Garrett Motion Inc (GTX) 2025 Q3 法說會逐字稿

Hello. My name is Megan, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion third-quarter 2025 financial results conference call. This call is being recorded, and a replay will be available later today. (Operator Instructions)

你好。我叫梅根，今天早上我將擔任您的接線生。歡迎大家參加 Garrett Motion 2025 年第三季財務業績電話會議。本次通話正在錄音，今天稍晚將提供重播。（操作員指示）

I would now like to hand the call over to Cyril Grandjean, Garrett's Vice President, Investor Relations and Treasurer.

現在我想將電話交給加勒特 (Garrett) 投資者關係副總裁兼財務主管 Cyril Grandjean。

Thank you, Megan. Good day, and welcome, everyone. Thank you for attending the Garrett Motion third-quarter 2025 financial results conference call. Before we begin, I would like to mention that today's presentation and earnings press release are available on the IR section of Garrett Motion's website at investors.garrettmotion.com.

謝謝你，梅根。大家好，歡迎大家。感謝您參加 Garrett Motion 2025 年第三季財務業績電話會議。在我們開始之前，我想提一下，今天的簡報和收益新聞稿可在 Garrett Motion 網站 investors.garrettmotion.com 的 IR 部分找到。

There, you will also find links to our SEC filings, along with other important information about the company. We note that this presentation contains forward-looking statements within the meaning of the US federal securities laws. These statements, which can be identified by words such as anticipate, intend, plan, believe, expect, may, should or similar expressions represent management's current expectations and are subject to various risks and uncertainties that could cause our actual results to differ materially from such expectations.

您還可以在那裡找到我們向美國證券交易委員會提交的文件的鏈接，以及有關該公司的其他重要資訊。我們注意到本簡報包含美國聯邦證券法所定義的前瞻性陳述。這些陳述可以透過預期、打算、計劃、相信、期望、可能、應該等詞語或類似表達來識別，代表管理層當前的預期，並受各種風險和不確定性的影響，可能導致我們的實際結果與這些預期有重大差異。

These risks and uncertainties include the factors identified in our annual report on Form 10-K and other filings with the Securities and Exchange Commission and include risks related to the automotive industry, competitive landscape and macroeconomic and geopolitical conditions, among others.

這些風險和不確定性包括我們在 10-K 表格年度報告和向美國證券交易委員會提交的其他文件中確定的因素，包括與汽車行業、競爭格局以及宏觀經濟和地緣政治條件等相關的風險。

Please review the disclaimers on slide 2 of our presentation as the content of our call will be governed by this language. Today's presentation also includes certain non-GAAP measures which we use to help describe how we manage and operate our business. We reconcile each of these measures to the most directly comparable GAAP measure in the appendix of our presentation and related press release.

請查看我們簡報第 2 張投影片上的免責聲明，因為我們電話會議的內容將受此語言的約束。今天的演示還包括某些非公認會計準則指標，我們用這些指標來幫助描述我們如何管理和經營我們的業務。我們將這些指標中的每一項與我們簡報和相關新聞稿附錄中最直接可比較的 GAAP 指標進行協調。

Finally, in today's presentation and comments, we may refer to light vehicle diesel and light vehicle gasoline products by using the terms diesel and gasoline only.

最後，在今天的演示和評論中，我們可能僅使用柴油和汽油這兩個術語來指稱輕型車輛柴油和輕型車輛汽油產品。

With us today are Olivier Rabiller, Garrett's President and Chief Executive Officer; and Sean Deason, Garrett's Senior Vice President and Chief Financial Officer. I will now hand the call over to Olivier.

今天與我們一起出席的有 Garrett 總裁兼執行長 Olivier Rabiller 和 Garrett 高級副總裁兼財務長 Sean Deason。我現在將電話交給奧利維爾。

Thank you, Cyril. Thank you all for joining the call today. I am pleased to report that Garrett delivered another set of strong financial results in the third quarter, thanks to increased sales in a more stable production environment and disciplined operational execution. Net sales for the third quarter were $902 million, up 6% at constant currency. This growth reflects outperformance over the industry in light vehicle turbo sales for both gasoline and diesel applications.

謝謝你，西里爾。感謝大家今天參加電話會議。我很高興地報告，由於更穩定的生產環境和更嚴格的營運執行，銷售額增加，加勒特在第三季再次取得了強勁的財務業績。第三季淨銷售額為 9.02 億美元，以固定匯率計算成長 6%。這一增長反映了汽油和柴油輕型車輛渦輪增壓器銷售在行業中的優異表現。

In fact, our gasoline sales grew by 10% in the quarter, driven by our share of demand gains. Thanks to continued productivity and higher volumes, we achieved another quarter of very solid operating performance. Adjusted EBIT was $133 million, and our adjusted EBIT margin was 14.7%, which includes a 20 basis point dilution of the margin rate from tariff recoveries.

事實上，受需求份額成長的推動，本季我們的汽油銷量成長了 10%。由於生產力持續提高和產量增加，我們又取得了一個季度非常穩健的營運表現。調整後的息稅前利潤為 1.33 億美元，調整後的息稅前利潤率為 14.7%，其中包括關稅回收導致的 20 個基點的利潤率稀釋。

We also delivered strong adjusted free cash flow of $107 million for the quarter. These results, combined with an improved forecast for the automotive industry for the second half of the year, has enabled us to raise our 2025 outlook midpoint. In addition, we continue to allocate capital in line with our stated framework and our commitment to delivering value to shareholders.

本季我們也實現了強勁的調整後自由現金流，達到 1.07 億美元。這些結果，加上對下半年汽車產業的預測改善，使我們能夠提高 2025 年展望的中點。此外，我們將繼續按照既定框架和為股東創造價值的承諾分配資本。

During the third quarter, we accelerated our share repurchase activity, buying back $84 million of common stock. We also paid a $12 million quarterly dividend. Moreover, our Board of Directors just approved a 33% in our dividend raising it to $0.08 per share for the fourth quarter. Now let me move to slide 4 to share more about Garrett's continued success across our differentiated technologies.

第三季度，我們加快了股票回購活動，回購了價值 8,400 萬美元的普通股。我們還支付了 1200 萬美元的季度股息。此外，我們的董事會剛剛批准將第四季度的股息提高 33%，至每股 0.08 美元。現在，請允許我轉到投影片 4，以進一步分享有關 Garrett 在我們的差異化技術方面持續取得成功的資訊。

We continue to see growing interest in developing turbochargers for hybrids and range-extended electric vehicles. This quarter, we secured several additional awards for these technologies. In addition, we obtained several awards for commercial vehicles and industrial turbochargers in various regions including over $40 million for products supporting stationary power generation or gen sets.

我們持續看到，人們對開發混合動力車和增程式電動車渦輪增壓器的興趣日益濃厚。本季度，我們憑藉這些技術獲得了多個額外獎項。此外，我們在商用車和工業渦輪增壓器領域獲得了多個地區的獎項，其中包括支持固定發電或發電機組的產品獎項，金額超過 4000 萬美元。

Demand for subunits continues to grow, fueled by the global expansion of data centers in which gen sets are installed for backup power generation. Sales of these products are expected to exceed $100 million in 2025 and represent an important growth opportunity for Garrett.

由於全球範圍內資料中心的擴張（其中安裝發電機組作為備用發電設備），對子單元的需求持續成長。這些產品的銷售額預計到 2025 年將超過 1 億美元，這對 Garrett 來說是一個重要的成長機會。

This quarter, we also continued to make progress in developing our differentiated zero emission products. We secured additional proof of concepts with two OEMs in Japan and China for our high-speed 3-in-1 E-Powertrain. In addition, on the E-Cooling side, we progressed with the development of our oil-free centrifugal high-speed compressor technology for industrial and mobility applications.

本季度，我們在開發差異化零排放產品方面也持續取得進展。我們與日本和中國的兩家原始設備製造商就我們的高速三合一電動動力系統獲得了額外的概念驗證。此外，在電子冷卻方面，我們在工業和行動應用的無油離心高速壓縮機技術的開發方面取得了進展。

We see strong momentum with customers for our E-Compressor technology, which is driving significant efficiency gains when tested against current industrial technologies. All in all, I'm extremely pleased with our ability to deliver strong financial results while continuing to position the company for years of growth.

我們看到客戶對我們的 E-Compressor 技術有著強勁的需求，與當前的工業技術進行測試時，該技術顯著提高了效率。總而言之，我對我們能夠取得強勁的財務業績並繼續為公司多年的成長做好準備感到非常高興。

I will now hand it over to Sean, who will provide more details on our financial results and outlook.

現在我將把發言權交給肖恩，他將提供有關我們的財務表現和前景的更多細節。

Thanks, Olivier, and good morning, everyone. I will begin my remarks on slide 5. As Olivier highlighted, we delivered strong financial performance in the third quarter. Our net sales were $902 million, driven by new gasoline launches and ramp-ups across key regions, favorable foreign currency impacts and tariff recoveries, partially offset by continued weakness in aftermarket. We delivered $133 million of adjusted EBIT in the quarter, equating to a 14.7% margin.

謝謝，奧利維爾，大家早安。我將從第 5 張投影片開始發言。正如奧利維爾所強調的，我們在第三季取得了強勁的財務表現。我們的淨銷售額為 9.02 億美元，主要得益於主要地區新汽油的推出和產量增加、有利的外匯影響和關稅恢復，但售後市場的持續疲軟部分抵消了這一影響。本季我們的調整後息稅前利潤為 1.33 億美元，相當於 14.7% 的利潤率。

This represents both a year-over-year and a sequential increase resulting from ongoing operational productivity gains that help to offset an unfavorable product mix. And finally, adjusted free cash flow was $107 million as the business continues to convert earnings into cash.

這既是同比增幅，也是環比增幅，這是由於持續的營運生產力提高有助於抵消不利的產品組合。最後，由於業務繼續將收益轉化為現金，調整後的自由現金流為 1.07 億美元。

Now moving to slide 6. We show our Q3 net sales bridge by product category as compared with the same period last year. In the quarter, net sales increased by $76 million versus the prior year or 9% on a reported basis and 6% on a constant currency basis, reflecting favorable foreign currency impacts.

現在轉到投影片 6。我們按產品類別顯示了我們第三季的淨銷售額與去年同期的比較。本季度，淨銷售額較上年同期增加 7,600 萬美元，按報告基礎計算增加 9%，以固定匯率計算增加 6%，反映了有利的外匯影響。

We continue to experience strong gasoline growth, outperforming the industry. This growth is driven by continued share of demand gains and new launches and ramp-ups across Europe, China, India and Brazil. Within diesel, we experienced strong performance in both Europe and North America. This was partially offset by lower demand for aftermarket applications, primarily in North America. Additionally, we recovered $12 million of tariffs within the quarter.

我們的汽油銷售持續保持強勁成長，表現優於同業平均。這一成長是由歐洲、中國、印度和巴西的需求份額持續成長以及新產品的推出和產能擴張所推動的。在柴油領域，我們在歐洲和北美都取得了強勁的表現。這部分被售後市場應用需求的下降所抵消，主要是在北美。此外，我們在本季度收回了 1200 萬美元的關稅。

Turning to slide 7. During the quarter, we generated $133 million in adjusted EBIT, representing a $16 million increase from the same period last year. This represents a margin rate of 14.7%, which is a 50 basis point improvement year-over-year. The increase in adjusted EBIT was primarily driven by increased volumes and the continued benefits of sustained fixed cost actions and variable cost productivity taken in the current and prior year.

翻到幻燈片 7。本季度，我們的調整後息稅前利潤為 1.33 億美元，較去年同期增加 1,600 萬美元。這意味著利潤率為 14.7%，比去年同期提高了 50 個基點。調整後息稅前利潤的成長主要得益於銷售量的成長以及本年度和上年度持續採取的固定成本行動和變動成本生產力的持續效益。

These increases were partially offset by an unfavorable mix driven by the strength in light vehicle gasoline applications. In the quarter, the impact of newly implemented tariffs drove a 20 basis point decline in the margin rate. Additionally, we benefited from a $9 million contribution or 60 basis points from favorable foreign currency impacts year-over-year.

這些成長被輕型車輛汽油應用強勁帶來的不利組合部分抵消。本季度，受新實施關稅的影響，利潤率下降了20個基點。此外，我們也受惠於同比有利的外匯影響，貢獻了 900 萬美元或 60 個基點。

Turning now to slide 8. I'll walk you through the adjusted EBIT to adjusted free cash flow bridge for the quarter. We delivered a strong adjusted free cash flow of $107 million. This was due primarily to increased volumes and efficient conversion of earnings into cash, which was partially offset by changes in working capital, driven by timing of payables and higher inventory due to increased volumes.

現在翻到第 8 張投影片。我將向您介紹本季調整後的息稅前利潤與調整後的自由現金流之間的關聯。我們實現了強勁的調整後自由現金流，達到 1.07 億美元。這主要是由於銷量增加和收益有效地轉化為現金，但因應付帳款時間和銷量增加導致的庫存增加，營運資本的變化部分抵消了這一影響。

Cash taxes, capital expenditures, depreciation and cash interest were all in line with our expectations. Now moving to slide 9. We ended the quarter with a liquidity position of $862 million, consisting of $630 million in undrawn capacity from our revolving credit facility and $232 million in unrestricted cash. I am pleased to report that during the quarter, both Fitch and S&P have upgraded Garrett's ratings by one notch for their corporate family rating considering not only our reduced net leverage but also acknowledging the substantial reduction in private equity ownership due to recent sell-downs by some of our top equity shareholders.

現金稅、資本支出、折舊和現金利息均符合我們的預期。現在轉到投影片 9。本季末，我們的流動資金狀況為 8.62 億美元，其中包括 6.3 億美元的循環信貸額度未動用額度和 2.32 億美元的非限制性現金。我很高興地報告，在本季度，惠譽和標準普爾都將加勒特的企業家族評級提高了一級，這不僅考慮到我們淨槓桿率的降低，還考慮到由於我們一些頂級股東近期減持股份而導致私募股權所有權大幅減少。

Additionally, as announced today, we made an early voluntary repayment of $50 million on our term loan, reducing gross leverage. Moving to slide 10. In the third quarter, our strong cash generation allowed us to repurchase $84 million worth of shares, including 5 million shares directly from Oaktree, our largest shareholder.

此外，正如今天宣布的那樣，我們自願提前償還了 5000 萬美元的定期貸款，從而降低了總槓桿率。移至投影片 10。第三季度，我們強勁的現金流使我們能夠回購價值 8,400 萬美元的股票，其中包括直接從最大股東 Oaktree 手中回購的 500 萬股。

We continue to target distribution of 75% of our adjusted free cash flow to shareholders over time through dividends and share repurchases. The latter of which will vary over time and will depend on various factors, including macroeconomic and industry conditions.

我們將繼續致力於透過股利和股票回購的方式將 75% 的調整後自由現金流分配給股東。後者將隨時間而變化，並取決於各種因素，包括宏觀經濟和行業狀況。

As Olivier mentioned earlier today, given our strong financial position, our Board approved an increase to our quarterly dividend for the fourth quarter rising 33% from $0.06 to $0.08 per share, which will be payable in December of 2025.

正如奧利維爾今天早些時候提到的，鑑於我們強勁的財務狀況，董事會批准將第四季度的季度股息提高 33%，從每股 0.06 美元增至 0.08 美元，並將於 2025 年 12 月支付。

I'll now transition to slide 11 to discuss our 2025 outlook. We are raising our midpoint outlook for 2025 to reflect the improved forecast for the automotive industry in the second half and the impact of tariffs on sales and adjusted EBIT margin net of recovery. This revised outlook now implies the following midpoints.

我現在轉到第 11 張投影片來討論我們的 2025 年展望。我們上調了 2025 年的中點預測，以反映下半年汽車產業預測的改善以及關稅對銷售額和調整後息稅前利潤率的影響。修訂後的展望現在意味著以下中點。

Net sales of $3.55 billion, flat to plus 1% at constant currency, net income of $280 million, adjusted EBIT of $510 million, net cash provided by operating activities of $415 million and adjusted free cash flow of $385 million.

淨銷售額為 35.5 億美元，以固定匯率計算持平或成長 1%，淨收入為 2.8 億美元，調整後息稅前利潤為 5.1 億美元，經營活動提供的淨現金為 4.15 億美元，調整後自由現金流為 3.85 億美元。

With that, I'll now turn the call back to Olivier for his closing remarks.

現在，我將把電話轉回給奧利維爾，請他作結束語。

Thanks, Sean. Now let's turn to slide 12. Our strategic priorities remain clear and consistent. We aim to identify and deliver on customer needs by leveraging our capabilities to develop differentiated, high-speed and highly efficient technologies. In doing so, we generate robust returns for our shareholders.

謝謝，肖恩。現在我們翻到第 12 張投影片。我們的策略重點依然明確且一致。我們的目標是利用我們的能力開發差異化、高速和高效的技術來識別和滿足客戶需求。透過這樣做，我們為股東創造了豐厚的回報。

Let me wrap this up on our final slide, slide 13. First, we delivered strong Q3 results, fueled by share of demand gains in gasoline outperforming the industry, and this coupled with disciplined operational execution.

讓我在最後一張投影片（第 13 張）上總結一下。首先，我們取得了強勁的第三季業績，這得益於汽油需求份額的成長超過行業平均水平，再加上嚴格的營運執行。

We also generated $107 million of adjusted free cash flow in the quarter and $264 million year-to-date. This strong cash flow generation allowed us to invest in growing our turbo and zero-emission technologies. To date, we continue to win greater than 50% of our new turbo business awards as we have done over the last five years.

我們還在本季產生了 1.07 億美元的調整後自由現金流，年初至今產生了 2.64 億美元的調整後自由現金流。強勁的現金流使我們能夠投資發展渦輪增壓和零排放技術。到目前為止，我們繼續贏得超過 50% 的新渦輪增壓業務獎項，就像過去五年一樣。

Additionally, we see increased interest in stationary power generation, and we are expecting over $100 million of sales this year from these industrial applications. I am also very pleased with the progress we have made this year on our zero-emission technologies with the first series production award for our high-speed E-Powertrain, which demonstrates the substantial potential of this technology.

此外，我們看到人們對固定式發電的興趣日益濃厚，我們預計今年這些工業應用的銷售額將超過 1 億美元。我也對我們今年在零排放技術方面取得的進展感到非常高興，我們的高速電動動力傳動系統獲得了首個批量生產獎項，這證明了這項技術的巨大潛力。

Momentum and interest continues to build for our high-speed oil-free e-cooling centrifugal compressor with customer testing, demonstrating significant efficiency gains compared to current technologies. This year, we refinanced and repriced our term loan, lowering our interest by 75 basis points and repaid $50 million of this debt this month. We also initiated a quarterly dividend of $0.06 per share in Q1 and announced an increase to $0.08 per share for Q4.

經過客戶測試，我們的高速無油電子冷卻離心式壓縮機的動能和興趣持續增強，與現有技術相比，其效率顯著提高。今年，我們對定期貸款進行了再融資和重新定價，將利息降低了 75 個基點，並於本月償還了 5,000 萬美元的債務。我們還在第一季啟動了每股 0.06 美元的季度股息，並宣布第四季將股息增加至每股 0.08 美元。

In addition, we repurchased $136 million of our common shares through Q3. These actions demonstrate our continued commitment to return capital to shareholders. I am very proud to highlight these achievements, positioning us extremely well for the remainder of 2025 and beyond.

此外，我們在第三季回購了價值 1.36 億美元的普通股。這些行動顯示我們持續致力於向股東返還資本。我很自豪地強調這些成就，這為我們在 2025 年剩餘時間及以後做好了非常有利的準備。

Thank you for your time. And operator, we are now ready for Q&A

感謝您抽出時間。接線員，我們現在可以進行問答了。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Edison Yu with Deutsche Bank.

德意志銀行的 Edison Yu。

Morning guys. James Mulholland on for Edison. Congrats on the good quarter. Just looking at the volumes for the quarter, they were good, but they were fully offset by the mix. I was wondering if you could double-click on what you're seeing in there? Is it geographic based?

大家早安。詹姆斯·穆赫蘭 (James Mulholland) 代替愛迪生上場。恭喜本季取得良好業績。僅從本季度的銷量來看，銷量不錯，但完全被混合所抵消。我想知道您是否可以雙擊您在那裡看到的內容？它是基於地理位置的嗎？

Or is it something you're expecting to continue as diesel penetration falls relative to gas? Is there anything we should be specifically thinking about there?

或者您是否預期這種情況會持續下去，因為柴油滲透率相對於汽油而言會下降？我們應該特別考慮什麼嗎？

So let me pick that up. That's a very good question. It's an opportunity for us to clarify. The mix that we see the impact is much more coming by two things. First, commercial vehicle versus growth in gasoline and gasoline turbos.

那麼就讓我來回答這個問題。這是一個非常好的問題。這是我們澄清的一個機會。我們看到的影響主要來自兩件事。首先，商用車與汽油和汽油渦輪增壓器的成長。

And second, some weakness we keep on seeing on the aftermarket. So let me explain that. We are seeing, as we have said, a huge growth on the gasoline side, 10%. Obviously, we know that those products, especially when they come from China. When they go for China are not exactly at the same margin as the rest of the business.

其次，我們不斷看到售後市場存在一些疲軟現象。讓我來解釋一下。正如我們所說，我們看到汽油方面出現了 10% 的大幅成長。顯然，我們知道這些產品，尤其是來自中國的產品。當他們進入中國市場時，他們的利潤率與其他企業並不完全相同。

So this is the first mix impact. We are -- we keep on seeing continued weakness on the commercial vehicle side in some regions, although I would say it's stabilizing, we are seeing some green shoots which makes us a bit more confident for the future. And last but not least, we said that aftermarket was also subject to some weakness.

這是第一次混合影響。我們——我們繼續看到一些地區的商用車方面持續疲軟，儘管我想說它正在穩定下來，我們看到了一些復甦的跡象，這讓我們對未來更有信心。最後但同樣重要的一點是，我們說過售後市場也受到一些疲軟的影響。

And in aftermarket, the piece that so far has been weak this year is commercial vehicle off-highway aftermarket, where there is some destocking going on at some of our customers. And as the activity stabilize, we expect that this will still go on for some time and then at some point, recover.

在售後市場，今年迄今表現疲軟的是商用車非公路用車售後市場，我們的一些客戶正在進行去庫存化。隨著活動的穩定，我們預計這種情況還會持續一段時間，然後在某個時候恢復。

So these are the three drivers. The first driver at the end of the day is a very good driver for us because it's meaning that we have -- we are quite successful versus the rest of the industry, especially in a region that is extremely demanding in terms of competitiveness. The two others, obviously, for us, it's much more cyclical effects that are impacting ourselves. And obviously, like any cycle at some point, they will recover.

這就是三個驅動因素。歸根究底，第一個驅動因素對我們來說是一個非常好的驅動因素，因為這意味著我們——與業內其他公司相比，我們相當成功，特別是在對競爭力要求極高的地區。顯然，對我們來說，另外兩個因素更具週期性，對我們自己產生了影響。顯然，就像任何週期一樣，在某個時刻，它們都會恢復。

Got it. Okay, thank you very much. And then just as a quick second question, and then I'll hop back in the line. On that commercial vehicle green shoots comment, is that going to be geographic based? Is it -- are you seeing some strength in certain areas or on off-highway versus Class 8?

知道了。好的，非常感謝。然後我再快速問第二個問題，然後我會回到隊伍中。關於商用車綠化的評論，它是基於地理位置的嗎？您是否看到某些地區或非公路領域相對於 8 級公路具有一定的優勢？

Is there any more detail that you can give there? Or is the outlook still pretty soft broad-based? Just some high-level thoughts on that, if you wouldn't mind.

能提供更多細節嗎？或者前景仍然相當疲軟？如果您不介意的話，我只是對此有一些高層次的想法。

It's pretty sub broad-based. But we have seen some signs of stabilization in China, which is a big region for us. And we should expect some stabilization, although at a low level. And then at some point, I guess it's marking the bottom of the cycle on off-highway and when I say off highway, it's mostly agricultural and construction equipment.

它的基礎相當廣泛。但我們已經看到中國出現一些穩定的跡象，中國對我們來說是一個很大的地區。儘管水平較低，但我們應該期待一定程度的穩定。然後在某個時候，我猜這標誌著非公路用車週期的底部，當我說非公路用車時，它主要是指農業和建築設備。

Okay, thanks guys.

好的，謝謝大家。

I see, as we said so far, the commercial vehicle piece that we can for our industrial, which are the largest trouble we produce is going quite well in comparison to the rest.

我看到，正如我們目前所說的，我們為工業生產提供者用車零件，也就是我們生產的最大產品，與其他產品相比，進展相當順利。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Good morning everyone.

大家早安。

Hi, Nathan.

你好，內森。

I'd like to talk a bit about the zero emissions technologies and the progress there. I know you guys have targeted $1 billion of revenue in 2030. Obviously, that number is quite low these days or today as you're in development. Can you maybe talk about the path that you're expecting to take from here to that $1 billion of revenue in 2030? And how we should think about kind of you announcing project wins that actually turn into the platform revenues and just kind of how we view the path of that over the next few years?

我想談談零排放技術及其進展。我知道你們的目標是到 2030 年達到 10 億美元的收入。顯然，由於目前還處於開發階段，這個數字相當低。您能否談談您預計如何從現在開始實現 2030 年 10 億美元的收入？我們應該如何看待您宣布的專案勝利實際上轉化為平台收入，以及我們如何看待未來幾年的發展路徑？

So that's a good question and giving me an opportunity to one more time to explain what we do there. First, we have three technologies that are counting towards that goal of the zero emission technology revenue. The first one is fuel cell compressors. So although the fuel cell compressor industry is impacted by the slowdown that we've seen on fuel cell compressor in terms of ramp-up, that's already something that we are doing.

這是一個很好的問題，也讓我有機會再次解釋我們在那裡所做的事情。首先，我們有三種技術可以實現零排放技術收入的目標。第一個是燃料電池壓縮機。因此，儘管燃料電池壓縮機產業受到了燃料電池壓縮機產量放緩的影響，但我們已經採取了行動。

Quite frankly, it was not the major part of the $1 billion that we had announced and therefore, the slowdown that we have seen so far is just having a marginal impact on that. Most of the $1 billion is coming from the two other technologies, the first one, E-Powertrain.

坦白說，這並不是我們宣布的 10 億美元中的大部分，因此，到目前為止我們看到的放緩只是對此產生了微不足道的影響。這 10 億美元中的大部分來自另外兩項技術，第一項是 E-Powertrain。

As you have seen, we have announced wins and the biggest one being the -- and I say HanDe and not HanDe for some people that would make the confusion. HanDe is a commercial vehicle player that belongs to the Weichai Galaxy. It's the biggest maker of axles and electric axles, not only for China but also for exports. In China, the industry already exists for electric trucks and is growing.

如您所見，我們已經宣布了勝利，其中最大的勝利是——我說的是 HanDe，而不是 HanDe，因為有些人可能會感到困惑。漢德是濰柴銀河旗下的商用車企業。它是中國最大的車軸和電動車軸製造商，不僅為中國市場生產，也出口到國外。在中國，電動卡車行業已經存在並且正在不斷發展。

So we are not subject to the slowdown of BEV passenger vehicle that we have seen in North America, and the slowdown of the growth that we have seen in Europe. So we are pleased with that. It keeps on growing. We have more to come for both passenger vehicle and commercial vehicle, knowing that the first launch, which is associated to the first award will come in 2027, ramp up from there.

因此，我們不會受到北美純電動車乘用車成長放緩以及歐洲成長放緩的影響。所以我們對此感到高興。它不斷增長。我們將在乘用車和商用車領域推出更多產品，並知道與第一個獎項相關的首次發布將於 2027 年進行，然後從那時開始逐步推進。

From the beginning, we've said that on E-Powertrain, we would start into 2027 and ramp up from there. So we are fully aligned at this stage with the trajectory that we had laid out. Obviously, we are monitoring very closely the developments of penetration in countries subject obviously to the end markets in which we are playing.

從一開始，我們就說過，我們將在 2027 年開始推動 E-Powertrain 的發展。因此，現階段我們完全按照我們所製定的軌跡前進。顯然，我們正在密切關注我們所處的終端市場所在國家的滲透發展。

And then the last one, which is E-Cooling compressors, which we are quite positive about. At the beginning, we are really betting a lot on what we call mobile application, which is equaling compressors for electric vehicles, mostly commercial vehicle for both battery cooling and also vehicle cooling. When you think about buses, we are still seeing a strong traction there.

最後一個是 E-Cooling 壓縮機，我們對此非常樂觀。一開始，我們確實在所謂的行動應用上投入了大量資金，這相當於電動車的壓縮機，主要用於商用車的電池冷卻和車輛冷卻。當你想到公車時，我們仍然看到它有強勁的吸引力。

But what we have seen over the last few months, that's what we wanted to highlight in our earnings today is that we have seen an increasing interest from the industrial world. So think about air conditioning systems that are on rooftop, up to some of the systems that are used in some data centers, where we have demonstrated that the technology we bring is having superior performance to what is existing and is using some innovation that are quite unique for us because we leverage the maturity that we have achieved on fuel cells to address fuel cell compressor to address a new vertical.

但我們在過去幾個月中看到的情況是，也就是我們今天想要在收益中強調的，我們看到工業界對此的興趣日益濃厚。想想屋頂上的空調系統，以及一些資料中心使用的某些系統，我們已經證明，我們帶來的技術比現有技術具有更優越的性能，並且使用了一些對我們來說非常獨特的創新，因為我們利用我們在燃料電池方面取得的成熟度來解決燃料電池壓縮機的問題，從而解決新的垂直問題。

So we are coming with the strength of the size of the auto industry and we are coming from the strength of the maturity that you need to achieve in auto industry when you start production. So I'm extremely positive about this one, which is getting us into the industrial world out of the automotive world. And we cannot say much more than that at this stage, but results are extremely promising, and the interest of customer is quite high.

因此，我們擁有汽車產業規模的優勢，也擁有汽車產業開始生產時需要達到的成熟度的優勢。因此，我對此非常樂觀，這將使我們走出汽車世界，進入工業世界。目前我們還不能透露太多，但結果非常令人鼓舞，客戶的興趣也相當高。

Thanks for that. In terms of the predevelopment contracts that you've got going on there, is there any color you can give us on timing of when you expect those to become actual awards and what the timing might be on the start of production on those kinds of things?

謝謝。就您們正在進行的預開發合約而言，您能否透露一下這些合約預計何時成為實際合同，以及這類產品何時開始生產？

Usual timing, when you start on preproduction, yes. It's about I would say it depends on the customer, but it can be a few months to 1.5 years, 2 years before we decide to go into production. You may remember that we've announced already some preproduction award already some time ago. So obviously, there are some of them that are getting now much more mature. Although we are not ready to announce any yet.

通常的時間，當你開始進行預生產時，是的。我想說這取決於客戶，但在我們決定投入生產之前，可能需要幾個月到一年半甚至兩年的時間。您可能還記得，我們​​不久前已經宣布了一些前期製作獎項。顯然，他們中的一些人現在已經變得更加成熟了。儘管我們還沒有準備好宣布任何消息。

And obviously, for the rest, it will come later on. What's important is that when customers get into these programs with you, they are already committing energy, resources and money to help you assess and develop the technology. So that's already first, a very good sign of confidence.

顯然，其餘的事情將在稍後發生。重要的是，當客戶與您一起參與這些專案時，他們已經投入了精力、資源和金錢來幫助您評估和開發該技術。所以這首先已經是一個非常好的信心訊號。

And then maybe just one more on that. The margin profile for these products as they ramp up, do they start off maybe below corporate average and as volume improves, you get them to a higher level? Or will they be immediately accretive to the company? Just any color you can give us on the margin profile of the 0 emission products. Thanks.

然後也許再多說一點。隨著這些產品的產量不斷增加，它們的利潤率是否一開始可能低於企業平均水平，而隨著產量的提高，它們的利潤率是否會上升到更高的水平？或者它們會立即為公司帶來增值嗎？您可以在 0 排放產品的利潤概況上提供我們任何顏色。謝謝。

So the way we measure that is what we call material margin. So the margin we make between the material cost of the products and the price. And what we have always said and we'll keep on repeating that because we have more and more proof points around it, that on average, it's about the same or accretive to what we have on the turbo side.

因此，我們衡量這一點的方法就是所謂的材料利潤。因此，我們在產品的材料成本和價格之間留出了利潤。我們一直在說，並且我們會繼續重複這一點，因為我們有越來越多的證據證明這一點，平均而言，它與渦輪增壓的情況大致相同或有所增加。

Thanks very much for taking my questions.

非常感謝您回答我的問題。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

Hi, could you just elaborate on the recovery you saw in diesel, please?

您好，您能詳細說明一下柴油的復甦情況嗎？

So yeah, that was a year-over-year recovery, mainly in Europe and North America. But again, diesel still overall is trending down slowly over time, but not nearly to the magnitude we saw back a few years ago. So diesel still is a very strong business for us. And again, we will be last man standing on the turbos for diesel. It's a vertical that has basically 100% penetration on turbo. And it's a business we like very much.

是的，這是年比復甦，主要發生在歐洲和北美。但整體而言，柴油價格仍呈現緩慢下降趨勢，但幅度遠不及幾年前。因此柴油對我們來說仍然是一個非常強大的業務。再次強調，我們將是柴油渦輪增壓器領域的最後一個倖存者。這是一種垂直產品，渦輪增壓的滲透率基本上為 100%。這是我們非常喜歡的一項業務。

But let me add to what Sean is saying. The big decrease we've seen on diesel was basically linked to the shift on passenger vehicles from diesel to other technologies like gasoline and hybrid. We are more and more as we have been reducing that share of the business. We have been more and more coming to the end of it and with volumes of diesel remaining much more focused on what I would call light commercial vehicle application.

但請容許我補充一下肖恩所說的內容。我們看到柴油銷量的大幅下降基本上與乘用車從柴油轉向汽油和混合動力等其他技術有關。隨著我們不斷減少該業務份額，這種情況正在變得越來越多。我們已經越來越接近尾聲，柴油產量將更加集中在我所說的輕型商用車應用。

So think about delivery vans, pickup trucks, especially in Asia, all these vehicles are diesel, even in China. And today, the trend is that most of it will stay in diesel for the long run due to the specifics of diesel, which are associated with range gas consumption as well as I would say the truck that you need to move diesel.

想想送貨貨車、皮卡車，尤其是在亞洲，所有這些車輛都是柴油的，即使在中國也是如此。而今天的趨勢是，由於柴油的特性，大部分燃料將長期使用柴油，這與燃油消耗範圍以及運輸柴油所需的卡車有關。

Okay. And then, Olivier, if I heard you right, you said there's about $100 million this year from industrial use. Is that going into data center? If not, when does that get implemented and helping your sales?

好的。然後，奧利維爾，如果我沒聽錯的話，您說今年工業用途的投資金額約為 1 億美元。那是進入資料中心嗎？如果沒有，什麼時候實施並幫助您的銷售？

So that's a good one because we introduced that information for this quarter. So let me explain what we mean by that. Even before we launched the main line of turbochargers, the big line that we launched about 1 year, 1.5 year ago, we were already doing a lot of very big turbochargers according to our range that we are fitted on gen set.

這是一個很好的例子，因為我們在本季度引入了該資訊。那麼讓我解釋一下我們的意思。甚至在我們推出渦輪增壓器主線（大約 1 年或 1.5 年前推出的大型生產線）之前，我們已經根據安裝在發電機組上的範圍生產了許多非常大的渦輪增壓器。

And what we've isolated this quarter is this number to give people a little bit of a view that already today, even at the start of the [GEM] ramp, the mag ramp-up. We are already doing $100 million in that field, supplying those turbos that are ingested that most of them are going already today to the backup power for data centers.

我們本季分離出來的這個數字是為了讓人們稍微了解一下，即使在今天，甚至在 [GEM] 坡道開始、mag 坡道開始上升的時候。我們已經在該領域投入了 1 億美元，為這些吸入式渦輪提供動力，其中大部分已經用於資料中心的備用電源。

So we are not just venturing into something from scratch. We are extending our range with bigger turbos, but we are already doing a significant business in that field to our customers, whether in China, Europe or the US by way.

所以我們並不是從零開始嘗試某件事。我們正在透過更大的渦輪增壓器來擴大我們的產品範圍，但我們在該領域已經為我們的客戶開展了大量業務，無論是在中國、歐洲還是美國。

Okay, I appreciate it, thank you.

好的，我很感激，謝謝。

(Operator Instructions)

（操作員指示）

Jake Scholl, BNP Paribas..

傑克‧肖爾（Jake Scholl），法國巴黎銀行

Hey guys, congrats on the great quarter. I appreciate you guys providing the color on your stationary power revenue. So as that business continues to ramp for you guys and especially as we see more demand in things like data centers and you roll out the potential industrial applications of E-Cooling compressor, what could that business look like if we out to 2030 or even 2035?

嘿，大家好，恭喜你們取得了這個偉大的季度。我很感謝你們提供有關固定電力收入的詳細資訊。那麼，隨著你們的業務持續成長，特別是我們看到資料中心等領域的需求不斷增加，並且你們推出了 E-Cooling 壓縮機的潛在工業應用，那麼到 2030 年甚至 2035 年，這項業務會是什麼樣子？

That's a very good question. I may not give you right away and I'll start with the number on this one. But let's keep in mind that first, it's growing and it's growing fast, obviously, from a smaller base. We've mentioned the $100 million for stationary power application. It's already a significant increase.

這是一個非常好的問題。我可能不會立即告訴你，但我將從這個數字開始。但首先我們要記住，它正在成長，而且成長速度很快，顯然，它的基數較小。我們已經提到了用於固定電力應用的 1 億美元。這已經是一個顯著的增長了。

It's already a double-digit increase versus last year and more to come. And including that's also a little bit premature to tell you exactly the numbers as we are really working on that with our customers. But if we were consuming, we expect it to be significant. I don't think it will represent 50% of the sales of the company by any means, but that will be significant in the bond scheme up since.

與去年相比，這已經實現了兩位數的成長，未來還會繼續成長。現在告訴你確切的數字還為時過早，因為我們正在與客戶一起努力。但如果我們正在消費，我們預計它會很顯著。我認為無論如何它都不會占到公司銷售額的 50%，但這對以後的債券計劃來說意義重大。

Yes. Got it. And you guys delivered some very impressive capital returns this quarter, between dividends and buybacks totaling nearly $100 million. Is that what we should expect to see going forward, obviously, with some quarter-to-quarter variability? Thank you.

是的。知道了。本季度，你們實現了非常令人印象深刻的資本回報，股息和回購總額接近 1 億美元。這是否是我們未來應該看到的，顯然，季度與季度之間會存在一些差異？謝謝。

Yeah. Again, as I highlighted in my prepared remarks, we remain committed to 75% or more over time. But again, that will vary, as you noted, especially on share buybacks quarter-to-quarter depending upon macroeconomic and industry conditions. But that's we continue to focus in on returning the cash that we're generating to shareholders. That's a core part of our financial framework.

是的。再次，正如我在準備好的發言中所強調的那樣，我們仍然致力於實現 75% 或更高的目標。但正如您所說，情況會有所不同，尤其是每個季度的股票回購情況，取決於宏觀經濟和行業狀況。但我們會繼續專注於將我們創造的現金回饋給股東。這是我們財務框架的核心部分。

Thank you.

謝謝。

Eric Gregg, Four Tree Island Advisory.

艾瑞克‧格雷格 (Eric Gregg)，四樹島顧問公司。

Tremendous quarter, everyone. Two questions. One is on the E-Cooling technologies for data center and industrial. What are the performance or form factor potential pricing attributes that you think will make this technology potentially very appealing to potential customers? And the second question is forgive this, but a little bit more on capital allocation.

各位，這是一個非常棒的季度。兩個問題。一是資料中心和工業的電子冷卻技術。您認為哪些性能或外形潛在定價屬性會使這項技術對潛在客戶極具吸引力？第二個問題是原諒這一點，但更多地涉及資本配置。

I echo the points made by the prior caller about how strong a quarter it was. But this year, you're down a little bit year-to-date on stock and purchase versus last year and you have a lot more liquidity than you did last year. So should we be looking forward to potentially another very strong quarter in stock repurchase specifically or more weighted towards debt payback even with the $50 million debt pay down? Thank you.

我同意前一位來電者關於本季表現如何強勁的觀點。但今年迄今為止，您的庫存和購買量與去年相比略有下降，而且您的流動性也比去年高得多。那麼，我們是否應該期待股票回購再出現一個非常強勁的季度，或者即使償還了 5000 萬美元的債務，我們是否應該更加重視債務償還？謝謝。

Yeah. So Eric, I'll answer your first question, and I'm sure Sean will answer your second one. So back to E-Cooling question, what makes our product differentiated versus what already exists. A few things. First, we are using high-speed electric models.

是的。所以 Eric，我會回答你的第一個問題，我相信 Sean 也會回答你的第二個問題。那麼回到 E-Cooling 的問題，是什麼讓我們的產品與現有產品有所不同。有幾件事。首先，我們採用高速電動模型。

We are compressing at a high speed. With high speed in compression comps efficiency. We have an expertise into high speed and our concept shows extremely low level of noise. So at the end of the day, weight, efficiency, noise, and we are leveraging a technology. Now I'm getting a little bit technical where the system rotates on the cushion of air that we call air foil bearing that we have developed for the automotive industry.

我們正在高速壓縮。壓縮速度快，效率高。我們擁有高速方面的專業知識，我們的概念顯示出極低的噪音水平。所以最終，重量、效率、噪音，我們都在利用一項技術。現在我要講一點技術方面的內容，系統在氣墊上旋轉，我們稱之為空氣箔軸承，這是我們為汽車行業開發的。

We have developed that for fuel cell compressors and we are uniquely positioned in the industry because we have the scale of the automotive industry. We have the maturity from a manufacturing standpoint. It's a very complex, high-volume manufacturing to achieve that.

我們已經為燃料電池壓縮機開發了該技術，並且由於我們擁有汽車行業的規模，因此我們在行業中具有獨特的地位。從製造角度來看，我們已經很成熟了。要實現這一目標，需要非常複雜、大量的生產。

So from a design, from a manufacturing standpoint, we have an edge with the system. So if you think about the capabilities of the company, high speed, high-speed electric motors, and then everything that revolves around rotating technology, in this case, this famous air cushion bearing are key points for our product that has to provide the benefit to our customers at the end and back to what I've said, it's weight.

因此，從設計和製造的角度來看，我們的系統具有優勢。因此，如果您考慮公司的能力、高速、高速電動機以及圍繞旋轉技術的一切，在這種情況下，這種著名的氣墊軸承是我們產品的關鍵點，最終必須為我們的客戶帶來利益，回到我所說的，它的重量。

Sometimes these systems are on the roof of building. So weight is important. More importantly, efficiency. Any kind of percentage you can save on electric consumption, especially nowadays with the pressure that everybody has to reduce their energy consumption is a bit and the maturity of our product versus some others, putting all that in the context of the world that is evolving when it comes to low global warming refrigerant that needs to be used moving forward.

有時這些系統位於建築物的屋頂上。所以體重很重要。更重要的是效率。任何可以節省電力消耗的百分比，特別是在現在每個人都面臨著減少能源消耗的壓力的情況下，都是有點的，而且我們的產品相對於其他一些產品的成熟度也很高，將所有這些都放在世界不斷發展的背景下，當談到需要使用的低全球變暖製冷劑時。

So we are coming at the right point in time where the industry is looking for improvements in the face of a change that is driven by this low global warming refrigerant and it shares the benefits that we bring to mobile applications are obviously extremely applicable to the buildings and the industrial applications as well.

因此，我們正處於正確的時間點，面對這種低全球暖化冷媒所驅動的變化，業界正在尋求改進，並且我們為行動應用帶來的好處顯然也非常適用於建築和工業應用。

Now on the question about capital allocation.

現在討論資本配置的問題。

Okay, Eric. So look, as everyone knows, there are some -- it's a volatile industry that we're in right now with new news every day, both from governments and the supply chain. But we are committed to returning capital to shareholders. But we're not going to commit to any specific number. But again, we've just raised our dividend, we had a very strong quarter of share buyback, and we repaid a little bit of debt.

好的，埃里克。所以，正如大家所知，我們現在處於一個動盪的行業，每天都有來自政府和供應鏈的新消息。但我們致力於向股東返還資本。但我們不會承諾任何具體的數字。但是，我們剛剛提高了股息，本季我們的股票回購表現非常強勁，我們也償還了少量債務。

So those are the -- those are our three levers, and we expect to continue to use them going forward over time.

所以這些就是我們的三個槓桿，我們希望隨著時間的推移繼續使用它們。

And to get to our goal on average to return 75%.

並達到我們的平均回報率 75% 的目標。

Correct.

正確的。

Thank you very much.

非常感謝。

Thank you for joining Garrett's Q3 earnings call. This concludes today's session.

感謝您參加 Garrett 的第三季財報電話會議。今天的會議到此結束。