Federal Signal Corp (FSS) 2024 Q3 法說會逐字稿

Greetings and Welcome to Federal Signal Corporation's third quarter earnings conference call. (Operator Instructions)

問候並歡迎參加聯邦信號公司第三季收益電話會議。（操作員指令）

I would now like to turn the conference over to your host, Felix Boeschen Vice President, Corporate Strategy and Investor relations. Please go ahead.

現在，我想將會議交給主持人、企業策略和投資者關係副總裁 Felix Boeschen。請繼續。

Good morning and Welcome to Federal Signal's third 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. We will refer to some presentation slides today as well as to the earnings release which we issued this morning.

早安，歡迎參加 Federal Signal 2024 年第三季電話會議。我是公司企業策略和投資者關係副總裁 Felix Boeschen，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 和我們的財務長 Ian Hudson。我們將參考今天的一些簡報幻燈片以及我們今天早上發布的收益報告。

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 have also posted the slide presentation and the earnings release under the investor tab on our website.

您可以透過造訪我們的網站 Federalsignal.com、點擊投資者呼叫圖示並登入網路廣播來在線上觀看幻燈片。我們也在網站的投資者標籤下發布了幻燈片演示和收益報告。

Before we begin, I would 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.

在我們開始之前，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約束，這些文件可在我們的網站上查閱。

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, Ian will start today by providing details on our third quarter financial results.

我們的報告也包含一些不符合我們收益報告和文件中公認會計原則的措施。我們將這些非公認會計準則指標與公認會計準則指標進行協調。此外，我們將於今天晚些時候提交 10-Q 表，Ian 將從今天開始提供有關我們第三季度財務業績的詳細資訊。

Jennifer will then provide her perspective on our performance, an update on our internal initiatives and provide an update on our guidance for 2024. After our prepared comments, we will open the line for any questions with that I would now like to turn the call over to Ian.

然後，珍妮佛將介紹我們業績的最新情況、內部舉措的最新進展以及 2024 年的指導意見。在我們準備好評論之後，我們將開通熱線來回答任何問題，現在我想將電話轉給伊恩。

Thank you, Felix. Our consolidated third quarter financial results are provided in today's earnings release. In summary, we delivered strong financial results for the quarter with 6% year over year organic net sales growth, double digit earnings improvement, gross margin expansion and a 200 basis point increase in adjusted EBITA margin.

謝謝你，菲利克斯。我們的綜合第三季財務業績已在今天的收益報告中公佈。總而言之，本季我們取得了強勁的財務業績，有機淨銷售額年增 6%，獲利成長兩位數，毛利率擴大，調整後 EBITA 利潤率增加 200 個基點。

Consolidated net sales for the quarter were $474 million an increase of $28 million or 6% compared to last year all of the growth this quarter was organic consolidated operating income for the quarter was $75.9 million up $13.4 million or 21% compared to last year. Consolidated adjusted EBITA for the quarter was $93 million up $14.5 million or 18% compared to last year.

本季綜合淨銷售額為 4.74 億美元，比去年同期增加 2,800 萬美元（即 6%），本季的所有成長均為有機成長；本季綜合營業收入為 7,590 萬美元，比去年同期增加 1,340 萬美元（即 21%）。本季綜合調整後息稅折舊攤銷前利潤 (EBITA) 為 9,300 萬美元，較去年同期成長 1,450 萬美元，增幅 18%。

That translates to a margin of 19.6% in Q3 this year of 200 basis points compared to last year, GAAP diluted EPS for the quarter was $0.87 per share up $0.16 per share or 23% from last year on an adjusted basis. EPS for the quarter was $0.88 per share up $0.17 per share or 24% from last year.

這意味著今年第三季的利潤率為 19.6%，與去年相比增長 200 個基點，本季 GAAP 稀釋每股收益為每股 0.87 美元，經調整後較去年同期增長 0.16 美元或 23%。本季每股收益為 0.88 美元，較去年同期上漲 0.17 美元，漲幅為 24%。

Order intake for the quarter was again strong with third quarter orders of $426 million contributing to a backlog of $1.03 billion at the end of the quarter, an increase of $27 million or 3% compared to Q3 last year. In terms of our group results, ESG's net sales for the quarter were $398 million an increase of $25 million or 7% compared to last year.

本季訂單量再次強勁，第三季訂單量為 4.26 億美元，導致本季末積壓訂單量達到 10.3 億美元，與去年第三季相比增加了 2,700 萬美元，增幅為 3%。就我們集團業績而言，ESG 本季的淨銷售額為 3.98 億美元，較去年同期增加 2,500 萬美元，增幅為 7%。

ESG's operating income for the quarter was $71.5 million up $14.3 million or 25% compared to last year. ESG's adjusted EBITDA for the quarter was $87.2 million up $15.2 million or 21% compared to last year, that translates to an adjusted EBITDA margin of 21.9% in Q3 this year of 260 basis points compared to last year and performance at the upper end of our current target range.

ESG 本季的營業收入為 7,150 萬美元，較去年同期增加 1,430 萬美元，即 25%。ESG 本季的調整後 EBITDA 為 8,720 萬美元，比去年同期增加 1,520 萬美元，即 21%，這意味著今年第三季的調整後 EBITDA 利潤率為 21.9%，比去年同期增加 260 個基點，表現處於我們當前目標範圍的上限。

ESG reported total orders of $353 million in Q3 this year compared to $375 million last year. SSG's net sales for the quarter were $76 million this year, up $3 million or 4% compared to last year. SSG's operating income for the quarter was $16.8 million of $3.1 million or 23% from last year.

ESG 報告今年第三季訂單總額為 3.53 億美元，而去年同期為 3.75 億美元。SSG 今年本季的淨銷售額為 7,600 萬美元，比去年同期成長 300 萬美元，增幅為 4%。SSG 本季的營業收入為 1,680 萬美元，比去年同期的 310 萬美元成長 23%。

SSG's adjusted EBITDA for the quarter was $17.8 million of $3.2 million or 22% from last year. That translates to an adjusted EBITA margin for the quarter of 23.4% an increase of 350 basis points compared to last year. SSG's orders for the quarter were $73 million down 3%.

SSG 本季調整後的 EBITDA 為 1,780 萬美元，較去年同期的 320 萬美元成長 22%。這意味著本季調整後的 EBITA 利潤率為 23.4%，比去年同期增加了 350 個基點。SSG本季訂單量為7,300萬美元，下降3%。

In comparison to order intake in Q3 last year, which included a $7 million fleet order from a customer in Europe, corporate operating expenses for the quarter were $12.4 million compared to $8.4 million last year with about half of the year over year variance resulting from unfavorable changes in fair value adjustments of post retirement reserves.

與去年第三季的訂單量相比（其中包括來自歐洲客戶的價值 700 萬美元的機隊訂單），本季的企業營運費用為 1,240 萬美元，而去年同期為 840 萬美元，其中約有一半的同比差異是由於報廢準備金的公允價值調整出現不利變化造成的。

Turning now to the consolidated income statement where the increase in sales contributed to a $22.7 million. Improvement in gross profit consolidated gross margin for the quarter was 29.6% up 320 basis points compared to last year. As a percentage of net sales. Our selling engineering general and administrative expenses for the quarter were up 140 basis points from Q3 last year.

現在來看看合併損益表，銷售額的成長貢獻了 2,270 萬美元。本季毛利提高，綜合毛利率為29.6%，較去年同期上升320個基點。佔淨銷售額的百分比。本季我們的銷售工程一般及行政開支較去年第三季上升了 140 個基點。

Other items affecting the quarterly results included a $2.1 million reduction in interest expense associated with lower average debt levels tax expense for the quarter was $18.7 million up $4.9 million from the prior year with the increase primarily due to higher pretax income levels.

其他影響季度業績的項目包括因平均債務水平較低而導致的利息支出減少 210 萬美元；本季稅收支出為 1,870 萬美元，較上年增加 490 萬美元，這一增長主要由於稅前收入水平較高。

Our effective tax rate for the quarter was 25.8% compared to 24.2% last year. At this time, we expect our fourth quarter effective tax rate to be approximately 26% excluding any discrete items on an overall GAAP basis. We therefore earned 87¢ per share in Q3 this year compared with $0.71 per share in Q3 last year.

我們本季的有效稅率為 25.8%，去年同期為 24.2%。目前，我們預計第四季度的有效稅率（不包括任何單獨項目）在整體 GAAP 基礎上約為 26%。因此，今年第三季我們每股收益為 87 美分，而去年第三季每股收益為 0.71 美元。

To facilitate earnings comparisons, we typically adjust our GAAP earnings per share for unusual items recorded in the current or prior quarters. In the current year quarter we made adjustments to GAAP earnings per share to exclude acquisition related expenses on this basis. Our adjusted earnings for the quarter were $0.88 per share compared with $0.71 per share last year.

為了方便比較收益，我們通常會根據目前或前幾季記錄的異常項目調整 GAAP 每股盈餘。在本季度，我們對 GAAP 每股盈餘進行了調整，以排除與收購相關的費用。本季調整後每股收益為 0.88 美元，去年同期為每股 0.71 美元。

Looking now at cash flow, we generated $69 million of cash from operations during the quarter. An increase of $21 million from last year, primarily due to higher net income and working capital improvements. That brings our year-to-date operating cash generation to $141 million an increase of 55% compared to the first nine months of last year.

現在來看現金流，我們本季的經營活動產生了 6,900 萬美元的現金。比去年增加了 2,100 萬美元，主要原因是淨收入增加和營運資本改善。這樣，我們今年迄今的營運現金產生額就達到 1.41 億美元，比去年前九個月成長了 55%。

With the improved cash flow, we paid down approximately $25 million of debt during the quarter ending the quarter with $158 million of net debt and availability under our credit facility of $557 million. Our current net debt leverage remains low even after taking into account, our recently announced acquisition of standard equipment with our financial position remaining strong.

隨著現金流的改善，我們在本季末償還了約 2,500 萬美元的債務，淨債務為 1.58 億美元，可用信貸額度為 5.57 億美元。即使考慮到我們最近宣布的收購標準設備，我們目前的淨債務槓桿率仍然很低，我們的財務狀況仍然強勁。

We have significant flexibility to invest in organic growth initiatives, pursue strategic acquisitions and return cash to stockholders through dividends and opportunistic share repurchases. On that note, we paid dividends of $7.3 million during the quarter, reflecting a dividend of $0.12 per share and we recently announced a similar dividend for the fourth quarter. We also funded $4.4 million of share reposs during the quarter. That concludes my comments and I would now like to turn the call over to Jennifer.

我們具有很大的靈活性，可以投資於有機成長計劃、進行策略性收購以及透過股息和機會性股票回購向股東返還現金。就此而言，我們在本季度支付了 730 萬美元的股息，即每股 0.12 美元的股息，並且我們最近宣布了第四季度的類似股息。本季我們也資助了 440 萬美元的股票回購。我的評論就到此結束，現在我想將電話轉給珍妮佛。

Thank you. Ian. We reported another strong quarter of results which include third quarter, records across consolidated net sales adjusted EPS and adjusted EBITA margin. Thanks to outstanding contributions from both our groups within our environmental solutions group, we delivered 7% year over year net sales growth and a 21% increase in adjusted EBITA with higher production levels.

謝謝。伊恩。我們報告了另一個強勁的季度業績，包括第三季度的合併淨銷售額、調整後每股收益和調整後息稅折舊攤銷前利潤率均創下新高。由於我們環境解決方案集團內兩個部門的傑出貢獻，我們實現了淨銷售額年增 7%，調整後 EBITA 成長 21%，生產水準也更高。

Strong demand for our aftermarket offerings and continued price realization representing meaningful year over year contributors in what is typically a seasonally strong quarter. ESG's adjusted EBITA margins expanded by 260 basis points year over year to approximately 22%.

我們的售後市場產品需求強勁，價格持續上漲，這在通常季節性強勁的季度中代表著同比有意義的貢獻。ESG 的調整後 EBITA 利潤率年增 260 個基點，達到約 22%。

A new quarterly record and the upper end of our current target range with supply chains normalizing our teams are laser focused on driving increased throughput across the enterprise and are gaining traction on our build more trucks initiative at our two largest manufacturing facilities in Streeter and Elgin, Illinois combined third quarter unit production increased 12% year over year.

創下季度新高並達到當前目標範圍的上限，隨著供應鏈逐漸正常化，我們的團隊正集中精力提高整個企業的產量，並在位於伊利諾伊州斯特里特和埃爾金的兩個最大製造工廠中推動“生產更多卡車”計劃，第三季度總產量同比增長 12%。

Positively we are seeing both supply chain fluidity and quality improve across our ESG segment which should allow for further production increases and reduce lead times. For certain product lines. Primarily our sewer cleaners 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 our existing footprint.

積極的一面是，我們看到整個 ESG 部門的供應鏈流動性和品質都在提高，這將有利於進一步提高產量並縮短交貨時間。對於某些產品線。從容量角度來看，主要是我們的下水道清潔工和街道清潔工。我們的勞動力獲取管道仍然良好，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有利地將增量吸收到現有產能中。

Shifting to aftermarkets demand for our aftermarket products and services remains strong as revenues grew by approximately 10% year over year strength was broad based across our aftermarket portfolio. With rental income service, run up venue and used equipment sales all up by more than 10% compared to Q3 of last year while part sales were also up 6% year over year.

由於營收年增約 10%，我們對售後市場產品和服務的需求轉向售後市場，這反映了我們售後市場產品組合的廣泛優勢。租賃收入服務、場地和二手設備的銷售額與去年第三季相比均成長了 10% 以上，而零件銷售額也比去年同期成長了 6%。

Given the high demand for our equipment and rent to own offerings. Our teams are diligently working to optimally balance equipment availability and used equipment sales to best serve our customers needs. Additionally, we are growing our parts businesses on numerous fronts including the further integration of recent acquisitions such as track list, our will fit parts initiative and increasing parts capture in our existing population base.

由於我們的設備和租賃服務的需求量很大。我們的團隊正在努力平衡設備可用性和二手設備銷售，以最好地滿足客戶的需求。此外，我們正在多個方面擴大我們的零件業務，包括進一步整合最近的收購，如軌道清單、我們的適配零件計劃以及增加我們現有人口基數中的零件捕獲量。

Importantly, given the essential nature of our products and associated high utilization levels through business cycles. The growth in the aftermarket business has been an important strategic pillar in our efforts to mute cyclicality in total aftermarket represented approximately 27% of ESG revenue in the third quarter of 2024. Our other vehicle based businesses also contributed positively to results with our dump truck body business.

重要的是，考慮到我們產品的基本性質以及在整個業務週期中相關的高利用率水準。售後市場業務的成長一直是我們努力降低整個售後市場週期性的重要策略支柱，售後市場業務在 2024 年第三季約佔 ESG 收入的 27%。我們的其他車輛業務也為自卸卡車車身業務的表現做出了積極貢獻。

Leading the charge with sales up 18% year over year, the quality of our products industry leading lead times and geographic expansion efforts at our Ox Bodies dump truck business present a unique value proposition that is being recognized in the marketplace shifting to our safety and security systems group.

我們的銷售額年增 18%，我們的產品品質、業界領先的交貨時間以及我們在 Ox Bodies 自卸卡車業務的地域擴張努力呈現出獨特的價值主張，這一價值主張正在得到市場認可，並逐漸轉向我們的安全和安保系統集團。

The team delivered another impressive quarter with 4% top line growth, a 22% increase in adjusted [EBITA] and a 350 basis point improvement in adjusted EBITA margin. This improvement was primarily driven by a combination of volume growth, favorable sales mix price realization and efficiency gains as I will address in more detail later on, we believe our numerous investments over the last decade have structurally strengthened the SSG segment setting the stage for future profitable growth.

該團隊又一個季度取得了令人印象深刻的成績，營收成長 4%，調整後 [EBITA] 成長 22%，調整後 EBITA 利潤率提高 350 個基點。這種改善主要得益於銷售成長、有利的銷售組合價格實現和效率提升等因素的共同推動，我將在後面詳細討論，我們相信，過去十年的大量投資從結構上加強了 SSG 部門，為未來的盈利增長奠定了基礎。

Lastly, we are particularly pleased with our cash conversion in the quarter. Having generated $69 million of cash from operations representing 120% of net income on an annual basis. We continue to target 100% cash conversion levels providing dry powder for organic and inorganic capital deployment opportunities.

最後，我們對本季的現金轉換狀況特別滿意。經營活動產生的現金為 6,900 萬美元，佔年度淨收入的 120%。我們將繼續以 100% 的現金轉換水準為目標，為有機和無機資本部署機會提供資金。

Shifting now to current market conditions, demand for our products and service offerings remains high with our third quarter order intake of $426 million representing the second highest third quarter on record to provide more detail on the composition of orders. Domestic publicly funded orders were up 8% year over year, primarily driven by strength in orders for sewer cleaners which rose 15% compared to prior year.

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，我們第三季的訂單量為 4.26 億美元，創歷史第二高的第三季訂單量，以提供有關訂單構成的更多詳細資訊。國內公共資助訂單年增 8%，主要原因是下水道清潔劑訂單強勁成長，較上年同期成長了 15%。

Resilient core funding mechanisms, high equipment utilization and our ongoing market leadership position continues to drive high demand. Similarly demand for our domestic public safety equipment remains at healthy levels with orders up 12% year over year driven by robust and market demand and ongoing strategic growth initiatives.

有彈性的核心融資機制、高設備利用率以及我們持續的市場領導地位繼續推動高需求。同樣，我們國內公共安全設備的需求仍保持在健康水平，在強勁的市場需求和持續的戰略增長舉措的推動下，訂單同比增長了 12%。

Although domestic industrial orders were down 8% year over year, there continued to be strong demand for the majority of our industrial products. In fact, the lower industrial orders in Q3 this year was almost entirely due to a $19 million reduction in orders for our new safe digging products. To be clear, we continue to believe that the adoption of safe digging across North America will prove a meaningful long term growth driver.

儘管國內工業訂單年減8%，但我們大多數工業產品的需求仍然強勁。事實上，今年第三季工業訂單的下降幾乎完全是由於我們的新安全挖掘產品訂單減少了 1,900 萬美元。需要明確的是，我們仍然相信，在北美採用安全挖掘將被證明是一個有意義的長期成長動力。

However, given the predominantly industrial contractor base and the fact that safe digging trucks represent one of our more expensive products. It is also one of our most interest rate sensitive new equipment purchases as such we have seen customers favor rentals or used equipment purchases to serve their safe digging needs as opposed to buying a new unit.

然而，考慮到主要的工業承包商基礎和安全挖掘卡車是我們較昂貴的產品之一。這也是我們對利率最敏感的新設備採購之一，因此我們發現客戶更喜歡透過租賃或購買二手設備來滿足他們的安全挖掘需求，而不是購買新設備。

In fact, in Q3, we saw that thesis materialized in our aftermarket business in the form of double digit increases in our combined safe digging rental income and used equipment sales as one of the largest manufacturers of hydro excavation trucks in North America. We believe our multipronged approach between new used rental and rent to own availability offers our customer base important flexibility in accessing equipment.

事實上，在第三季度，我們看到這一論點在我們的售後業務中得以體現，作為北美最大的水力挖掘卡車製造商之一，我們的綜合安全挖掘租金收入和二手設備銷售額實現了兩位數的增長。我們相信，我們在新舊租賃和租賃購買之間的多管齊下的方法為我們的客戶群提供了獲取設備的重要靈活性。

We also believe it sets the foundation for federal signal to capitalize on this multiyear adoption tailwind while decreasing the cyclicality of our safe digging business. In fact, approximately 80% of our sewer cleaners are now equipped with hydro excavation packages and we continue to see strong customer demand for these multiuse products.

我們也相信，它為聯邦訊號利用這一多年採用的順風奠定了基礎，同時降低了我們的安全挖掘業務的周期性。事實上，我們大約 80% 的下水道清潔器現在都配備了水力挖掘套件，而且我們持續看到客戶對這些多用途產品的強勁需求。

We believe this enables another avenue for federal signal to capitalize on the rising adoption of safe digging across North America, excluding safe digging our other domestic industrial orders increased 4% year over year dump truck body orders rose 13% year over year driven in part by ongoing execution on our strategic growth initiatives and high demand for public road construction equipment.

我們相信，這為聯邦訊號提供了另一條途徑，使其能夠利用北美日益普及的安全挖掘，除安全挖掘外，我們其他國內工業訂單同比增長 4%，自卸卡車車身訂單同比增長 13%，部分原因是我們持續執行戰略增長計劃和對公共道路建設設備的高需求。

With approximately $100 billion of the $840 billion of funds authorized under the bipartisan infrastructure law spent today. Our teams continue to strategically position our businesses to capitalize on what we see as rising demand in the form of greater parts, consumption, equipment sales opportunities and other aftermarket services over a multiyear period.

根據兩黨基礎設施法授權的 8,400 億美元資金中，今天已經花費了約 1,000 億美元。我們的團隊將繼續策略性地定位我們的業務，以利用我們所看到的多年來以更大的零件、消費、設備銷售機會和其他售後服務形式不斷增長的需求。

One such example is our road marking and line removal services businesses high mark which in conjunction with MRL and Blasters continues to enjoy strong demand for our suite of road marking and stripe line removal, product and services. In summary demand for our product remains high. Our teams are focused on executing on our growth initiatives and building more trucks while maintaining a healthy order intake.

其中一個例子是我們的道路標記和標線去除服務業務高標，它與 MRL 和 Blasters 一起繼續享受對我們道路標記和條紋線去除套件、產品和服務的強烈需求。總之，我們產品的需求仍然很高。我們的團隊專注於執行成長計劃和生產更多卡車，同時保持健康的訂單量。

I now want to provide an update on a number of internal initiatives that support our through the cycle target of double digit top line growth. Recall that these targets are consistent with our actual track record of a 14% revenue tagger since 2016. Similar to our actual experience over that time frame, we expect a fairly even contribution over the long term between organic and inorganic growth as part of these targets.

現在，我想介紹一下一些內部舉措的最新情況，這些舉措支持我們實現兩位數營收成長的周期目標。回想一下，這些目標與我們自 2016 年以來 14% 的營收成長實際記錄一致。與我們在這段時間內的實際經驗類似，我們預計，作為這些目標的一部分，從長遠來看，有機成長和無機成長之間的貢獻將相當均衡。

First, we are pleased to announce that we closed the acquisition of Standard equipment earlier this month, similar to other acquisitions in this arena. The addition of Standard further builds upon our aftermarket growth strategy that was originally put into action in 2016 as we expand our parts services and rent to own offerings.

首先，我們很高興地宣布，我們已於本月初完成標準設備的收購，與該領域的其他收購類似。標準部件的加入進一步鞏固了我們的售後市場成長策略，該策略最初於 2016 年實施，當時我們擴大了零件服務和租賃服務。

From a strategic perspective, our growing aftermarket ecosystem allows us to better serve our customer needs throughout the entire business cycle. While targeting historically under penetrated cohorts of federal signal customers and muting cyclicality. We believe the addition of Standard further accelerates those efforts with integration efforts already well underway.

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業務週期中更好地滿足客戶需求。同時瞄準歷史上滲透率較低的聯邦訊號客戶群並減弱週期性。我們相信，標準的加入將進一步加速這些努力，因為整合工作已經在順利進行中。

More broadly, our M&A pipeline remains active with numerous opportunities currently under evaluation spanning new OEM equipment adjacencies within our ESG and SSG segments. Further aftermarket growth opportunities and strategic asset assets within verticals that we already operate in. Second, we are identifying new opportunities to harness the power of our growing specialty vehicle platform which we ultimately believe will yield incremental market share and margin expansion runway.

更廣泛地說，我們的併購管道仍然活躍，目前正在評估大量機會，涉及我們 ESG 和 SSG 部門內新的 OEM 設備鄰近領域。我們已經經營的垂直領域的進一步售後市場成長機會和策略資產。其次，我們正在尋找新的機會來利用我們不斷增長的專用車輛平台的力量，我們最終相信這將帶來增量市場份額和利潤擴張空間。

One such initiative is the optimization of our go to market strategy which has been critical to the sales growth of the products that we manufacture. We go to market through three primary channels resulting in a balanced distribution mix between direct third party distributors and exclusive dealers. Although it can vary for context.

其中一項舉措就是優化我們的市場策略，這對我們生產的產品的銷售成長至關重要。我們透過三個主要通路進入市場，從而實現直接第三方分銷商和獨家經銷商之間均衡的分銷組合。儘管它可能因具體情況而變化。

Last year, our direct channel represented approximately 40% of our net sales. Whereas the remaining 60% of our net sales was fairly evenly split between third party distributors and our exclusive dealer network within each of these channels.

去年，我們的直銷管道約占我們淨銷售額的 40%。而我們剩餘的 60% 淨銷售額則在各個通路中的第三方經銷商和我們的獨家經銷商網路之間平均分配。

We are actively looking to optimize cross selling opportunities and other distribution synergies that allow us to best serve our customers as an example within our direct channel, our combined metal extraction support platform of Ground Force and tow haul has grown net sales by more than 60% since the purchase of tow haul in 2022.

我們正在積極尋求優化交叉銷售機會和其他分銷協同效應，以便我們能夠為客戶提供最好的服務，例如在我們的直接管道中，我們的地面部隊和拖運組合金屬提取支援平台自 2022 年購買拖運以來，淨銷售額增長了 60% 以上。

While expanding margins, this growth was primarily achieved to the identification of certain distribution synergies. A targeted effort to increase aftermarket revenue capture material cost reductions and other cross selling opportunities. In fact, this quarter, Ground Force and Toho hosted their first joint booth at Minexpo trade show in Las Vegas and received excellent customer feedback.

在擴大利潤率的同時，這一增長主要得益於確定了某些分銷協同效應。有針對性地努力增加售後市場收入、降低材料成本和獲得其他交叉銷售機會。事實上，本季度，Ground Force 和 Toho 在拉斯維加斯的 Minexpo 貿易展上首次設立了聯合展位，並獲得了客戶的一致好評。

We are also growing through our valued third party dealers and distributors. Great examples of this are our Ox Bodies and Travis businesses which produce dump truck bodies and specialty dump trailers. In both instances. Our teams have been actively expanding our geographic reach with the addition of new third party dealers and distributors. Ox Bodies specifically continues to make strides in expanding into key strategic geographies such as Texas and Florida.

我們也透過尊貴的第三方經銷商和分銷商不斷發展。我們的 Ox Bodies 和 Travis 企業就是很好的例子，它們生產自卸卡車車身和專用自卸拖車。在兩種情況下。我們的團隊一直在積極擴大我們的地理覆蓋範圍，增加新的第三方經銷商和分銷商。Ox Bodies 正在大力拓展德州和佛羅裡達州等關鍵戰略地區。

Our exclusive dealer channel primarily serves certain municipal product lines including sewer cleaners and street sweepers. Many of our dealers have been valued partners for decades and consequently have intimate knowledge of our products, strong relationships with end users and provide outstanding service to our customers as a reminder, this exclusive dealer network is comprised of a combination of private family owned businesses and private equity backed operations.

我們的獨家經銷商通路主要服務某些市政產品線，包括下水道清潔劑和街道清掃車。幾十年來，許多經銷商都是我們重要的合作夥伴，他們對我們的產品有著深入的了解，與最終用戶建立了牢固的關係，並為我們的客戶提供卓越的服務，這個獨家的經銷商網絡是由私人家族企業和私募股權支持的企業組成的。

As certain dealers have worked through natural succession planning. We have been proactively addressing areas of share opportunities in conjunction with our dealer partners and our direct team as part of that process in recent years, some of our existing high performing dealers have assumed the rights to sell our products in certain states.

正如某些經銷商已經完成了自然繼任計劃。近年來，我們一直與我們的經銷商合作夥伴和直銷團隊一起積極尋找共享機會，作為這一過程的一部分，我們現有的一些高績效經銷商已獲得在某些州銷售我們產品的權利。

While in other situations, our direct team has assumed certain us territories including the Carolinas which our direct team assumed in June of 2020 for an initial investment of approximately $6 million four years into assuming the Carolina's territory. The team has grown combined sales of new sewer cleaners and street sweepers by more than 80%.

而在其他情況下，我們的直接團隊已經接管了某些美國領土，包括卡羅來納州，我們的直接團隊於 2020 年 6 月接管了該領土，最初投資約 600 萬美元，歷時四年接管了卡羅來納州的領土。該團隊的新型下水道清潔器和街道清掃器的總銷量增加了 80% 以上。

The team is now working on opportunities to sell incremental federal signal products like trackless and dump truck parts. With this strong performance in the Carolinas. This team has also expanded into neighboring Virginia as part of a recent dealer transition. I would also like to thank this team for their efforts to deliver critical supplies to citizens of North Carolina impacted by hurricane Helene.

該團隊目前正在尋找機會銷售增量聯邦號誌產品，例如無軌卡車和自卸卡車零件。憑藉在卡羅萊納州的出色表現。作為最近經銷商轉型的一部分，該團隊還擴展到了鄰近的維吉尼亞州。我還要感謝這個團隊為受颶風海倫影響的北卡羅來納州公民運送重要物資所做的努力。

Looking ahead while we believe we are in the later innings of large scale territory assumptions, we continue to see runway for further share expansion through go to market optimization as we capitalize on our growing specialty vehicle platform. Lastly, we have structurally strengthened our safety and security systems group over the past years, setting a renewed foundation for the next leg of profitable growth.

展望未來，雖然我們相信我們正處於大規模領土假設的後期，但隨著我們利用不斷增長的專用車輛平台，我們繼續看到透過市場優化進一步擴大份額的空間。最後，我們在過去幾年中從結構上加強了我們的安全和安保系統團隊，為下一階段的獲利成長奠定了新的基礎。

As many of you know, federal signal's origin dates back to the SSG segment which has undergone a slew of transformations history over 120 years since 2016, our focus is centered around a couple of critical aspects including a rigorous 8,020 approach and rein reinvigoration of new product development efforts. These efforts have not only translated to higher sales and improved customer service, but SSG's EBITA margins have also expanded by more than 800 basis points compared to 2016.

眾所周知，聯邦訊號的起源可以追溯到 SSG 部門，自 2016 年以來，該部門經歷了 120 多年的一系列轉型歷史，我們的重點集中在幾個關鍵方面，包括嚴格的 8,020 方法和重新激發新產品開發力度。這些努力不僅帶來了更高的銷售額和更好的客戶服務，而且 SSG 的 EBITA 利潤率也比 2016 年擴大了 800 多個基點。

Additionally, we have invested in capacity with the purchase of our production facility in University Park, Illinois in 2022 and with the addition of several printed circuit board lines as part of our insourcing efforts, these investments have expanded available capacity, increased internal efficiencies and reduced our reliance on Asian suppliers.

此外，我們於 2022 年購買了位於伊利諾伊州大學公園的生產設施，並作為內部採購工作的一部分增加了幾條印刷電路板生產線，從而對產能進行了投資，這些投資擴大了可用產能，提高了內部效率並減少了我們對亞洲供應商的依賴。

In fact, across all of federal signal less than 5% of our direct material purchases come from outside North America with ample capacity at the University Park facility. We believe we are well positioned to profitably grow within our footprint in coming years as we approach the next phase of growth at SSG, we will look to build upon the strengthened formation in the form of both organic market share and inorganic growth opportunities.

事實上，在整個聯邦訊號中，我們直接材料採購中只有不到 5% 來自北美以外，而大學公園工廠的產能充足。我們相信，隨著 SSG 進入下一個成長階段，我們有能力在未來幾年內實現獲利成長，我們將尋求在有機市場份額和無機成長機會的基礎上進一步加強自身建設。

At this time, we are also formally raising our SSG EBITA margin targets to a range of 18% to 24% from 17% to 21%. Consistent with our prior approach to margin targets. These targets are meant to be annual and through the cycle targets internally, these targets present the guideposts through which we intend to operate and we we have also aligned our compensation practices with margin targets.

同時，我們也正式將 SSG EBITA 利潤率目標從 17% 至 21% 提高至 18% 至 24% 的範圍。與我們先前的利潤目標方法一致。這些目標是年度性的，並透過內部週期目標，這些目標提供了我們打算運作的指導方針，我們也將我們的薪酬實踐與利潤目標保持一致。

Turning now to our outlook for the rest of the year demand for our products and our aftermarket offerings remains high with our order intake this quarter contributing to a backlog which provides us with excellent visibility well into 2025 with our third 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 $3.30 to $3.40 from the prior range of $3.20 and to $3.35.

現在談到我們對今年剩餘時間的展望，對我們的產品和售後市場產品的需求仍然很高，本季度的訂單量導致積壓訂單，這為我們通過第三季度的業績、當前的積壓訂單和持續執行戰略計劃，提供了對 2025 年的極佳可視性。我們將全年調整後每股收益預期從先前的 3.20 美元和 3.35 美元上調至 3.30 美元至 3.40 美元的新範圍。

We are also narrowing our full year net sales outlook to a new range of $1.86 billion to $1.88 billion from the previous range of between $1.85 billion and $1.9 billion. Our updated net sales outlook takes into account the normalizing chassis procurement patterns that we have previously discussed, which is resulting in lower chassis path through revenue year over year while the impact EBITA is immaterial, we expect that fewer chassis sales will represent a full year over your net sales headwind of approximately $20 million with over half of that headwind expected in the fourth quarter.

我們也將全年淨銷售額預期從先前的 18.5 億美元至 19 億美元縮小至 18.6 億美元至 18.8 億美元。我們更新的淨銷售額前景考慮到了我們之前討論過的底盤採購模式的正常化，這導致底盤收入同比下降，雖然對 EBITA 的影響不大，但我們預計底盤銷售額的減少將意味著全年淨銷售額將面臨約 2000 萬美元的逆風，其中預計第四季度將出現一半以上的逆風。

This outlook reflects our view of continued healthy demand for our new equipment parts and aftermarket services. Lastly, we are maintaining our CapEx outlook of $35 million to $40 million for the year at this time. I think we are ready for questions, operator. Thank you.

這一前景反映了我們對新設備零件和售後服務持續強勁需求的看法。最後，我們目前維持今年 3,500 萬至 4,000 萬美元的資本支出預期。接線員，我想我們已經準備好回答問題了。謝謝。

(Operator Instructions) Michael Shlisky, D. A. Davidson & Co.

（操作員指示）Michael Shlisky，D. A. Davidson & Co.

Good morning Mike.

早上好，麥克。

Good morning Jennifer. Thanks for taking my questions, everybody. I didn't hear much comment on your rental fleet and your vacuum trucks and other assets that you put out for rent. Could you maybe update us on how that is been going? And have the recent storms been a tailwind for that business? Have you sent any assets to those affected regions and give a little bit about your plans to invest in that going forward.

早安，珍妮佛。謝謝大家回答我的問題。我沒有聽到太多關於你們出租的車隊、吸塵卡車和其他資產的評論。您能否向我們介紹一下事情的進展？最近的風暴是否為該業務帶來了順風？您是否向受災地區派遣了任何資產？

Yeah, Mike, I think it was part of the strength of the aftermarket business that we saw during the quarter. I think overall aftermarket revenues were up 10% year over year. That really was driven by growth that we saw in really all four components of our aftermarket revenue streams. That that would be parts, rental income, used equipment sales and service. Specifically on rental income, rental income was up 12% year over year.

是的，麥克，我認為這是我們在本季看到的售後業務強勁表現的一部分。我認為整體售後市場收入比去年同期增長了 10%。這實際上是由我們在售後市場收入流的所有四個組成部分中看到的成長所推動的。這些包括零件、租金收入、二手設備銷售和服務。具體到租金收入，租金收入較去年同期成長12%。

A lot of that was driven by the demand that we're seeing for rentals of safe digging. You know, used equipment sales also, they were up 15% year of year. Again, safe digging was a piece there. And I think we made reference in our comments to a current that the customers are favoring right now given the higher interest rate environment and given the safe digging trucks, new trucks are one of our higher price point items. I think there is currently a preference to rent or to buy use and certainly that is what we saw during the quarter with the strength of the aftermarket business.

其中很大一部分是由我們所看到的對安全挖掘租賃的需求所推動的。您知道，二手設備的銷售額也比去年同期成長了 15%。再次強調，安全挖掘是其中的一部分。我認為我們在評論中提到了目前客戶所青睞的情況，考慮到較高的利率環境和安全的挖掘卡車，新卡車是我們價格較高的產品之一。我認為目前人們更傾向於租賃或購買，而這正是我們在本季看到的售後業務強勁表現。

Okay all right. Just kind of moving on here. Class a vocational truck demand that seems to be up quite a bit as well from an industry perspective. The first orders which [125] are coming and seem to be really close to all time record numbers.

好的好的。就這樣繼續前進吧。從產業角度來看，A 級職業卡車的需求似乎也大幅增加。第一批訂單[125]即將到來，似乎非常接近歷史最高紀錄。

I guess first of all, if there no participating in any of that are you pre buying any chassis in advance of emissions changeovers in ['27] already at this point or just, do you just see some kind of giant blockbuster year ahead or are your customer order patterns and your order patterns really more normal and in line with the demand you are seeing for ['25] and perhaps it is just somebody else who is placing these very large early orders here. Just any kind of comments on whether you are looking to secure class a chassis way in advance given what is going on in the market here.

我想首先，如果沒有參與其中，您是否已經在 ['27] 的排放轉換之前預先購買了任何底盤，或者只是，您是否只是看到未來一年會出現某種巨型重磅炸彈，還是您的客戶訂單模式和您的訂單模式真的更正常並符合您對 ['25] 看到的需求，也許只是其他人在這裡下了這些非常大的早期訂單。考慮到目前市場的情況，您是否想提前確保 A 級底盤的安全，您對此有什麼意見嗎？

I'll start with you demand for our product remains high. We talked about our public funded product, would it include, you know, our class eight sewer cleaners was up in Q3, 8% sewer cleaner specifically, we are up 15% dump truck bodies were up 13%. So in we have talked about kind of the normalization of chassis buying patterns. And so we typically purchase about 50% of those chassis and you know we are in the right now, we are purchasing chassis for next year with respect to the '27.

首先，我們的產品需求仍然很高。我們討論了我們的公共資助產品，您知道，我們的八級下水道清潔劑在第三季度上漲了 8％，具體來說是下水道清潔劑，我們的上漲了 15％，自卸卡車車身上漲了 13％。因此，我們討論了底盤購買模式的正常化。因此，我們通常會購買大約 50% 的底盤，您知道我們現在正在購買明年 27 年的底盤。

The [Tes] are not available at this particular point. But,could we see pre buying based on past patterns? Yes. And we are currently working closely. We have a team that is led by Mark Webber that is working closely with the OEM and their chassis partners in anticipation of these regulation changes. So we feel like we are very well positioned as we move forward.

此時 [Tes] 不可用。但是，根據過去的模式，我們能否看到預購？是的。目前我們正在密切合作。我們有一個由馬克·韋伯領導的團隊，該團隊正與 OEM 及其底盤合作夥伴密切合作，以應對這些法規變化。因此，我們感覺，我們在未來的發展中已經佔據了非常有利的位置。

Okay maybe one last one for me, for if there is all this talk of SSG margin education is coming upward in the in this quarter's guidance but it was actually ESG they actually hit an all time record for margins in the quarter. Is there anything seasonal or anything you see in the pipeline that would suggest that in the fourth quarter, there is a step sequentially downward in ESG margins or is what you are seeing the last few quarters, kind of a great break down here.

好的，對我來說也許還有最後一個問題，如果大家都在談論 SSG 利潤率，那麼本季的預期中教育利潤率將會上升，但實際上 ESG 在本季度的利潤率創下了歷史新高。您是否發現有任何季節性因素或任何跡象表明第四季度 ESG 利潤率會環比下降，或者像您在過去幾個季度看到的那樣，出現了大幅下滑。

Yeah, I think like some of it goes back to the strength that we saw in the aftermarket business during the quarter. You know, a lot of the projects take place during the summer months when the weather is you know is nicer in certainly the northern parts of the US and up in Canada, which is a really important market for us.

是的，我認為這部分歸因於我們在本季度看到的售後業務的強勁表現。你知道，許多項目都是在夏季進行的，那時美國北部和加拿大的天氣比較好，這對我們來說是一個非常重要的市場。

So as the weather starts to kind of deteriorate, later into the fourth quarter and into Q1 that business, which tends to have a slightly more attractive margin profile that tends to slow down a little bit. But as we sit here today, yesterday, the weather was in the [80's] in Chicago so hopefully that will continue further into Q4.

因此，隨著天氣開始惡化，進入第四季度後期和第一季度，該業務的利潤率往往會略有吸引力，但成長速度往往會有所放緩。但是，當我們今天坐在這裡時，昨天，芝加哥的天氣是[80華氏度]，所以希望這種情況能夠持續到第四季度。

Okay. Match that color. I'll leave it there. Thank you so much.

好的。匹配該顏色。我就把它留在那裡。太感謝了。

Thank you.

謝謝。

Jacob More, KeyBanc Capital Markets Inc.

Jacob More，KeyBanc Capital Markets Inc.

Good morning, Jacob.

早上好，雅各。

Hi, good morning. I'm on for Steve Barger today. Thanks for taking our questions. First for me, Jennifer, thanks for the color on the industrial versus municipal order trends. If I could dig in a little there, can you help us understand what's in the current backlog from those customers where demand is weak versus the rest of the backlog? Has there been any shifts in the backlog for what's already been ordered? And how long do you think this current order trend could run for?

嗨，早安。今天我代替史蒂夫巴格 (Steve Barger) 上場。感謝您回答我們的問題。首先，詹妮弗，感謝您對工業與市政訂單趨勢的詳細說明。如果我可以深入挖掘一下，您能否幫助我們了解當前需求較弱的客戶的積壓訂單與其他積壓訂單相比的情況？已訂購的積壓貨有變化嗎？您認為目前的訂單趨勢將持續多久？

I don't know that we have seen any dramatic shift necessarily in the municipal backlog. Obviously, we talked about the lead times for sewer cleaners and street sweepers being, longer than we would like quite frankly. Those are both municipal products. We have not really seen a shift, with the extent of that backlog, it gives us a really good visibility for those product lines into 2025 and even into the early part of 2026.

我不知道我們是否已經看到市政積壓問題發生重大變化。顯然，我們討論的下水道清潔工和街道清掃工的準備時間比我們希望的要長。這些都是市政產品。我們還沒有真正看到轉變，考慮到積壓訂單的程度，它讓我們對這些產品線在 2025 年甚至 2026 年初有了很好的可視性。

So I don't think we have seen much of a change. We did, we have talked a little bit about a shift in the mix of the chassis provided by us or versus provided by the customers. And I think we mentioned in our prepared remarks that can have some impact on our year of comparisons, both on orders as well as revenue. So that's probably the one thing is as we think about a change in kind of what's in the backlog. I would say the mix of chassis is probably the biggest change.

因此我認為我們沒有看到太大的變化。我們確實討論過我們提供的底盤組合與客戶提供的底盤組合之間的轉變。我想我們在準備好的評論中提到過，這可能會對我們今年的比較產生一定的影響，包括訂單和收入。因此，當我們考慮改變積壓工作內容時，這可能是唯一的事情。我想說底盤的混合可能是最大的變化。

And I guess I would add there that with the exception of the shift from purchasing new hydro excavation equipment to customers now renting and buying used equipment, which we believe is, a critical part of our strategy in terms of muting cyclicality, we were pleased with orders as we move forward and it gives us really good visibility into '25 and even into '26 in terms of the strength of the demand for our products.

我想補充一點，除了從購買新的水力挖掘設備轉向客戶現在租用和購買二手設備（我們認為這是我們在緩和週期性方面的策略的一個關鍵部分）之外，我們對未來的訂單感到滿意，這讓我們對'25年甚至'26年的產品需求強度有了很好的了解。

Okay. Got it. That's helpful. Thank you. Second for me, you have posted really impressive incremental margins this year, 48% this quarter average 44% for the year. Is it mix that is driving that or do you have better price in the backlog that you are producing? And secondly, to that should we be thinking that you can maintain the structurally higher level of incremental margin going forward?

好的。知道了。這很有幫助。謝謝。其次，對我來說，今年你們的增量利潤率確實令人印象深刻，本季為 48%，全年平均為 44%。是產品組合推動了這個現象，還是您生產的積壓產品有更好的價格？其次，我們是否應該認為您未來能夠維持結構性較高的增量利潤率？

Yeah, I think mix was a piece again, we talked about the aftermarket mix. And I think that was obviously a slightly higher margin profile so that was a component. We saw some normalization of material costs on the SSG side and that was a factor of the margin improvement. But I think as you look at the leverage we had in this quarter, it was probably higher than what we would typically expect over the long term.

是的，我認為混合再次成為一個問題，我們討論了售後混合。我認為這顯然是一個略高的利潤率，所以這是一個組成部分。我們看到 SSG 方面的材料成本正常化，這是利潤率提高的一個因素。但我認為，當你看看我們本季的槓桿率時，它可能會高於我們通常預期的長期水平。

And I think over the long term, if you go back and look at, how we have progressed really since 2016. It's really been in the incremental have been north of 20%. Again, there is some seasonality to the business during Q3 with the strength of the market business. Remember we have also added a lot of capacity in the last couple of years. So as we grow into that we think that is where there is some potential from a margin standpoint as we go forward.

我認為從長遠來看，如果回顧一下，自 2016 年以來我們確實取得了哪些進步。它的增量確實已經超過 20%。同樣，由於市場業務的強勁，第三季的業務也呈現出一定的季節性。請記住，過去幾年我們也增加了許多產能。因此，我們認為，隨著我們的成長，從利潤的角度來看，這在前進的過程中具有一定的潛力。

That's helpful. Thanks and then maybe a last related one to that answer, I know you're not guiding to 2025 yet. But given those capacity expansions you just mentioned and your backlog visibility can we think about the average of the last three quarters this year as the baseline from which you will grow in 2025 or are there any reasons that you would be running revenues lower than the [485 to 490] range?

這很有幫助。謝謝，然後也許是與該答案相關的最後一個問題，我知道您還沒有指導到 2025 年。但是，考慮到您剛才提到的產能擴張和積壓訂單的可見性，我們是否可以將今年最後三個季度的平均值視為 2025 年增長的基準，或者有什麼原因導致您的收入低於 [485 至 490] 範圍？

Yeah, I think again, if you think about the averaging that there is seasonality and if you look at the last couple of quarters, Q2 and Q3 tend to be higher because of that strength of the aftermarket business. But we have a goal internally, it is called build more trucks and so our primary objective is to increase production while maintaining that healthy order intake to really reduce lead times.

是的，我再想想，如果你考慮平均值，你會發現存在季節性，如果你看看最近幾個季度，你會發現由於售後業務的強勁表現，第二季度和第三季度的銷售額往往會更高。但我們內部有一個目標，那就是製造更多的卡車，所以我們的主要目標是提高產量，同時保持健康的訂單量，以真正縮短交貨時間。

And as we go into 2025 given where the backlogs are, I think that is going to continue to be our objective. You know we have made some great progress. I think that those the two primary manufacturing facilities on the ESG side we talked about 12% production increase year over year.

隨著我們進入 2025 年，考慮到積壓情況，我認為這將繼續是我們的目標。你知道我們已經取得了很大進展。我認為，我們談到的 ESG 方面的兩個主要製造工廠的產量年增了 12%。

So we are seeing the benefits of that initiative. We have not necessarily made as much progress to reduce lead times as we would have hoped and that, but that is primarily because orders have been coming in. I mean for the first nine months of this year, our book to Bill is still in excess of one and that is with some pretty significant headwinds. We talked about the $17 million year today, chassis headwind.

因此我們看到了這項措施的好處。我們在縮短交貨時間方面並未取得我們所希望的那麼多進展，但這主要是因為訂單不斷湧入。我的意思是，今年前九個月，我們給比爾的訂單仍然超過一本，而且還面臨著一些相當大的阻力。今天我們討論了價值 1700 萬美元的底盤逆風。

There is about a $17 million headwind from two large fleet orders we had on the SSG side and there is also an $8 million headwind from last year's orders including track list. So if you think about all those things you know, increasing production while maintaining healthy orders, that is really what our objective is and that will continue as we go into 2025.

我們在 SSG 方面的兩個大型船隊訂單為我們帶來了約 1700 萬美元的阻力，而去年的訂單（包括航跡清單）也為我們帶來了 800 萬美元的阻力。因此，如果你考慮所有這些事情，你就會知道，在保持健康訂單的同時增加產量，這確實是我們的目標，而且這一目標還將繼續到 2025 年。

And just you know, looking at our backlog, it is up 3% year over year. It does as I mentioned earlier, give us good visibility into '24 meaning into '25 and even into the beginning of '26

您知道，從我們的積壓訂單來看，它比去年同期成長了 3%。正如我之前提到的，它讓我們能夠很好地了解 2024 年、2025 年，甚至 2026 年初的情況

Okay. Got it. That's all very helpful. Thank you for taking the questions.

好的。知道了。這一切都非常有幫助。感謝您回答這些問題。

Thank you, Jacob.

謝謝你，雅各。

Ross Baron Blake, William Blair.

羅斯·巴倫·布萊克，威廉·布萊爾。

Good morning Ross.

早安，羅斯。

Good morning Jennifer. This is [Sam] calling on for Ross. Thanks for taking my question. I just wanted to get some color on. I appreciate the color on lead times. I was wondering if you just give us some color on what the remaining hurdles are to kind of get those lead times down whether those are kind of internal or external.

早安，珍妮佛。我是 [Sam] 代表 Ross 進行呼叫。感謝您回答我的問題。我只是想加點顏色。我很欣賞交貨時間的顏色。我想知道您是否能告訴我們還有哪些障礙可以縮短交貨時間，無論是內部障礙還是外部障礙。

Yeah, I would say a couple of critical things. One is continued supply chain is much better today than it was a year ago. But we need that supply chain to continue. As we talked about for example in Q1, we had a quality issue with one of our suppliers, we work through that.

是的，我想說幾點批評的話。一是目前的供應鏈比一年前好很多。但我們需要供應鏈繼續運作。例如，正如我們在第一季討論過的，我們的一個供應商遇到了品質問題，我們正在努力解決這個問題。

So we need not only to get the parts, we need quality parts. Number two is we have a number of internal initiatives particularly at Vactor and [gen] because I think we have done a pretty good job at the majority of the rest of our businesses where we have both maintained high demand and reduced lead times. But because our orders have continued to be strong, despite the fact that production and factor was up Q3 12%.

因此，我們不僅需要獲得零件，我們還需要優質的零件。第二，我們採取了一系列內部舉措，特別是在 Vactor 和 [gen]，因為我認為，我們在其他大多數業務中都做得很好，既保持了高需求，又縮短了交貨時間。但儘管第三季產量和要素成長了 12%，我們的訂單仍然保持強勁。

We are very focused on increasing building more trucks. We have engaged a third party at Elgin, we talked about as part of our Federal Signal operating model. margin of 19.6%margin of 19.6%e are in the middle of that process and we are laser focused on increasing production while maintaining a healthy order intake.

我們非常注重增加卡車的產量。我們已經在埃爾金聘請了第三方，我們將其作為聯邦信號運營模式的一部分進行討論。利潤率為 19.6%利潤率為 19.6%我們正處於這一過程的中間階段，我們專注於提高產量，同時保持健康的訂單量。

Got it. That is super helpful and then kind of switching over to standard equipment. Did you guys give or kind of quantify what the revenue of that acquisition would look like?

知道了。這非常有用，然後可以切換到標準設備。你們是否給出或量化了這次收購的收入情況？

No, but just to give you some color sounds. So standards for the last couple of years, standards revenues that run in the $40 million to $50 million range. The majority of that is from Federal signal municipal products as we are working through integration with our aftermarkets team. We are going to apply our 8,020 model.

不，只是為了給你一些彩色的聲音。因此，過去幾年的標準收入在 4,000 萬美元到 5,000 萬美元之間。其中大部分來自聯邦訊號市政產品，因為我們正在與售後市場團隊進行整合。我們將應用我們的 8,020 模型。

So there could be changes to the revenue dynamics there. Obviously, we sold units to standard equipment as the manufacturer. So there will be some kind of balance there, but we expect the revenue contribution in 2025 to be in the in the range of about $20 million.

因此那裡的收入動態可能會改變。顯然，我們作為製造商向標準設備銷售單位。因此會出現某種平衡，但我們預計 2025 年的收入貢獻將在 2000 萬美元左右。

And we expect that to build over time particularly as we look to grow that aftermarket business. But and also then push additional federal signal products through that channel. But overall we expect the acquisition to be accretive to both earnings as well as cash flow and '25.

我們預計這一趨勢會隨著時間的推移而增強，特別是當我們尋求發展售後市場業務時。但同時也透過該管道推送其他聯邦訊號產品。但總體而言，我們預期此次收購將增加獲利和現金流。

Got it. That makes a lot of sense. So, I mean seasonally, should we think about, you said $20 million to $25million so about $5 million in the fourth quarter or is there some seasonal variation there.

知道了。這很有道理。所以，我的意思是從季節性來看，我們應該考慮一下，您說的是 2000 萬美元到 2500 萬美元，那麼第四季度約為 500 萬美元，或者是否存在一些季節性變化。

There is some seasonal variation again I think it is somewhat weather impacted because they are primarily in Illinois and Indiana. So, with weather and being an impact primarily in Q4 and in Q1 that there is typically some seasonality with Q2 and Q3 being typically being stronger for them.

再次存在一些季節性變化，我認為這在一定程度上受到天氣的影響，因為它們主要在伊利諾伊州和印第安納州。因此，由於天氣主要對第四季和第一季產生影響，通常會有一些季節性，而第二季和第三季對它們的影響通常更為強烈。

Got it and then that $20 million revenue benefit, should we how should we think about the split between aftermarket and new equipment how that flows through.

明白了，那麼那 2000 萬美元的收入收益，我們應該如何考慮售後市場和新設備之間的分割，如何流通。

Yeah, it is roughly 50-50 I mean, they do a really nice job on the park side of the business as well as service. They so it is a fairly even split between the two.

是的，大概是 50-50，我的意思是，他們在公園方面的業務和服務都做得非常好。因此，兩者之間的分佈相當均勻。

Got it. That's super helpful. I will.

知道了。這非常有幫助。我會。

Leave it there. Thanks Sam.

把它留在那裡。謝謝山姆。

Chris Moore, CJS Securities, Inc.

克里斯·摩爾（Chris Moore），CJS Securities，Inc.

Hey, good morning guys. Good morning. Right. Yeah, maybe we will stay with aftermarket for a moment. So obviously, lots of companies talk about aftermarket sales. You know, one thing Jennifer that you referenced a few times is this kind of growing ecosystem within federal signal that that kind of positions you uniquely. I just wonder if maybe you could go into that a little bit deeper.

嘿，大家早安。早安.正確的。是的，也許我們會暫時留在售後市場。顯然，很多公司都在談論售後市場銷售。你知道，詹妮弗，你多次提到的一件事是，聯邦內部這種不斷發展的生態系統表明，這種地位使你具有獨特的優勢。我只是想知道您是否可以更深入地探討一下這個問題。

Yeah, absolutely. So we think of it is important to look at kind of all of the revenue streams of aftermarket, the revenue, I mean the rental, the service, the parts and the used equipment and the hydro example is a good one interest rates are higher.

是的，絕對是如此。因此，我們認為，查看售後市場的所有收入來源非常重要，收入，我的意思是租金、服務、零件和二手設備，而水電的例子就是一個很好的例子，利率較高。

And so we have seen a shift in terms of customers, are having a more challenging time affording new equipment that, hydro equipment is some of our most expensive equipment that we sell. So they will favor rentals or used equipment. As we go forward, I think what's also really unique about Federal signal.

因此，我們看到了客戶方面的轉變，他們在購買新設備時面臨更大的挑戰，而水力發電設備是我們銷售的最昂貴的設備之一。因此他們會選擇租賃或二手設備。隨著我們不斷前進，我認為聯邦訊號也確實獨一無二。

And after markets is our ability to kind of leverage and optimize that ecosystem. So, you as we acquire new companies like track list, we have the existing bricks and mortar and distribution channel to increase the sales of their new equipment, of their parts of their service and their used equipment. Think about it, the same people that buy municipal street sweeper are also buying trackless equipment.

售後市場是我們利用和優化生態系統的能力。因此，當我們收購像 Track List 這樣的新公司時，我們會利用現有的實體店面和分銷管道來增加其新設備、服務零件和二手設備的銷售。想想看，購買市政街道清潔車的人也買無軌設備。

So it is what is unique and I think will give us an advantage going forward because you know, we are going to continue to organically grow and introduce new products that we can push through that after market ecosystem and as we acquire companies, we will be able to leverage that ecosystem.

所以它是獨一無二的，我認為這會為我們帶來優勢，因為你知道，我們將繼續有機成長，推出新產品，我們可以透過售後市場生態系統來推動，當我們收購公司時，我們將能夠利用這個生態系統。

And at the end of the day, we are looking at how do we best serve our customers? How do we have that stickiness with customers? And we tried on the call on the prepared remarks, we gave some specific examples of successes that we have had leveraging this ecosystem. And again, I would reiterate it really is what English is federal signal is the ability that we have this ecosystem and we have common end customers for many of our products.

最終，我們都會思考如何為客戶提供最好的服務？我們如何與客戶建立這種黏性？我們在準備好的評論中嘗試給出了一些利用這個生態系統取得成功的具體例子。我再次重申，英語的真正含義是聯邦訊號，即我們擁有這個生態系統的能力，並且我們的許多產品都有共同的最終客戶。

And Chris, I will just kind of give some data points on kind of the growth that we have seen in the aftermarkets business. Really between 2018 and 2023. If you look at our parts sales, it is grown 83% and our rental revenue has grown by about 32%. So that just gives you an indication of kind of the traction that we have been getting on this initiative.

克里斯，我只想提供一些關於我們在售後市場業務中看到的成長的數據點。確實是在 2018 年至 2023 年之間。如果你看看我們的零件銷售額，它成長了83%，我們的租賃收入成長了約32%。這只是向您展示了我們在這項舉措上取得的進展。

Got it very helpful and since from '18 to '23 from a kind of geographic penetration looks much different.

這非常有幫助，因為從18年到23年，地理滲透率看起來大不相同。

Yeah. Absolutely.

是的。絕對地。

And again, as we talked about it mutes cyclicality of earning streams. So again, the hydro excavation example, if they can't afford new equipment, then we have got rental and used equipment either through us or our value dealer partners.

正如我們剛才所說，它會減弱收入流的周期性。再舉個水力挖掘的例子，如果他們買不起新設備，那麼我們就可以透過我們自己或我們的價值經銷商合作夥伴來租賃和使用設備。

Got it very helpful. Switch gear. So order cancellations can be kind of a helpful sign in judging the demand and lead times just trying to get a sense of what you're seeing on that front.

非常有幫助。切換齒輪。因此，訂單取消可以成為判斷需求和交貨時間的有用訊號，只是讓您了解這方面的情況。

Yeah, we haven't really seen anything significant Chris to date. It is typically not something in our history that we have seen in our businesses, a lot of times on the municipal side of the business, it is part of a public bid situation. So that is typically not been not been something we have seen much of.

是的，到目前為止我們還沒有看到任何重大的進展。在我們的業務歷史上，這種事情通常不會發生，在市政業務方面，很多時候這是公開招標的情況。所以這通常是我們不常見到的事情。

Got it. And maybe the last one for me, I mean, we talked about this a few quarters ago costs looks to be, you know, the biggest hurdle for a significant move customers to going towards, electrification. Just curious, kind of what you are seeing on these side, these days.

知道了。對我來說這也許是最後一個，我的意思是，我們在幾個季度前就討論過這個問題，成本似乎是客戶走向電氣化的最大障礙。只是好奇，這些天你在這邊看到了什麼。

Sure. So as we have got our EV street sweeper products, our EV dump truck products we have done on teams have done a nice job. They have got a good working prototype with respect our track with product. We saw a large order that started in Q2 of seven pieces of equipment out of New York and continued into Q3 for EV Street Sweeper product.

當然。因此，當我們推出電動街道清掃車產品時，我們在團隊中推出的電動自卸卡車產品也表現出色。他們已經為我們的產品追蹤提供了良好的工作原型。我們看到一份大訂單，該訂單從第二季度開始，涉及紐約的 7 台設備，並持續到第三季度，涉及 EV 街道清掃車產品。

So, we are continuing to demonstrate that product, we get very positive feedback from the field. The question often is affordability. But you we believe as we move forward, this is an important product offering for our customers.

因此，我們將繼續展示該產品，並從現場獲得了非常積極的回饋。問題往往在於能否負擔得起。但我們相信，隨著我們不斷前進，這對我們的客戶來說是一項重要的產品。

Fair enough. I will leave it there. Thanks guys.

很公平。我就把它留在那裡。謝謝大家。

Greg Burns, Sidoti & Company.

伯恩斯（Greg Burns），Sidoti＆Company。

Good morning, Greg.

早安，格雷格。

Good morning. I'm just staying on the aftermarket. Given the strong demand for rental, are you, are you constrained in any way on that side of the business? Is there a need to maybe invest more into your own fleet of vehicles? And how do you balance that? Maybe against the need to kind of reduce lead times and like you said, build more trucks.

早安.我只是留在售後市場。鑑於租賃需求強勁，您在業務方面是否受到任何限制？是否有必要對自己的車隊進行更多投資？您怎麼平衡這一點呢？也許是出於減少交貨時間的需要，就像你說的，生產更多的卡車。

Yeah, I think Greg we it's obviously something we monitor closely and we can monitor utilization levels before making decisions about whether to add to the fleet. We talked earlier in the year about an incremental investment of about $20 million going into the fleet for used and rental. That is you know that at the time that was going to be second half weighted. And so I think you saw some of that during Q3 and that will likely continue into Q4.

是的，我認為格雷格，這顯然是我們密切監控的事情，我們可以在決定是否增加機隊之前監控利用率水準。我們今年稍早談到了向二手和租賃車隊增加約 2,000 萬美元的投資。您知道，當時這將是下半場的加權。所以我認為您在第三季度看到了一些這樣的情況，並且這種情況可能會持續到第四季度。

So we are using production at our facilities but we don't necessarily get the, the revenue or the income immediately on those that comes up more over time. And so I think with where we sit today, I think that we feel comfortable at that level, particularly as you think about the strength of the used equipment.

因此，我們正在利用我們的設施進行生產，但我們不一定會立即獲得隨著時間推移而產生的收入或收益。因此，我認為，就我們今天所處的狀態而言，我們對這一水平感到滿意，特別是當你考慮到二手設備的實力時。

So as we saw used equipment sales around 15% year over year in the quarter, that creates a need obviously to then replenish. So the fleet size remains the same. But as I think for this year for 2024 I think we are in good shape. And as we head into the planning process for 2025 that is where we will make, make decisions about what how much we need to add to the fleet. But again, our approach really is a multi pronged approach where we rely on several valuable valued rental partners on the rental side of the business as well.

因此，我們看到本季二手設備銷售額年增約 15%，這顯然產生了補貨需求。因此船隊規模維持不變。但我認為，就 2024 年而言，我們的狀況良好。當我們進入 2025 年的規劃過程時，​​我們將決定需要增加多少船隊。但同樣，我們的方法確實是一種多管齊下的方法，我們在租賃業務方面也依靠幾家有價值的租賃合作夥伴。

Okay. And then did you have any production disruptions from the hurricane season. And then also, I was just wondering if there is been any changing demand patterns because of the election or may be any uncertainty going into the back half of the year. Have you seen any kind of pause in the business.

好的。颶風季節是否對您的生產造成了影響？另外，我只是想知道由於選舉，需求模式是否發生了變化，或者今年下半年是否會出現任何不確定性。您是否發現業務出現任何形式的停頓？

Start with the hurricane? We had our service center in Tampa was down for a couple days. But the teams did a nice job in terms of getting back up and running again, our teams in the Carolinas just did a fantastic job assisting and aiding many citizens and delivering supplies in North Carolina.

從颶風開始？我們位於坦帕的服務中心停工了幾天。但這些隊伍在恢復運作方面做得很好，我們在卡羅來納州的隊伍在協助和救助許多公民以及向北卡羅來納州運送物資方面做得非常出色。

With respect to going forward. Today, we have not seen any impact regarding the election. We did you know, there is a lot of discussion around tariffs. We called out in our prepared remarks that less than 5% of our direct purchases are outside of North America.

關於未來。今天，我們還沒有看到任何與選舉有關的影響。我們知道，圍繞關稅有很多討論。我們在準備好的發言中指出，我們的直接採購中不到 5% 是在北美以外地區。

So we think we are well positioned, regardless of who wins the election and we often get asked about kind of infrastructure spending. To date it has had a minimal impact. We still remain in strong order patterns. It was, there was bipartisan support for that piece of legislation. So as we move forward, we feel pretty good.

因此，無論誰贏得選舉，我們都處於有利地位，而且我們經常被問到有關基礎設施支出的問題。到目前為止，其影響甚微。我們仍然保持著強勁的訂單模式。事實上，這項立法得到了兩黨的支持。因此，當我們繼續前進時，我們感覺非常好。

All right. Thank you.

好的。謝謝。

Dave Storms, Stonegate Capital Markets

Dave Storms，Stonegate Capital Markets

Good morning, Dave.

早上好，戴夫。

Good morning. Just wanted to start with the strong cash position. Are there any growth initiatives that may have been outside of your plans or scope at the beginning of the year? That may be becoming more feasible? Given the strong cash growth on the year?

早安.只是想從強勁的現金狀況開始。是否存在一些超出您年初計劃或範圍的增長計劃？這可能變得更加可行嗎？鑑於今年現金成長強勁？

Yeah, I think we went into the year with a CapEx range of about $35million to $40 million and we still think that is appropriate. As we go into 2025 there are probably with each of our businesses, pre present their, their request almost for capital and the different organic initiatives that they might need some funding. So we will take a look at that as we go through our planning purposes again that $35million to $40 million, about half of that about half CapEx of maintenance CapEx and half is growth.

是的，我認為我們今年的資本支出範圍約為 3500 萬美元至 4000 萬美元，我們仍然認為這是合適的。當我們進入 2025 年時，我們的每家企業可能都會提前提出他們對資本的要求以及他們可能需要一些資金的不同有機計劃。因此，當我們再次進行規劃時，我們會考慮這 3500 萬美元到 4000 萬美元，其中大約一半是維護資本支出，另一半是成長。

Organic investments continue to be a priority for the use of our capital. So we want to keep investing in those businesses, but I would say there hasn't necessarily been a change in our priorities or in the projects that we want to invest in during this year. But as we go into 2025 it is something we'll take a look at. Depending on the businesses, depending on the strategic initiative.

有機投資仍然是我們資本使用的優先事項。因此，我們希望繼續投資這些業務，但我想說，今年我們的優先事項或我們想要投資的項目不一定會改變。但當我們進入 2025 年時，我們將會關注這個事情。取決於業務，取決於策略主動性。

Understood. Very helpful. Thank you. And then just one more, how do you feel about your current capacity levels between labor and square footage of processing lines and maybe how that fits with the current burn rate of your backlog.

明白了。非常有幫助。謝謝。再問一個問題，您對目前生產線的勞動力和麵積之間的產能水準有什麼看法，以及這與您目前積壓訂單的消耗率如何匹配。

So between the period of 2019 and 2022 we added significant capacity. You know, we made a $25 million investment at our facility in Australia. But we also made a number of other investments. We purchased the Elgin facility, we purchased the University Park facility. We highlighted some of the benefits of that in our prepared remarks, but we also made capacity expansions at Rugby Lake Crystal for our dump truck businesses.

因此，在 2019 年至 2022 年期間，我們增加了大量產能。你知道，我們在澳洲的工廠投資了 2500 萬美元。但我們也進行了許多其他投資。我們買了埃爾金工廠，我們買了大學公園工廠。我們在準備好的發言中強調了這樣做的一些好處，同時我們也對 Rugby Lake Crystal 的自卸車業務進行了產能擴大。

So we believe right now that we have sufficient capacity to support us going forward. I would also highlight that with respect to our CapEx that growth CapEx, a lot of it is been focused on efficiencies and how do we build more trucks. And we have had good success there. So as we move forward, we are very well positioned to be able to leverage the capacity investments that we have made both in terms of additional space and the equipment investments that we have made to increase our production.

因此，我們相信現在我們有足夠的能力來支持我們前進。我還要強調的是，就我們的資本支出而言，成長資本支出很大一部分集中在效率以及如何生產更多的卡車上。我們在那裡取得了巨大的成功。因此，隨著我們不斷前進，我們完全有能力利用我們在額外空間和設備方面的投資來提高產量。

That's very helpful. Thank you for taking my questions and good luck in the fourth quarter.

這非常有幫助。感謝您回答我的問題並祝您第四季好運。

Thank you.

謝謝。

There are no additional questions at this time. I will now turn the conference back over to Jennifer L Sherman for closing remarks.

目前沒有其他問題。現在我將會議交還給詹妮弗·謝爾曼 (Jennifer L Sherman) 並請她致閉幕詞。

Thank you in closing. As we enter this Thanksgiving season, I want to spend a moment to thank our dedicated employees and loyal customers and our dealers and distributors. Thank you for joining us today and we will talk to you soon. Bye.

最後，謝謝大家。當我們進入感恩節時，我想花點時間感謝我們敬業的員工、忠實的客戶以及我們的經銷商和分銷商。感謝您今天加入我們，我們很快就會與您交談。再見。

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

今天的會議到此結束。現在您可以斷開您的線路。感謝您的參與。