Innovex International Inc (INVX) 2025 Q3 法說會逐字稿

Good morning and welcome to Innovex's third-quarter '25 earnings call. At this time, all participants are in listen-only mode, and there will be a question-and-answer opportunity at the end of this call. As a reminder, this call is being recorded.

早安，歡迎參加 Innovex 2025 年第三季財報電話會議。目前所有參與者皆處於唯讀模式，本次通話結束時將有問答環節。再次提醒，本次通話正在錄音。

At this time, I would like to turn the call over to Avinash Cuddapah, Senior Director of Investor Relations. Please go ahead.

此時，我想把電話交給投資人關係資深總監 Avinash Cuddapah。請繼續。

Good morning, everyone, and thank you for joining us on today's call. An updated investor presentation has been posted under the investors tab on the company's website, along with the earnings press release.

各位早安，感謝各位參加今天的電話會議。本公司網站「投資者」專欄下已發布更新後的投資者簡報以及獲利新聞稿。

This call is being recorded and a replay will be available on the company's website following the call.

本次通話將會被錄音，通話結束後將在公司網站上提供錄音回放。

Before we begin, I would like to remind you that Innovex's comments may include forward-looking statements and discuss non-GAAP financial measures. It should be noted that a variety of factors could cause Innovex's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.

在開始之前，我想提醒各位，Innovex 的評論可能包含前瞻性陳述，並討論非 GAAP 財務指標。需要注意的是，多種因素可能導致 Innovex 的實際業績與這些前瞻性聲明中表達的預期業績或期望存在重大差異。

Please refer to the third-quarter '25 financial and operational results announcement that we released yesterday for a discussion of forward-looking statements and reconciliations of non-GAAP measures. Taking on the call today from NFX, we have Adam Anderson, Chief Executive Officer, and Kendal Reed, Chief Financial Officer.

有關前瞻性陳述和非GAAP指標的調整，請參閱我們昨天發布的2025年第三季財務和營運業績公告。今天接聽 NFX 電話會議的有執行長 Adam Anderson 和財務長 Kendal Reed。

I would now like to turn the call over to Adam Anderson.

現在我想把電話交給亞當安德森。

Thanks, Avi.

謝謝你，艾維。

Good morning and thanks to everyone for joining us today.

早安，感謝各位今天蒞臨。

Before I begin, I want to recognize our incredible team whose focus and commitment drove meaningful progress across all of our strategic initiatives in the third-quarter. On today's call, I'll discuss our third-quarter results and highlight the key developments shaping our performance, starting with continued market share gains, successful integration of the Citadel acquisition, and progress on key operational initiatives, particularly in our sub franchise.

在開始之前，我想感謝我們出色的團隊，他們的專注和奉獻精神推動了我們在第三季所有策略舉措取得實質進展。在今天的電話會議上，我將討論我們第三季度的業績，並重點介紹影響我們業績的關鍵發展，首先是市場份額的持續增長、對 Citadel 收購的成功整合，以及關鍵運營舉措的進展，尤其是在我們的子特許經營方面。

After these operational and commercial updates, I'll then turn the call over to Kendal, who will review our financial results and provide more detail on our balance sheet, capital allocation priorities, and fourth-quarter outlook.

在介紹這些營運和商業方面的最新進展後，我將把電話轉交給 Kendal，他將回顧我們的財務業績，並提供有關我們資產負債表、資本配置重點和第四季度展望的更多詳細資訊。

The third-quarter demonstrated the strength and resilience of the Innovex industrial platform. Our diversified portfolio of big impact small ticket products enables us to deliver exceptional service for our customers and strong returns for shareholders through all phases of the cycle. Our capital life business model requires just 2% to 3% of revenue to fund organic growth.

第三季展現了Innovex工業平台的實力與韌性。我們多元化的產品組合，涵蓋了眾多小額投資卻能產生巨大影響的產品，使我們能夠在經濟週期的各個階段為客戶提供卓越的服務，並為股東帶來豐厚的回報。我們的資本生命業務模式只需要將收入的 2% 到 3% 用於有機成長。

Low capital intensity enables high free cash flow conversion. In fact, we converted approximately 84% of our adjusted EBITDA into free cash flow in the quarter.

低資本密集度可實現高自由現金流轉換率。事實上，本季我們將調整後 EBITDA 的約 84% 轉化為自由現金流。

Strong free cash flow provides us with optionality to fund organic growth, invest in innovation, selectively add to our portfolio with acquisitions, and repurchase shares, all while generating strong financial returns for our shareholders.

強勁的自由現金流使我們有多種選擇，可以為內生成長提供資金，投資創新，透過收購選擇性地增加我們的投資組合，以及回購股票，所有這些都能為我們的股東帶來強勁的財務回報。

Turning to Q3 results, I'm encouraged by our team's strong execution in what remains a challenging market environment.

展望第三季業績，在依然充滿挑戰的市場環境下，我們團隊的出色執行力令我感到鼓舞。

A revenue of $240 million for the third-quarter represented an increase of $16 million sequentially.

第三季營收為 2.4 億美元，比上一季增加了 1,600 萬美元。

Our North America land business grew approximately 10% sequentially, reflecting strong execution and resilience of our North American operations. While broader US land activity remains soft, Innovex once again outpaced the market, driven by market share gains in our drilling enhancement of well construction portfolios and the impact of a full quarter of contribution from Citadel.

我們的北美土地業務環比成長約 10%，反映出我們北美業務的強勁執行力和韌性。儘管美國陸上整體活動依然疲軟，但 Innovex 再次跑贏大盤，這得益於我們在鑽井增強油井建設組合方面的市場份額增長，以及 Citadel 整整一個季​​度的貢獻。

Citadel continues to perform well, broadening our market position and driving meaningful cross-selling opportunities which will drive organic market share growth over time.

Citadel 繼續保持良好表現，擴大了我們的市場地位，並推動了有意義的交叉銷售機會，這將隨著時間的推移推動市場份額的自然成長。

A key part of our thesis for Citadel was leveraging our international platform, a key tool in our proven M&A playbook. Although Citadel already had some exposure in the international markets, on a combined basis, we've been able to further expand its reach, a critical step in expanding market share in high value international markets.

我們為 Citadel 制定的策略的關鍵部分是利用我們的國際平台，這是我們久經考驗的併購策略中的關鍵工具。儘管 Citadel 已經在國際市場取得了一些進展，但綜合來看，我們能夠進一步擴大其影響力，這是在高價值國際市場擴大市場份額的關鍵一步。

Our international and offshore revenue grew 4% sequentially despite softness in some of our key markets such as Mexico and Saudi Arabia.

儘管我們在墨西哥和沙烏地阿拉伯等一些主要市場表現疲軟，但我們的國際和離岸收入仍較上季成長了 4%。

Despite these headwinds, I'm very pleased with our strong execution. Q3 marked the largest ever quarter for our subsea services related revenue in the US offshore market, highlighting our team's renewed focus on maximizing fixed asset utilization to support product installations. In the Middle East, we were able to be part of the longest well ever drilled. The 54,000 ft well utilized multiple Innovex technologies including the ripstick, swivel master, casing swivel, and a custom designed multi-stage liner system. This custom solution for a major national oil company is a prime example of the solutions Innovex's broad platform can deliver for our customers.

儘管面臨這些不利因素，但我對我們出色的執行力非常滿意。第三季度是我們在美國海上市場海底服務相關收入有史以來最高的季度，這凸顯了我們團隊重新專注於最大限度地利用固定資產來支援產品安裝。在中東，我們有幸參與了有史以來鑽探的最長油井的建設。這口 54,000 英尺深的井採用了 Innovex 的多項技術，包括 ripstick、swivel master、case swivel 和定制設計的多級襯管系統。為一家大型國家石油公司量身訂製的此解決方案，充分體現了 Innovex 的廣泛平台能夠為客戶提供的解決方案。

We also recently inaugurated a new manufacturing facility in Saudi Arabia, further solidifying our local content in one of our most important international markets.

我們最近也在沙烏地阿拉伯啟用了一家新的製造工廠，進一步鞏固了我們在最重要的國際市場之一的在地化程度。

Momentum is also building in Asia, with several significant orders received for subsidy equipment in Q3 and scheduled to be delivered in '26 and '27. Our Latin American market remains resilient thanks to market expansion and execution on revenue synergy opportunities.

亞洲市場也呈現成長勢頭，第三季收到了幾筆重要的補貼設備訂單，預計將於 2026 年和 2027 年交付。由於市場擴張和對收入協同效應機會的把握，我們的拉丁美洲市場依然保持韌性。

Innovex continues to grow its market share, strengthening its position as a leading supplier of advanced completion solutions. In the third quarter, we grew our presence in Argentina with sales of our dissolvable plug technology.

Innovex 的市場份額持續成長，鞏固了其作為先進完井解決方案領先供應商的地位。第三季度，我們透過銷售可溶解塞技術，擴大了在阿根廷的業務。

We still view Argentina as a market with significant potential for our entire product suite, as there are applications for a majority of our existing products in the [vari the field]

我們仍然認為阿根廷市場對我們的所有產品都具有巨大的潛力，因為我們現有的大多數產品在阿根廷都有應用前景。[改變字段]

Additionally, in Mexico, we were able to successfully combine the installation of an XPak Expandable Liner Hanger system, a legacy driller product, with citadel float equipment, another example of our execution on cross-selling opportunities.

此外，在墨西哥，我們成功地將 XPak 可擴展襯管懸掛器系統（一種傳統的鑽井產品）的安裝與 Citadel 浮球設備相結合，這是我們把握交叉銷售機會的又一例證。

This early win exemplifies the kinds of synergy opportunities we are exploiting across the platform.

這次早期勝利體現了我們正在整個平台上利用的各種協同效應機會。

A key part of our investment thesis for the merger with Dril-Quip was that we could drive organic share growth by improving operational execution and the customer experience, particularly on on-time delivery.

我們投資 Dril-Quip 合併的關鍵論點是，我們可以透過改善營運執行和客戶體驗（尤其是在準時交付方面）來推動有機市場份額成長。

We continue to make progress this quarter, improving on-time delivery to 76%. As expected, strong execution is now driving market share growth. For instance, we recently announced an exclusive subsea wellhead supply agreement with one subsea. This partnership makes Innovex the exclusive wellhead provider on bundled subsea packages, giving us access to the significant portion of the global subsea wellhead market currently served by one subsea.

本季我們持續取得進展，準時交貨率提高到 76%。正如預期，強而有力的執行力正在推動市場份額的成長。例如，我們最近宣布與一家海底公司簽訂獨家海底井口供應協議。此次合作使 Innovex 成為捆綁式海底設備包的獨家井口供應商，使我們能夠進入目前由一家海底公司服務的全球海底井口市場的重要份額。

There will be a phased approach to execution. We expect our first orders to come in '26 with deliveries to begin in '27. Separately, we see emerging opportunities in the Asia Pacific markets which we believe will drive further growth for our subsea wellhead franchise in '26.

執行將分階段進行。我們預計首批訂單將於 2026 年到來，並於 2027 年開始交付。此外，我們看到亞太市場湧現出許多機遇，我們相信這些機會將在 2026 年推動我們海底井口業務的進一步成長。

Overall, Q3 was a quarter of solid execution and progress on our long-term strategic initiatives. We added significant cash to our net cash balance sheet. We continued to integrate Citadel successfully, driving share gains in key product lines, improving reliability for our customers, and positioning our subsidy business for profitable growth in '26.

整體而言，第三季我們在長期策略措施的執行和推進方面取得了穩健進展。我們大幅增加了淨現金資產負債表上的現金。我們繼續成功地整合 Citadel，推動了關鍵產品線的市佔率成長，提高了客戶的可靠性，並為我們的補貼業務在 2026 年實現獲利成長奠定了基礎。

These efforts give us confidence in our ability to keep expanding adjusted even margins towards our long-term goal of 25%, which should drive a step change in financial returns for our shareholders. I will now turn the call over to Kendal to go over our financial results in more detail.

這些努力使我們有信心繼續擴大調整後均衡利潤率，朝著 25% 的長期目標邁進，這將為我們的股東帶來財務回報的飛躍式增長。現在我將把電話交給肯德爾，讓他更詳細地介紹我們的財務表現。

Thanks, Adam, and good morning, everyone. Just as a general reminder before we review the Q3 results, we closed on the merger with Dril-Quip on September 6, 2024, and Innovex was the accounting acquirer in the merger, meaning that the Q3 '24 comparative period results reflect legacy Innovex results for the full period prior to the closing of the merger and the combined company results, including Dril-Quip results for September 6 through September 30, 2024.

謝謝亞當，大家早安。在回顧第三季業績之前，我們想提醒大家，我們於 2024 年 9 月 6 日完成了與 Dril-Quip 的合併，Innovex 是此次合併的會計收購方，這意味著 2024 年第三季度的比較期間業績反映了合併完成前 Innovex 的原有業績以及合併後公司的業績，其中包括 20 月 201 月 6 日後公司的業績的業績。

Our third-quarter revenue was $240 million which is an increase of 58% year-over-year and an increase of 7% sequentially.

我們第三季的營收為 2.4 億美元，年增 58%，季增 7%。

Adjusted EBITDA Q3 was $44 million, which is a decrease of $3 million sequentially. Adjusted EBITDA margin for Q3 decreased sequentially to 18% from 21%. The decline in margin is mainly attributed to increased near-term expenses associated with our integration efforts, including the exit of the Eldridge facility.

調整後的第三季 EBITDA 為 4,400 萬美元，比上一季減少了 300 萬美元。第三季調整後 EBITDA 利潤率季減至 18%，而上一季為 21%。利潤率下降主要歸因於與我們的整合工作相關的近期支出增加，包括關閉埃爾德里奇工廠。

As we have discussed previously, we believe exiting this facility unlocks the first major step in our aspirations of mid-20s adjusted EBITDA margins. While we are confident in achieving these goals, the progress will be lumpy as the transition of facilities and legacy products will still lay on margins for a few more quarters.

正如我們之前討論過的，我們相信退出該專案將開啟我們實現 20% 以上調整後 EBITDA 利潤率目標的第一步。雖然我們有信心實現這些目標，但由於設施和傳統產品的過渡仍需幾季才能完成，因此進展不會一帆風順。

Importantly, however, these near-term costs are far outweighed by the $87 million of net proceeds generated by the sale of the facility. We evaluate our revenue geographically by separating our shorter cycle onshore US and Canadian operations, which we refer to as NAM land, from our longer cycle international and offshore operations, which include the Gulf of America.

但重要的是，這些近期成本遠低於出售該設施所產生的 8,700 萬美元淨收益。我們按地域劃分收入，將週期較短的美國和加拿大陸上業務（我們稱之為北美陸上業務）與週期較長的國際和海上業務（包括美洲灣業務）分開。

Our Q3 NAM land revenue of $132 million was up 10% sequentially driven by growth in US land, primarily as a result of one full quarter of Citadel revenue and our drilling enhancement portfolio continuing to gain share in the US land market.

第三季北美土地收入為 1.32 億美元，環比增長 10%，主要得益於美國土地業務的增長，這主要歸功於 Citadel 收入完整一個季度的實現，以及我們的鑽井增強業務組合在美國土地市場持續擴大份額。

Our US land business continued to outperform the broader US market, which remained under pressure during Q3. Our international and offshore revenue during the third-quarter of '25 was $108 million an increase of 4% sequentially. We still see softness in a few of our key international markets such as Saudi Arabia and Mexico. However, strong performance in our other Middle Eastern markets helped offset these headwinds.

我們的美國土地業務繼續跑贏大盤，而大盤在第三季度仍然面臨壓力。2025 年第三季度，我們的國際和離岸收入為 1.08 億美元，季增 4%。我們仍然看到一些主要國際市場（例如沙烏地阿拉伯和墨西哥）的疲軟態勢。然而，我們在其他中東市場的強勁表現幫助抵消了這些不利因素。

Our Q3 cost of sales, exclusive of depreciation and amortization, increased by $11 million sequentially to $164 million maintaining flat gross margins quarter-over-quarter, despite headwinds from ongoing integration initiatives in a challenging operating environment. This quarter we began to feel the impact of higher tariffs as changes in US tariff policy, particularly the phase in of broad steel tariffs and the increase in those tariff rates in June, began to impact our business.

第三季銷售成本（不包括折舊和攤提）較上季增加 1,100 萬美元至 1.64 億美元，儘管面臨持續整合計畫帶來的不利影響，但毛利率仍較上季持平。本季度，隨著美國關稅政策的變化，特別是逐步實施廣泛的鋼鐵關稅以及6月份關稅稅率的提高，我們開始感受到關稅上漲的影響，這開始對我們的業務產生影響。

We continue to manage supply chains and customer contracts to minimize any exposure to tariffs and remain confident in our ability to successfully offset these headwinds, consistent with our historical track record of maintaining margins in dynamic cost environments.

我們將繼續管理供應鏈和客戶合同，以最大限度地減少關稅風險，並對我們成功抵消這些不利因素的能力充滿信心，這與我們以往在動態成本環境下保持利潤率的良好記錄相符。

Selling general and administrative expenses for the third-quarter increased by $7 million sequentially to $36 million. This incremental increase is driven by the inclusion of a full quarter of Citadel results as well as temporary costs associated with our ERP integration project and facility consolidation efforts as we exit the Eldridge facility. Free cash flow for the third-quarter was $37 million a sequential decrease of $15 million.

第三季銷售一般及行政費用較上季增加 700 萬美元，達到 3,600 萬美元。這一增量成長是由於納入了 Citadel 一個季度的業績，以及與我們的 ERP 整合專案和我們退出 Eldridge 工廠的設施整合工作相關的臨時成本。第三季自由現金流為 3,700 萬美元，季減 1,500 萬美元。

As a reminder, last quarter, free cash flow benefited from the proceeds received from our sub tree divestiture. Year-to-date through September 30, 2025, we have generated $112 million of free cash flow, a conversion rate from adjusted EBITDA to free cash flow of approximately 83%. Under normal business conditions, we aim to convert 50% to 60% of our adjusted EBITDA into free cash flow.

提醒一下，上個季度，自由現金流受益於我們出售子樹業務所得的收益。截至 2025 年 9 月 30 日，我們已產生 1.12 億美元的自由現金流，調整後 EBITDA 到自由現金流的轉換率約為 83%。在正常的商業環境下，我們的目標是將調整後 EBITDA 的 50% 至 60% 轉化為自由現金流。

During periods of slower activity, however, we typically convert an even higher percentage of our adjusted EBITDA into cash, as evidenced by our strong cash flow performance in '25.

然而，在業務活動放緩時期，我們通常會將更高比例的調整後 EBITDA 轉化為現金，正如我們在 2025 年強勁的現金流表現所證明的那樣。

Capital expenditures in the third-quarter were $12 million representing approximately 5% of revenue. The sequential increase is due primarily to facility consolidation and integration efforts. We estimate approximately $4 million of our Q3 CapEx spend was one time in nature related to these integration efforts. We expect CapEx to remain slightly above our historical level of 2% to 3% of revenue through the end of the year as we continue staging operations at the two new facilities which are replacing Eldridge. However, this marginal increase in CapEx is far outweighed by the net proceeds of the sale of Eldridge. We expect CapEx to return to more normalized levels in '26.

第三季資本支出為 1,200 萬美元，約佔營收的 5%。環比成長主要歸功於設施整合和一體化工作。我們估計第三季資本支出中約有 400 萬美元是與這些整合工作相關的一次性支出。我們預計，隨著我們繼續在取代埃爾德里奇的兩座新工廠開展運營，資本支出將略高於我們過去佔收入 2% 至 3% 的水平，直至年底。然而，資本支出的這一微小增長與出售 Eldridge 的淨收益相比，簡直微不足道。我們預計資本支出將在 2026 年恢復到較正常的水平。

After closing on the sale of Eldridge, our balance sheet is drawn with cash equivalents totalling $163 million and nothing drawn on our revolving credit facility.

在完成對 Eldridge 的出售後，我們的資產負債表顯示現金等價物總額為 1.63 億美元，並且沒有動用我們的循環信貸額度。

Our total debt as of September 30, 2025 was $26 million consisting entirely of finance leases. Our return on capital employed for the 12-months ended September 30, 2025 was 13%, which remained flat compared to the 12-months ended June 30, 2025. We place a heavy emphasis on returning this number to the high teens, in line with Innovex's historical average of 18% pre-merger.

截至 2025 年 9 月 30 日，我們的總債務為 2,600 萬美元，全部為融資租賃。截至 2025 年 9 月 30 日的 12 個月，我們的資本回報率為 13%，與截至 2025 年 6 月 30 日的 12 個月相比保持不變。我們非常重視將這一數字恢復到接近 10% 的水平，與 Innovex 合併前 18% 的歷史平均水平保持一致。

Turning to our outlook for the fourth-quarter, we expected just a of $42 million to $47 million and revenues of $235 million to $245 million assuming generally flat activity across our key markets.

展望第四季度，我們預計淨利潤僅為 4,200 萬美元至 4,700 萬美元，營收為 2.35 億美元至 2.45 億美元，前提是我們的主要市場活動整體保持穩定。

We expect our ongoing integration efforts, tariff uncertainty, and product mix with subsea product deliveries to lay on margins for at least another quarter. But as discussed, we believe the exit of the Eldridge facility will unlock meaningful margin improvement in '26.

我們預計，持續的整合工作、關稅的不確定性以及海底產品交付的產品組合，至少在未來一個季度內將對利潤率造成影響。但正如我們討論過的，我們相信 Eldridge 工廠的退出將在 2026 年帶來顯著的利潤率提升。

Following the Eldridge sale, Innovex once again ends the quarter in a strong net cash position, reinforcing our ability to be opportunistic in both organic and inorganic growth. Our M&A pipeline remains active with several high-quality capital efficient businesses under review that align with our big impact small ticket strategy.

繼 Eldridge 出售之後，Innovex 再次以強勁的淨現金狀況結束了本季度，這鞏固了我們在有機增長和無機增長方面把握機會的能力。我們的併購專案依然活躍，目前正在審查幾家高品質、資本效率高的企業，這些企業符合我們小額投資、大影響力的策略。

We're looking forward to the coming quarters as we exit Eldridge and continue to execute on our proven playbook. I'll now turn the call back to Adam.

我們期待接下來的幾個季度，因為我們將離開埃爾德里奇，並繼續執行我們行之有效的策略。現在我將把電話轉回給亞當。

Thanks, Kendal. To close, I want to reiterate how proud I am of the progress our team is making. Despite persistent volatility in markets, we are executing on our strategy, strengthening our balance sheet and positioning Innovex to the next phase of growth.

謝謝你，肯德爾。最後，我想再次強調，我為我們團隊的進步感到無比自豪。儘管市場持續波動，但我們正在執行我們的策略，加強我們的資產負債表，並使 Innovex 進入下一個成長階段。

The successful close of the Eldridge sale early commercial win from Citadel.

Eldridge 的出售交易成功完成，這是 Citadel 早期取得的商業勝利。

Steady improvement in on-time delivery performance and our new partnership with One subsea all underscore the quality of the Innovex platform. We're building a business that can perform across cycles, leveraging our strong balance sheet, disciplined capital allocation, and a differentiated portfolio of technology driven high return big impact small ticket products.

準時交付率的穩定提升以及我們與 One Subsea 建立的新合作夥伴關係，都凸顯了 Innovex 平台的品質。我們正在打造一家能夠跨越週期性波動、憑藉我們強大的資產負債表、嚴謹的資本配置以及差異化的技術驅動型高回報、大影響小額產品組合而取得成功的企業。

As we move towards the end of the year, we remain focused on continuing to enhance the customer experience, capturing additional market share and driving sustained margin expansion for our long-term goal of 25%.

隨著年底臨近，我們將繼續專注於提升客戶體驗，爭取更多市場份額，並持續擴大利潤率，以實現 25% 的長期目標。

Thank you once again to our employees, customers, and shareholders for your trust and partnership, operator, we can now open the line for questions.

再次感謝各位員工、顧客和股東的信任與合作，接線員，我們現在可以開設問答專線了。

Thank you. We will now begin a question-and-answer session.

謝謝。現在我們將開始問答環節。

(Operator Instructions)

（操作說明）

Keith Blackman, Pickering Energy Partners. Please go ahead.

Keith Blackman，Pickering Energy Partners。請繼續。

Hey, good morning, and congrats on another strong quarter of free cash flow generation.

嘿，早安，祝賀你們又一個季度實現了強勁的自由現金流。

So last quarter you noted a downfall operational issue. I believe it was kind of a short-term product specific headwind.

所以上個季度你們提到了一個營運方面的下滑問題。我認為這只是針對特定產品的短期不利因素。

On the international offshore side with a particular customer, are there any corrective actions that you've kind of implemented there and how should we kind of think about that going forward, just any additional color you can provide there?

在與特定客戶的國際離岸業務方面，您是否已經採取了任何糾正措施？我們該如何看待未來的業務？您能否提供一些補充資訊？

Hey Keith, thanks for joining the call and thanks for the question. We, yeah, so we have done a lot of work over the last couple of months to make some pretty robust improvements to that product to address the issue that we saw. We got through all the qualification and did some customer witnessing of that. We're in a good spot with it. We've gotten a green light to go run three jobs with that tool. The first one should happen in the next week. We're on location with tools just waiting to run them in the hole. And then from there we should start to build back to where we were.

嗨，基思，感謝你參加電話會議，也謝謝你提出的問題。是的，在過去的幾個月裡，我們做了很多工作，對該產品進行了一些相當強大的改進，以解決我們發現的問題。我們通過了所有資格認證，也進行了一些客戶見證。我們目前處境不錯。我們已經獲準使用該工具運行三個專案。第一件事應該會在下週發生。我們已經到達現場，工具也已準備就緒，隨時可以開工作業。然後我們應該從那裡開始，逐步恢復到我們之前的狀態。

I think I would emphasize that, hey, in our business we periodically have a couple of these bumps in the roads, and one of the key ways that we have differentiated ourselves and built relationships with customers is to do a really great job at identifying what the root cause of the issue is building a better, more robust. And or service to satisfy them and typically come out of it in a stronger position than we went in. So short-term definitely a little bit annoying and staying on results a little bit in Q2, Q3, even a little bit into Q4, but in Q1 we should see things starting to get a little bit better.

我想強調的是，在我們的業務中，我們時不時會遇到一些這樣的困難，而我們脫穎而出並與客戶建立關係的關鍵方法之一，就是出色地找出問題的根本原因，並構建一個更好、更強大的解決方案。並且或提供服務以滿足他們的需求，通常情況下，我們最終會比開始時處於更強大的地位。所以短期來看，情況肯定會有點令人惱火，而且這種影響可能會持續到第二季​​度、第三季度，甚至第四季度，但第一季我們應該會看到情況開始好轉一些。

Okay awesome it's very helpful and then just kind of a follow-up here on the, one that's the exclusive wellhead agreement that you guys signed up, can you kind of frame typical lead times from award to delivery?

好的，太棒了，這很有幫助。接下來我想問一下，關於你們簽署的獨家井口協議，能否大致說明一下從授予合約到交付的典型提前期？

I know you said that you're kind of expecting some orders in '26 and some of that shows up in '27, so how should we kind of think about sequencing just any more color you can give there on when that should be more impactful to you.

我知道你說過你預計 2026 年會有一些訂單，其中一些會在 2027 年出現，那麼我們應該如何考慮安排順序，以及你何時可以添加更多顏色，以便對你產生更大的影響。

Yeah, so just to say a little bit about that agreement in general, we're really excited about the one subsea partnership. Obviously, they're a really important player in the subsea space, and this is going to really set us up well to partner with them to provide all of the wellheads and should allow us, should provide an avenue for us to sell other products below the wellhead, particularly in these integrated service contracts. Innovex Dril-Quip had historically really struggled to compete in.

是的，簡單說一下這項協議，我們對這項海底合作關係感到非常興奮。顯然，他們是海底領域非常重要的參與者，這將真正為我們與他們合作提供所有井口奠定良好的基礎，並應該允許我們，應該為我們提供一個途徑，讓我們能夠在井口以下銷售其他產品，尤其是在這些綜合服務合約中。Innovex Dril-Quip 歷來在競爭中舉步維艱。

So, I think it's opening up a whole new market opportunity for us over the next couple of years. We will both be supplying the legacy Innovex / Dril-Quip Wellhead systems. In fact, we have a delivery we're making in Q4, might bleed a little bit over into Q1 for a project we've been working on with one sub in Asia. But the biggest part of this, the biggest revenue driver for this agreement in the near term will really be helping take over some of OneSubsea's legacy sub wellhead business.

所以，我認為這將在未來幾年為我們開闢一個全新的市場機會。我們雙方將繼續供應原有的 Innovex / Dril-Quip 井口系統。事實上，我們在第四季度有一個交付項目，可能會稍微推遲到第一季度，這是我們與亞洲一家分公司合作的一個項目。但就目前而言，這項協議最大的部分，也是其最大的收入驅動因素，實際上是幫助接管 OneSubsea 的一些傳統海底井口業務。

We expect to get the first order maybe late this year, more likely first part of next year. We those orders probably take nine months, maybe a year to be on the safe side between when we start a manufacturing when we get the order and when we deliver and bear in mind, we shifted to an Invoicing or recognizing the revenue once we deliver the product rather than along the way through manufacturing.

我們預計首批訂單可能在今年年底，更有可能在明年年初。這些訂單的生產週期可能長達九個月，為了保險起見，也許需要一年時間，從我們接到訂單開始生產到交付產品。請記住，我們已經改為在交付產品後才開立發票或確認收入，而不是在生產過程中確認收入。

So, we should get a few orders next year. Probably won't really see revenue start to come in until '27 and it might be '28 before it's kind of fully up and running is our expectation, but exciting agreement for us, and I think it really helps both Innovex as well as OneSubsea be more competitive in that space.

所以，明年我們應該可以接到一些訂單。可能要到 2027 年才能真正開始產生收入，我們預計可能要到 2028 年才能完全投入運營，但這對我們來說是一項令人興奮的協議，我認為這確實有助於 Innovex 和 OneSubsea 在該領域更具競爭力。

Awesome, that's very helpful. I will, turn it back. Congrats again on the quarter.

太棒了，這很有幫助。我會把它轉回去。再次恭喜你本季取得佳績。

Thank you.

謝謝。

Don Krisp, Johnson Rice. Please go ahead.

唐克里斯普，約翰遜賴斯。請繼續。

I wanted to start with the increase in margins. I mean, can you kind of walk around the world? You've been doing a lot of work on consolidating operations, whether it be in the Middle East or Vietnam or wherever else around the world.

我想先談談利潤率的成長。我的意思是，你能環遊世界嗎？你們一直在努力整合業務，無論是在中東、越南或世界其他任何地方。

Is that a bigger factor in boosting margins than just closing Eldridge, or am I kind of thinking about that wrong? And can you just kind of expand on what the puts and takes are and kind of boosting your margins here over the next couple quarters?

與關閉埃爾德里奇工廠相比，這是否是提高利潤率的更大因素？還是我的想法有誤？您能否詳細說明接下來幾季你們的賣出和賣出策略，以及如何提高利潤率？

Yeah, it's a really good question. So maybe the way I would frame it is Eldridge is really the first step to be able to do some of that meaningful facility manufacturing footprint consolidation that you're mentioning there. So, the way that we're thinking about it is the move out of Eldridge, which we expect to be substantially complete by the end of the year, but we'll be finishing up some projects for different customers and things over the course of Q1 so say fully complete by the end of Q1, that'll unlock meaningful savings just directly related to that footprint right being in a smaller facility, all those different things. And that could be on the order of a percentage point of margin improvement just related to Eldridge itself.

是的，這確實是個好問題。所以，我可能會這樣表述：艾爾德里奇其實是實現你提到的那些有意義的工廠製造佈局整合的第一步。所以，我們目前的想法是搬離埃爾德里奇，我們預計到年底將基本完成，但我們將在第一季度完成一些不同客戶的項目，所以到第一季末全部完成，這將帶來顯著的成本節約，僅僅是因為佔地面積更小，以及所有這些不同的因素。光是埃爾德里奇一家公司就能帶來百分之一的利潤率提升。

So that'll phase in over the course of Q1, fully impact Q2 of next year is how we're thinking about that. But then you're right, that unlocks a few different things which is going to allow us to further consolidate the manufacturing footprint into a few different facilities that can be much more fully utilized, drive all the under absorption out of the system.

所以，我們預計這將在第一季逐步實施，並在明年第二季全面生效。但你說得對，這會帶來一些不同的可能性，使我們能夠進一步將生產佈局整合到幾個不同的工廠中，從而更充分地利用這些工廠，消除系統中所有未消化的產能。

As well as further turn the SG&A cost structure as we do some of those consolidations.

隨著我們進行一些合併，也將進一步調整銷售、一般及行政費用結構。

So again, first step being Eldridge, but that that is going to be a big improvement as well. So probably similar amount of improvement from that step two, let's call it facility consolidation once we're able to get out of Eldridge so between those two things, I think that's going to be sufficient to get us back into call it the low 20s EBITDA margins at roughly current revenue levels, and then we talk about the 25% EBITDA margin target.

所以，第一步是埃爾德里奇，但這也將是一個很大的進步。所以，從第二步（我們稱之為設施整合）開始，一旦我們能夠離開埃爾德里奇，可能會有類似的改善。我認為這兩項措施足以讓我們在當前營收水準下恢復到 20% 左右的 EBITDA 利潤率，然後我們再討論 25% 的 EBITDA 利潤率目標。

I think to get there we'll need a little bit of cooperation from the market, in particular improvement in some of our key places like Saudi and Mexico that have been really depressed this year. If we see some improvement there that would help us get to that that long-term 25%.

我認為要實現這一目標，我們需要市場的配合，特別是沙烏地阿拉伯和墨西哥等今年經濟狀況非常低迷的關鍵地區的經濟狀況需要改善。如果這方面有所改善，將有助於我們實現長期 25% 的目標。

I appreciate all that color. It's it's a big job. On Saudi in particular, this a couple of days ago we saw a couple rigs that were suspended that are now being notified that they're going back to work in kind of early '26.

我喜歡這些色彩。這是一項艱鉅的任務。尤其是在沙烏地阿拉伯，幾天前我們看到幾個鑽井平台被暫停運營，現在接到通知，它們將在 2026 年初恢復工作。

How do you kind of see Saudi progressing and, are you in line to get kind of any of those? Contracts directly or are you working through kind of third parties, whether it be a house or SOB or anybody else in the region to kind of drive revenue in that, in the Saudi particular region.

您如何看待沙烏地阿拉伯的發展？您是否有機會獲得其中的任何一項？您是直接簽訂合同，還是透過第三方（例如房地產公司、SOB 或該地區的其他任何機構）來推動沙烏地阿拉伯地區的收入成長？

Yeah, I'll answer the second part and then come back to the first one. So, our model in Saudi is mostly directly to the NOC there, maybe 70% or 80%. We do some work through the larger service companies as well. When we work for the service companies though, they're, it still has to be qualified by the end user. So we're sometimes selling through the service companies, but that's really a market that the NOC is still very involved with driving whose product goes in the hole.

好的，我會先回答第二個問題，然後再回來回答第一個問題。所以，我們在沙烏地阿拉伯的模式主要是直接對接當地的國家石油公司，可能佔 70% 或 80%。我們也透過一些大型服務公司來開展一些業務。不過，當我們為服務公司工作時，最終還是需要最終用戶進行評估。所以我們有時會透過服務公司進行銷售，但這實際上是 NOC 仍然深度參與並推動其產品進入市場的領域。

As far as activity, yeah, I was there a few weeks ago when we inaugurated our manufacturing facility, and we did get good, we got good vibes coming from a [ramco] that we're going to pick up some rigs and get busier, but I think we're in a little bit of wait and see mode, given the way it has trended over the last year and a half.

至於業務活動方面，是的，幾週前我們舉行了製造工廠的落成典禮，我當時也在場。我們確實感覺到了[ramco]的正面回饋，說我們會收到一些鑽孔機訂單，業務也會更加繁忙。但考慮到過去一年半的發展趨勢，我認為我們現在還處於觀望狀態。

Yeah, we've been getting more and more positive signs that it is we're going to see it ramp up and that's kind of like certainly in the gas, certainly unconventional, but it sounds like offshore oil as well as some onshore oil and some workover stuff where we really like the onshore oil stuff has really been our core market over the years. I think all that will start to get a little bit better in '26. So, I think that that's pretty exciting for us.

是的，我們收到了越來越多的積極跡象，表明我們將看到產量增加，這肯定包括天然氣、非常規油氣，但聽起來也包括海上石油以及一些陸上石油和一些修井作業，我們非常喜歡陸上石油，多年來它一直是我們的核心市場。我認為這一切在 2026 年會開始好轉一些。所以，我認為這對我們來說非常令人興奮。

Particularly as we get this operational issue I talked about earlier, resolved that should set us up well for Saudi to be a return to more, it's been a really growing market for us over the last decade, and I think we can kind of see a return to that over the next year or two.

尤其是當我們解決了先前提到的營運問題之後，這將為我們重返沙烏地阿拉伯市場奠定良好的基礎。過去十年，沙烏地阿拉伯一直是我們的一個成長迅速的市場，我認為在未來一兩年內，我們可以看到這種情況有所改善。

Okay, and the last one for me is, obviously you have your share buyback in place and you have a lot of cash on the balance sheet. Is is the preference to go after M&A and and instead of, buying back stock or putting in a dividend or anything like that? And what does that M&A market look like now? I know a lot of private smaller guys are hurting in the current environment. Is that the preference to do M&A?

好的，最後一點是，顯然你們已經制定了股票回購計劃，而且資產負債表上也有大量現金。是否更傾向於進行併購，而不是回購股票、發放股利或其他類似做法？那麼，目前的併購市場狀況如何呢？我知道在目前的經濟環境下，許多小型私人企業都舉步維艱。這就是他們進行併購的偏好嗎？

Yeah, I mean, I think as we've said all along we're kind of balancing shareholder returns or against pursuing a creative M&A, and if you just look at Where we've deployed capital over the last year, I think that would tell you that we really do like the M&A space. I think it's a way that allows us to grow in a very accretive manner and is beneficial to shareholders over the long run. So, if you look over the last twelve months, we've deployed more than $190 million worth of capital towards acquisitions, and we've been able to find good businesses that we feel like complement our strategy and if you look at the transaction level returns to capital for those meaningful deals we've done, it's nearly 20%.

是的，我的意思是，正如我們一直以來所說，我們一直在股東回報和進行創新併購之間尋求平衡，如果你看看我們過去一年的資本部署情況，我認為這就會告訴你，我們真的很喜歡併購領域。我認為這種方式能夠讓我們以非常穩健的方式發展，並且從長遠來看對股東是有利的。因此，回顧過去十二個月，我們已投入超過 1.9 億美元的資金用於收購，並找到了我們認為能夠補充我們策略的優秀企業。如果您查看我們完成的這些重要交易的交易層級資本報酬率，您會發現接近 20%。

So, these are highly creative investments we're talking about. And as long as there's still a good robust pipeline of those opportunities, I think that's where we're inclined to look. We mentioned on the call we do have a few very high-quality businesses that are currently under review, but as with M&A, it's really impossible to handicap whether any individual transactions going to get done or what the timing would be, but having that really strong net cash position like puts us in a position to be opportunistic, let's say, and also to offer sellers a high degree of certainty of closing if we are able to reach a deal, which can be a big advantage in this type of market environment. So, I think that's long story short, that's why you see us keeping a little bit of powder dry for the time being.

所以，我們談論的是一些極具創意的投資。只要這類機會仍然充足且穩定，我認為我們就會傾向於把目光投向那裡。我們在電話會議中提到，我們目前正在審查一些非常優質的企業，但與併購一樣，我們真的無法預測任何具體的交易能否完成或完成的時間，但擁有如此強勁的淨現金狀況使我們能夠抓住機會，並且如果能夠達成交易，也能為賣方提供高度的成交確定性，這在當前的市場環境下可能是一個巨大的優勢。所以，我想這就是事情的來龍去脈，這就是為什麼你會看到我們暫時保留一些實力。

I appreciate the colon. I'll turn it back.

我很喜歡這個冒號。我會把它轉回去。

Derek Podhaizer, Piper Sandler. Please go ahead.

德里克·波德海澤，派珀·桑德勒。請繼續。

I just wanted to go back to your mid 20% target that you that you've laid out for about over a year now, maybe just a more color around timing around that when should we expect to reach that number and then kind of separately, but when we think about the ramp up of the one subsea business, how should we, how should this complement this mid 20% margin target you talk about ramping up the business in '27, [2028] should we expect this to be accretive that long-term goal that you have?

我只是想回到您一年多來一直提出的20%左右的利潤率目標，或許可以更詳細地說明一下時間安排，例如我們應該預期何時達到這個數字。另外，當我們考慮海底業務的成長時，我們應該如何看待它與您提到的2027年（或2028年）20%左右的利潤率目標相輔相成？我們是否應該預期這將對您的長期目標產生增益？

Yeah, so maybe I'll, thanks Eric. I'll hit kind of the first part of the question and then Adam can kind of weigh in on the subsea pieces, but in terms of timing, as we've said, really getting out of Eldridge is that first step that'll phase in over the course of Q1 and then kind of right on the heels of that we'll be doing some of these other initiatives that probably phase in over, Q1s and maybe first part of Q2. So, kind of middle of next year I would think from a cost rationalization perspective we're going to be in a spot where, and obviously there's. 1,000 (technical difficulty)

是啊，也許我會，謝謝你，艾瑞克。我先回答問題的第一部分，然後亞當可以就海底部分發表意見。但就時間安排而言，正如我們所說，真正從埃爾德里奇油田脫困是第一步，這將在第一季逐步完成。緊隨其後，我們將開展一些其他計劃，這些計劃可能會在第一季以及第二季初逐步完成。所以，我認為從成本合理化的角度來看，到明年年中左右，我們將處於這樣的境地，顯然，還有…1,000（技術難題）

You know that go into this, but if we're at similar revenue levels, I think we'll be able to do enough on the cost side to get to that low 20s margin percentage. And then I think beyond that it's going to be dependent on some of these places we've talked about like Saudi and Mexico and what do we see there in terms of a little bit of improvement to get to that mid-20s level so. Maybe a short way to say it is get to call the low 20s and feel like it's within our control and then a little bit of help from the market next year could get us back to that mid-twenties level.

你知道這其中有很多因素，但如果我們的收入水平保持不變，我認為我們可以在成本方面做出足夠的努力，從而達到 20% 左右的利潤率。然後我認為，除此之外，還要取決於我們討論過的沙烏地阿拉伯和墨西哥等一些地方的情況，以及我們能否在這些地方看到一些改善，從而達到 20 多歲的水平。或許簡單來說，就是預測匯率會達到 20 度出頭，感覺一切都在我們的掌控之中，然後明年市場稍加扶持，我們就能回到 25 度左右的水平。

Yeah, and then with respect to one, go ahead. I was just going to wrap around that say with respect to one subsea, the subsea stuff is generally a little bit diluted to that margin target today, I think with some of the actions we're putting in place that can get more to being closer to average, but it's always going to be a little bit because of the nature of that business, I think it's always going to be a little bit lower than our average margin. I think on the one subsea thing specifically that should get to, my guess is it will short-term be a little bit diluted, longer-term will probably be in that similar to that that long-term 25% margin target.

是的，然後關於其中之一，繼續。我本來想就海底業務再補充一點，目前海底業務的利潤率目標普遍被稀釋了一些。我認為，隨著我們正在採取一些措施，利潤率可能會更接近平均水平，但由於該業務的性質，利潤率總是會略低於我們的平均水平。我認為，就海底業務而言，我猜測短期內利潤可能會略有下降，但長期來看，利潤率目標可能與 25% 的長期利潤率目標類似。

Got it. Okay, that's super helpful. So, I, you've already talked about Saudi return to work, obviously the unconventional basements that we really see, picking up here, UAE, Argentina, but also the other piece of, I think the puzzle next year is this offshore inflection in the second half of '26. Maybe could you help re-educate us as far as your exposure position as you think about drilling and completion for offshore markets picking up as we work towards the back half of next year and how impactful that can be for you guys?

知道了。好的，這太有幫助了。所以，您已經談到了沙烏地阿拉伯的複工復產，顯然，我們看到非常規地下室正在興起，阿聯酋、阿根廷也是如此，但我認為明年拼圖的另一塊是 2026 年下半年的離岸轉折點。或許您能幫我們重新了解您的風險敞口，因為隨著明年下半年海上鑽井和完井市場的回暖，這對你們會有多大影響？

Yeah, sure, so I think if you just Look at the most important markets for us offshore.

是的，當然，所以我覺得如果你看看對我們來說最重要的海外市場。

The biggest is the US offshore.

最大的是美國離岸金融中心。

Second would probably be Brazil and then followed by the North Sea and then then Asia and Africa today is pretty small for us, but I think provides a pretty large growth potential.

其次可能是巴西，然後是北海，再然後是亞洲和非洲。目前亞洲和非洲對我們來說規模很小，但我認為它們具有相當大的成長潛力。

As far as activity ramping up, I mean, I think it might get a little bit better next year. I'm a little bit.

至於活動是否會逐步恢復，我的意思是，我認為明年情況可能會好一些。我有點。

Skeptical that it's going to be like a tremendous rebound the back half next year, but I do think it'll pick up a little bit from where we're at today.

我懷疑明年下半年是否會出現巨大的反彈，但我認為情況會比現在好一些。

Got it. Very helpful. Turn it back.

知道了。很有幫助。把它轉回去。

Eddie Kim, Barclays. Please go ahead.

巴克萊銀行的艾迪金。請繼續。

Hey, good morning. I just want to circle back on the one subsea agreement. Could you just talk about how this came about and how impactful it is for you? I thought, or I was under the assumption that legacy Dril-Quip was being selected as the wellhead provider even on bundled packages previously, unless I'm mistaken there, and Except, what sort of brought one subsea kind of over the fence in terms of finalizing this exclusive partnership? Was it the improvement in on-time deliveries over the past several quarters or something else? Just any thoughts that would be great.

嘿，早安。我只是想再談談那份海底協議。您能否談談這件事的緣起以及它對您的影響？我原以為，或者說我一直認為，即使在之前的捆綁式項目中，Dril-Quip 也被選為井口供應商，除非我弄錯了。但是，究竟是什麼促使海底公司最終敲定了這項獨家合作關係呢？是因為過去幾季準時交貨率的提高，還是有其他原因？任何想法都歡迎分享。

Yeah, so there's a lot there, so I think this is really the culmination of many years of work from the legacy drill team with one subsidy. So we're definitely the beneficiary of a lot of work that has gone into this. There had been a like a frame agreement for some time, but I think the only meaningful award is this award in Asia, meaningful amount of revenue work that been done is this work in Asia I mentioned a little bit earlier in the call, one specific project for kind of an independent out in one of the less active markets in Asia, so it hasn't been material to the legacy results at all.

是的，所以這裡面有很多東西，我認為這真的是多年來，由一支老牌鑽井團隊在單一補貼下共同努力的成果。所以，我們無疑是這項工作的受益者。之前已經有了類似框架協議的一段時間，但我認為唯一有意義的獎項是亞洲的這個獎項，真正帶來可觀收入的工作量是我之前在電話會議中提到的亞洲項目，這是一個針對亞洲不太活躍的市場中某個獨立機構的特定項目，因此它對以往的業績沒有任何實質性影響。

I think going forward, it could help us. I mean I'd be thinking about it in a once we '27, '28 that it could represent 2% or 3% of revenue would be a really good outcome for us, that kind of order of magnitude, at least to start with and over time, maybe it could grow from there. So it's exciting. It's a really nice.

我認為從長遠來看，這可能會對我們有所幫助。我的意思是，我會考慮，到了 2027 年、2028 年，如果這項業務能占到我們收入的 2% 或 3%，那對我們來說將是一個非常好的結果，至少一開始能達到這樣的規模，隨著時間的推移，也許還能從那裡增長。所以這很令人興奮。真不錯。

League of Growth for us.

對我們來說，這是成長聯盟。

I think what really brought maybe to answer your last part of that, I don't want to speak for one subsea, but I guess I will to some extent is they've got a wonderful subsea franchise. I think their wellhead business has been a little bit more of a struggle over the last few years.

我認為真正促使我回答你最後一部分問題的，我不想代表任何一家海底公司發言，但我想在某種程度上我會說，他們擁有一個非常棒的海底特許經營權。我認為他們在過去幾年的油井業務經營得比較艱難。

And then with the I think looking at art we really have the best technology in the space and so I think they saw that hey if they're really going to, we were together going to be as effective as we could be in the market if we pair their great subsea technology with our leading wellhead technology that would be a really powerful package and could help both companies be really successful.

然後，我認為從藝術的角度來看，我們確實擁有該領域最好的技術，所以我認為他們看到了，如果他們真的要合作，如果我們把他們出色的海底技術與我們領先的井口技術結合起來，我們將在市場上發揮最大的作用，這將是一個非常強大的組合，可以幫助兩家公司取得真正的成功。

Got it.

知道了。

Thanks for that. My follow-up is just on your business in Saudi Arabia, you mentioned some softness here in the third-quarter, but as was mentioned earlier in Q&A that there's some reports of suspended rigs in Saudi going back to work. So it feels like the outlook is better in Saudi for next year. You just mentioned that historically your exposure has been on oil, onshore oil in that market.

謝謝。我的後續問題是關於您在沙烏地阿拉伯的業務，您提到第三季度這裡出現了一些疲軟，但正如之前在問答環節中提到的，有報道稱沙烏地阿拉伯一些停工的鑽井平台已經復工。所以感覺沙烏地阿拉伯明年的前景會更好。您剛才提到，從歷史來看，您的投資主要集中在石油領域，特別是該市場的陸上石油。

Do you expect to have significant market penetration into the unconventional gas as that ramps up or is, do you see your exposure continuing to be kind of on the on the onshore oil side in that country?

隨著非常規天然氣開採的加速，您是否預期公司在該領域擁有顯著的市場滲透率？或者，您認為公司在該國家的業務仍將主要集中在陸上石油方面？

Yeah, so it's worth talking about a little bit more. So, our when we first entered Saudi a decade ago, we really focused on the conventional oil, kind of their Arab oil activity. We did do work.

是的，所以值得再多討論一下。所以，十年前我們剛進入沙烏地阿拉伯市場時，我們主要關注的是常規石油，也就是他們的阿拉伯石油活動。我們確實做了一些工作。

We have over the years done work in other areas, so it's not to say that we don't provide products in the unconventional gas offshore, but it's historically been more than 50% has been the conventional oil. Over the last over this year, we've done a lot of work. We've run a number of liner hanger systems in the conventional gas. We've run a lot of legacy Innovex cementing tools in the unconventional. Then we've got a trial we're expecting to get late this year or early next year with the trench foot technology from Citadel that will be really impactful in the unconventional space. So, we will, we absolutely for a number of years have been working on diversifying that revenue stream.

多年來，我們也在其他領域開展過工作，所以這並不是說我們不提供海上非常規天然氣產品，但從歷史上看，超過 50% 的產品都是常規石油。過去一年多來，我們做了很多工作。我們在常規天然氣領域運行過許多襯管懸掛系統。我們在非常規領域運行了許多傳統的 Innovex 水泥工具。然後，我們預計今年年底或明年年初將進行一項試驗，試驗將採用 Citadel 公司的溝渠足技術，這將對非常規領域產生真正的影響。所以，我們肯定會這樣做，而且多年來我們一直在努力實現收入來源多元化。

And I think that will over the next five years be a really good avenue for growth as we kind of replicate the success we had on the onshore oil in a couple of those other really important markets within the kingdom.

我認為，在未來五年內，這將是一個非常好的成長途徑，因為我們可以將我們在陸上石油領域的成功複製到王國其他幾個非常重要的市場。

Okay, great. Thanks for that call. I'll turn it back.

好的，太好了。謝謝你的來電。我會把它轉回去。

Joshua Jayne, Daniel Energy Partners. Please go ahead.

Joshua Jayne，Daniel Energy Partners。請繼續。

Good morning. Thanks for taking my questions. First one is, could you just update us on how integration is going with Citadel, any success yet with penetrating their customer base and just maybe elaborate on the plans for integration moving forward over the next, let's call it six to twelve months.

早安.謝謝您回答我的問題。首先，能否請您介紹一下與 Citadel 的整合進展？在打入他們的客戶群方面是否取得了任何成功？能否詳細說明一下未來六到十二個月的整合計畫？

Yeah, so I think it's going well. I think that that's a great deal. I think for both Innovex as well as Legacy Citadel, it added a couple of really nice niche technologies such as the trench foot technology that's been really growing nicely in the US continues to grow. I think we've mentioned on the very maybe when we announced the deal that they've been working on a qualification with one of the largest drillers in West Texas and we've consistently picked up more work with that driller.

是的，我覺得一切都很順利。我覺得這很划算。我認為對於 Innovex 和 Legacy Citadel 來說，它都增加了一些非常好的利基技術，例如在美國發展良好的戰壕足治療技術，並且這種技術還在繼續發展。我想我們在宣布這筆交易的時候可能已經提到過，他們一直在與西德克薩斯州最大的鑽井公司之一進行資質認證，而且我們一直在不斷地從這家鑽井公司獲得更多的工作機會。

Over the last couple of months as we've owned Citadel, I think as far as the mechanics of the integration, that's all largely complete. I think the next stage of the integration is really about combining the best of both the technology from both sides and the legacy Citadel products to make a better than product that can really allow us to extend our market share lead in North America seeing tools and really help us. Grow that product portfolio internationally.

在過去幾個月我們收購 Citadel 的過程中，我認為就整合機製而言，已經基本完成了。我認為整合的下一階段實際上是將雙方的最佳技術與 Citadel 的傳統產品結合起來，打造一款更好的產品，從而真正幫助我們擴大在北美市場的領先地位，並為我們帶來工具和真正的幫助。拓展該產品組合的國際市場。

We mentioned, I think I already mentioned that working together, this was already in progress. I think we've helped accelerate getting trench foot trial in the Middle East. We've run a fair bit of Citadel legacy citadel equipment in Mexico underneath some expandable liner hangers that were a legacy broker product and a couple of other areas we've had nice success of being able to cross sell products across some of the legacy portfolios.

我想我之前已經提到過，我們一直在合作，這項工作已經在進行中。我認為我們已經幫助加快了在中東地區進行戰壕足試驗。我們在墨西哥使用了一些 Citadel 的傳統 Citadel 設備，這些設備安裝在一些可擴展的襯裡吊架下，這些襯裡吊架是傳統的經紀商產品。在其他幾個地區，我們也成功地將一些傳統產品組合中的產品進行交叉銷售。

Okay, thanks. And then as my follow-up, you talked only briefly about tariffs. Could you just give an update on how they're impacting business today? I know they're consistently a moving target, but maybe how the, how much success you're having with the ability to pass increases along to customers and maybe just some things that you're doing to ultimately mitigate the impact of everything that's going on right now.

好的，謝謝。然後，作為我的後續提問，您只是簡單地談到了關稅問題。能否簡要介紹一下它們目前對業務的影響？我知道他們一直在變化，但是，也許你們在將成長傳遞給客戶方面取得了多大的成功，以及你們正在採取哪些措施來最終減輕目前所有事情的影響。

Yeah, definitely. I mean, it's hard to give a succinct answer like you said, it's very much a moving target with tariff policy and then from the Innovex perspective, we do many different things, so you kind of have a lot of complexity in the supply chain around different products, different vendors, all that kind of stuff.

是的，當然。我的意思是，正如你所說，很難給出簡潔的答案，因為關稅政策瞬息萬變，而且從 Innovex 的角度來看，我們做了很多不同的事情，所以圍繞不同產品、不同供應商等等的供應鏈非常複雜。

But I think if I zoom out, what we really like about our business is we have a very flexible business model where we have very little locked in long-term pricing, so that allows us to work with both our suppliers and our customers as you see these cost fluctuations come through the supply chain to do our best to manage that on both sides, and that's what the team's really been focused on now around. How can we be efficient, drive costs out of the system, kind of show the pain with suppliers, but then also on the other side it's a conversation with our customers as well. It's to some extent; these costs need to get passed through.

但我覺得，如果從更宏觀的角度來看，我們真正喜歡我們業務的地方在於我們擁有非常靈活的商業模式，我們幾乎沒有鎖定長期價格，這使我們能夠與供應商和客戶合作，應對供應鏈中的成本波動，盡最大努力管理雙方，而這正是團隊目前一直關注的重點。我們如何提高效率，降低系統成本，向供應商表明我們的困境，但另一方面，這也需要與我們的客戶對話。某種程度上確實如此；這些代價需要轉嫁出去。

So, I would say that's all been in action over the last several months as the steel tariffs in particular are the ones that impact Innovex, so those come into force. And you can see kind of in the flat gross margins quarter over quarter I think the team's done a great job mitigating impacts thus far, but still very much an active dialogue with both our supply chain partners as well as our customers.

所以，我認為過去幾個月來，這些措施都已開始實施，特別是鋼鐵關稅對Innovex的影響，這些關稅已經生效。從季度毛利率持平可以看出，我認為團隊迄今為止在減輕影響方面做得非常出色，但我們仍然與供應鏈合作夥伴和客戶保持著非常積極的對話。

It just when you think about the, I guess the long-term margin target, is that one of the things that's potentially a tailwind for you as things get resolved or is that really not being factored into the long-term margin targets?

只是當你考慮長期利潤率目標時，我想，隨著問題的解決，這是否會成為對你有利的因素之一，還是說這實際上並沒有被納入長期利潤率目標的考慮範圍？

Yeah, it's not really factored in one way or the other right now. I think it's there's just so much uncertainty that it's hard to know how that's going to play out.

是的，目前還沒有真正考慮過這個問題。我認為問題在於存在太多不確定因素，很難知道事情最終會如何發展。

Understood. Thank you. I'll turn it back.

明白了。謝謝。我會把它轉回去。

That concludes the question-and-answer session. I would now like to turn the call back over to Adam Anderson for closing remarks.

問答環節到此結束。現在我謹將電話交還給亞當·安德森，請他作總結發言。

Thank you and thanks to everybody for joining the call. In particular, we said it a couple of times, but thanks to the entire Innovex team. It's we've really done a ton of good work over the last year or two to bring all these different businesses together, continue to perform very well in an otherwise challenging market, and it's all because of the great team that we have at Innovex. So my sincere thanks to everybody out there. Please have a great week.

謝謝大家，也謝謝各位參加這次電話會議。尤其要感謝整個 Innovex 團隊，我們已經說過好幾次了。在過去一兩年裡，我們確實做了很多卓有成效的工作，將所有這些不同的業務整合在一起，在充滿挑戰的市場中繼續保持良好的業績，而這一切都歸功於我們在 Innovex 擁有的優秀團隊。所以，我衷心感謝每一位關心我的人。祝您有個愉快的一周。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。