SPX Technologies Inc (SPXC) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to the SPX Technologies Q3 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Paul Clegg, Vice President, Investor Relations and Communications. Please go ahead.

下午好，歡迎參加 SPX Technologies 2024 年第三季財報電話會議。 （操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給投資者關係和傳播副總裁保羅·克萊格 (Paul Clegg)。請繼續。

Thank you, operator, and good afternoon, everyone. Thanks for joining us. With me on the call today are Gene Lowe, our President and Chief Executive Officer; and Mark Carano, our Chief Financial Officer.

謝謝接線員，大家下午好。感謝您加入我們。今天與我一起參加電話會議的是我們的總裁兼執行長 Gene Lowe；和我們的財務長馬克卡拉諾。

A press release containing our third quarter results was issued today after market close. You can find the release and our earnings slide presentation as well as a link to a live webcast of this call in the Investor Relations section of our website at spx.com.

今天收盤後發布了包含我們第三季業績的新聞稿。您可以在我們網站 spx.com 的投資者關係部分找到新聞稿和我們的收益幻燈片演示以及本次電話會議現場網絡直播的連結。

I encourage you to review our disclosure and discussion of GAAP results in the press release and to follow along with the slide presentation during our prepared remarks. A replay of the webcast will be available on our website.

我鼓勵您查看我們在新聞稿中對 GAAP 結果的披露和討論，並在我們準備好的發言中關注幻燈片演示。我們的網站將提供網路廣播的重播。

As a reminder, portions of our presentation and comments are forward-looking and subject to safe harbor provisions. Please also note the risk factors in our most recent SEC filings. Our comments today will largely focus on adjusted financial results and comparisons will be to the results of continuing operations only.

提醒一下，我們的部分演示和評論具有前瞻性，並受安全港條款的約束。另請注意我們最近向 SEC 提交的文件中的風險因素。我們今天的評論將主要集中在調整後的財務表現上，並且僅與持續經營的業績進行比較。

You can find detailed reconciliations of historical adjusted figures from the respective GAAP measures in the appendix to today's presentation. Our adjusted earnings per share exclude acquisition-related costs, nonservice pension items, mark-to-market changes, amortization expense and other items.

您可以在今天簡報的附錄中找到各個 GAAP 指標中歷史調整資料的詳細調整表。我們調整後的每股盈餘不包括收購相關成本、非服務退休金項目、按市值計算的變化、攤提費用和其他項目。

Finally, we will be meeting with investors in various events during the fourth quarter, including at the Baird Global Industrial Conference on November 13, the Wolfe Research Conference on December 4 and the Sidoti's Small Cap Conference on December 5.

最後，我們將在第四季度的各種活動中與投資者會面，包括11 月13 日的貝爾德全球工業會議、12 月4 日的沃爾夫研究會議和12 月5 日的西多蒂小型股會議。

And with that, I'll turn the call over to Gene.

然後，我會將電話轉給吉恩。

Thanks, Paul. Good afternoon, everyone, and thank you for joining us. On the call today, we'll provide you with an update on our consolidated and segment results for the third quarter of 2024 and discuss our outlook for the remainder of the year.

謝謝，保羅。大家下午好，感謝您加入我們。在今天的電話會議上，我們將向您提供 2024 年第三季合併和分部業績的最新信息，並討論我們對今年剩餘時間的展望。

Our Q3 results reflect solid revenue growth and substantial increases in our key profit measures. Our margin performance was strong across both segments and we continue to execute on our key value creation initiatives, including sustainability and continuation improvement. We are well positioned to achieve our full year guidance, which reflects a year-on-year increase in adjusted EBITDA of approximately 35% and an increase in adjusted EPS of 28%.

我們第三季的業績反映了營收的穩健成長和主要利潤指標的大幅成長。我們在這兩個領域的利潤率表現都很強勁，我們繼續執行我們的關鍵價值創造計劃，包括永續性和持續性改進。我們完全有能力實現全年指引，調整後的 EBITDA 年成長約 35%，調整後的 EPS 成長 28%。

Turning to our high-level results. For the third quarter, we grew revenue by 7.8%, driven by strength in HVAC cooling. Adjusted EBITDA increased approximately 27% year-on-year with 320 basis points of margin expansion. As always, I'd like to update you on our value creation efforts during the quarter. On the sustainability front, we recently published our annual sustainability report reflecting another year of progress across our key initiatives.

轉向我們的高水準結果。在暖通空調冷凍領域的強勁推動下，第三季我們的營收成長了 7.8%。調整後 EBITDA 年成長約 27%，利潤率成長 320 個基點。像往常一樣，我想向您介紹本季我們的價值創造工作的最新情況。在永續發展方面，我們最近發布了年度永續發展報告，反映了我們的關鍵舉措又取得了一年的進展。

In particular, we achieved a 30% reduction in carbon intensity well ahead of schedule, and introduced several new climate conscious solutions that help to reduce our customers' power usage, emissions and water usage. We also continue to see progress in our continuous improvement initiatives, including benefits from significant capital investments in equipment and processes that add to production capacity by improving throughput. We've continued to see incremental margin gains as a result of investments to improve efficiency.

特別是，我們提前實現了碳強度降低 30%，並推出了多種新的氣候意識解決方案，幫助減少客戶的用電量、排放量和用水量。我們也繼續看到我們的持續改進計劃取得進展，包括對設備和製程進行大量資本投資，透過提高吞吐量來增加產能。由於提高效率的投資，我們繼續看到利潤率不斷增加。

And now I'll turn the call over to Mark to review our financial results.

現在我將把電話轉給馬克來審查我們的財務表現。

Thanks, Gene. Our third quarter results were strong. Year-on-year, adjusted EPS grew 31% to $1.39. For the quarter, total company revenue increased 7.8% year-on-year. Organically, revenue grew 3%, while acquisitions drove an increase of 4.4%, Fx was a modest tailwind. Consolidated segment income grew by $22.2 million or 24.2% to $113.8 million, while segment margin increased 310 basis points.

謝謝，吉恩。我們的第三季業績強勁。調整後每股收益年增 31% 至 1.39 美元。該季度公司總營收年增7.8%。從有機角度來看，營收成長了 3%，而收購推動成長了 4.4%，外匯是一個溫和的推動因素。綜合部門營收成長 2,220 萬美元，成長 24.2%，達到 1.138 億美元，部門利潤率成長 310 個基點。

For the quarter, in our HVAC segment, revenues grew 15.9% year-on-year. On an organic basis, revenues increased 9%, driven by continued strength in cooling demand, while heating was similar to the prior year. The acquisition of Ingenia and our cooling platform contributed growth of 6.8%, while the Fx impact was nominal.

本季度，我們的 HVAC 部門營收年增 15.9%。在有機基礎上，由於冷氣需求持續強勁，收入成長了 9%，而供暖需求與去年相似。收購 Ingenia 和我們的冷卻平台貢獻了 6.8% 的成長，而匯率影響很小。

Segment income grew by $21.7 million or 37.2% while segment margin increased 370 basis points. The increases in segment income and margin were due to operating leverage on higher organic cooling sales and the Ingenia acquisition. Segment backlog at quarter end was $438 million, up modestly from Q3.

部門營收成長 2,170 萬美元，或 37.2%，部門利潤率成長 370 個基點。部門收入和利潤率的成長歸因於有機冷卻銷售增加和 Ingenia 收購帶來的營運槓桿。截至季末，該部門的積壓訂單為 4.38 億美元，較第三季小幅成長。

For the quarter in the Detection & Measurement segment, revenues decreased 7% year-on-year. Fx was a 0.8% tailwind. Decrease in revenue was driven largely by lower contract sales associated with the large pass-through project delivered during 2023 and into the first quarter of 2024.

本季檢測與測量領域的營收年減 7%。 Fx 是 0.8% 的順風車。收入下降的主要原因是與 2023 年至 2024 年第一季交付的大型直通項目相關的合約銷售額下降。

Excluding the pass-through project, revenue grew approximately 3%, driven by transportation and Aton project sales. Year-on-year segment income grew $0.5 million and margin increased 190 basis points, driven by more favorable project mix. Segment income margin also continued to benefit from our efforts to enhance the efficiency of our segment structure. Segment backlog at quarter end was $193 million, down 5.8% sequentially from Q3, reflecting the timing of certain project deliveries and awards.

不包括直通項目，在交通和 Aton 項目銷售的推動下，收入成長約 3%。在更有利的專案組合的推動下，分部營收年增 50 萬美元，利潤率成長 190 個基點。分部利潤率也持續受惠於我們提高分部結構效率的努力。截至季末，該部門的積壓訂單為 1.93 億美元，比第三季連續下降 5.8%，反映了某些項目交付和授予的時間安排。

Turning now to our financial position at the end of the quarter. In Q3 with cash of $129 million and total debt of $738 million. Our leverage ratio is calculated under our bank credit agreement was 1.4 times. We now anticipate our leverage ratio declining to 1.2 times or lower by year-end, below our target range of 1.5 times to 2.5 times, assuming no additional capital deployment.

現在談談我們季度末的財務狀況。第三季現金為 1.29 億美元，債務總額為 7.38 億美元。根據我們的銀行信貸協議計算，我們的槓桿率為1.4倍。現在，假設沒有額外的資本部署，我們預計到年底我們的槓桿率將降至 1.2 倍或更低，低於我們 1.5 倍至 2.5 倍的目標範圍。

Adjusted free cash flow for the quarter was approximately $61 million. During the quarter, we amended our credit agreement to double the size of our revolving credit facility for $1 billion in order to better match our increased size and growth opportunities.

該季度調整後的自由現金流約為 6,100 萬美元。本季度，我們修改了信貸協議，將循環信貸額度擴大了一倍，達到 10 億美元，以便更好地適應我們擴大的規模和成長機會。

Moving on to our guidance. We are maintaining our full year guidance for adjusted EBITDA and adjusted EPS. We are narrowing the range of our HVAC revenue guidance to $1.365 billion to $1.385 billion, reflecting year-on-year growth of 22.5% at the midpoint. We are also slightly narrowing our range for HVAC margin guidance while maintaining the midpoint of 23.5% or 260 basis points increase year-on-year.

繼續我們的指導。我們維持調整後 EBITDA 和調整後每股盈餘的全年指引。我們將 HVAC 收入指引縮小至 13.65 億美元至 13.85 億美元，中間值年增 22.5%。我們也略微縮小了 HVAC 利潤率指引範圍，同時維持 23.5% 的中點，即年增 260 個基點。

In D&M, based on our year-to-date performance and outlook, we are increasing our margin guidance to a range of 21.25% to 22%, raising the midpoint to approximately 21.6%. This represents a year-on-year increase of approximately 240 basis points compared with a year-on-year increase of 210 basis points previously.

在 D&M 領域，根據我們今年迄今的業績和展望，我們將利潤率指引提高至 21.25% 至 22% 的範圍，將中點提高至約 21.6%。這意味著同比增長約240個基點，而之前的年增長為210個基點。

In total, consolidated midpoint segment income for the company remains unchanged as a result of these adjustments. As always, you'll find modeling considerations in the appendix to our presentation.

總的來說，由於這些調整，公司的合併中點部門收入保持不變。像往常一樣，您將在我們簡報的附錄中找到建模注意事項。

I'll now turn the call back over to Gene for a review of our end markets and his closing

現在我將把電話轉回吉恩，以審查我們的終端市場和他的交易

Thanks, Mark. Current market conditions continue to support our outlook. Within our HVAC cooling platform, we continue to see strong demand for our products across several key end markets, including data centers, health care and institutional.

謝謝，馬克。當前的市場狀況繼續支持我們的前景。在我們的 HVAC 冷卻平台中，我們繼續看到多個關鍵終端市場對我們產品的強勁需求，包括資料中心、醫療保健和機構。

In our HVAC heating platform, winter temperatures are a key driver of year-end demand as is typical. In our Detection & Measurement segment, we continue to experience flattish global demand in our short-cycle business with regional variations, while project orders remain healthy.

在我們的暖通空調暖氣平台中，冬季溫度通常是年終需求的關鍵驅動因素。在我們的檢測與測量領域，我們的短週期業務的全球需求持續持平，但存在地區差異，而專案訂單保持健康。

Looking ahead, we anticipate ending the year with a solid backlog position, giving us well positioned for growth in 2025. In summary, I'm pleased with SPX's Q3 results, including significant margin expansion in both segments. We're well positioned to achieve our updated full year guidance, which implies 35% growth in adjusted EBITDA and 28% growth in adjusted EPS.

展望未來，我們預計今年年底將擁有穩固的積壓訂單，為 2025 年的成長做好準備。我們完全有能力實現更新後的全年指引，這意味著調整後 EBITDA 成長 35%，調整後每股盈餘成長 28%。

We see multiple opportunities to continue growing our businesses both organically and through our attractive acquisition pipeline. Looking ahead, I remain excited about our future. The right strategy and a highly capable, experienced team, I see significant opportunity to continue driving value for years to come.

我們看到了多種機會來繼續發展我們的業務，無論是有機的還是透過我們有吸引力的收購管道。展望未來，我對我們的未來仍然感到興奮。正確的策略和一支能力強、經驗豐富的團隊，我看到了在未來幾年繼續推動價值的重大機會。

And with that, I'll turn the call back to Paul.

說完，我會把電話轉回給保羅。

Thanks, Gene. Operator, we will now go to questions.

謝謝，吉恩。接線員，我們現在開始提問。

(Operator Instructions) Ross Sparenblek, William Blair.

（操作說明）Ross Sparenblek、William Blair。

Hey. Good evening, guys. Strong HVAC order growth during the quarter with the Dodge Momentum Index index continuing to climb, and all the work you guys have done to streamline the sales process. How should we think about the sustainability of the 2024 growth rates into 2025? I mean is it a fair base case to underwrite mid-teens for cooling and still double digits for the overall business?

嘿。晚上好，夥計們。本季暖通空調訂單強勁成長，道奇動量指數持續攀升，以及你們為簡化銷售流程所做的所有工作。我們該如何思考2024年成長率到2025年的永續性？我的意思是，承保十幾歲左右的冷卻費用並且整體業務仍保持兩位數是一個公平的基本情況嗎？

So Ross, yeah. First of all, I want to be careful. We don't get into a discussion about 2025 too early. I think we've had a strong year here with respect so far with respect to organic growth on the cooling side, we benefited from some of the acquisitions that we've done as well. Obviously, we've also done some significant throughput improvements that expanded our capacity.

所以羅斯，是的。首先，我要小心。我們不會過早討論 2025 年。我認為到目前為止，我們在冷卻方面的有機成長方面度過了強勁的一年，我們也從我們所做的一些收購中受益。顯然，我們也進行了一些重大的吞吐量改進，從而擴大了我們的容量。

Yeah, I'd say largely, as we look into next year, we feel good about the strength of those markets that have benefited us this year. And we're looking at data centers and health care and institutional. And so from the cooling side, I'd say that's we still feel pretty good about where we stand.

是的，我想說的是，在我們展望明年時，我們對今年使我們受益的市場的實力感到滿意。我們正在關注資料中心、醫療保健和機構。因此，從冷卻方面來看，我想說的是，我們仍然對自己的立場感覺良好。

Yeah, I understood that. Maybe I'm just trying to understand the timing of when we should expect order flow from recovering Dodge index to hit your books if it hasn't already, is more to come? Or is this already starting to bleed through to the numbers?

是的，我明白了。也許我只是想了解我們何時應該預期恢復道奇指數的訂單流會出現在您的賬簿上（如果還沒有的話，還會有更多嗎？）或者這已經開始滲透到數字中？

Ross, I mean I'm not sure the Dodge is a perfect proxy for all of our HVAC business. About 70% of his replacement, which is not really linked to the Dodge index exactly. So you really need to be thinking about both the replacement dynamic as well as the new build. And then you think about some of these markets that Paul just mentioned, like data centers, like health care, institutional, some of the reshoring we're seeing. I mean, the thematic trends there really haven't changed. They continue to be strong markets. And we see those continuing through the fourth quarter and in the next year.

羅斯，我的意思是，我不確定道奇是否是我們所有暖通空調業務的完美代表。大約 70% 是他的替代者，這與道奇指數並沒有真正的關聯。因此，您確實需要同時考慮更換動態和新版本。然後你想想保羅剛才提到的一些市場，像是資料中心、醫療保健、機構，以及我們看到的一些回流。我的意思是，那裡的主題趨勢確實沒有改變。它們仍然是強勁的市場。我們看到這種情況將持續到第四季和明年。

Fair enough. And maybe just on the boiler side, it was a little surprising to see flat growth just kind of given the new product launches and share gains you guys have seen there, and some of the intra-quarter read-throughs we've seen from at least the commercial side. Is there anything we should read into the fourth quarter as we look at seasonally low comp for Resi?

很公平。也許只是在鍋爐方面，考慮到你們在那裡看到的新產品發布和份額增長，以及我們在至少商業方面。當我們看到雷西的季節性低收入時，我們在第四季度有什麼值得解讀的嗎？

Yeah. I think -- I mean, Ross, it was a slower start to the heat season this year than we had initially anticipated. So that in conjunction with the fact that really the lead times in our business and our boiler business have kind of normalized. They're no longer extended. If you recall, last year, they were still at longer than normal lead times.

是的。我想——我的意思是，羅斯，今年熱季的開局比我們最初預期的要慢。因此，我們的業務和鍋爐業務的交貨時間實際上已經正常化了。它們不再延長。如果你還記得的話，去年他們的交貨時間仍然比正常情況要長。

So we're seeing the distributors at least manage their inventory levels a little more prudently than perhaps they have in the past. So really, but at the end of the day, it's largely driven by the weather dynamics, and we just haven't seen the eating season kick in yet. As you know, when it does, concerned quickly. This is an 80% replacement business. So that business will really start to ramp up once you see the weather dynamics shift.

因此，我們看到分銷商至少比過去更謹慎地管理庫存水準。確實如此，但歸根結底，這很大程度上是由天氣動態驅動的，我們只是還沒有看到飲食季節開始。如你所知，當它發生時，很快就會引起關注。這是80%的替代業務。因此，一旦你看到天氣動態發生變化，這項業務就會真正開始增加。

(multiple speakers)Yeah. With respect to our guide, when you think about the balance of the year, we have kind of adjusted our guide, if you will, to take into account a delayed start to the heating season.

（多個發言者）是的。關於我們的指南，當您考慮今年的剩餘時間時，如果您願意的話，我們已經調整了我們的指南，以考慮到供暖季節的延遲開始。

Yeah. Well you do mention the Resi versus commercial. And yes, I think we are stronger on the commercial side. I think Resi, which is a much more replacement market is where we are seeing all the flatness.

是的。嗯，你確實提到了 Resi 與商業廣告。是的，我認為我們在商業方面更強大。我認為 Resi 是一個更可替代的市場，我們看到的都是平坦的市場。

All right, thanks guys.

好的，謝謝大家。

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

Thank you. I'd like to dig in on Detection & Measurement, starting with your run rate business. Just your team's perspective on sustainability of demand and perhaps near term inflection. The commentary on the slides, I may simply be reading into this too much, but flattish, you actually said in the script, Jane that flattish turn to mixed global demand in terms of run rate? Is there anything that we should read into there?

謝謝。我想深入探討檢測和測量，從您的營運率業務開始。只是您的團隊對需求永續性以及近期變化的看法。幻燈片上的評論，我可能只是讀得太多了，但是平淡，你實際上在劇本中說過，簡，就運行率而言，平淡轉向混合的全球需求？那裡有什麼我們該讀的嗎？

And in terms of regional variation, what is your team seeing currently? And then looking forward in terms of project business, you've been very consistent in citing healthy underlying demand, infrastructure spending being on the horizon? How should we think about the setup for project activity and perhaps catalysts going into 2025?

就區域差異而言，您的團隊目前看到了什麼？然後展望專案業務，您一直非常一致地指出健康的潛在需求、基礎設施支出即將出現？我們應該如何考慮 2025 年計畫活動的設定以及可能的催化劑？

Yeah, Bryan, let me start it. I think that I wouldn't read anything too much into that word. I mean, I think in general, the run rate has been flattish with very, very modest growth. There's regional variation. As we know, at a company level, we're approximately 85% North America and about 15% equally split in Europe, and Asia.

是的，布萊恩，讓我開始吧。我想我不會對這個詞解讀太多。我的意思是，我認為總體而言，運行率一直持平，成長非常非常溫和。有地區差異。眾所周知，在公司層面，我們大約 85% 分佈在北美，大約 15% 分佈在歐洲和亞洲。

I'd say the two areas that appear to me to be soft test would be China and Continental Europe. But I would say that our relative revenue there is fairly small. i would say much larger in North America, UK, Southeast Asia and some of the other regions.

我想說，在我看來，軟測試的兩個地區是中國和歐洲大陸。但我想說的是，我們在那裡的相對收入相當小。我想說的是北美、英國、東南亞和其他一些地區的規模要大得多。

I would say the US is holding pretty steady. And I would say, overall, we're cautiously optimistic looking into 2025. We want to be careful about not giving 2025 guidance. I would also say the project activity, as we've talked about, is healthy. And there's a lot of large projects that we're bidding on. The big thing we got to keep our eyes on is when those will actually come to fruition.

我想說美國的情況相當穩定。我想說，總體而言，我們對 2025 年持謹慎樂觀態度。我還想說，正如我們所討論的，專案活動是健康的。我們正在投標很多大型專案。我們必須關注的最重要的事情是這些何時能夠真正實現。

There's some of these that are very large that could start to go in '25. There's some that could start to go in '26. So really good projects that PME really did success rates there, but we're going to have to manage and make sure that we've got a handle on the timing of the revenues of those projects.

其中一些規模非常大，可能會在 25 年開始投入使用。有些可能會在 26 年開始實施。非常好的項目，PME 確實在那裡取得了成功，但我們必須進行管理並確保我們掌握了這些項目收入的時間表。

But yes, I would say, if you look at head to '25 HVAC if we kind of say our normal business is mid-single-digit growth. I think there's more growth drivers underneath HVAC overall, whereas D&M, I would say, is probably what we're seeing a little bit lower growth as we look ahead to '25.

但是，是的，我想說，如果你看看'25 HVAC，如果我們可以說我們的正常業務是中個位數成長。我認為 HVAC 整體上有更多的成長動力，而我想說的是，當我們展望 25 年時，我們可能會看到 D&M 的成長略有下降。

Understood. Appreciate the color. And maybe for a quick update on your M&A pipeline, how -- frame, however you may, your team's confidence in executing a deal over the coming quarters? And also, I guess, speak to the composition of your pipeline, what intrigues me is with your leverage moving below targeted range, having expanded your credit facility to $1 billion, you're going to enter 2025 with a tremendous amount of dry powder. Are there potential deals out there that would actually utilize that kind of capacity? Or is it simply flexing to the scale of current operations?

明白了。欣賞顏色。也許為了快速更新您的併購管道，您的團隊如何（無論如何）確定您的團隊在未來幾季執行交易的信心？而且，我想，談到你們管道的組成，讓我感興趣的是你們的槓桿率低於目標範圍，在將信貸額度擴大到 10 億美元後，你們將帶著大量的乾粉進入 2025 年。是否存在能夠真正利用這種產能的潛在交易？還是只是為了適應當前的營運規模？

Yeah. I think -- I think you're spot on. I think that we're obviously going to be below, we'll generate as you know, our business is to generate so much cash. I do think one thing our EBITDA has expanded somewhat, right? When we got our revolver in place, EBITDA was almost well below half of what it is today. And so part of it is just getting the appropriate size the revolver with our strategy. So we feel very good about that.

是的。我認為——我認為你說得對。我認為我們顯然會低於，我們會產生如你所知的，我們的業務就是產生這麼多現金。我確實認為我們的 EBITDA 有所擴大，對嗎？當我們把左輪手槍安裝到位時，EBITDA 幾乎遠低於現在的一半。因此，其中一部分就是根據我們的策略獲得合適尺寸的左輪手槍。所以我們對此感覺非常好。

But having said that, we actually feel really good with our pipeline. And I would say the activity level is very strong on the M&A side. This is on the D&M side and as well as on the HVAC side. So there's a good level of activity. And I actually feel optimistic about what we're seeing over the next 12 months in terms of the ability to keep building out our platforms. I think there's some really good opportunities there.

但話雖如此，我們實際上對我們的管道感覺非常好。我想說，併購方面的活動水準非常強勁。這是在 D&M 方面以及 HVAC 方面。因此，活動水平很高。事實上，我對未來 12 個月繼續建立平台的能力感到樂觀。我認為那裡有一些非常好的機會。

Where we're seeing it, I would say, we see some very interesting opportunities on the location and inspection side, on the content side, on the transportation side, and then if you flip over to HVAC, we see some very good engineered air movement as well as some cooling intriguing opportunities in those five platform. So it does feel like there's a lot going on. And with our new revolver and our relatively low, multiple debt-to-EBITDA ratio, you're right, we do have the drive powder to grow.

我想說，我們在位置和檢查方面、內容方面、運輸方面看到了一些非常有趣的機會，然後如果你轉向暖通空調，我們會看到一些非常好的工程空氣這五個平台中的動向以及一些冷卻有趣的機會。所以感覺確實發生了很多事情。憑藉我們的新左輪手槍和相對較低的倍數債務與 EBITDA 比率，您是對的，我們確實擁有成長的動力。

Thankful. That's encouraging. Thanks again.

感恩。這令人鼓舞。再次感謝。

Damian Karas, UBS.

達米安卡拉斯，瑞銀。

Hey, good morning -- Excuse me, good evening, gentlemen. It's been a long few weeks. Right at the end of tunnel. Maybe just a couple of follow-up questions on D&M here. I just want to make sure, first, I heard correctly that you had a single project that had a 10 point impact on the quarter and otherwise, D&M would have been up 3% organically. Did I hear correctly?

嘿，早安——對不起，晚上好，先生們。已經過去了好幾個星期了。就在隧道的盡頭。也許這裡只是關於 D&M 的幾個後續問題。我只是想確保，首先，我沒聽錯，你們有一個專案對本季產生了 10 個百分點的影響，否則，D&M 的自然成長將是 3%。我沒聽錯吧？

I know what you talked about, Damian. Yeah. So no, we're actually just giving you the -- this is Paul, by the way. We're giving you the math without the pass-through projects that delivered in the prior year. You may remember that in the communication technologies business, we had a large pass-through project lower than typical margin associated with it, and that delivered through last year and into the first quarter of this year. That's tended to skew our results all year. And so as we do the year-over-year comparisons, we just gave that math.

我知道你在說什麼，達米安。是的。所以不，我們實際上只是給你——順便說一句，這是保羅。我們為您提供的數學數據沒有上一年交付的傳遞項目。您可能還記得，在通訊技術業務中，我們有一個大型直通項目，其利潤率低於與之相關的典型利潤率，該項目從去年一直交付到今年第一季。這往往會影響我們全年的業績。因此，當我們進行逐年比較時，我們只是給出了數學結果。

Okay. I see. Well, let me ask you, just the margin seems pretty strong, considering sales were off 7% versus last year. So could you give us a sense like, were there some mix impacts related to that stronger margin? How much would have that been versus just kind of the operating initiatives that you've been working on?

好的。我懂了。好吧，讓我問你，考慮到銷售額比去年下降了 7%，利潤似乎相當可觀。那麼，您能否讓我們了解一下，是否存在一些與較高利潤率相關的混合影響？與您一直致力於的營運計劃相比，這會花費多少？

Yes. Damian, I mean it's really a mix of both. We have been very intentional around the segment as we pulled it together and look for operational efficiencies and opportunities to drive margin, whether that's across sourcing, or IT, all sorts of initiatives related to bringing all these businesses together under one roof or one segment.

是的。達米安，我的意思是這確實是兩者的結合。我們非常有意識地圍繞著這個細分市場，將其整合在一起，尋找營運效率和提高利潤的機會，無論是跨採購還是IT，以及與將所有這些業務集中在一個屋簷下或一個細分市場相關的各種措施。

And then as you mentioned, we did have a favorable mix of projects in the quarter from a margin perspective. These projects, as you know, as they execute and they have a variety of margin profiles across them. And in this case, in Q3, we had a slightly higher margin profile given the mix that landed within the quarter relative to, I think, what we had initially anticipated.

正如您所提到的，從利潤角度來看，我們在本季確實擁有有利的專案組合。如您所知，這些項目在執行時具有各種利潤狀況。在這種情況下，在第三季度，考慮到本季內的組合，相對於我們最初的預期，我們的利潤率略高。

I think the team's done a nice work driving margins, if you look at last year versus this year, the actions that they've taken on productivity, on pricing, on some different synergy areas have been very beneficial. So we've been talking about Detection and Measurement margins for a little while. Really -- it's really nice to see the progress they're making.

我認為該團隊在提高利潤率方面做得很好，如果你對比去年和今年，他們在生產力、定價和一些不同協同領域所採取的行動非常有益。我們已經討論檢測和測量裕度有一段時間了。真的——很高興看到他們所取得的進步。

Yes, I might add, you probably saw Damian, we obviously raised our midpoint guidance for D&M for the year as well, reflecting that many of those activities. So now I think the midpoint is 21.6%, which is up from 21.5%.

是的，我可能要補充一點，你可能看到了達米安，我們顯然也提高了今年 D&M 的中點指導，反映了其中許多活動。所以現在我認為中點是21.6%，高於21.5%。

Yeah. No, that's great to see. And then staying on D&M, I just -- the updated guide for the year, just the range seemed pretty -- pretty wide for just one quarter left. Anything to read into that?

是的。不，很高興看到這一點。然後留在 D&M，我只是——今年更新的指南，範圍看起來相當——相當寬，只剩下四分之一了。有什麼值得讀的嗎？

No. Damian really, it's just the timing of -- it's just the timing of projects. And I think that's been a you've had a fair number of chunky projects this year. And as we look at the timing of those, that's caused us to have to kind of revisit which ones fall into which quarter during the year. So I think on average, we feel really good about where we are going into the fourth quarter, you'll see that the midpoint implies something in the mid-150s on revenue and a pretty healthy margin.

不，達米安，真的，這只是時間——這只是專案的時間。我認為今年你已經有了相當多的大型專案。當我們審視這些事件發生的時間時，我們不得不重新審視哪些事件屬於一年中的哪個季度。因此，我認為平均而言，我們對進入第四季度的情況感到非常滿意，您會發現中點意味著收入在 150 多歲左右，利潤率相當健康。

Okay. Got it. I'll get back in the queue. Thanks.

好的。知道了。我會回到隊列中。謝謝。

Walt Liptak, Seaport research.

沃爾特·利普塔克，海港研究。

All right, thanks. I'd like to say good morning to everybody too. It's been a long day. So I wanted to ask about an HVAC, just like the cadence of orders, it sounds like some of the data center and health care is doing fine. I wonder if you could talk about the order cadence there.

好的，謝謝。我也想跟大家說早安。這是漫長的一天。所以我想問一下暖通空調，就像訂單的節奏一樣，聽起來一些資料中心和醫療保健做得很好。我想知道你能否談談那裡的訂單節奏。

And then with the boilers, the weather has clearly been a lot warmer this year and you don't have that -- the supply chain issues or whatever from last year. But what is normal for boilers? Like when do -- when do you usually start seeing your distributors starting to take up boiler inventory?

然後，對於鍋爐來說，今年的天氣顯然變暖了很多，但供應鏈問題或去年的其他問題卻沒有。但對於鍋爐來說，什麼是正常的呢？就像什麼時候——您通常什麼時候開始看到您的經銷商開始吸收鍋爐庫存？

Yeah. So this year, we typically were expecting to see some of that start in September. We did not see much of that, as Mark referred to you earlier. You did see some distributors holding off as the lead times have come down and you're more or less at just-in-time lead times. And with warm weather, there's -- this puts them in a position to be able to save a little bit on their inventory management.

是的。所以今年，我們通常會預計其中一些會在九月開始。正如馬克之前提到的那樣，我們並沒有看到太多這樣的情況。您確實看到一些分銷商推遲了交貨時間，因為交貨時間已經縮短，而您或多或少處於準時交貨時間。隨著天氣溫暖，他們能夠在庫存管理上節省一點。

Look, you should start to see that in the winter months kick in here as we roll through. At this point, you're right, it's still warm in October, and we've accounted for that in our guide for the fourth quarter. So I think we feel good about where we've set guidance based on what we know so far about the fourth quarter.

聽著，你應該開始看到，當我們走過的時候，冬天的幾個月就開始了。在這一點上，你是對的，十月仍然溫暖，我們已經在第四季度的指南中考慮到了這一點。因此，我認為，根據我們迄今為止對第四季的了解，我們對設定的指導感到滿意。

If you were to look at it versus historical levels, it's one of -- we're forecasting at one of the lowest levels that we've seen over the last -- close to the last decade here. With the exception of last year, which was particularly weak. So we're still expecting a little bit of year-over-year growth in the fourth quarter in heating. Last year was particularly weak, you had sort of a double whammy impact of it being very warm in addition to that kind of destocking taking place in a sort of post COVID environment.

如果你將其與歷史水平進行比較，我們預測這是我們在過去看到的最低水平之一，接近過去十年。去年除外，去年特別疲軟。因此，我們仍然預計第四季度供暖量將比去年同期略有增長。去年特別疲軟，除了在新冠疫情后環境下發生的庫存去化之外，還受到了天氣非常溫暖的雙重打擊。

Okay. Great. And then the cadence of orders they look for the data center, health care?

好的。偉大的。然後他們尋找資料中心、醫療保健的訂單節奏？

Overall, we're feeling really, really good, Walt on what we're seeing there. I would say health care, the biggest opportunities there would be Ingenia, customary handling, which is really getting some nice awards, even starting to book into '26 very long lead times there.

總的來說，沃爾特，我們對我們在那裡所看到的感覺非常非常好。我想說的是醫療保健，那裡最大的機會是 Ingenia，習慣處理，這確實獲得了一些不錯的獎項，甚至開始在那裡預訂 26 年很長的交貨時間。

And Strobic, a portion of our EAM seeing some nice growth there. Data centers remain strong, I would say, in all three regions. In the US, some nice projects in Europe and in Asia as well. So, yeah, I think the progression is good. And then I'd say more so in North America institutional still remains strong. Schools, governments, universities, things like that, a good amount of replacement activity that seems to be very healthy right now as we sit today and as we look ahead to '25.

而 Strobec，我們 EAM 的一部分，在那裡看到了一些不錯的成長。我想說，在這三個地區，資料中心仍然很強大。在美國，在歐洲和亞洲也有一些不錯的項目。所以，是的，我認為進展很好。我想說的是，在北美，機構仍然很強大。學校、政府、大學，諸如此類的事情，大量的替代活動，當我們今天坐著，展望 25 世紀時，這些活動似乎非常健康。

Okay. Great. And then switching over to D&M. You guys called out Aton, I can't remember if that was in a good trend in the second quarter, too. But I wonder if you could just talk about Aton and what you're seeing there, any kind of order funnel or project visibility you might have?

好的。偉大的。然後切換到 D&M。你們喊出了艾頓，我不記得第二季這是否也是一個好的趨勢。但我想知道您是否可以談談艾頓以及您在那裡看到的情況，您可能擁有的任何類型的訂單管道或項目可見性？

Aton has had a very good year. We're actually very pleased with the progression this year, both in top line growth and margin growth. We're very, very pleased. I think that there's a good chunk of that. I'd say the majority of that is run rate. So you always keeping your eye on the global run rate. That's a very global business serves Europe, Northern Europe, Southeast Asia, Canada, North America, very good presence. We're the very clear leader there, we believe, globally.

艾頓度過了非常美好的一年。事實上，我們對今年的進展非常滿意，無論是收入成長還是利潤成長。我們非常非常高興。我認為其中有很大一部分。我想說其中大部分是運行率。因此，您始終關注全球運行率。這是一個非常全球化的業務，服務於歐洲、北歐、東南亞、加拿大、北美，並且有非常好的影響力。我們相信，在全球範圍內，我們都是非常明確的領導者。

So yeah, we've had a really good year there. And I'd say there's nothing that signals any follow-up there.

是的，我們在那裡度過了非常美好的一年。我想說的是，沒有任何跡象表明有任何後續行動。

Okay, great, thanks.

好的，太好了，謝謝。

Steve Ferazani,Sidoti.

史蒂夫·費拉扎尼，西多蒂。

Evening everyone. I just wanted to check in on capacity additions. I know the plan was to -- you were in process of expanding with Ingenia, just wanted to check on where that progress is in terms of your ability to grow that business beyond, if the current market it serves?

大家晚上好。我只是想檢查容量增加。我知道計劃是——您正在與 Ingenia 一起擴張，只是想檢查一下您的業務發展能力是否有能力超越當前的市場？

Yeah. I would say, Steve, it's very positive. And one of the ways you can look at it is how much you're getting out each quarter. And we've had nice expansion in Q4 and we see more expansion going into next year. It's a good situation to be in where we have a very high level of demand, and then you got to get the product out to do have to make sure. And there's a lot of -- that's a very automated, very -- a lot of robotics in there. It's really a nice business, but we're it's still -- it's substantially small. It's much smaller than our cooling products, but we're seeing some very nice growth there. So you will see some refract of year-over-year growth from '24 to '25 in that business.

是的。我想說，史蒂夫，這是非常積極的。您可以透過一種方式來查看您每季的支出金額。我們在第四季有了很好的擴張，我們預計明年會有更多擴張。這是一個很好的情況，我們的需求水平非常高，然後你必須將產品拿出來確保。那裡有很多——這是一個非常自動化、非常——很多的機器人。這確實是一項不錯的業務，但我們仍然認為它規模很小。它比我們的冷卻產品小得多，但我們看到了一些非常好的成長。因此，您會看到該業務從 24 世紀到 25 世紀的同比增長有所折射。

Great. And are you where you need to be with Marley now is that expansion all completed? Do you have plenty -- do you have room to run on that side? .

偉大的。擴充包全部完成後，你現在需要和馬利在一起嗎？你有足夠的空間嗎？ 。

Yeah. Actually, that's gone exceptionally well. Not only has that driven more margin and throughput, it's been very, very positive. We have brought our lead times back to very competitive levels. And actually, we believe we're at or below our two primary competitors there with the productivity initiatives we've put in place. So -- it's a really -- we feel really good about those investments, and it's -- you really see it pay dividends on the margin line and on the topline line, so we feel good about those that we have more runway going into '25.

是的。事實上，這一切都進展得非常順利。這不僅帶來了更多的利潤和吞吐量，而且是非常非常積極的。我們已將交貨時間恢復到非常有競爭力的水平。事實上，我們相信，就我們所實施的生產力計劃而言，我們的水平處於或低於我們的兩個主要競爭對手。所以，我們對這些投資感覺非常好，你真的看到它在利潤線和營收線上支付股息，所以我們對那些我們有更多跑道的投資感覺很好。

Excellent. You mentioned industrial reshoring again. Do you have any sense of where we are with that? And are you still seeing demand coming from additional reshoring?

出色的。您又提到了產業回流。你知道我們在這方面的處境嗎？您是否仍看到來自更多回流的需求？

I think that there are some projects there. And the interesting thing is once something reshores, it's not necessarily a onetime thing, right? Let's say you bring a car plant here or a semiconductor plant here, you put cooling towers on it, you put -- whatever products you put on there, those products need to be maintained on an ongoing basis and in place. And so what has happened, it's not a onetime project, you have expanded your TAM and the subsequent aftermarket OEM parts, service, et cetera, will be there.

我認為那裡有一些項目。有趣的是，一旦有東西回歸，它不一定是一次性的，對吧？假設你在這裡建造了一家汽車工廠或半導體工廠，你在上面放了冷卻塔，你放了——無論你在那裡放什麼產品，這些產品都需要持續維護並就位。所以所發生的事情，這不是一個一次性的項目，你已經擴展了你的 TAM，隨後的售後 OEM 零件、服務等都會在那裡。

So what I would say is the -- there's still projects that we are working on. We have seen a couple that have slowed down, some associated with electric vehicles. We've seen some delays there. But those as a percentage of our overall revenue, we're relatively small in the grand context of the segment revenue. So it's been way -- you don't even see it because of the growth in some of the other areas. But there's still a good amount of activity, I would say, on that side.

所以我想說的是──我們仍在進行一些計畫。我們已經看到一些放緩的情況，其中一些與電動車有關。我們在那裡看到了一些延誤。但這些占我們總收入的百分比，在該部門收入的大背景下相對較小。所以，由於其他一些領域的成長，你甚至看不到它。但我想說，這方面仍然有大量的活動。

Excellent. Last one for me. Obviously, another very strong cash flow quarter. Is the intention still to -- until some deals come up to pay down debt in the near term?

出色的。最後一張給我。顯然，這是另一個現金流非常強勁的季度。在短期內達成一些償還債務的交易之前，是否仍打算這樣做？

Yes, Steve, I mean, that would be our intention, I think, in the near term to continue to reduce the debt that we have outstanding in the interim period before we have a transaction.

是的，史蒂夫，我的意思是，我認為，我們的意圖是在短期內繼續減少我們在交易之前的中期期間未償還的債務。

Great. Thanks everyone

偉大的。謝謝大家

Thanks Steve.

謝謝史蒂夫。

(Operator Instructions) Damian Karas UBS.

（操作員說明）Damian Karas UBS。

Hey, again, guy. I wanted to ask you, I didn't hear the word hurricane mentioned. And I know, obviously, you guys are headquartered in the Carolinas and have some facilities kind of in the Southeast US here. Just wanted to ask whether you had any impacts in the quarter from the two hurricanes that we've had recently.

嘿，又來了，夥計。我想問你，我沒有聽到颶風這個字。我知道，顯然，你們的總部位於卡羅來納州，並在美國東南部設有一些設施。只是想問一下您在本季是否受到了最近發生的兩次颶風的影響。

And second to that, just considering your solutions, particularly in D&M, whether you see any potential kind of uplift activity from some of the rebuild and restoration post storm?

其次，考慮您的解決方案，特別是在 D&M 方面，您是否看到風暴後的一些重建和恢復有任何潛在的提升活動？

Yeah, Damian, we did not -- we were not impacted by the hurricane really directly, none of our facilities were. One was obviously in the line of it in Florida, where we have our [Q's] business, but it was not impacted. So fortunately, we did not have to deal with any issues with respect to that.

是的，達米安，我們沒有——我們沒有受到颶風的直接影響，我們的設施都沒有受到影響。其中之一顯然是在佛羅裡達州，我們在那裡有我們的[Q's]業務，但它沒有受到影響。幸運的是，我們不必處理任何與此相關的問題。

With regard to your second question, I wouldn't say that we've seen really any meaningful activity with respect to damage that was caused by the hurricane where we would have replacement activity. But it's early days, I think, on that front. So you're right, some of our solutions are clearly well positioned, whether that's on the Q's side of the business or Aton as they work through the rebuild.

關於你的第二個問題，我不會說我們確實看到了任何關於颶風造成的損害的有意義的活動，我們將進行替換活動。但我認為，這方面還處於早期階段。所以你是對的，我們的一些解決方案顯然定位良好，無論是在業務的 Q 方面還是在重建過程中的 Aton 方面。

And I'd say the other areas, sometimes we have these weather events, you'll see, if it goes through a more industrial area, cooling towers, fan stacks, things like that. So -- we have -- we're working to identify how we can support. We haven't seen anything materially significant at this point in time, but we're working to support where we can.

我想說的是其他地區，有時我們會遇到這些天氣事件，你會看到，如果它經過更多的工業區、冷卻水塔、風扇煙囪等。因此，我們正在努力確定如何提供支援。目前我們還沒有看到任何重大的重大事件，但我們正在盡力提供支援。

Got it. Thank you for that. And I wanted to ask you about nuclear, which has become quite topical all of a sudden in the investor world. And I know that your business has had a pretty solid position in some areas of nuclear power gen. So could you maybe just -- and in fact, I think you talked about a nice cooling project last quarter.

知道了。謝謝你。我想問你有關核能的問題，核能突然在投資人界變得非常熱門。我知道你們的企業在核電的某些領域擁有相當穩固的地位。那麼您能否——事實上，我認為您上個季度談到了一個不錯的冷卻項目。

We think that you might have been involved in a nuclear plant and doing some work there. But just thinking about all of the nuclear activity we're hearing from some of these tech companies that are trying to get data center capacity built out. What is the potential opportunity there for SPX?

我們認為您可能參與過核電站並在那裡從事一些工作。但想想我們從一些試圖擴大資料中心容量的科技公司聽到的所有核子活動。 SPX 的潛在機會是什麼？

Damian, what I would say is, I think it's a net benefit for our power business, for the power portion, which is not a humongous portion of our business these days, but our process cooling, as you know, the majority of the cooling towers that are in nuclear facilities are really Marley's.

達米安，我想說的是，我認為這對我們的電力業務、電力部分來說是淨效益，目前電力部分並不是我們業務的很大一部分，但我們的過程冷卻，如你所知，是冷卻的大部分核設施中的塔確實是馬利的。

It's really, and we do service work and provide OEM parts. You're right, we do do some larger projects. I think net-net, the growth in data centers is really going to be burdening the grid. You've had a grid that has, for so long, had very little growth in demand. And you actually are seeing real growth in demand. And so, you have to find more capacity.

確實如此，我們做服務工作並提供 OEM 零件。你是對的，我們確實做了一些更大的專案。我認為資料中心的成長確實會給電網帶來負擔。您的電網長期以來需求成長很少。事實上，您看到了需求的真正成長。因此，你必須找到更多的容量。

New capacity takes a while to get into place. Even if you put in the fastest source, you're probably talking a couple of years, for a peaker plant or a natural gas plant. Nukes take much longer. But what I would say is, you're going to see some more activity on working on your new plants, because anytime you upgrade your cooling tower, you get a lot more power out of your plant.

新產能需要一段時間才能到位。即使您使用最快的來源，對於峰化工廠或天然氣工廠來說，您可能需要幾年的時間。核武需要更長的時間。但我想說的是，您將看到更多關於新工廠的活動，因為每當您升級冷卻水塔時，您都會從工廠獲得更多的電力。

So, I do think we are seeing a lot of activity on some service projects. The other thing, there are some small modular nuclear reactors. We're typically the first person they call when they're looking for a cooling tower. There's a good amount of activity there, but what I would say is that's something that's a little further out, to get to the point at which there'd be actual revenue.

所以，我確實認為我們在一些服務項目上看到了很多活動。另一件事是，還有一些小型模組化核反應器。當他們尋找冷卻水塔時，我們通常是他們第一個聯繫的人。那裡有大量的活動，但我想說的是，要達到實際收入的程度，還有些遙遠。

I would say, you're probably not going to see anything material for a couple of years. I do think it's an interesting opportunity. It will be interesting to see if it actually gets fully approved and commissioned. But if it does, we think that we're very well positioned to take advantage of that opportunity. So, yeah, I would say on that segment, there's a growing level of activity, and I would expect that to continue with the pressure that the utilities have to generate more megawatts.

我想說，你可能在幾年內看不到任何實質內容。我確實認為這是一個有趣的機會。看看它是否真的得到充分批准和委託將會很有趣。但如果確實如此，我們認為我們完全有能力利用這個機會。所以，是的，我想說，在這個領域，活動水平不斷增加，我預計這種情況會持續下去，因為公用事業公司必須發電更多兆瓦的壓力。

Appreciate your thoughts. Thanks a lot. Best of luck, guys.

欣賞你的想法。多謝。祝你好運，夥計們。

This concludes our question and answer session. I'd like to turn the conference back over to Paul Clegg for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給保羅·克萊格（Paul Clegg）做總結發言。

Thank you all for joining us, and we look forward to updating you again next quarter and seeing many of you at conferences and at one-on-ones throughout the quarter.

感謝大家加入我們，我們期待在下個季度再次向您通報最新情況，並在整個季度的會議和一對一會議上見到你們。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。