這些訂單與收到的訂單翻轉，並且我們能夠在季度內交付。另一件令人鼓舞的事情是自卸車訂單規模在市政和工業之間相當平衡。

Okay, great. So it sounds like the order activity was good kind of consistent during the quarter and you're feeling good going into the third quarter for order activity?

好的，太好了。聽起來本季的訂單活動非常穩定，您對進入第三季的訂單活動感覺良好嗎？

Yeah, the order activity was consistent throughout the quarter and really on accolades to the team for just strong performance and continued execution of strategic initiatives.

是的，整個季度的訂單活動保持一致，這確實是對團隊的強勁表現和策略性舉措的持續執行的讚揚。

Okay. Thanks for that. I going back to the production question. And what are the pluses and minuses around you guys increasing the production in the second half? Because you got the backlog that's there sounds like the orders are coming in strong. Is it supply chain that's the biggest risk? Is that factory productivity? And what could help you build more trucks in the second half?

好的。謝謝你。我回到生產問題。你們下半年增產的利弊是什麼？因為積壓的訂單聽起來訂單量很大。最大的風險是供應鏈嗎？這就是工廠的生產力嗎？什麼可以幫助您在下半年生產更多卡車？

So I'll start with, again, we were really encouraged by what we saw in Q2. So I'll start there. The team did a really nice job in terms of building more trucks in many of our facilities. It can always vary business to business, but some of the critical considerations are we need to ramp and train labor.

所以我首先要再次強調，我們對第二季所看到的情況感到非常鼓舞。所以我將從這裡開始。團隊在我們的許多工廠建造更多卡車方面做得非常出色。它總是會因企業而異，但一些關鍵的考慮因素是我們需要增加和培訓勞動力。

We generally have pretty good access to labor. We did hire and train them. supply chain always remains a factor. We've talked about in a chassis availability is pretty good. The medium duty on chassis market continues to be tight. It represents a pretty small percentage of our overall business.

我們通常有很好的勞動力機會。我們確實僱用並培訓了他們。供應鏈始終是一個因素。我們在機箱中談到可用性相當不錯。底盤市場的中型關稅持續緊張。它只占我們整體業務的一小部分。

We -- the fewer production days in the second half of the year. But again, I want to emphasize we would expect kind of gradual continued improvement as we work our way through the year because this is the teams are razor focused on reducing lead times at several of our facilities and increasing production rates.

我們——下半年的生產天數較少。但我想再次強調，我們預計在這一年中我們會逐步持續改進，因為團隊的重點是減少我們幾個工廠的交貨時間並提高生產力。

Okay, great. And sticking with ESG, you made a comment that I had heard before about autonomous vehicles and the MRL road striping. Is there something that's changed in that market? Are there like regulations or something or some funding for that? Or is it just a product development that you're working on?

好的，太好了。堅持 ESG，你發表了我之前聽過的關於自動駕駛汽車和 MRL 道路劃線的評論。該市場有什麼變化嗎？是否有類似的法規或其他東西或一些資金？或者這只是您正在從事的產品開發？

Yeah, I think as more and more people have smart features on their cars that notify you, for example, when you're changing lanes and alert you, you need road striping and solid road striping to utilize those features. And if our teams are talking to customers and talking to agencies, having the ability to utilize those features that are in many automobiles We drive continues to be an important part of the driver for our products.

是的，我認為隨著越來越多的人在他們的汽車上配備智能功能來通知您，例如，當您改變車道時並提醒您，您需要道路標線和實心道路標線來利用這些功能。如果我們的團隊正在與客戶和機構交談，那麼能夠利用我們駕駛的許多汽車中的這些功能仍然是我們產品驅動力的重要組成部分。

Okay, great. Thanks.

好的，太好了。謝謝。

Chris Moore, CJS Securities.

克里斯摩爾，CJS 證券。

Good morning, guys. Another terrific quarter. No surprise. All right. So you've discussed rental in many cases, the rent-to-own strategy really been helpful in this high rate environment, a differentiator. If rates come down a little this year, more and more in '25, is that going to have a meaningful impact on the aftermarket mix?

早安，夥計們。又一個精彩的季度。毫不奇怪。好的。因此，您在許多情況下都討論過租賃，先租後買策略在這種高利率環境中確實很有幫助，是一個差異化因素。如果今年利率略有下降，並在 25 年下降得越來越多，這會對售後市場組合產生有意義的影響嗎？

We believe with the infrastructure bill, there's going to continue to be demand for rental product. This is particularly important to our industrial customers particularly around safe digging. And product adoption of that particular product line increases, rental is often a format to a try before you buy.

我們相信，隨著基礎設施法案的出台，對租賃產品的需求將持續存在。這對於我們的工業客戶尤其是在安全挖掘方面尤其重要。隨著特定產品線的產品採用率不斷增加，租賃通常是購買前嘗試的一種形式。

So I think again, part of our strategy that we've talked a lot about is we're very flexible in terms of whether you want to buy new equipment, you want to rent equipment, you want to buy used equipment at different price points. We can respond to all the various see. The other thing I'd point out is, as you know, 50% of our business is publicly funded, which is really kind of immune to the interest rate environment.

所以我再次認為，我們已經討論了很多的策略的一部分是，我們非常靈活，無論您想購買新設備，您想租用設備，您想以不同的價格購買二手設備。我們可以回應所有不同的看法。我要指出的另一件事是，如您所知，我們 50% 的業務是公共資助的，這確實不受利率環境的影響。

Got it. Very helpful. You guys have done a really good job leveraging acquisitions into new geographies. You talked about Mark Wright and Trackless as an example. Are there any meaningfully underpenetrated geographies for any of your product lines at this point in time?

知道了。非常有幫助。你們在利用收購進入新地區方面做得非常好。您以馬克·賴特（Mark Wright）和無軌（Trackless）為例。目前，您的產品線是否有明顯滲透不足的地區？

Yeah.

是的。

Well Chris, did that answer it?

克里斯，這回答了嗎？

Yeah, that's fair enough. I was hoping to get more specific, but I also understand from a competitive standpoint --

是的，這很公平。我希望能更具體，但我也從競爭的角度來理解--

I'm more than happy to give some examples. Like this room is cringing. So specifically, let's talk about on contracts. So we have geographic areas where we're the number one market provider, and part of the strategic initiatives of several of those dumb truck businesses to extend the geographic reach.

我非常樂意舉一些例子。就像這個房間令人畏縮。具體來說，我們來談談合約。因此，我們在某些​​地理區域中是第一大市場提供商，也是其中一些愚蠢的卡車企業擴大地理覆蓋範圍的戰略舉措的一部分。

Number two is Trackless would be a good example, on either we have -- we are not fully optimized, our go-to-market strategy in several geographies where on track was doesn't really the nominal sales, if any. And we're in the process, but least leveraging our TV footprint or pairing with other dealers to expand their geographic reach.

第二個是無軌將是一個很好的例子，無論是我們沒有完全優化，我們的進入市場策略在幾個正在步入正軌的地區實際上並沒有達到名義銷售額（如果有的話）。我們正在這個過程中，但至少利用我們的電視足跡或與其他經銷商合作來擴大他們的地理覆蓋範圍。

And it creates opportunity, we believe that Ground Force and TowHaul and the optimization we've done in distribution have allowed us to penetrate new geographies. We think we're at early stages there. So geographic expansion for many of our product lines is a critical strategic initiative.

它創造了機會，我們相信地面部隊和拖運以及我們在分銷方面所做的最佳化使我們能夠滲透到新的地區。我們認為我們還處於早期階段。因此，我們許多產品線的地域擴張是一項關鍵的策略舉措。

Perfect. I will leave it there. I appreciate it, guys.

完美的。我會把它留在那裡。我很感激，夥計們。

Ross Baron Blake, William Blair.

羅斯·拜倫·布萊克，威廉·布萊爾。

Hey, good morning. This is Sam calling on for Ross. Thanks for taking my question. So the ESG. segment, backlog declined 1% from the first quarter. Can you talk about what this means for top line growth, given that the ESG book-to-bill was less than one for the quarter, is there a possibility that once you work through this backlog, that sales could be pressured?

嘿，早安。這是山姆為羅斯打電話。感謝您提出我的問題。所以ESG。細分市場，積壓訂單較第一季下降 1%。您能否談談這對營收成長意味著什麼？

Yeah. I think, Sam, we've talked for several quarters now about trying to reduce lead times by increasing production while maintaining that healthy order intake level. And I think that's really what we did this quarter on. We were pleased with the order levels that we saw and Jennifer alluded to some of the comparisons and the fact that go into kind of the comparisons on the fact that it was down about 1% year over year.

是的。我想，薩姆，我們已經討論了幾個季度，試圖透過增加產量來縮短交貨時間，同時保持健康的訂單攝取量。我認為這確實是我們本季所做的事情。我們對所看到的訂單水準感到滿意，Jennifer 提到了一些比較，以及與去年同期相比下降了約 1% 的事實。

There was the trackless part of that was in last year's numbers that was about $8 million. And then there was also the chassis dynamics, which was down $9 million year over year. On a full year basis, we're expecting that chassis impact to have about a $25 million impact on orders. So that's something to consider as we go forward.

去年的數字中，有一個無人追蹤的部分，約 800 萬美元。此外，底盤動力也比去年同期下降了 900 萬美元。就全年而言，我們預計底盤的影響將對訂單產生約 2500 萬美元的影響。所以這是我們前進時需要考慮的事情。

But but I think this was the first time that our sales had outpaced orders since the fourth quarter of 2020. And so that's resulted in some long lead times. And so that's why there is such a focus on reducing those lead times while maintaining the healthy order intake level.

但我認為這是自 2020 年第四季以來我們的銷售額首次超過訂單。這導致了交貨時間較長。這就是為什麼我們如此關注減少交貨時間，同時保持健康的訂單攝取量。

Just on the chassis, even though it's a $25 million impact, that's largely positive revenue. So from an earnings standpoint, it doesn't have much of an impact. It actually would likely have some margin benefits.

僅就底盤而言，即使帶來了 2500 萬美元的影響，這在很大程度上也是正收入。所以從獲利的角度來看，影響並不大。它實際上可能會帶來一些利潤收益。

Got it. That makes sense. And then kind of one follow-up. At 25% of ESG-- or 25% of revenue implies that aftermarket revenue was flat from the second quarter '23. Is that does that right? Am I thinking about it correctly?

知道了。這是有道理的。然後是一種後續行動。ESG 的 25% 或收入的 25% 意味著售後市場收入與 23 年第二季持平。這樣做對嗎？我的想法正確嗎？

It was up a little bit. It's almost done. There's about 1.5%. It was up and that's kind of the factors in that parts were up about 1%, up 6% year to date. Rental income was up 4% in the quarter, that's up 6% year to date and then service was up 11% and that's about same year to date.

漲了一點點。快完成了。大約有1.5%。它上漲了，這就是部分上漲約 1% 的因素，今年迄今上漲了 6%。本季租金收入成長 4%，年初至今成長 6%，服務收入成長 11%，與年初至今大致相同。

What was down is the used equipment sales and the issue there is because there is strong demand for used equipment and we saw strong sales in the fourth quarter of last year, there is a need to kind of replenish that fleet because -- but the timing of it is a fact that because we were going into -- we're in the middle of kind of peak rental season right now. So we want to make sure we hold rebalancing holding onto the units for the rental fleet as well as satisfying customer demand for used equipment. And so that's one of the factors in that incremental fleet investment we talked about last quarter,

下降的是二手設備銷售，問題是因為對二手設備的需求強勁，我們在去年第四季度看到了強勁的銷售，因此需要補充該機隊，因為——但時機這是一個事實，因為我們現在正處於租賃旺季。因此，我們希望確保對租賃車隊的設備進行重新平衡，並滿足客戶對二手設備的需求。這就是我們上季談到的增量機隊投資的因素之一，

And I'll just add, particularly in this higher interest rate environment for our industrial customers, rental for safe digging equipment in particular, is that a critical option. So we want to make sure we're in a position to be able to satisfy that strong rental demand.

我想補充一點，特別是在我們的工業客戶利率較高的環境下，安全挖掘設備的租賃尤其是一個關鍵的選擇。因此，我們希望確保我們能夠滿足強勁的租賃需求。

Got it. That makes sense. I'll leave it there. Thank you.

知道了。這是有道理的。我會把它留在那裡。謝謝。

Mike Shlisky, D.A. Davidson.

麥克‧史利斯基 (Mike Shlisky)，D.A.戴維森。

Yeah, hi, good morning and thanks for taking my questions. The backlog growth looks very solid year, but you get the sense that even with the growth you're already seeing other folks who are waiting on the sidelines until after the elections, kind of make any big decisions and be in the private sector people in the oil and gas world, are they holding off and there could be an additional slug of orders to start 2025 here?

是的，嗨，早上好，感謝您回答我的問題。今年的積壓成長看起來非常穩健，但你會感覺到，即使有成長，你已經看到其他人在觀望，直到選舉結束，做出任何重大決定，並成為私營部門的人石油和天然氣領域，他們是否會推遲，並且2025 年開始可能會有額外的訂單？

No, we haven't heard that. with respect to -- we've seen only nominal benefits as we talked about from the infrastructure bill thus far. we would expect that was bipartisan legislation, we would expect in many of the projects over 60,000 projects been announced. We would expect those projects to continue regardless of the outcome in November. So as we sit here right now, we haven't heard anything meaningful about the impact of the Presidential election on our orders.

不，我們沒有聽過。到目前為止，我們從基礎設施法案中只看到了名義上的好處。我們預計這是兩黨立法，我們預計在許多項目中將宣布超過 60,000 個項目。無論 11 月的結果如何，我們預計這些項目都會繼續進行。因此，當我們現在坐在這裡時，我們還沒有聽到任何關於總統選舉對我們命令的影響的有意義的消息。

Okay. I also certainly appreciative that you're bringing up your top line growth outlook for the long-term and through the cycle. Does that also -- when you go into double-digit growth for top line, does that also kind of introduce on the margin side that you'll remain towards the upper end of that of your 2023 announced target or even potentially pull forward an increase in the margin targets and in the not-too-distant future?

好的。我當然也很欣賞您提出長期和整個週期的收入成長前景。這是否也是——當你的收入實現兩位數增長時，這是否也意味著你將保持在 2023 年宣布的目標的上限，甚至有可能提前增長在利潤目標和不久的將來？

Yeah. I think that, we were pleased with the performance in Q2. We meaningfully increased the guidance range for the rest of the year. We believe that as we've talked about for the EBITDA margin targets we set our long term through the cycle, we'll continue to revisit those targets. And with the various strategic initiatives, including our Federal Signal operating system and value added M&A, we believe that there's further opportunity in the long run to increase those EBITDA margin targets on as part of our planning. So we're pretty bullish about the opportunities as we move forward.

是的。我認為，我們對第二季的表現感到滿意。我們有意義地增加了今年剩餘時間的指導範圍。我們相信，正如我們所討論的 EBITDA 利潤率目標一樣，我們設定了整個週期的長期目標，我們將繼續重新審視這些目標。透過各種策略舉措，包括我們的聯邦訊號作業系統和增值併購，我們相信，從長遠來看，作為我們規劃的一部分，還有進一步提高 EBITDA 利潤率目標的機會。因此，我們非常看好我們前進的機會。

All right. Can you comment on the orders and backlog as well for the quarter? How much pricing has driven the growth? It could just beyond the full company basis, not by segment.

好的。您能否評論一下本季的訂單和積壓訂單？有多少定價推動了成長？它可能超出整個公司的範圍，而不是按部門劃分。

Yeah. Price, Mike, is anywhere from 2% to 3%, and that's kind of what we -- I think we at the beginning of the year, we guided to that on the top line. And so that's also reflective of kind of the orders and the backlog. So yeah, that's Q3.

是的。麥克，價格在 2% 到 3% 之間，這就是我們——我想我們在今年年初，我們在頂線上指導的。這也反映了訂單和積壓的類型。是的，這就是第三季。

Great. I'll leave it there. Thanks so much.

偉大的。我會把它留在那裡。非常感謝。

Thank you.

謝謝。

Thanks, Mike.

謝謝，麥克。

Greg Burns, Sidoti & Company.

格雷格‧伯恩斯 (Greg Burns)，西多蒂公司 (Sidoti & Company)。

Morning. When you look across your brand or product portfolio from an aftermarket perspective, are there some brands maybe particularly with some of the newer acquisitions that have a lower percentage of aftermarket sales? And is there an opportunity there with maybe some particular brands to increase that?

早晨。當您從售後市場的角度審視您的品牌或產品組合時，是否有一些品牌可能特別是一些新收購的品牌在售後市場銷售中所佔的比例較低？某些特定品牌是否有機會增加這一點？

And then longer term, do you have a target on where you want to take aftermarket sales to as a percent of revenue? I know it was that about 25% this quarter. But do you have a targeted goal that you're hoping to achieve in terms of mix? Thanks.

從長遠來看，您是否有一個目標，即售後市場銷售佔收入的比例？我知道這個季度大約是 25%。但是您是否有希望在組合方面實現的目標？謝謝。

Yeah. So depending on the timing of the acquisition, we continue to on stage the parts optimization throughout the FS solution and JJE platform. And that's important part of the synergies and the growth story. I think a really good example is the TowHaul and Ground Force acquisition. They've done a really nice job of collectively growing that particular business.

是的。因此，根據收購的時機，我們將繼續在整個 FS 解決方案和 JJE 平台上進行零件優化。這是協同效應和成長故事的重要組成部分。我認為TowHaul 和Ground Force 的收購就是一個很好的例子。他們在共同發展特定業務方面做得非常出色。

Our intention, as we just announced, is to both grow the overall business and aftermarkets as a percentage of that business. Said another way we want to grow both the numerator and the denominator. But I think over time you will see with several initiatives hat we have in place that the aftermarkets business will continue to grow. And we can see that while still growing the denominator, we could see the aftermarket business getting up to 30%.

正如我們剛剛宣布的那樣，我們的目的是增加整體業務和售後市場佔該業務的比例。換句話說，我們希望分子和分母都會成長。但我認為隨著時間的推移，您會看到我們採取的幾項舉措將使售後市場業務繼續成長。我們可以看到，在分母仍在成長的同時，我們可以看到售後業務成長了 30%。

Okay, great. Thank you.

好的，太好了。謝謝。

Dave Storms, Stonegate.

戴夫·斯托姆斯，石門。

Good morning and congrats on the quarter. Just hoping we could get a breakout for the SSG margin performance similar to the ESG margin performance. Just curious if volumes are the main driver there as well.

早上好，恭喜本季。只是希望我們能夠實現與 ESG 利潤率表現類似的 SSG 利潤率表現的突破。只是好奇銷量是否也是主要驅動力。

Yeah, Dave, volumes were the main driver. And so if you think of the 18% top line growth, about 14% was volume. And then the rest would have been the prices about three, as we talked about. And then there's some some favorable mix component.

是的，戴夫，銷量是主要驅動力。因此，如果您考慮 18% 的收入成長，那麼大約 14% 是銷量成長。然後剩下的就是我們談到的大約三的價格。然後還有一些有利的混合成分。

So the vast majority was the incremental volumes. And I think as we've talked about previously all of our domestic operations within the SSG business are in one facility. And so the more we can push through that facility that has some pretty attractive drop through. And so I think we saw some of that during the quarter.

所以絕大多數是增量。我認為正如我們之前所討論的，我們 SSG 業務中的所有國內業務都位於一個設施中。因此，我們可以越多地推動該設施，其中有一些非常有吸引力的下降。所以我認為我們在本季看到了一些這樣的情況。

Very helpful. Thank you. And I know you mentioned in your prepared remarks that given your strong cash position, you're excited about some organic growth initiatives. Any sense of what your prioritized list of organic growth initiatives would be? Is that increasing capacity? Is that -- but just kind of what does that look like performance uptake?

非常有幫助。謝謝。我知道您在準備好的演講中提到，鑑於您擁有強大的現金狀況，您對一些有機增長計劃感到興奮。您知道您的有機成長計劃的優先事項清單是什麼嗎？這是增加容量嗎？這就是——但這只是一種效能提升的表現嗎？

I mean, our CapEx, we typically -- I think we guide to $35 million to $40 million. That's typically about half maintenance, half growth. We look at things like lasers, robots, things that can generate some operational efficiencies. So those would be the types of things that we look at across the organization.

我的意思是，我們的資本支出通常為 3500 萬至 4000 萬美元。這通常大約是一半維護，一半是成長。我們關注雷射、機器人等可以提高營運效率的東西。這些就是我們在整個組織中關注的事物類型。

Understood. That's very helpful. Thank you for taking my questions and good luck next quarter.

明白了。這非常有幫助。感謝您回答我的問題，祝下季度好運。

Steve Barger, KeyBanc Capital Markets.

Steve Barger，KeyBanc 資本市場。

Thanks. The multiyear growth target of double digits, do you expect organic growth in the future will run better than the historical 7% rate? Or are you just kind of counting on that same number?

謝謝。兩位數的多年成長目標，您預期未來的有機成長會好於歷史7%的速度嗎？或者你只是指望同樣的數字？

It can always vary quarter to quarter, but we expect there to be strong organic growth as we continue to execute on these strategic initiatives.

每個季度的情況總是會有所不同，但我們預計，隨著我們繼續執行這些策略舉措，將會出現強勁的有機成長。

Well, I'm just thinking about that, even if it is still 7%, it suggests you'll add maybe $60 million plus per year in acquired revenue. And of course, that number will have to grow over time. Does the pipeline have enough depth of deals and progress that you expect at least one deal per year?

嗯，我只是在想，即使仍然是 7%，這也表明您每年可能會增加 6000 萬美元以上的收入。當然，這個數字必須隨著時間的推移而增長。管道是否有足夠的交易深度和進展，您預計每年至少有一筆交易？

I believe we will have no problem hitting the numbers that you just stated. That pipeline is very strong.

我相信我們達到你剛才所說的數字是沒有問題的。該管道非常強大。

As you think about the deals that are out there that you see whether they close or not, what's the revenue average of those deals and maybe the range? Is it from $10 million to $100 million? Or what do you see?

當您考慮現有交易是否完成時，這些交易的平均收入是多少，也許是範圍？是從1000萬美元到1億美元嗎？還是你看到了什麼？

Yeah, the majority of the deals are in the $50 million to $ million100, but there are a number of smaller deals and then there's always larger opportunities also. So it's got a good a pretty wide range but the majority of deals are in that are in $50 million to $100 million-ish range.

是的，大多數交易的金額都在 5000 萬美元到 100 萬美元之間，但也有一些較小的交易，而且總是有更大的機會。所以它的範圍相當廣泛，但大多數交易都在 5000 萬美元到 1 億美元左右的範圍內。

And I know historically you don't like fixer uppers, is that still the philosophy going forward? Do you -- what's kind of the minimum margin profile that you would accept if you're doing a $50 million or $100 million deal?

我知道從歷史上看你不喜歡固定鞋面，這仍然是未來的理念嗎？如果您正在進行 5000 萬美元或 1 億美元的交易，您願意接受的最低保證金是多少？

Yeah. I think, for us, it is can this business operate within our target EBITDA margin range. And is there opportunity for further EBITDA margin range expansion through the cycle.

是的。我認為，對我們來說，這個業務能否在我們的目標 EBITDA 利潤率範圍內運作。在整個週期中是否有機會進一步擴大 EBITDA 利潤率範圍。

So there are examples of businesses that we bought that are below the target EBITDA margin range. But we believe in terms of the power of the platform and various synergies on operational improvements that they can operate within the range and then there's opportunities to increase over time.

因此，我們購買的企業有一些低於目標 EBITDA 利潤率範圍的例子。但我們相信，就平台的力量和營運改進的各種協同效應而言，他們可以在一定範圍內運營，然後隨著時間的推移，還有機會增加。

So that has been several of the acquisitions we've done, the more recent acquisitions have operated within the EBITDA margin range. And we've raised those ranges because of the synergies and operational improvements that we've executed.

這就是我們所做的幾筆收購，最近的收購都是在 EBITDA 利潤率範圍內進行的。由於我們執行的協同效應和營運改進，我們提高了這些範圍。

Got it. And I think you addressed a few ways that you can add new market adjacencies, adding the verticals, and I think there was one other, but what is the most likely outcome if you can handicap it? Or do you have a preference for how you approach those?

知道了。我認為您提出了幾種可以添加新的市場鄰接、添加垂直領域的方法，我認為還有另一種方法，但如果您可以限制它，最可能的結果是什麼？或者您對處理這些問題的方式有偏好嗎？

No. Again, it is -- I think we have a pretty good mix right now in the pipeline on across the three examples that I gave. And again, it really comes down to what synergies do we bring, how do we improve performance and how do we grow the business.

不。再說一次，我認為我們現在在我給出的三個示例中已經有了很好的組合。再說一次，這實際上取決於我們能帶來什麼協同效應、我們如何提高績效以及我們如何發展業務。

Got it. Okay. Thanks.

知道了。好的。謝謝。

Thanks, Steve.

謝謝，史蒂夫。

YWalt Liptak, Seaport Research.

YWalt Liptak，海港研究中心。

Thanks for taking the follow-up. So the SSG part of the business, the orders I thought we're on kind of a tough comp with last year and they grew nicely 7%. Can you give us a little bit of color on what's going on? Were these international orders that you're taking in? Are they domestic? Is it market share wins or is it growth in the market?

感謝您的關注。因此，業務的 SSG 部分，我認為我們的訂單與去年相比有點艱難，但增長了 7%。您能給我們透露一下正在發生的事情嗎？你們正在接受這些國際訂單嗎？他們是國內的嗎？是市場佔有率的贏得還是市場的成長？

I'll start with the teams are just doing a super job on execution, their strategic initiatives. I think, that's a business, in particular, where we see strong new product development and we're seeing the benefits from that, they were able to secure several particularly pleased we've been able to secure several orders. We talked about the one large order that we secured on near the end of the quarter that will deliver next year.

我將從團隊在執行和策略舉措方面做得非常出色開始。我認為，這是一項業務，特別是我們看到了強大的新產品開發，我們看到了從中帶來的好處，他們能夠獲得一些訂單，特別高興的是我們能夠獲得一些訂單。我們談到了我們在本季末獲得的一筆大訂單，該訂單將於明年交付。

Our Vama team in Europe has done a really nice job also. Our signaling and warning team has done a nice job. So what we're encouraged about is just excellent execution on strategic initiatives, including, as we've talked about with you many times 80-20. And the results that we continue to see and is part of our culture there.

我們歐洲的 Vama 團隊也做得非常好。我們的信號和警報團隊做得很好。因此，我們受到鼓勵的是對戰略計劃的出色執行，包括我們與您多次討論過的 80-20 次。我們不斷看到這些成果，而這些成果已成為我們文化的一部分。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Thank you.

謝謝。

There are no further questions at this time. I'd like to turn the floor back over to Jennifer Sherman for closing comments.

目前沒有其他問題。我想把發言權交還給詹妮弗·謝爾曼以供結束發言。

Thank you, in closing, I'd like to reiterate that we are confident in the long-term prospects for our businesses and our markets. We remain focused on executing against our strategic framework. We would like to express our sincere thanks to our stockholders, employees, distributors, dealers, and customers for their continued support. Thank you for joining us today, and we'll talk to you soon.

謝謝，最後，我想重申，我們對我們的業務和市場的長期前景充滿信心。我們仍然專注於執行我們的戰略框架。我們衷心感謝我們的股東、員工、經銷商、經銷商和客戶的持續支持。感謝您今天加入我們，我們很快就會與您交談。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與