Matrix Service Co (MTRX) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Matrix Service Company conference call to discuss results for the third quarter of fiscal 2024. (Operator Instructions) As a reminder, this conference call is being recorded.

早安，歡迎參加 Matrix Service Company 電話會議，討論 2024 財年第三季的業績。（操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the conference over to today's host, Ms. Kellie Smythe, Senior Director of Investor Relations for Matrix Service Company.

現在我想把會議交給今天的主持人，Matrix Service 公司投資者關係高級總監 Kellie Smythe 女士。

Thank you, Justin. Good morning, and welcome to Matrix Service Company's third quarter fiscal 2024 earnings call. Participants on today's call include John Hewitt, President and Chief Executive Officer; and Kevin Cavanah, our Vice President and Chief Financial Officer.

謝謝你，賈斯汀。早安，歡迎參加 Matrix Service Company 的 2024 財年第三季財報電話會議。今天電話會議的參與者包括總裁兼執行長 John Hewitt；以及我們的副總裁兼財務長凱文·卡瓦納 (Kevin Cavanah)。

The presentation materials referred to during the webcast today can be found under Events and Presentations on the Investor Relations section of matrixservicecompany.com.

今天網路廣播中提到的簡報資料可以在matrixservicecompany.com 投資者關係部分的活動和演示下找到。

As a reminder, on today's call, we may make various remarks about future expectations, plans and prospects for Matrix Service Company that constitute forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995.

提醒一下，在今天的電話會議上，我們可能會對 Matrix Service Company 的未來預期、計劃和前景發表各種言論，這些言論構成了 1995 年《私人證券訴訟改革法案》所規定的前瞻性陳述。

Actual results may differ materially from those indicated by these forward-looking results, forward-looking statements because of various factors, including those discussed in our most recent annual report on Form 10-K and in subsequent filings made by the company with the SEC.

由於各種因素，包括我們最近的 10-K 表格年度報告以及公司隨後向 SEC 提交的文件中討論的因素，實際結果可能與這些前瞻性結果和前瞻性陳述所表明的結果存在重大差異。

To the extent we utilize non-GAAP measures, reconciliations will be filed in various press releases, periodic SEC filings and on our website. Related to investor conferences and corporate access opportunities, Matrix will be participating in the upcoming Stifel Cross Sector Insight Conference on June 4 and 5 in Boston. If you would like additional information on this event or would like to have a conversation with management. I invite you to contact me through the Metrix Service Company Investor Relations website.

在我們使用非公認會計原則衡量標準的範圍內，調節將在各種新聞稿、定期向 SEC 提交的文件和我們的網站上提交。與投資者會議和企業接觸機會相關，Matrix 將參加即將於 6 月 4 日至 5 日在波士頓舉行的 Stifel 跨部門洞察會議。如果您想了解有關此活動的更多資訊或想與管理層進行對話。我邀請您透過 Metrix Service Company 投資者關係網站與我聯絡。

Before I turn the call over to John, I would also like to share our safety moment. At Matrix, there is nothing more important than the safety and health of our employees, both physical and mental. And that's why safety is our number one core value.

在將電話轉給約翰之前，我還想分享一下我們的安全時刻。在 Matrix，沒有什麼比員工身心的安全與健康更重要的了。這就是為什麼安全是我們的第一核心價值。

On our last call, John highlighted the work being done across our industry and at Matrix to identify and provide support for addressing mental health issues, especially given the significantly higher level of suicide experienced in the construction industry when compared to others.

在我們的最後一次電話會議上，約翰強調了我們整個行業和Matrix 正在進行的工作，以確定並為解決心理健康問題提供支持，特別是考慮到與其他行業相比，建築行業的自殺率要高得多。

At mental health issues are something we all grapple with at one time or another in our lives. As the month of May is mental health awareness month, we thought it would be a good time for a reminder that each of us should periodically take time to assess our own mental health, just as we do our physical health.

心理健康問題是我們在生活中不時遇到的問題。由於五月是心理健康意識月，我們認為這是提醒我們每個人都應該定期花時間評估自己的心理健康的好時機，就像我們評估身體健康一樣。

In doing so, it's important to identify the root causes of any issues we may be experiencing and above all remember, it's okay to ask for help. At Matrix, our people are our greatest asset by ensuring the mental and physical well-being of our people. We are better equipped to do the important work, our customers and shareholders count on us to deliver.

在這個過程中，重要的是要確定我們可能遇到的任何問題的根本原因，最重要的是記住，尋求幫助是可以的。在 Matrix，我們的員工是我們最大的資產，確保員工的身心健康。我們有更好的能力來完成重要的工作，我們的客戶和股東依靠我們來完成任務。

I will now turn the call over to John.

我現在將把電話轉給約翰。

Thank you, Kellie, and good morning, everyone. We delivered mixed third quarter results. Execution performance was good. We maintained our record backlog, the opportunity pipeline continues to be strong and liquidity expanded.

謝謝你，凱莉，大家早安。我們第三季的業績好壞參半。執行性能良好。我們保持了創紀錄的積壓，機會管道繼續強勁，流動性擴大。

However, revenue was a low point for the year, driven by the convergence of three key issues. First, the conversion of backlog to revenue, some of our major projects continue to push to the right. This shift does not represent an uncertainty in their projects proceeding, but it does highlight the complexity of finalizing large capital construction project contracts and the impact our clients have on the timing of those project starts.

然而，由於三個關鍵問題的集中，收入出現了今年的低點。一是積壓向收入的轉化，我們的一些重大項目繼續向右推。這種轉變並不代表他們的專案進度存在不確定性，但它確實凸顯了敲定大型基建專案合約的複雜性以及我們的客戶對這些專案啟動時間的影響。

We expect these projects to finally begin contributing additional revenue in Q4 and grow in a more meaningful way throughout fiscal year '25 and beyond.

我們預計這些項目最終將在第四季度開始貢獻額外收入，並在整個 25 財年及以後以更有意義的方式成長。

Second, a long-term multi-decade refinery client changes spending priorities and contracted labor demand in the third quarter and for the balance of the current contracts. And finally, there were two areas of softness in our core markets. Crude tanker new build and maintenance and repair in the lower 48 as well as electrical infrastructure in our predominantly Northeast sector.

其次，一個長期的數十年煉油廠客戶改變了第三季度的支出優先順序和合約勞動力需求以及當前合約的餘額。最後，我們的核心市場有兩個疲軟的領域。下游 48 個地區的原油油輪新建、維護和修理，以及我們主要東北地區的電力基礎設施。

In both cases, we believe this softness is transitory and will begin to firm up moving into fiscal '25, given the market dynamics we are seeing and how we approach those markets. In short, we expect revenue to improve from here and continue to build through fiscal 2025.

在這兩種情況下，考慮到我們所看到的市場動態以及我們對待這些市場的方式，我們認為這種疲軟都是暫時的，並將在進入 25 財年時開始變得堅挺。簡而言之，我們預計收入將從現在開始改善，並在 2025 財年繼續成長。

As this increased volume of projects in backlog and new awards convert to revenue, we expect to drive improved fixed cost absorption and margin expansion toward our historical double-digit levels. Backlog in the third quarter increased nearly 75% on a year-over-year basis, and we held our all-time high of $1.45 billion, driven by a diverse mix of high-value multiyear projects that will support improved profitability moving into fiscal 2025.

隨著積壓項目數量的增加和新獎項轉化為收入，我們預計將推動固定成本吸收的改善和利潤率的擴大，達到歷史兩位數的水平。第三季的積壓訂單年增近 75%，在各種高價值多年期專案的推動下，我們維持了 14.5 億美元的歷史新高，這些專案將支持 2025 財年獲利能力的提高。

Our backlog bookings and bidding activity remain very strong as we enter the fourth quarter, which has already produced additional specialty vessel storage bookings. This is also our 11th consecutive quarter with a book-to-bill greater than or equal to 1 led by robust demand within our Storage and Terminal Solutions segment, where book-to-bill was 2.5 in the third quarter compared to 1.3 a year ago.

進入第四季度，我們的積壓預訂和投標活動仍然非常強勁，已經產生了額外的特殊船舶儲存預訂。這也是我們連續第 11 個季度的訂單出貨比大於或等於 1，這是由於存儲和終端解決方案領域的強勁需求帶動的，第三季度的訂單出貨比為 2.5，而一年前為 1.3 。

We continue to maintain strong bidding discipline, consistent with our strategic focus on profitable organic growth. Our opportunity pipeline clearly supports the long term trend to maintain a strong backlog. While the financial impact of the timing of project starts are a reality for our industry. It is important to keep in mind that the work will get built and that the underlying demand thesis remains unchanged.

我們持續保持嚴格的投標紀律，這與我們對獲利性有機成長的策略重點是一致的。我們的機會管道顯然支持維持強勁積壓的長期趨勢。雖然專案啟動時間的財務影響對我們行業來說是現實的。重要的是要記住，工作將會完成，並且基本的需求論保持不變。

Matrix isn't our right markets at the right time with the right expertise and strategy to drive value creation for our shareholders. I will ask Kevin to provide more detail around the third quarter results, and then I'll provide more color on our outlook for the business entering fiscal 2025 and why we remain confident that our business is moving toward a positive inflection in our profitability over the coming quarters. Kevin?

Matrix 不是我們在正確的時間擁有正確的專業知識和策略來推動為股東創造價值的正確市場。我將請Kevin 提供有關第三季度業績的更多詳細信息，然後我將提供更多有關我們進入2025 財年的業務前景的信息，以及為什麼我們仍然相信我們的業務正在朝著盈利能力的積極方向發展。凱文？

Thank you. As John indicated, the results for the third quarter were mixed. Project awards and backlog were in line with our expectations. We generated awards of $187 million in the quarter and a book-to-bill of 1.1. The most significant award was another large specialty tank project. This increased backlog in the Storage and Terminal Solutions segment to $738 million, a new record high and an increase of 150% versus the prior year period.

謝謝。正如約翰指出的那樣，第三季的結果好壞參半。專案獎勵和積壓工作符合我們的預期。本季我們獲得了 1.87 億美元的獎勵，訂單出貨比為 1.1。最重要的獎項是另一個大型特種坦克計畫。這使得儲存和終端解決方案領域的積壓訂單增加至 7.38 億美元，創下新高，與去年同期相比成長了 150%。

This also allowed us to maintain our consolidated backlog at a record high of $1.45 billion. While our backlog continues to strengthen, it has taken longer than previously anticipated for consolidated operating results to improve.

這也使我們能夠將合併積壓訂單維持在 14.5 億美元的歷史新高。雖然我們的積壓訂單持續增加，但改善綜合經營績效所需的時間比先前預期的要長。

Total revenue was down to $166 million, an 11% decrease compared to the prior year period. We anticipate revenue improvement as we move from the third quarter into the fourth quarter. We have previously discussed that the growth in our backlog has been fueled by long-term construction projects, which have an inherent lag between the time a project is awarded and when it begins to have a material impact on revenue. While these contracts make up a significant portion of the backlog the contribution to revenue has been minimal in fiscal 2024.

總營收下降至 1.66 億美元，比去年同期下降 11%。我們預計，隨著第三季度進入第四季度，收入將有所改善。我們之前已經討論過，我們積壓的成長是由長期建設項目推動的，這些項目在項目授予時間和開始對收入產生重大影響之間存在固有的滯後性。儘管這些合約佔積壓訂單的很大一部分，但對 2024 財年收入的貢獻微乎其微。

We expect the Storage and Terminal Solutions and Utility and Power Infrastructure segments to drive growth as we move forward. Our gross margin in the third quarter was 3.4%, up 100 basis points over the same period a year ago.

我們預計儲存和終端解決方案以及公用事業和電力基礎設施領域將隨著我們的前進而推動成長。第三季毛利率為3.4%，較去年同期成長100個基點。

Our third quarter performance would have been almost 600 basis points higher on gross margin rate, but for two factors. First, lower revenue resulted in under-recovery of construction overhead, which negatively impacted gross margins by almost 400 basis points.

如果沒有兩個因素，我們第三季的毛利率表現將高出近 600 個基點。首先，收入下降導致建築費用回收不足，這對毛利率產生了近 400 個基點的負面影響。

Second, we were impacted by reduced labor demand and turnaround services in the final year of a three-year refinery maintenance contract, which is currently up for renewal. The accounting for this change was applied retroactively over the life of the contract and therefore impacted our consolidated margin by 200 basis points in the quarter.

其次，我們受到三年期煉油廠維護合約最後一年勞動力需求和周轉服務減少的影響，該合約目前正在續約。這項變更的會計處理在合約有效期間內追溯應用，因此影響了我們本季的綜合利潤率 200 個基點。

Moving down the income statement, SG&A was $19.9 million in the quarter. We continue to benefit from organizational efficiencies achieved over the last several years. Our stock compensation expense increased $2.5 million in the quarter due to a 33% increase and the share stock price.

從損益表來看，本季的 SG&A 為 1,990 萬美元。我們持續受益於過去幾年所取得的組織效率。由於成長 33% 和股價，我們的股票補償費用在本季增加了 250 萬美元。

This expense increase is related to cash settled stock awards issued in previous periods. Expense associated with these awards is variable and fluctuates with changes in our stock price. For the third quarter of fiscal 2024, we had a net loss of $14.6 million or $0.53 per fully diluted share. As previously discussed, the primary driver to the loss was the low revenue, which is probably to increase.

此費用增加與前期發放的現金結算股票獎勵有關。與這些獎勵相關的費用是可變的，並隨著我們股價的變化而波動。2024 財年第三季度，我們的淨虧損為 1,460 萬美元，即完全稀釋後每股虧損 0.53 美元。如前所述，造成虧損的主要原因是收入較低，而且收入可能還會增加。

Moving to the operating segments in the Storage and Terminal Solutions segment revenue was $54 million in third quarter as compared to $52 million in the prior year period. We expect higher revenue as we move forward into fiscal 2025 as large specialty storage project awards transition through contracting, engineering, project planning and into field construction.

轉向儲存和終端解決方案營運部門，第三季營收為 5,400 萬美元，而去年同期為 5,200 萬美元。隨著大型專業儲存專案透過承包、工程、專案規劃和現場施工進行過渡，我們預計隨著進入 2025 財年，收入將會更高。

Gross margin was 4.3% in the third quarter an increase of 590 basis points over the prior year. This increase related to strong project execution throughout this segment, including specialty storage projects, allowing a return to double-digit direct gross margins. However, both periods were impacted by under-recovery of fixed costs due to low revenue. In the current quarter this negatively impacted gross margins by almost 700 basis points.

第三季毛利率為4.3%，較上年同期成長590個基點。這一增長與整個細分市場的強勁項目執行有關，包括專業儲存項目，從而使直接毛利率恢復到兩位數。然而，這兩個時期都受到收入較低導致固定成本回收不足的影響。在本季度，這對毛利率產生了近 700 個基點的負面影響。

Revenue is expected to increase in this segment beginning in the fourth quarter, significantly reducing the impact from under-recovered overheads, Utility and Power Infrastructure segment revenues of $46 million in the third quarter compared to $35 million a year ago.

預計從第四季度開始，該部門的收入將增加，從而顯著減少管理費用回收不足的影響，第三季公用事業和電力基礎設施部門的收入為 4,600 萬美元，而去年同期為 3,500 萬美元。

Segment revenue is beginning to benefit from the start of previously awarded LNG peak shaver projects, which we expect to increase as we move forward. The power delivery portion of the segment is currently experiencing a softer market in the Northeastern geographic area we serve.

該部門的收入開始受益於先前授予的液化天然氣調峰計畫的啟動，我們預計隨著我們的前進，該計畫的收入將會增加。該細分市場的電力傳輸部分目前在我們服務的東北地區經歷疲軟的市場。

Gross margin was 3.1% in the third quarter compared to 8% in the prior year quarter. The picture of a portion of the segment's producing strong gross margins, but that is offset by softness in the power delivery business as well as under-recovery of construction overhead costs. This under-recovery impacted gross margins by 550 basis points and is temporary as the backlog is expected to drive higher revenue in this segment beginning in the fourth quarter.

第三季毛利率為 3.1%，去年同期毛利率為 8%。該部門的一部分產生了強勁的毛利率，但這被電力傳輸業務的疲軟以及建築管理費用的回收不足所抵消。這種復甦不足影響了毛利率 550 個基點，並且是暫時的，因為預計積壓訂單將在第四季度開始推動該部門的收入增加。

In the Process and Industrial Facilities segment, third quarter revenue was $66 million compared to $100 million in the third quarter of fiscal 2023. Revenue decline is due to a couple of factors, completion of the gas processing project in the prior year and lower refinery maintenance revenue as a long-term refinery maintenance customer has reduced labor demand and turnaround services.

在流程和工業設施領域，第三季營收為 6,600 萬美元，而 2023 財年第三季營收為 1 億美元。收入下降的原因有幾個：上一年天然氣加工項目的完成以及煉油廠維護收入的下降，因為長期煉油廠維護客戶減少了勞動力需求和周轉服務。

The company has also scheduled to complete and renewable fuels project in the fourth quarter, which has been a good contributor to segment results through the fiscal year. We expect revenue to decrease on both a year-over-year and sequential basis as certain existing projects near completion, and we await the start of new projects, both in backlog and in our opportunity pipeline.

該公司還計劃在第四季度完成再生燃料項目，這對整個財年的部門業績做出了良好貢獻。我們預計，隨著某些現有項目接近完成，收入將同比和環比下降，並且我們等待新項目的啟動，無論是積壓的項目還是機會管道中的項目。

The segment gross margin was 2.7% in the third quarter compared to 3.2% in the prior year quarter. The current year quarter was impacted by a change related to refinery maintenance contract in the prior year quarter was impacted by the completion of a challenging gas processing project.

第三季該部門的毛利率為 2.7%，去年同期為 3.2%。本年度季度受到煉油廠維護合約相關的變化的影響，去年季度受到具有挑戰性的天然氣加工項目完成的影響。

Let us discussed the balance sheet and liquidity. We continue to have a strong balance sheet with cash and credit facility availability of $135 million. During the quarter, we generated $25 million of cash flow from operations. We also utilized $4.8 million for capital expenditures, the majority of which was used for the purchase of fabrication facilities.

讓我們討論一下資產負債表和流動性。我們繼續擁有強勁的資產負債表，可用現金和信貸額度為 1.35 億美元。本季度，我們從營運中產生了 2500 萬美元的現金流。我們還使用了 480 萬美元用於資本支出，其中大部分用於購買製造設施。

As of March 31, 2024, we are in a net cash positive position with no outstanding debt. We'll continue to proactively manage the balance sheet to support the improvement business.

截至 2024 年 3 月 31 日，我們處於淨現金狀態，沒有未償債務。我們將繼續積極管理資產負債表，以支持改善業務。

Before I turn the call back to John, I think it is important to note that overall project execution is strong and the earnings or the expectation we have been talking about remains intact, and it's just taking the revenue ramp longer to materialize. That ramp is supported by backlog consisting of several multi-year quality projects, strong markets and a robust opportunity.

在我把電話轉回約翰之前，我認為重要的是要注意整體專案執行強勁，我們一直在談論的收益或預期保持不變，只是收入成長需要更長的時間才能實現。這一成長得到了積壓訂單的支持，其中包括多個多年期優質項目、強勁的市場和強勁的機會。

I will now turn the call back to John.

我現在將把電話轉回給約翰。

Thanks, Kevin. In the fourth quarter and fiscal 2025, we expect to see improvement in top and bottom-line results as projects currently in backlog begin to benefit revenue. Together with our work to streamline the company, Matrix is well positioned for material improvement in revenue and profitability.

謝謝，凱文。在第四季和 2025 財年，我們預計頂線和底線業績將有所改善，因為目前積壓的專案開始有利於收入。加上我們精簡公司的工作，Matrix 已做好了在收入和獲利能力方面實現實質改善的有利準備。

And as I said in my opening remarks, we're in the right markets with the right expertise and strategy to drive value creation for our shareholders. Matrix is benefiting and will continue to benefit from several mega trends that create demand for infrastructure in the end markets we serve, all of which present a long runway and multibillion-dollar project opportunity pipeline.

正如我在開場白中所說，我們處於正確的市場，擁有正確的專業知識和策略，可以為股東創造價值。Matrix 正在並將繼續受益於幾個大趨勢，這些趨勢創造了我們所服務的終端市場對基礎設施的需求，所有這些都呈現出一條漫長的跑道和數十億美元的專案機會管道。

The clean energy transition demand for lower carbon solutions requires infrastructure supporting LNG, ammonia, hydrogen and other renewable fuels. This is an area where Matrix is recognized as a leading engineering and construction company and one of the very few with the cryogenic expertise needed to complete this complex infrastructure.

清潔能源轉型對低碳解決方案的需求需要支援液化天然氣、氨、氫氣和其他再生燃料的基礎設施。Matrix 在該領域被公認為領先的工程和建築公司，也是極少數擁有完成這項複雜基礎設施所需低溫專業知識的公司之一。

The need for system reliability and resilience is also driving demand in the utility and electrical infrastructure space for the use of LNG and both -- in both peak demand and backup fuel as well as transmission and distribution substation and other system upgrades.

對系統可靠性和彈性的需求也推動了公用事業和電力基礎設施領域對液化天然氣的使用需求——高峰需求和備用燃料以及輸配電變電站和其他系統升級。

Our electrical infrastructure expertise provides significant opportunity for organic growth and high-voltage transmission distribution and substation project for as well as industrial electrical projects. The expansion of this business is a key organic growth initiative for our organization and is already gaining traction with expanded clients being opportunities and geographies.

我們的電力基礎設施專業知識為有機成長、高壓輸配電和變電站專案以及工業電力專案提供了重要機會。這項業務的擴張是我們組織的一項重要的有機成長舉措，並且已經隨著機會和地理的擴大而受到關注。

An important near-term demand driver for such projects as data center growth is creating substantial incremental electricity load increases nearly half of all planned US data center investment is concentrated in unregulated markets such as California, Texas, Virginia, New York, Florida and [Illinois].

資料中心成長等項目的一個重要的近期需求驅動因素正在創造大量增量電力負荷增加，美國所有計劃資料中心投資的近一半集中在不受監管的市場，例如加利福尼亞州、德克薩斯州、維吉尼亞州、紐約州、佛羅裡達州和[伊利諾州]。

Current industry expectations are for further geographic dispersion of data center investment over time as data center permitting process become more forgiving across regulated markets. Given our current electrical infrastructure footprint, which is concentrated in the upper mid-Atlantic and Northeast, we are well positioned to benefit from incremental data set of low growth and the resulting infrastructure investment needs in this geography. Specifically related to substations, transmission and distribution.

目前的產業期望隨著時間的推移，資料中心投資的地理分佈將進一步分散，因為資料中心許可流程在受監管的市場中變得更加寬容。鑑於我們目前的電力基礎設施足跡集中在大西洋中上游和東北部，我們處於有利位置，可以從低增長的增量數據集以及由此產生的該地區的基礎設施投資需求中受益。具體涉及變電站、輸配電。

We are also currently cultivated and developed relationship with data center clients or electrical opportunities in this space will allow us to expand in new geographies. Global geopolitical instability, the need for energy supply assurance and low-cost feedstock to support manufacturing and other end markets are all creating ongoing demand for hydrocarbon related infrastructure associated with oil, gas and natural gas liquids such as ethane, ethylene, butane and propane.

我們目前也與資料中心客戶建立和發展了關係，或者該領域的電氣機會將使我們能夠在新的地區進行擴張。全球地緣政治不穩定、對能源供應保證和支持製造業和其他終端市場的低成本原料的需求，都對與石油、天然氣和天然氣液體（如乙烷、乙烯、丁烷和丙烷）相關的碳氫化合物化合物相關基礎設施產生了持續的需求。

As mentioned earlier, all of these mega trends have long runways and are expected to drive infrastructure investments for the foreseeable future. Our leading position as a solution provider supporting these infrastructure investments provides us with greater visibility and it positions us for consistent profitable growth moving forward.

如前所述，所有這些大趨勢都有很長的發展前景，預計將在可預見的未來推動基礎設施投資。作為支持這些基礎設施投資的解決方案提供商，我們的領先地位為我們提供了更大的知名度，並為我們未來持續的獲利成長奠定了基礎。

Breaking it down further, let me add more color and highlight near term opportunities in just a few of our end markets. We have the unique ability to bring together the cryogenic storage and balance of plant and infrastructure under one brand name, which is valued by our clients.

進一步細分，讓我添加更多色彩並強調我們的一些終端市場的近期機會。我們擁有獨特的能力，能夠將低溫儲存以及工廠和基礎設施的平衡整合到一個品牌下，這一點受到了我們客戶的重視。

Currently, a significant part of our backlog is comprised of projects that support growing demand for LNG and NGLS. In the Utility and Power industry, small to midsize peak shavers are an increasing critical component for ensuring system reliability and resilience.

目前，我們積壓的項目很大一部分是支持液化天然氣和天然氣液化需求不斷增長的項目。在公用事業和電力行業，中小型調峰器是確保系統可靠性和彈性的日益重要的組件。

They allow gas utilities to meet increasing demand resulting from both community and industrial growth as well as peak demands during severe weather events. They provide a means for supply in remote locations with energy and addressing areas restricted by lack of natural gas pipelines or bottlenecks in the existing pipeline infrastructure.

它們使天然氣公用事業公司能夠滿足社區和工業成長以及惡劣天氣事件期間的高峰需求所帶來的日益增長的需求。它們為偏遠地區提供了一種能源供應方式，並解決了因缺乏天然氣管道或現有管道基礎設施存在瓶頸而受到限制的地區的問題。

And finally, they allow utilities to buy gas at lower spot prices during periods of decreased demand and stored for future use. LNG bunkering facilities and other supply chain infrastructure are integral to the lower carbon and clean energy transition, specifically in the maritime industry, the International Maritime Organization of 2023 strategy on a reduction of greenhouse gas emissions from ships means that more and more commercial vessels such as container and cruise ships are being converted or built to run on LNG, creating increased demand for bunkering facilities.

最後，它們允許公用事業公司在需求減少期間以較低的現貨價格購買天然氣並儲存以供將來使用。液化天然氣加註設施和其他供應鏈基礎設施是低碳和清潔能源轉型不可或缺的一部分，特別是在海運業，國際海事組織2023年減少船舶溫室氣體排放策略意味著越來越多的商業船舶，例如貨櫃船和遊輪正在改裝或建造以使用液化天然氣，從而增加了對加油設施的需求。

This lower carbon fuel is also being used in heavy transportation such as rail trucking. Small to mid-scale LNG facilities have also been an attractive investment for companies entering the energy market as third party suppliers to both utility and maritime organizations and individual companies and aerospace, rail and trucking for their own use.

這種低碳燃料也被用於重型運輸，例如鐵路卡車運輸。對於作為公用事業和海事組織以及個人公司以及航空航太、鐵路和卡車運輸自用的第三方供應商進入能源市場的公司來說，中小型液化天然氣設施也是一項有吸引力的投資。

In addition to significant projects already in backlog, our teams are actively monitoring more than 13 near term LNG projects. These opportunities include small to mid-scale facilities as well as infrastructure upgrades and replacements.

除了已積壓的重要項目外，我們的團隊正在積極監控超過 13 個近期液化天然氣項目。這些機會包括中小型設施以及基礎設施升級和更換。

In NGLs, our teams are currently at work on multiple infrastructure projects that support ethane, ethylene and other NGLs, and we expect to book several additional awards for NGL projects in the next couple of quarters.

在 NGL 領域，我們的團隊目前正在進行多個支援乙烷、乙烯和其他 NGL 的基礎設施項目，我們預計在未來幾季為 NGL 項目獲得多個額外獎項。

Beyond these near-term awards, we continue to see significant infrastructure opportunities supporting both domestic and international demand for NGLs as the US has become the global low cost stable producer of these hydrocarbon byproducts. Currently, our teams are actively monitoring 17 near-term NGL projects.

除了這些近期獎項之外，我們繼續看到支持國內和國際液化天然氣需求的重要基礎設施機會，因為美國已成為這些碳氫化合物副產品的全球低成本穩定生產國。目前，我們的團隊正在積極監控 17 個近期 NGL 專案。

We've also seen an increase in project opportunities supporting the storage processing production, loading, distribution of hydrogen and hydrogen derivatives, such as ammonia from natural gas and other feedstocks. Overall, our opportunity pipeline remains strong at $6.1 billion, a key indicator of the strength across all of our end markets and our ability to continue our long-term trend of backlog, stability and growth.

我們也看到支持氫和氫衍生物（例如來自天然氣和其他原料的氨）的儲存加工生產、裝載和分配的項目機會增加。總體而言，我們的機會管道仍然強勁，達到 61 億美元，這是我們所有終端市場實力以及我們繼續積壓、穩定和成長的長期趨勢的能力的關鍵指標。

While projects move in and out of our pipeline based on the decisions made by owner operators as well as other factors out of our control. In general, the projects we are currently monitoring are expected to be bid and awarded within the next 18 months and on average represent projects that will require an 18 to 30 month timeframe to deliver. Over half of the projects in our opportunity pipeline supports specialty vessels, storage and terminal services.

雖然專案的進出我們的管道取決於業主經營者的決策以及我們無法控制的其他因素。一般來說，我們目前監控的項目預計將在未來 18 個月內投標和授予，平均而言，這些項目需要 18 至 30 個月的時間才能交付。我們的機會管道中超過一半的專案支援特種船舶、倉儲和碼頭服務。

In summary, as the current infrastructure investment cycle continues to gather momentum, and we remain highly optimistic and believe we are uniquely positioned to drive continued growth while creating long-term value for our shareholders.

總而言之，隨著當前基礎設施投資週期持續累積動力，我們保持高度樂觀，並相信我們具有獨特的優勢，可以推動持續成長，同時為股東創造長期價值。

Now, open for questions.

現在，開放提問。

(Operator Instructions)

（操作員說明）

Brent Thielman, D.A. Davidson.

布倫特·蒂爾曼，D.A.戴維森。

Hey, thanks. Good morning, John. Kevin, Kellie. I guess first question was just on the, I guess, the outlook for Process and Industrial Facilities. How long do you think some of the softness in that business results persist before we start to see a return to growth. What might drive that, John?

嘿，謝謝。早安，約翰。凱文、凱莉.我想第一個問題只是關於流程和工業設施的前景。您認為在我們開始看到成長恢復之前，業務績效中的一些疲軟現象會持續多久。是什麼推動了這一點，約翰？

So if it's on Process Industrial Facilities first of all, we've got some good backlog already. There's a significant project that was awarded. I think it was in fiscal '23 settled that will start here mid fiscal '25 that will drive it. And then when you look at the funnel of project opportunities (inaudible), there are really good opportunities across the board now. So how quickly do those get awarded. So I think we're looking at a short-term period where that segment is not growing. But then longer term, I think the prospects are strong.

因此，如果首先是在流程工業設施方面，我們已經有一些良好的積壓訂單。有一個重要的項目被授予。我認為，23 財年的決定將在 25 財年中期開始，這將推動這項進程。然後，當您查看專案機會的漏斗（聽不清楚）時，現在確實存在全面的好機會。那麼這些人獲得獎勵的速度到底有多快呢？因此，我認為我們正在考慮該細分市場在短期內不會成長的情況。但從長遠來看，我認為前景是光明的。

Okay. I guess just taking this alll in and think about the shorter-term debt to some of the moving pieces in that business group now impact sort of your view of the return to profitability in the fourth quarter, maybe a return to positive EBIT, just given what seems to be? The opposite in some of the business groups that seem to be ramping up?

好的。我想，只要考慮到這一點，並考慮該業務集團中一些移動部門的短期債務，現在就會影響您對第四季度盈利能力恢復的看法，也許會恢復正息稅前利潤，剛剛給出看起來是什麼？一些似乎正在崛起的商業集團卻出現了相反的情況？

So obviously, the move out of revenues from one period to the next as has changed our outlook for the fourth quarter. That has not changed our outlook for the long term. So when we think about the fourth quarter, we're expecting strong revenue growth for the Storage and Terminal Solutions segment and the Utility and Power Infrastructure segment.

顯然，收入從一個時期轉移到下一個時期已經改變了我們對第四季的前景。這並沒有改變我們的長期前景。因此，當我們考慮第四季度時，我們預計儲存和終端解決方案部門以及公用事業和電力基礎設施部門的收入將強勁成長。

I said earlier that the Process and Industrial Facilities will be down, but that will be outweighed by the growth in the others. So I think when you're thinking about the fourth quarter. It will the strong sequential growth of the third quarter and it will get back to the level we ran in the fourth quarter of last year.

我之前說過，流程和工業設施將會下降，但這將被其他部門的成長所抵消。所以我認為當你考慮第四季時。第三季將出現強勁的環比成長，並將回到去年第四季的水平。

So when we get to profitability in the fourth quarter. I don't know that we'll get there all the way. I think we'll make a significant move toward that. And then as we move into fiscal '25 of those revenues will continue to ramp in those two segments. And again, profitability is we're still looking at '25. We'll be in the first quarter second quarter, I think we'll get there in the first half of the year.

因此，當我們在第四季度實現盈利時。我不知道我們能一路到達那裡。我認為我們將朝著這個方向邁出重大一步。然後，當我們進入 25 財年時，這兩個領域的收入將繼續成長。再說一遍，我們仍在關注 25 年的獲利能力。我們將在第一季和第二季實現這一目標，我認為我們將在今年上半年實現這一目標。

All right, that's helpful. Maybe just the last one I guess I want to come back to this, John, at the recent trends in the electrical portion of the utility business, sort of seeing counter to what the demand is or could be, as you sort of indicated in your remarks, any sense from customers what's happening there right now and when that can actually become more of a tailwind for that piece of the business?

好的，這很有幫助。也許只是最後一個我想我想回到這一點，約翰，在公用事業業務的電力部分的最新趨勢中，有點與需求是什麼或可能是什麼相反，正如你在你的文章中所指出的那樣評論中，客戶對現在正在發生的事情有任何了解嗎？

Yeah. I think a couple of comments and thoughts there. I think you probably if you've seen some of our larger peers that operate in that market saw some softness at the beginning of this calendar year as well. For us, it's probably a little bit more impactful for us, because of our smaller geographic footprint.

是的。我想有一些評論和想法。我想，如果您看到我們在該市場開展業務的一些較大同行，您可能在今年年初也看到了一些疲軟。對我們來說，由於我們的地理足跡較小，這可能對我們產生更大的影響。

And so we've seen some spending dynamic changes with our core client base and in our geography related to the -- not necessarily the number of project opportunities, but the size of them have gotten smart roll that smaller. And so that opens the door up for more competition.

因此，我們看到我們的核心客戶群和我們的地理位置發生了一些支出動態變化，這些變化不一定是專案機會的數量，而是專案機會的規模變得更小了。這為更多競爭打開了大門。

I mean, I think we're being very thoughtful about how we price those projects within in a range where meets our expectations for a return on those projects. So we're doing some things there to expand our client base move into some clients that we've done limited amounts of work for in the past that have a larger spending.

我的意思是，我認為我們正在非常仔細地考慮如何在滿足我們對這些項目回報的預期的範圍內對這些項目進行定價。因此，我們正在做一些事情來擴大我們的客戶群，進入一些我們過去只做有限工作但支出較大的客戶。

Our slate of projects in front of them, both in quantity and quantity, quality and individual size of projects. And so that any other thing I would tell you, Brent, is this is probably not least unique for us. I mean, I think we've seen in our history, I mean, we've operated in that area for 20, 25 years. And we can -- we occasionally see these cycles through the utility market in that area.

我們擺在他們面前的項目清單，無論是數量或項目的品質和個體規模。因此，布倫特，我要告訴你的其他事情是，這對我們來說可能是獨一無二的。我的意思是，我認為我們在歷史上已經看到，我們已經在該領域運作了 20、25 年。我們可以—我們偶爾會在該地區的公用事業市場中看到這些週期。

And so this is a bit of a down cycle for us. I mean, a similar thing happened to us right after Hurricane Sandy had a lot of our local clientele there spent a significant amount of money to not only repair from Hurricane Sandy, but also to upgrade their systems in the next couple of years was a pretty severe downturn and their spending activities.

所以這對我們來說是一個下行週期。我的意思是，在颶風桑迪之後，我們就發生了類似的事情，我們的許多當地客戶花費了大量資金，不僅修復了颶風桑迪，而且在接下來的幾年裡升級了他們的系統，這是一個相當不錯的選擇。

So it's the overall for us, it's unfortunate that kind of thing happened at the same time, we've got major projects in our slide and slide to the right. And you have a as I said in my remarks, you got this convergence of those things happening all at once and created a downward pressure on the revenue in the third quarter. But, you know, we feel pretty strong comfortable that's all those things are going to reverse themselves here as we move out over the next couple quarters.

所以這對我們來說是整體，不幸的是這種事情同時發生，我們的幻燈片和右側的幻燈片中有重大項目。正如我在演講中所說，這些事情同時發生，並對第三季的收入造成了下行壓力。但是，你知道，我們感到非常放心，隨著我們在接下來的幾個季度搬出，所有這些事情都會在這裡逆轉。

Okay. I appreciate I'll get back in queue.

好的。我很感激，我會重新排隊。

Thank you.

謝謝。

John Franzreb, Sidoti & Company.

約翰‧弗蘭茲雷布 (John Franzreb)，西多蒂公司 (Sidoti & Company)。

Good morning, guys, and thanks for taking the questions. I'd like to start, John, we just left off. I'll make sure I understand the cyclical downturns referenced in the electrical utility market that's a quarter two phenomenon or you saying that it may be longer in duration than that?

早上好，夥計們，感謝您提出問題。我想開始，約翰，我們剛剛結束。我會確保我理解電力公用事業市場中提到的周期性衰退，這是第二季度的現象，或者你說它的持續時間可能比這更長？

I think it's I think we're in the middle of it now and we started to see some softness earlier, but we thought that was there's still plenty of opportunities out there for us. And so we have to do what we normally do and adjust our approach to the market when we see these cycles and downturns. But the rate that we would if we can't turn it around overnight.

我認為我們現在正處於其中，我們早些時候開始看到一些疲軟，但我們認為我們仍然有很多機會。因此，當我們看到這些週期和低迷時，我們必須做我們通常會做的事情並調整我們的市場方法。但如果我們不能在一夜之間扭轉局面，我們就會採取這樣的速度。

And so we're doing, like I said, doing some things to expand our footprint in our Northeastern region, expand our client base. And I think there, we're going to be able to we may not see in our base client spending, we're not going to be able to deal with those changes until that cycle for them. Turns around, but we're doing it by how we address the market and where what parts of the market we're addressing.

所以，就像我說的，我們正在做一些事情來擴大我們在東北地區的足跡，擴大我們的客戶群。我認為，我們將能夠在我們的基礎客戶支出中看到我們可能看不到的變化，直到他們的周期到來之前，我們將無法應對這些變化。反過來，我們正在透過如何應對市場以及我們應對市場的哪些部分來做到這一點。

I think one thing to remember when we're thinking about timing on auto electrical and the power delivery work is that we're also moving into the summer months and the summer months can often be a time when our customers will be naturally spending less just because it's peak power demand down.

我認為，當我們考慮汽車電氣和電力傳輸工作的時間表時，要記住的一件事是，我們也即將進入夏季，而夏季通常是我們的客戶自然會減少支出的時期。下降了。

Right. Makes sense. Kevin, in regard to the large projects that is shifting to the right, I'm curious if there's any commonality on why they are being delayed if you're seeing anything along those lines?

正確的。說得通。凱文，關於正在向右移動的大型項目，我很好奇如果您看到了類似的情況，為什麼它們會被推遲，是否有任何共同點？

No, I mean, the commonality is probably in the process of getting from an award to contract completion and into position to be able to start whether that's their internal governance processes, whether that's a review of scope in those projects, in both and some of those projects you know, getting into contract completion, that also been an additional scope for us.

不，我的意思是，共通性可能在於從授予到合約完成的過程中，並能夠開始，無論是他們的內部治理流程，還是對這些專案的範圍進行審查，無論是在這兩個專案中還是在某些項目中你知道的那些項目，進入合約完成階段，這對我們來說也是一個額外的範圍。

And so it sort of feels like there's a phenomenon happening that's different than pre-COVID were, the amount of time it took to get from an award to final contract for us available to start sort of feels like it's gotten longer.

因此，感覺好像發生了一種與新冠疫情之前不同的現象，從授予合約到我們可以開始簽訂最終合約所花費的時間感覺像是變得更長了。

And I'm not sure what that is or why that's happened. But the projects, the major projects that we have in backlog are solid projects. They're going to go. They're approved by our clients Board of Directors. So there's no risk there, it's just the timing to get through that contracting process has just gotten longer.

我不確定那是什麼或為什麼會發生這種情況。但我們積壓的項目、主要項目都是可靠的項目。他們要走了。它們得到了我們客戶董事會的批准。因此，那裡不存在風險，只是完成合約流程的時間變得更長了。

Okay. That's good to hear. And in regards to the contract -- the service contract is renegotiated. I believe you said it was a 200 basis points hit to as segment gross margin. Is that a one-time kind of a hit that's been retro priced, how should we think about that on a go-forward basis?

好的。聽起來還不錯。至於合同，服務合約已重新協商。我相信您說過，分部毛利率下降了 200 個基點。這是一種一次性的熱門產品，但價格是復古的，我們該如何考慮未來的情況？

It was I think that was a 200 basis points impact to consolidated margins. It was a much more significant impact to the Process and Industrial Facilities segment. That was -- I think you should think of that as a one-time. It's primarily, that the margin moving forward, it will be a little bit lower.

我認為這對綜合利潤率有 200 個基點的影響。這對流程和工業設施領域產生了更重大的影響。那是——我認為你應該將其視為一次性的。主要是，未來的利潤率會稍微低一些。

But the big impact in the quarter was really applying this change to this three-year contract and where we're in the last year of that contract. So we've really adjusted the margin we've recognized on these previous revenue from this just something that's consistent with what we see when we're accounting for longer term contracts and the construction percentage of completion accounting.

但本季的重大影響實際上是將這一變化應用於這份三年合約以及我們處於該合約的最後一年的情況。因此，我們確實調整了我們在先前的收入中確認的利潤率，這與我們在核算長期合約和竣工會計的施工百分比時看到的情況一致。

Hey, John, it's almost there. I mean, so this is not an execution issue. It's not a relationship issue with the client is not a performance issue for them. This work is fundamentally reimbursable work over three year period.

嘿，約翰，快到了。我的意思是，這不是執行問題。這不是與客戶的關係問題，也不是他們的績效問題。這項工作基本上是三年內有償的工作。

And for whatever reason our client is contemplating and making some changes on how they're going to spend their dollars in their maintenance activities and turnaround activities. And they make that change and we got caught we are caught up in it. And so that's what has led us to we have to reevaluate the size of the entire three year period of that contract. As Kevin said, we had to make an accounting adjustment because of that.

無論出於何種原因，我們的客戶正在考慮並對其如何在維護活動和周轉活動中花費資金做出一些改變。他們做出了改變，我們被抓住了，我們也被捲入其中。這就是導致我們必須重新評估該合約整個三年規模的原因。正如凱文所說，因此我們必須進行會計調整。

Thanks for that clarity, John. And I guess one last question I'll get back into queue. Can you talk a little bit about any potential cost savings and restructuring actions are levers that you could still pull out there as you continue to work your way back to profitability?

感謝您的清晰說明，約翰。我想我會回到隊列中回答最後一個問題。您能否談談任何潛在的成本節約和重組行動，這些都是您在繼續恢復盈利的過程中仍然可以使用的槓桿？

I mean, we continue to manage our cost structure and find balance between what we have in backlog and the timing of that. We know about the timing of it, what's in our opportunity pipeline, the commitments we're making to clients for those projects.

我的意思是，我們繼續管理我們的成本結構，並在積壓訂單和時間之間找到平衡。我們知道它的時間安排、我們的機會管道中有哪些、我們對這些項目對客戶所做的承諾。

And so we're continuing to do that. But today, we do not have any significant planned restructuring things to do. We've done a lot of that over the last three years. We've focused the company into the markets and the services we want to provide, that focus has allowed us to build this record backlog. We've exited some businesses, we've sold some businesses, we've gotten out of some properties and some real estate that weren't strategic to the future of the company.

所以我們將繼續這樣做。但今天，我們沒有任何重大的計劃重組事情要做。在過去的三年裡，我們做了很多這樣的事。我們將公司的重點放在我們想要提供的市場和服務上，這種重點使我們能夠建立這項創紀錄的積壓訂單。我們已經退出了一些業務，我們已經出售了一些業務，我們已經退出了一些對公司未來沒有戰略意義的財產和房地產。

And so as we continue to add more backlog and start to roll backlog into revenue, I think we're going to start to see our ability to leverage that the consolidated cost structure. We have our shared services organizations that we've built over time. And so I think we feel pretty good where we are, but that's not to say we will continue to find areas, continue to look for areas in the business where we think we can be more efficient.

因此，當我們繼續增加更多積壓訂單並開始將積壓訂單轉化為收入時，我認為我們將開始看到我們利用合併成本結構的能力。我們擁有長期建立的共享服務組織。因此，我認為我們對目前的情況感覺很好，但這並不是說我們將繼續尋找領域，繼續尋找我們認為可以提高效率的業務領域。

Great. Thanks, guys for taking my questions. I got back in the queue.

偉大的。謝謝你們回答我的問題。我又回到了隊伍中。

(Operator Instructions)

（操作員說明）

Brent Thielman, D.A. Davidson.

布倫特·蒂爾曼，D.A.戴維森。

Thanks. I guess, John, sort of look at the book of business here, it's been a massive increase here over the last 12 to 18 months. And it seems to me, based on your commentary, the environment's even better than it was 4 to 18 months ago. And just in terms of appetite spend by customers, at least in most areas.

謝謝。我想，約翰，看看這裡的商業帳簿，在過去 12 到 18 個月裡這裡有了巨大的成長。在我看來，根據您的評論，環境甚至比 4 到 18 個月前更好。就顧客的消費意願而言，至少在大多數地區是如此。

Your burn rate is going to obviously pickup here at some point, but maybe just your thoughts on the ability to build upon a $1.5 billion worth business here. Just in context developments. There's things from the fact that you will be burning more work going forward and be curious your thoughts there?

你的燒錢率顯然會在某個時候加快，但也許只是你對在這裡建立價值 15 億美元的業務的能力的想法。只是在脈絡的發展中。事實上，您將在未來投入更多的工作，並對您的想法感到好奇？

Yeah, it's a good question. So we think our opportunity pipeline is pretty solid on projects that are going to move forward. The timing of getting of winning our fair share of those projects now is part of the one of the things that we have to handicap.

是的，這是一個好問題。因此，我們認為我們的機會管道在即將推進的專案上非常穩固。現在，贏得這些項目的公平份額的時機是我們必須阻礙的事情之一。

I think they present themselves in both the timing and the size of those projects will give us the ability to maintaining a strong backlog, perhaps even in some cases build -- continue to build on that backlog. And I think we've been very fortunate to be able to build over the last almost two years continue to build on that backlog.

我認為它們在這些專案的時間安排和規模上表現出來，將使我們有能力維持強大的積壓工作，甚至在某些情況下可能會繼續在積壓工作的基礎上進行建構。我認為我們非常幸運能夠在過去近兩年的時間裡繼續在積壓的基礎上繼續發展。

Remember that the dramatic increase of backlog has happened since the end of Q4 of 2023. And so, I think you've been around us long enough that we've said, don't judge us on backlog quarter to quarter, although it's been great that we've been able to build backlog for the last 11 quarters. But, it's more of a long-term trend line.

請記住，自 2023 年第四季末以來，積壓訂單急劇增加。因此，我認為您已經在我們身邊待了足夠長的時間，我們已經說過，不要根據每個季度的積壓情況來評判我們，儘管我們能夠在過去 11 個季度建立積壓情況真是太好了。但是，它更像是一條長期趨勢線。

So like you said, as revenue start to flow out of that backlog, we could have a quarter two where that book-to-bill could be below 1. But then the next quarter could be a dramatic increase at 2.0. And so the projects are out there, both in quality, quantity and size that we feel we're going to be able to maintain and or build on this backlog as we move through fiscal '25.

所以就像你說的，隨著收入開始從積壓訂單中流出，我們可能會在第二季的訂單出貨比可能低於 1。但下個季度可能會出現 2.0 的大幅成長。因此，這些項目已經存在，無論是在品質、數量或規模上，我們認為在 25 財年期間我們將能夠維持和/或在積壓的基礎上繼續發展。

Yeah. And I guess I wanted to ask about the quality aspect of it too, and that I think Kevin mentioned direct margin, X the under-absorption that you just don't up, I think a pretty good. As you've seen that sort of climate progress what that meant in terms of bid margins and maybe how does that sort of impact your view of what this business can earn and use that to really execute on this committee and its attendant. I know the 10% to 12% growth is the starting point and are there prospects about that based on, what you're seeing on the bids coming through today?

是的。我想我也想問它的品質方面，我認為凱文提到了直接利潤，X你只是沒有吸收不足，我認為相當不錯。正如您所看到的這種氣候進步，這在投標利潤方面意味著什麼，也許這會如何影響您對該企業可以賺取的收入的看法，並利用它來真正執行該委員會及其服務員。我知道 10% 到 12% 的成長是起點，根據您今天看到的投標情況，是否有前景？

I think all the projects -- especially on the larger projects that are coming through the bid funnel today, I think we've seen a return to more historical gross margin opportunities on those projects in the risk profile for those projects, our ability to do make sure we have the right contingency application escalation applications now has returned to more normalized levels. And so feel good about that.

我認為所有項目——尤其是今天通過投標渠道的大型項目，我認為我們已經看到這些項目的風險狀況恢復了更多歷史毛利率機會，我們的能力確保我們有正確的應急應用程序升級應用程序現在已經恢復到更正常化的水平。所以對此感覺良好。

I mean we still have projects and do day-to-day maintenance work and small projects as part of our overall portfolio of services that have some lower margins in it, but there's strategic why we do it and output for client relationships for to build workforce to be able to apply those to other projects are higher added-value projects. And so, I think we feel pretty good about the opportunity to continue to maintain and build a backlog that's got a margin potential that gets back to our historical levels.

我的意思是，我們仍然有項目並進行日常維護工作和小型項目，作為我們整體服務組合的一部分，這些項目的利潤率較低，但我們這樣做是有戰略意義的，並為客戶關係輸出以建立勞動力能夠將這些應用到其他項目是更高附加價值的項目。因此，我認為我們對繼續維持和建立積壓訂單的機會感覺非常好，這些積壓訂單的利潤率潛力可以恢復到我們的歷史水平。

A couple of other thoughts is that the markets we've got the backlog, we've got that. So that funnel is, it supports us eliminating the under-recovery issue, which has been probably the most significant issue on gross margin percentage. And it also allows us to should allow us to be where we're consistently fully recovering overheads just because of the strength of the markets.

其他一些想法是，我們已經積壓了市場。所以這個漏斗是，它支持我們消除恢復不足的問題，這可能是毛利率最重要的問題。它還使我們能夠僅僅因為市場的強勁而持續完全收回管理費用。

Okay. Sorry, one more for me. I guess is just on the it seems as though there's a recognition that there's going to be increased sort of power demand or low demand kind of going forward, if that seems to be the rhetoric coming out of utilities.

好的。抱歉，再給我一張。我想，似乎人們已經認識到，未來電力需求將會增加或需求較低，如果這似乎是公用事業公司的言論的話。

And I guess within all that maybe more of an emphasis on gases as sort of bridge for power. I know you guys have picked up quite a bit in peak shaving work, but maybe and how you see that market going forward can you get it? Can it get better than what it's been for you already? And maybe other ways you guys are sort of positioned around that and a potential phenomenon and using more gas as a power source?

我想在這一切之中，也許更多的是強調氣體作為電力的橋樑。我知道你們在調峰工作中已經取得了很大的進展，但也許你們如何看待未來市場的發展？它能變得比你已經有的更好嗎？也許你們有其他方式圍繞著這潛在現象定位並使用更多天然氣作為動力來源？

Yeah, I really think for us for them matched up kind of look at it like the crude oil business, the midstream down into the downstream. I think we're well positioned there both from gas processing facilities through storage, through our LNG, through NGLs, both for domestic use and international use.

是的，我真的認為對我們來說，他們就像原油業務一樣，從中游到下游。我認為我們在這方面處於有利地位，從天然氣加工設施到儲存，再到我們的液化天然氣，再到液化天然氣，無論是國內使用還是國際使用。

I mean, I think we're really positioned well in the market for gas and natural gas liquids related demand and both globally and domestically. And so I think our positioning is great. I think we our ability to provide internally as under one brand to be able to provide their cryogenic storage, design, fabrication and construction, as well as our ability to deal with the process elements around the storage.

我的意思是，我認為我們在全球和國內的天然氣和天然氣液體相關需求市場中確實處於有利地位。所以我認為我們的定位很好。我認為我們有能力在一個品牌下提供內部低溫儲存、設計、製造和施工，以及我們處理儲存周圍工藝元素的能力。

The in-house, for instance, at peak shaving facilities, it gives us a unique position in that market. And so we see we're looking out pretty far. But in the near term, there are other LNG peak shaving opportunities in the market over next four to six months that. We will be expect to be bidding and proposing on. And those projects are good for us. We've got a great brand and reputation in that competitive. We like the competitive set in those markets have a weak who we compete against.

例如，在內部調峰設施中，它使我們在該市場中擁有獨特的地位。所以我們看到我們看得很遠。但短期來看，未來四到六個月市場上還有其他液化天然氣尖峰機會。我們預計將進行投標和提案。這些項目對我們有好處。我們在競爭中擁有良好的品牌和聲譽。我們喜歡那些市場的競爭者有一個弱者，而我們的對手是弱者。

And so, our expectation certainly is on the larger side of those that we should be able to add or those projects into our backlog. But also the other thing that's going on in those markets is there's a lot of repair and upgrade projects that are happening to existing infrastructure for all of the same probably same market dynamics which pace of almost even a better opportunity for us.

因此，我們的期望當然是我們應該能夠添加的項目或那些項目到我們的待辦事項中。但這些市場中正在發生的另一件事是，針對所有相同的可能相同的市場動態，現有基礎設施正在進行大量維修和升級項目，這對我們來說幾乎是更好的機會。

Even though they're smaller projects for our ability to go in and inspect and repair existing storage infrastructure to go in and upgrade liquefaction equipment or boil-off gas equipment and or other pieces of the existing facility.

儘管它們是較小的項目，但我們有能力進入並檢查和修復現有的儲存基礎設施，進入並升級液化設備或蒸發氣體設備和/或現有設施的其他部分。

Again, with our ability to wrap our cryogenic expertise around that really narrows down the competition of some of their provider for full engineering and construction solution to our clients. And so again, those aren't necessarily big projects, they could be in the sub $50 million kind of projects, but there are a number of them out there and in the near term and they provide good opportunity for us good margins, absorb overheads. And so I think we're very well positioned from increased demand for natural gas and natural gas related products.

同樣，憑藉我們的低溫專業知識的能力，這確實縮小了一些供應商為我們的客戶提供完整工程和施工解決方案的競爭範圍。再說一次，這些不一定是大項目，它們可能是 5000 萬美元以下的項目，但短期內有很多這樣的項目，它們為我們提供了良好的機會，獲得良好的利潤，吸收管理費用。因此，我認為，由於天然氣和天然氣相關產品的需求增加，我們處於非常有利的位置。

Really helpful. Thanks for taking all the questions.

真的很有幫助。感謝您提出所有問題。

And thank you, and I'm showing no further questions. I would now like to turn the call back over to Kellie Smythe for closing remarks.

謝謝你，我不會再提出任何問題。現在我想將電話轉回給凱莉‧史邁思 (Kellie Smythe)，讓其致閉幕詞。

Thank you. As a reminder, Matrix will be participating at the upcoming Stifel Cross Sector Insight Conference on June 4 and 5 in Boston. If you'd like additional information on our attendance at this event or would like to have a conversation with management, please feel free to contact me through Matrix Service Company Investor Relations website. Thank you for your participation and time.

謝謝。謹此提醒，Matrix 將參加即將於 6 月 4 日至 5 日在波士頓舉行的 Stifel 跨部門洞察會議。如果您想了解有關我們出席本次活動的更多信息，或者想與管理層進行對話，請隨時透過 Matrix Service Company 投資者關係網站與我聯繫。感謝您的參與和時間。

Thank you. This concludes today's conference call and thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束，感謝您的參與。您現在可以斷開連線。