Thermon Group Holdings Inc (THR) 2024 Q4 法說會逐字稿

Good morning and welcome to the Thermon Group Holdings fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

早安，歡迎參加賽盟集團控股公司 2024 年第四季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Ivonne Salem, Vice President, FP&A and Investor Relations. Thank you. You may begin.

我現在想將電話轉給 FP&A 和投資者關係副總裁 Ivonne Salem。謝謝。你可以開始了。

Thank you, dear. Good morning and thank you for joining today's fiscal 2024 fourth quarter conference call. Earlier this morning, we issued an earnings press release, which has been filed with the SEC on Form 8-K, and is also available on the Investor Relations section of our website.

謝謝你親愛的。早上好，感謝您參加今天的 2024 財年第四季電話會議。今天早些時候，我們發布了一份收益新聞稿，該新聞稿已以 8-K 表格的形式向 SEC 提交，也可在我們網站的投資者關係部分取得。

Additionally, the slides for this conference call can be found in our IR website under News and Events, IR calendar earnings conference call Q4 2024. During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comparable GAAP measures in the tables at the end of the earnings press release.

此外，本次電話會議的幻燈片可以在我們的 IR 網站新聞和活動、2024 年第 4 季 IR 日曆收益電話會議下找到。在電話會議期間，我們將討論一些不符合公認會計原則的項目。我們已將這些項目與收益新聞稿末尾表格中最具可比性的公認會計準則衡量標準進行了核對。

These non-GAAP measures should be considered in addition to and not as a substitute for measures of financial performance reported in accordance with GAAP. I would like to remind you that during this call, we might make certain forward-looking statements regarding our company.

這些非公認會計原則衡量標準應作為根據公認會計原則報告的財務績效衡量標準的補充，而不是替代。我想提醒您，在這次電話會議中，我們可能會做出一些關於我們公司的前瞻性陳述。

Please refer to our annual report and most recent quarterly report filed with the SEC for more information regarding our forward-looking statements, including the risks and uncertainties that could impact our future results.

請參閱我們向美國證券交易委員會提交的年度報告和最近的季度報告，以了解有關我們前瞻性聲明的更多信息，包括可能影響我們未來業績的風險和不確定性。

Our actual results might differ materially from those contemplated by these forward-looking statements, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as might be required by law.

我們的實際結果可能與這些前瞻性陳述預期的結果有重大差異，我們沒有義務公開更新任何前瞻性陳述，無論是由於新資訊、未來發展或其他原因，除非法律可能要求。

Now I would like to introduce Bruce Thames, our President and Chief Executive Officer, for his opening remarks.

現在我想請我們的總裁兼執行長 Bruce Thames 致開幕詞。

Well, thank you, Ivonne, and good morning, everyone, and thank you for joining us today. I'd like to start today by thanking our global Thermon team for delivering another record year in fiscal 2024. Your dedication to advancing our strategy, serving our customers with excellence and creating value for our shareholders is greatly appreciated.

好吧，謝謝你，伊馮娜，大家早安，謝謝你今天加入我們。首先，我要感謝我們的全球 Thermon 團隊在 2024 財年再創歷史新高。我們非常感謝您致力於推進我們的策略、為我們的客戶提供卓越服務以及為我們的股東創造價值。

I'd also like to thank our employees for their unwavering commitment to safety. In recognition of these efforts, Thermon received the award for Canada's Safest Manufacturing Employer of the Year in 2023.

我還要感謝我們的員工對安全的堅定承諾。為了表彰這些努力，賽盟榮獲 2023 年加拿大年度最安全製造雇主獎。

Turning now to the results. We ended the fiscal year with growth across a wide range of financial metrics, including revenue, gross margin, adjusted EPS to free cash flow compared to fiscal 2023. Throughout the year, we continue to see revenue growth on our installed base from OpEx activity associated with recurring maintenance.

現在轉向結果。與 2023 財年相比，我們在本財年結束時，各項財務指標均實現成長，包括營收、毛利率、調整後每股盈餘與自由現金流的比值。全年，我們繼續看到與定期維護相關的營運支出活動的安裝基礎收入成長。

And as I'll cover in more detail shortly, we continue to diversify our end markets with 68% of our revenue now coming from end markets other than oil and gas. We also continue to invest in new product development, multiple new product introductions for commercial heat tracing and heating technologies, such as our new Thermon Quantum tru or heater in medium voltage boilers to further enable the electrification of industrial heat.

正如我稍後將詳細介紹的那樣，我們繼續實現終端市場多元化，目前我們 68% 的收入來自石油和天然氣以外的終端市場。我們也持續投資於新產品開發，推出多種用於商業伴熱和加熱技術的新產品，例如我們的新型 Thermon Quantum tru 或中壓鍋爐加熱器，以進一步實現工業供熱的電氣化。

At the end of our third quarter, we completed the acquisition of vapor power, which further diversified our end markets, while increasing our exposure to decarbonization and electrification opportunities. We also made meaningful progress in our decarbonization and digitization growth strategies, which I'll discuss in more detail later.

在第三季末，我們完成了蒸汽發電的收購，這進一步使我們的終端市場多元化，同時增加了我們對脫碳和電氣化機會的曝險。我們在脫碳和數位成長策略方面也取得了有意義的進展，我將在稍後詳細討論。

Turning now to slide 4 and our strategic pillars. We continue to navigate some near-term macroeconomic uncertainty. We remain confident in our long-term strategy and the ability to drive profitable growth by focusing on our strategic pillars of profitably growing our installed base, decarbonization, digitalization and diversification and disciplined capital allocation.

現在轉向投影片 4 和我們的策略支柱。我們繼續應對一些近期宏觀經濟的不確定性。我們對我們的長期策略以及透過專注於我們的策略支柱來推動獲利成長的能力充滿信心，這些策略支柱是獲利性成長我們的裝置基礎、脫碳、數位化和多元化以及嚴格的資本配置。

While we are growing our global installed base and in generating recurring revenues by expanding the products and services for mission critical industrial process heating solutions that we provide to our more than 10,000 customers. Our technology-enabled Indian solutions and industry-leading portfolio give Thermon a unique, highly defensible position with the ability to capture additional market share.

我們不斷擴大全球安裝量，並透過擴大為 10,000 多家客戶提供的關鍵任務工業流程加熱解決方案的產品和服務來創造經常性收入。我們的技術支援的印度解決方案和領先業界的產品組合為賽盟提供了獨特的、高度防禦的地位，並有能力佔領額外的市場份額。

Additionally, we're creating long-term value by executing our strategic initiatives of decarbonization, digitization and diversification. We made significant progress across each of these initiatives throughout fiscal 2024 by enabling the energy transition, helping our customers optimize maintenance through the enhanced controls and monitoring provided by our digital solutions in continuing to diversify our end markets to reduce cyclicality and position the company for long-term growth.

此外，我們也透過執行脫碳、數位化和多元化的策略性措施來創造長期價值。在整個2024 財年，我們在每項措施上都取得了重大進展，實現了能源轉型，透過我們的數位解決方案提供的增強控制和監控來幫助客戶優化維護，繼續實現終端市場多元化，以減少週期性並為公司提供長期定位長期成長。

Our commitment to disciplined capital allocation underpins the first two strategic pillars and is key to creating sustainable shareholder value. The acquisition of vapor power is expected to drive inorganic growth with anticipated returns in line with our stated M&A objectives. In addition, our Board recently approved a $50 million share repurchase authorization as another way to return value to our shareholders. This is our first share repurchase program is an indicative of the Board's confidence in the company's strategy and ability to deliver growth over the long term.

我們對嚴格資本配置的承諾是前兩個策略支柱的基礎，也是創造永續股東價值的關鍵。蒸汽動力的收購預計將推動無機成長，預期回報符合我們既定的併購目標。此外，我們的董事會最近批准了 5,000 萬美元的股票回購授權，作為向股東回報價值的另一種方式。這是我們的首次股票回購計劃，顯示董事會對公司策略和實現長期成長的能力充滿信心。

Turning now to slide 5, you can see more detail on the progress we've made over the last year on advancing our decarbonization strategy as well as a recent example of how Thermon is providing sustainable decarbonization solutions. Over the past year, we have grown decarbonization revenue to $34 million, an increase of 48% over fiscal 2023.

現在轉到幻燈片 5，您可以看到有關我們去年在推進脫碳戰略方面取得的進展的更多詳細信息，以及賽盟如何提供可持續脫碳解決方案的最新示例。過去一年，我們的脫碳收入已增至 3,400 萬美元，比 2023 財年成長 48%。

During fiscal 2024, 7% of incoming orders for related to decarbonization opportunities through the sales pipeline tripling to over $250 million by year end. One of the ways in which we are growing our decarbonization business is by supplying existing Thermon solutions to the growing carbon capture and storage industry.

2024 財年，透過銷售管道收到的與脫碳機會相關的訂單中有 7% 到年底將增加兩倍，達到 2.5 億美元以上。我們發展脫碳業務的方式之一是為不斷發展的碳捕獲和儲存產業提供現有的賽盟解決方案。

Of the current pipeline of carbon capture and storage applications represents approximately 25% of the $250 million in opportunities. The example on the right highlights our participation in projects that will capture up to 18 million metric tons of carbon dioxide per annum for biofuel facilities across the Midwest. The captured CO2 will then be transported via pipeline to permanent geologic underground storage locations.

目前的碳捕獲和封存應用通路約佔 2.5 億美元機會的 25%。右側的範例突出顯示了我們參與的項目，這些項目每年將為中西部的生物燃料設施捕獲多達 1800 萬噸二氧化碳。然後捕獲的二氧化碳將通過管道運輸到永久地質地下儲存地點。

Thermon is supplying 31 flange heaters and control panels, which will enable the carbon dioxide to be compressed for transportation. Additionally, our heat tracing solutions are used to prevent damage to valves and piping after the CO2 is compressed. This is just one of the many examples of how Thermon is leveraging our existing solutions to meet customers decarbonization and electrification needs.

Thermon 提供 31 個法蘭加熱器和控制面板，使二氧化碳能夠被壓縮以便運輸。此外，我們的伴熱解決方案用於防止二氧化碳壓縮後閥門和管道損壞。這只是賽盟如何利用我們現有的解決方案來滿足客戶脫碳和電氣化需求的眾多例子之一。

Turning now to slide 6, I'd like to provide an update on progress we made during fiscal 2024 our digitization strategy. As you see here, the adoption of our Genesis network continues to be strong with the installed base growing by over 200% during fiscal 2024. As customers look for ways to improve efficiency, productivity, safety, and reliability in their operation. The capabilities of this platform enhance our operational awareness, which creates real value for customers and differentiates Thermon in the marketplace.

現在轉向第 6 張投影片，我想介紹一下我們在 2024 財年數位化策略中取得的進展的最新情況。正如您在此處所看到的，我們的 Genesis 網路的採用率持續強勁，安裝基數在 2024 財年增長了 200% 以上。當客戶尋求提高營運效率、生產力、安全性和可靠性的方法。該平台的功能增強了我們的營運意識，為客戶創造了真正的價值，並使賽盟在市場中脫穎而出。

As you can see on slide 7, we made tremendous progress on our end market diversification strategy, which will help to reduce volatility through the cycle. At our first Investor Day in November, we introduced an updated fiscal 2026 target of reaching 70% diversified revenue or revenue from non-oil and gas related end markets.

正如您在投影片 7 中看到的，我們在終端市場多元化策略方面取得了巨大進展，這將有助於減少整個週期的波動性。在 11 月的第一個投資者日上，我們推出了更新的 2026 財年目標，即實現 70% 的多元化收入或來自非石油和天然氣相關終端市場的收入。

As a result, at the end of fiscal 2024, we nearly achieved that target with 68% of our revenue derived from diversified end markets, which includes the impact of our vapor power acquisition in Q4, we continue to grow our share across key markets such as power up over 170%, food and beverage up nearly 120% and commercial up almost 20%, all on a year-over-year basis.

因此，到 2024 財年末，我們幾乎實現了這一目標，68% 的收入來自多元化終端市場，其中包括我們在第四季度收購蒸汽動力的影響，我們繼續擴大在關鍵市場的份額，例如電力成長超過170%，食品和飲料成長近120%，商業成長近20%，全部較去年同期成長。

Turning now to slide 8 and our fourth quarter fiscal 2024 results, which were in line with our expectations. Despite strong quotations of $250 million in Q3, our orders decreased 12% year over year to $117 million as larger CapEx spending moves to the right. On a positive note, more than 70% of incoming orders were related to diverse end markets.

現在轉向投影片 8 和我們的 2024 財年第四季業績，這符合我們的預期。儘管第三季的報價高達 2.5 億美元，但隨著資本支出支出向右移動，我們的訂單年減 12% 至 1.17 億美元。從積極的方面來看，超過 70% 的新訂單與多元化的終端市場相關。

In the quarter, we grew revenue 4% to $128 million, driven by an increase in decarbonization and diversified revenue in the organic business that were offset by 12% contraction in large CapEx spending in the quarter. Our short-cycle business tied to corporate customer OpEx spending was up 8% year over year, inclusive of vapor.

本季度，我們的營收成長了 4%，達到 1.28 億美元，這得益於有機業務脫碳和多元化收入的成長，但本季資本支出大幅收縮 12%，抵消了這一成長。我們與企業客戶營運支出相關的短週期業務年增 8%，其中包括蒸汽支出。

Organically, OpEx spending was down 3%, largely related to slower activity in Canada. Vapor power also met expectations, delivering $10.9 million in revenue at 20% EBITDA in the quarter with a positive book-to-bill as demand for their solutions remains robust. Our record Q4 cash flow of $35.1 million enabled debt paydown of $41 million, reducing our operating leverage to 1.2 times, down from 1.5 times in the prior quarter.

從有機角度來看，營運支出下降了 3%，這主要與加拿大的經濟活動放緩有關。Vapor power 也達到了預期，本季度實現了 1,090 萬美元的收入，EBITDA 為 20%，並且由於對其解決方案的需求依然強勁，訂單出貨比呈正值。我們第四季創紀錄的 3,510 萬美元現金流使我們能夠償還 4,100 萬美元的債務，將我們的營運槓桿率從上一季的 1.5 倍降至 1.2 倍。

This level of leverage remains below our stated operating range of 1.5 times to 2 times, giving us a strong balance sheet and the ability to pursue growth opportunities should they arise. And importantly, while the operating environment continues to be dynamic, we are focused on driving structural cost reductions so that we are positioned to improve profitability across a wide range of macro environment.

這個槓桿水準仍低於我們規定的 1.5 倍至 2 倍的經營範圍，使我們擁有強大的資產負債表，並有能力在出現成長機會時抓住成長機會。重要的是，儘管經營環境繼續充滿活力，但我們專注於推動結構性成本削減，以便我們能夠在廣泛的宏觀環境中提高獲利能力。

At Investor Day, we introduced the Thermon business system, which we are applying across the entire enterprise to sustainably deliver results and unlock value. As part of this effort, we are optimizing our manufacturing footprint to improve asset utilization through a rooftop consolidation of our Denver facility. In line with our center of excellence concept, our rail and transit business will be consolidated into our end markets facility to increase productivity to meet growing demand.

在投資者日，我們推出了賽盟業務系統，我們正在整個企業中應用該系統，以可持續地交付成果並釋放價值。作為這項工作的一部分，我們正在優化我們的製造足跡，透過丹佛工廠的屋頂整合來提高資產利用率。根據我們的卓越中心理念，我們的鐵路和交通業務將整合到我們的終端市場設施中，以提高生產力，滿足不斷增長的需求。

While we never take these decisions lightly, we also implemented a reduction in force during the first quarter of fiscal 2025 to align SG&A and overhead costs with business volume. Greg, we'll discuss more about the associated Q1 restructuring charges and anticipating savings in FY25.

雖然我們從不輕易做出這些決定，但我們也在 2025 財年第一季實施了裁員，以使 SG&A 和管理費用與業務量保持一致。Greg，我們將更深入討論相關的第一季重組費用以及預計 2025 財年的節省費用。

Turning to slide 9 and our full year fiscal results. Our strategy and strong execution enabled Thermon to achieve record revenue, adjusted EBITDA and EPS in fiscal 2024. Much of the growth was driven by our focus on diversity in markets where revenue was up 21% year over year, while revenue from oil and gas market was down 3%.

轉向幻燈片 9 和我們的全年財務表現。我們的策略和強大的執行力使 Thermon 在 2024 財年實現了創紀錄的收入、調整後 EBITDA 和 EPS。成長的主要原因是我們對市場多元化的關注，該市場的收入年增 21%，而石油和天然氣市場的收入則下降了 3%。

Revenue, adjusted EBITDA, adjusted EPS and free cash flow were all up double-digits for the year. Geographically, US and Latin America drove strong growth in large CapEx revenues during the first three quarters, up 22% year over year. Our channel expansion efforts also helped drive broad-based growth across the installed base in our short-cycle business, which was up 9% year over year.

今年的營收、調整後 EBITDA、調整後每股盈餘和自由現金流均達到兩位數成長。從地理上看，美國和拉丁美洲在前三季推動了巨額資本支出收入的強勁成長，年增 22%。我們的通路擴張努力也幫助推動了我們的短週期業務安裝基礎的廣泛成長，年增 9%。

With that, I'd like to turn the call over to Greg Lucas. As we announced on April 3, Greg is assume the interim role of Principal Financial Officer and Principal Accounting Officer of the company as we conduct a search for a new CFO. Greg joined Thermon in 2020 as Corporate Controller and has been instrumental in improving our control environment and financial reporting during his tenure.

說到這裡，我想把電話轉給格雷格·盧卡斯。正如我們在 4 月 3 日宣布的那樣，在我們物色新的財務長期間，Greg 臨時擔任公司財務長和首席會計官。Greg 於 2020 年加入賽盟，擔任公司財務總監，在任職期間為改善我們的控制環境和財務報告發揮了重要作用。

Greg will now share a more in-depth review of our financial results for the quarter and the fiscal year. Greg?

格雷格現在將分享對我們本季和本財年財務表現的更深入的回顧。格雷格？

Thanks, Bruce. Moving to slide 10 and our fourth quarter performance. Revenue in the fourth quarter was $128 million, a year-over-year increase of approximately 4%, primarily driven by our acquisition of vapor power on December 29, which contributed $10.9 million. Organic sales decreased 5%, primarily related to a decline in large CapEx projects in weaker economic leisure sales in Canada during the quarter.

謝謝，布魯斯。轉到投影片 10 和我們第四季的業績。第四季營收為 1.28 億美元，年成長約 4%，主要是由於我們於 12 月 29 日收購了 Vapor Power，貢獻了 1,090 萬美元。有機銷售額下降 5%，主要與本季度加拿大經濟休閒銷售疲軟導致大型資本支出項目下降有關。

Large project revenue was $23 million, down 2% from last year, impacted by less activity related to oil and gas CapEx projects, which decreased by 26%. This reduction was partially offset by an increase of 6% in large CapEx project activity in our diversified end market. Separately, small projects plus maintenance and repair revenue totaled $104 million, an increase of 8% compared to the prior year.

大型專案收入為 2,300 萬美元，比去年下降 2%，受到石油和天然氣資本支出專案相關活動減少的影響，資本支出專案下降了 26%。這一減少被我們多元化終端市場中大型資本支出項目活動增加 6% 所部分抵銷。另外，小型項目加上維護和維修收入總計 1.04 億美元，比上年增長 8%。

Excluding vapor power, small projects plus maintenance and repair revenue was down 3%, which was driven by a decline in oil and gas sales of approximately 8%. The lower oil and gas activity is largely related to the Canadian market was significantly offset by gross margin in market. It provides more stable earnings through any economic cycle, thus underscoring validity of our growth strategy.

不包括蒸汽發電，小型項目加上維護和修理收入下降了 3%，這是由於石油和天然氣銷售下降約 8% 所致。較低的石油和天然氣活動很大程度上與加拿大市場有關，但被市場毛利率大幅抵消。它在任何經濟週期中都能提供更穩定的收益，從而強調了我們成長策略的有效性。

Adjusted EBITDA was $23.6 million in the quarter, a year-over-year decrease of 6% or an adjusted EBITDA margin of 18.5%. Adjusted EBITDA margin was largely due to product mix in the quarter combined to higher planned spending to support our long-term investments around decarbonization, digitization and diversification.

本季調整後 EBITDA 為 2,360 萬美元，年減 6%，調整後 EBITDA 利潤率為 18.5%。調整後的 EBITDA 利潤率主要是由於本季度的產品組合以及為支持我們圍繞脫碳、數位化和多元化的長期投資而增加的計劃支出。

Adjusted EPS for the fourth quarter was $0.34 per share, down 17% compared to the prior year period due to lower volumes, product mix spending an incremental interest expense, which were partially offset by improved pricing.

第四季調整後每股收益為 0.34 美元，較上年同期下降 17%，原因是銷售下降、產品組合支出增加的利息支出，但部分被定價改善所抵銷。

Turning now to slide 11, and our full year fiscal 2024 financial performance. Fiscal 2024, revenue was a record $495 million, a year-over-year increase of approximately 12% or 10% organically, primarily driven by growth in our power, commercial, food and beverage and chemical petrochemical end markets, in line with our diversification strategy.

現在轉向投影片 11，以及我們 2024 財年全年的財務表現。2024 財年，營收達到創紀錄的4.95 億美元，年比有機成長約12% 或10%，這主要是由我們的電力、商業、食品和飲料以及化學石化終端市場的成長所推動的，這與我們的多角化發展相一致策略。

Moreover, while oil and gas related sales were down 3% sales from our diversified non-oil and gas end markets were collectively up 17% year over year. Sales were up year over year and USLAM, EMEA and APAC are flat in Canada. Large project revenue was $120 million, up 22% from the prior year, while small projects plus maintenance repair is on $375 million an increase of 9% compared to the prior year.

此外，雖然石油和天然氣相關銷售額下降了 3%，但我們多元化的非石油和天然氣終端市場的銷售額卻比去年同期增加了 17%。加拿大的銷售額年增，而 USLAM、歐洲、中東和非洲和亞太地區則持平。大型專案收入為 1.2 億美元，比上年增長 22%，小型專案加上維護維修收入為 3.75 億美元，比上年增長 9%。

76% of our sales are derived from OpEx spending, which was comparable with last year. Our backlog grew to $186.1 million, up 14% year-over-year. However, excluding vapor power, our backlog contracted 10% relative to the same period last year due to a weaker large CapEx activity in terms of the impact in Q4.

我們 76% 的銷售額來自營運支出，與去年相當。我們的積壓訂單增至 1.861 億美元，年增 14%。然而，不包括蒸汽發電，由於受第四季度影響，大型資本支出活動較弱，我們的積壓訂單較去年同期減少了 10%。

On another note, USLAM and EMEA reasons were both up year over year for the expansion of 3% and 18%, respectively. Adjusted EBITDA was $104 million, a year-over-year increase of 12% with an adjusted EBITDA margin of 21.1%. This adjusted EBITDA margin improvement was largely driven by higher volume in price. Adjusted EPS for the full year was $1.82 per share, up 17% year over year.

另一方面，USLAM 和 EMEA 的原因均較去年同期成長，分別成長 3% 和 18%。調整後 EBITDA 為 1.04 億美元，較去年同期成長 12%，調整後 EBITDA 利潤率為 21.1%。調整後的 EBITDA 利潤率改善主要是由於價格上漲所致。全年調整後每股收益為 1.82 美元，年增 17%。

Moving to slide 12, free cash flow was a record $35 million in the quarter to near record $56 million for the year, driven by higher sales and sound working capital management as a result of our continued strong cash generation in line with our capital allocation strategy. We paid down $41 million of total debt during fourth quarter or nearly 40% of the borrowings associated with the vapor power and acquisitions.

轉向幻燈片12，本季自由現金流達到創紀錄的3500 萬美元，全年接近創紀錄的5600 萬美元，這是由於我們根據資本配置策略持續強勁地產生現金，從而推動了更高的銷售額和健全的營運資本管理。我們在第四季度償還了 4,100 萬美元的總債務，相當於與蒸汽發電和收購相關的借款的近 40%。

At the same time, we ended the year with cash and cash equivalents balance of $48.6 million. Our net debt to adjusted EBITDA ratio improved from 1.5 times last quarter to 1.2 times at year end, below our target range of 1.5 times to 2 times. This gives us the flexibility to advance our strategic pillars through targeted investments, including both on M&A that meets our strategic and financial criteria.

同時，我們年末的現金和現金等價物餘額為 4,860 萬美元。我們的淨負債與調整後 EBITDA 比率從上季的 1.5 倍提高到年底的 1.2 倍，低於我們 1.5 倍到 2 倍的目標範圍。這使我們能夠靈活地透過有針對性的投資來推進我們的策略支柱，包括符合我們策略和財務標準的併購。

Working capital was $162.2 million at year end or 33% of revenue, down from 35% last year as we continue to optimize our supply chain while also improving lead times and on-time deliveries to our customers. Net income in fourth quarter was $10.1 million, up 31% year over year. CapEx was $3.1 million minus during the quarter, bringing the full year CapEx to $10.9 million or just 2% of sales consistent with our disciplined capital allocation strategy.

截至年底，營運資本為 1.622 億美元，佔營收的 33%，低於去年的 35%，因為我們不斷優化供應鏈，同時縮短交貨時間並按時向客戶交貨。第四季淨利為1010萬美元，年增31%。本季資本支出減少 310 萬美元，使全年資本支出達到 1,090 萬美元，僅佔銷售額的 2%，符合我們嚴格的資本分配策略。

As Bruce mentioned, we remain focused on optimizing our cost structure so that we can continue to create value for our shareholders in the macroeconomic environment. To that end, we are consolidating our rail and transit production line into our set markets facility. I was carried out a reduction in force in the first quarter of fiscal 2025 the result in a charge of approximately $2.8 million to $3.5 million.

正如布魯斯所提到的，我們仍然專注於優化成本結構，以便我們能夠在宏觀經濟環境中繼續為股東創造價值。為此，我們正在將鐵路和交通生產線整合到我們固定的市場設施中。我在 2025 財年第一季進行了裁員，導致費用約為 280 萬至 350 萬美元。

We expect this restructuring to deliver $5.7 million in annualized, an annualized run rate savings, of which $4.3 million will be realized this fiscal year. This impact is factored into our whole year fiscal 2025 GAAP EPS guidance. On another quick modeling note, in line with our capital allocation priorities. We anticipate an optional debt paydown during the year in the range of $20 million to $40 million, and our interest rate will remain consistent at our current variable rate.

我們預計此次重組將帶來 570 萬美元的年化運行率節省，其中 430 萬美元將在本財年實現。此影響已納入我們 2025 財年 GAAP 每股盈餘指引中。在另一個快速建模說明中，與我們的資本配置優先順序一致。我們預計年內可選擇償還 2000 萬至 4000 萬美元的債務，並且我們的利率將與當前的可變利率保持一致。

As we wrap up fiscal 2024, we are pleased that our global team's execution, it resulted in strong financial performance, robust cash flows, improved diversification in a sizable acquisition in the electrification space. And as we look ahead to the coming year. We will continue controlling costs while prudently investing in our strategic pillars for long-term growth.

在 2024 財年即將結束之際，我們很高興我們的全球團隊的執行力帶來了強勁的財務業績、強勁的現金流，並在電氣化領域的大規模收購中改善了多元化。當我們展望來年時。我們將繼續控製成本，同時審慎投資於長期成長的策略支柱。

With that, I'll turn the call back over to Bruce.

這樣，我會將電話轉回布魯斯。

Thank you, Greg. Turning now to slide 13 and our outlook for fiscal 2025. We believe we're pleased with the positioning of our business and the success we're seeing in the execution of our strategy. As we noted in earlier calls, we expect the rate of organic growth to moderate weighted towards the second half of this year.

謝謝你，格雷格。現在轉向幻燈片 13 和我們對 2025 財年的展望。我們相信，我們對我們的業務定位以及我們在策略執行中所取得的成功感到滿意。正如我們在之前的電話會議中指出的那樣，我們預計今年下半年的自然成長率將放緩。

Looking forward, we're seeing some positive signs in Canada following the slowdown in the second half of last year, with the completion of the Trans Mountain pipeline this month, we expect an increase in drilling activity to fill the incremental 590,000 barrels of oil a day of takeaway capacity. Additionally, the spring turnaround season in Canada is off to a solid start.

展望未來，繼去年下半年經濟放緩之後，我們看到加拿大出現了一些積極跡象，隨著本月跨山管道的竣工，我們預計鑽探活動將增加，將填補每年新增的 59 萬桶石油。當天的外送能力。此外，加拿大的春季週轉季節已經有了一個好的開始。

Globally, our short-cycle MRO business remains robust. While we are experiencing some delays and deferrals in large CapEx spending, particularly in North America, that we expect to make organic growth challenging in the first half of fiscal 2025. In this quarter, we secured wins for large capital projects in diverse end markets like semiconductors, pharmaceuticals and nuclear power that will help build the backlog the timing of execution will lag.

在全球範圍內，我們的短週期 MRO 業務依然強勁。雖然我們在大規模資本支出方面遇到了一些延遲和推遲，特別是在北美，但我們預計這將使 2025 財年上半年的有機成長面臨挑戰。本季度，我們在半導體、製藥和核電等不同終端市場贏得了大型資本項目，這將有助於增加積壓，而執行時間將會落後。

Our vapor power acquisition is performing well with revenues and profitability in line with our expectations for Q4 fiscal 2024 and several large shipments are scheduled in Q1 of fiscal 2025 that will help drive inorganic growth. We also had a positive book-to-bill in this business in Q4, including a sizable synergy sale to a large public university from Thermon's traditional channels.

我們的蒸汽動力收購表現良好，收入和盈利能力符合我們對 2024 財年第四季度的預期，並且計劃在 2025 財年第一季度進行幾次大宗發貨，這將有助於推動無機增長。第四季度，我們在這項業務中也取得了積極的訂單出貨量，包括透過賽盟的傳統管道向一所大型公立大學進行了大規模的協同銷售。

For the full year, revenue guidance is projected to be from $527 million to $553 million, which at the midpoint represents approximately 9% growth over fiscal 2024. We anticipate that vapor power will contribute organic growth of $46 million at the midpoint of our guidance as we continue to successfully integrate the business while creating the processes and capacity to drive scale.

全年營收指引預計為 5.27 億美元至 5.53 億美元，中間值較 2024 財年成長約 9%。我們預計，隨著我們繼續成功整合業務，同時創建流程和能力來推動規模發展，蒸汽動力將在我們的指導中點貢獻 4,600 萬美元的有機成長。

This represents roughly 15% organic growth for vapor at the midpoint of the range. The guidance for fiscal 2025 also assumes low single digit organic growth when adjusting for the disposition of Thermon's Russian business. You're initiating adjusted EBITDA guidance with a range of $112 million to $120 million, representing 11% year-over-year growth at the midpoint.

這表示該範圍中點的蒸汽有機增長約為 15%。2025 財年的指引也假設在調整賽盟俄羅斯業務的處置後，有機成長較低。您正在啟動調整後的 EBITDA 指導，範圍為 1.12 億美元至 1.2 億美元，中間值年增 11%。

GAAP EPS is expected to be in the range of $1.57 per share to $1.73 per share, which represents 9% year-over-year growth at the midpoint, adjusted EPS is projected to be in the range of $1.90 per share to be up $2.6 per share, which represents 8% year-over-year growth at the midpoint.

GAAP 每股盈餘預計在每股 1.57 美元至 1.73 美元之間，中間值年增 9%，調整後每股盈餘預計在每股 1.90 美元至每股成長 2.6 美元之間份額，中位數年增8% 。

Finally, we remain focused upon delivering our fiscal year '26 objectives. This guidance does not contemplate additional M&A activity. However, we expect to continue generating cash to further strengthen our balance sheet throughout the fiscal year, providing the ability to capitalize on inorganic opportunities that advance our strategy.

最後，我們仍然專注於實現 26 財年的目標。本指南不考慮額外的併購活動。然而，我們預計在整個財政年度將繼續產生現金，以進一步加強我們的資產負債表，從而提供利用無機機會來推進我們的策略的能力。

As we wrap up today on slide 14 and look ahead to fiscal 2025, we'd like to leave you with these key points. Thermon is a leading global brand, providing mission critical process heating technology and solutions to customers across the world in a wide variety of end markets. Our strategy enables us to create long-term value for our shareholders across any type of operating environment and is focused on the three pillars of profitably growing our installed base, decarbonization, digitization and diversification and disciplined capital allocation.

當我們今天結束投影片 14 並展望 2025 財年時，我們想向您介紹以下要點。Thermon 是全球領導品牌，為全球各種終端市場的客戶提供關鍵任務流程加熱技術和解決方案。我們的策略使我們能夠在任何類型的營運環境中為股東創造長期價值，並專注於獲利成長我們的裝置基礎、脫碳、數位化和多元化以及嚴格的資本配置這三大支柱。

Our operational excellence driven by the Thermon business system and differentiated products and solutions are significant competitive advantages. With our existing technology and expertise we believe that we are well positioned to capture the enormous opportunity tied to the energy transition and decarbonization, while also benefiting from secular growth trends in chemicals, power, onshoring and various forms of government stimulus.

我們由賽盟業務系統和差異化產品和解決方案驅動的卓越營運是顯著的競爭優勢。憑藉我們現有的技術和專業知識，我們相信我們有能力抓住與能源轉型和脫碳相關的巨大機遇，同時也受益於化學品、電力、離岸外包和各種形式的政府刺激措施的長期成長趨勢。

Our strong balance sheet and low capital intensity business model yield significant free cash flow, which provides us capital allocation optionality and most importantly, allows us to deliver long term value for our shareholders.

我們強大的資產負債表和低資本密集度的業務模式產生了大量的自由現金流，這為我們提供了資本配置的選擇權，最重要的是，使我們能夠為股東創造長期價值。

I'd like to close today by once again thanking the entire Thermon team for their contributions to a very successful fiscal 2024. I'm excited about the opportunities ahead and look forward to seeing what we can achieve together in the coming year.

在今天結束時，我想再次感謝整個 Thermon 團隊為 2024 財年的成功做出的貢獻。我對未來的機會感到興奮，並期待看到我們在未來一年能夠共同取得的成就。

Darryl, I'll hand it back to you, and we're now ready to take questions.

達裡爾，我會把它還給你，我們現在準備好回答問題。

(Operator Instructions)

（操作員說明）

Justin Ages, CJS Securities.

賈斯汀·艾格斯 (Justin Ages)，CJS 證券。

Hi, good morning. Thanks for taking the questions.

早安.感謝您提出問題。

Good morning, Justin.

早安，賈斯汀。

Would you mind providing some more details on the restructuring effort? You know, what drove the decision and some of the financial impacts into you know the 2026 targets? And then I'll have a follow-up after that, please.

您介意提供更多有關重組工作的細節嗎？您知道，是什麼推動了這個決定以及對 2026 年目標的一些財務影響？之後我會進行後續跟進。

Yeah. I'll start with maybe the rationale a few things as we've been implementing our Thermon business system. And we've been implementing our really a concept around focus, factories, and value streams. It made a lot of sense to move our Denver location into our San Marcos facility to consolidate our rail and transit value streams there. So that was really a lot of the rationale behind that.

是的。我將從一些基本原理開始，因為我們一直在實施我們的 Thermon 業務系統。我們一直在圍繞焦點、工廠和價值流實施我們真正的概念。將我們的丹佛工廠搬到聖馬科斯工廠以鞏固我們在那裡的鐵路和交通價值流非常有意義。這確實是背後的許多理由。

In addition to that, we really drove broader and broader restructuring as we made some improvements to our Thermon business system and improvements in operational efficiencies and productivity. That really had broader implications, really rightsizing our capacity with the current business volumes. So that's really the rationale.

除此之外，我們確實推動了越來越廣泛的重組，因為我們對賽盟業務系統進行了一些改進，並提高了營運效率和生產力。這確實具有更廣泛的影響，並真正根據當前的業務量調整了我們的產能。這就是真正的理由。

I'll hand it may be over to Greg to talk a little bit more about the anticipated financial impact in the current year and on a run rate basis.

我可能會將其交給格雷格，以更多地討論本年度的預期財務影響以及運行率。

Yeah, great. So good question. So as I mentioned, with $5.7 million of anticipated savings on an annualized basis and $4.3 million, that should be recognized or realized in the coming fiscal year. I would weight that more towards the back half of the year with about, say 1 to 1.4 or so in cost of sales and the remaining around SG&A. So I'll see those savings that we're going to see them back and load.

很好。好問題。正如我所提到的，預計將年化節省 570 萬美元，430 萬美元應該在下一財年得到認可或實現。我會在今年下半年更加重視這一點，例如銷售成本為 1 到 1.4 左右，其餘則圍繞 SG&A。所以我會看到那些我們將看到它們回來並加載的節省。

That's helpful. Thanks. And then one more bit different, can you give us a breakdown by segment of the backlog? You know how much is point in time versus large projects, small projects if possible?

這很有幫助。謝謝。還有一點不同的是，您能給我們按積壓訂單的各個部分進行細分嗎？您知道時間點與大型專案、小型專案（如果可能的話）相比有多少？

Yes. So I think that's a great question, and it's important to understand when we think about a point in time, we're talking about materials sales and that is typically very short-cycle business. So at any given time, there's less than 30 days on average of that sitting in our backlog. So what you see in our backlog is really representative of what we call large CapEx projects that would be projects will be a combination of some small but mostly large CapEx projects $1.5 million or greater.

是的。所以我認為這是一個很好的問題，重要的是要理解當我們考慮某個時間點時，我們正在談論材料銷售，這通常是非常短週期的業務。因此，在任何給定時間，我們的積壓工作平均時間不到 30 天。因此，您在我們的積壓工作中看到的確實代表了我們所說的大型資本支出項目，這些項目將由一些小型但大部分為 150 萬美元或以上的大型資本支出項目組合而成。

They're sitting in backlog, and they take more time to execute. They typically will they typically include some engineering and, in some cases, will even include installation and commissioning type services. So the backlog you see again is probably largely, I'd say a in excess of 80% is the large CapEx projects. The other point in time business is flow business and it comes in and out of backlog very quickly.

他們積壓了工作，需要更多時間來執行。他們通常會包括一些工程，在某些情況下，甚至會包括安裝和調試類型的服務。因此，您再次看到的積壓可能很大程度上是，我想說超過 80% 是大型資本支出項目。另一個時間點業務是流水業務，積壓的進出速度非常快。

And that's helpful. Thanks for taking the questions.

這很有幫助。感謝您提出問題。

You're welcome. Thank you. Have a good day.

不客氣。謝謝。祝你有美好的一天。

Thanks, Justin.

謝謝，賈斯汀。

Chip Moore, Roth MKM.

奇普摩爾，羅斯MKM。

Morning. Thanks for taking the question.

早晨。感謝您提出問題。

Good morning, Chip.

早上好，奇普。

I want to ask them -- morning, Bruce. I wanted to ask on the guidance for the year, you called out some larger projects, CapEx delays. Maybe just speak to what's contemplated in the low and the high end of that range?

我想問他們——早上好，布魯斯。我想詢問今年的指導，您提到了一些更大的項目，資本支出延遲。也許只是談談該範圍的低端和高端的預期內容？

Yeah. So just to give you some context, if you go back to Q3, we have really strong quotations of $250 million, which is very strong activity for our business. Especially this quarter, we added another [200 million] in quotes, which is solid activity, again sequentially if what we're seeing is just replacement of the doors is moving out. And as I look at our conversion rates, they're actually flat to improving.

是的。因此，為了給您一些背景信息，如果您回到第三季度，我們的報價非常強勁，達到 2.5 億美元，這對我們的業務來說是非常強勁的活動。特別是本季度，我們在報價中又增加了 [2 億]，這是穩健的活動，如果我們看到的只是更換門正在移出，那麼還是按順序進行。當我觀察我們的轉換率時，它們實際上持平，沒有提高。

And if we look at our CRM pipeline, we're tracking in excess of 350 opportunities that represent over $750 million in the larger CapEx projects between the balance of '25 and through fiscal '26. So we're seeing a big, a big, a lot of opportunities sitting out there, but we're really not seeing those conversion rates.

如果我們查看我們的 CRM 管道，就會發現在 25 年餘額到 26 財年期間，我們正在追蹤超過 350 個機會，這些機會在較大的資本支出項目中價值超過 7.5 億美元。因此，我們看到了巨大、巨大、大量的機會，但我們實際上並沒有看到這些轉換率。

And what we are what we anticipate is just the timing that's going to move to the right a bit, and we'll see some weakness in the first half. As I noted, we've had some nice bookings with those with gentile materialize later in the year and now. And so we would expect that to show some more positive growth in the back half.

我們所預期的只是時機會稍微向右移動，我們會在上半場看到一些弱點。正如我所指出的，我們與非猶太人的預訂在今年晚些時候和現在實現了一些不錯的預訂。因此，我們預計下半年會出現更積極的成長。

If I roll the clock back to last year that very strong capital projects bookings in Q4 of '23 and Q1 of '24 those two quarters combined, we booked over $250 million in opportunities that were heavily weighted towards large CapEx. A lot of that got executed, particularly in Q3 -- Q2 and Q3. And so we're going to see some challenges, particularly in the first half of the year in driving organic growth based on just the timing of the backlog and what we're seeing.

如果我把時間倒回去年，23 年第四季和 24 年第一季這兩個季度的資本項目預訂非常強勁，我們預訂了超過 2.5 億美元的機會，這些機會主要側重於大型資本支出。其中許多都得到了執行，特別是在第三季——第二季和第三季。因此，我們將看到一些挑戰，特別是在今年上半年，根據積壓的時間和我們所看到的情況來推動有機成長。

Got it. That's helpful. And maybe just to follow up there on sort of quarterly cadence and margin trajectory. It sounds like maybe Q1 a little weaker obviously were a couple of months into it, but any more color you can give us on that?

知道了。這很有幫助。也許只是為了跟進季度節奏和利潤軌跡。聽起來好像第一季顯然在幾個月後就有點弱了，但是你能給我們更多的資訊嗎？

Yeah. So my comments are our service group really Canada is we're seeing some positive signs there. I would say, as we look across our various end markets, our customers businesses are fairly healthy and profitable, and we're seeing the short-cycle quick turn point in time type revenues. Those are very consistent and have been very resilient where we've seen weakness really in CapEx.

是的。所以我的評論是，我們的服務團隊確實在加拿大，我們在那裡看到了一些積極的跡象。我想說，當我們縱觀各個終端市場時，我們的客戶業務相當健康且有利可圖，而且我們看到了短週期快速轉折點的時間類型收入。這些非常一致，而且非常有彈性，而我們已經看到了資本支出的弱點。

It's probably been more heavily weighted towards the oil and gas sector. And some of that's really based more on capital allocation. And then some of that, we're also seeing it just timing of some of the larger decarbonization projects. And there's different reasons for those delays, whether it's customer decision. In some cases, we see permitting, in other cases, it's around government stimulus and other types of funding.

石油和天然氣產業的權重可能更大。其中一些實際上更多地基於資本配置。然後，我們也看到一些較大的脫碳項目的時機。這些延遲有不同的原因，無論是客戶的決定。在某些情況下，我們看到允許，在其他情況下，這是圍繞政府刺激和其他類型的資金。

So those types of activities we've seen contribute to those delays. But the good news is we're seeing solid turnaround business, Canada. So we're seeing that overall environment stabilize to slightly improve. But we do see there be some weakness in CapEx spending for first quarter. And as we look at the vapor business, I think it's important to understand that business is not as seasonal as our business has been traditionally. So we might see a more equal cadence of that business quarter to quarter throughout the year as you're thinking about that on a quarterly basis.

因此，我們看到的這些類型的活動導致了這些延誤。但好消息是，我們在加拿大看到了強勁的轉虧為盈業務。所以我們看到整體環境穩定並略有改善。但我們確實看到第一季的資本支出有些疲軟。當我們審視蒸汽業務時，我認為重要的是要了解業務並不像我們傳統上的業務那樣季節性。因此，當您按季度考慮時，我們可能會看到全年每個季度的業務節奏更加平等。

That's very helpful. And just on vapor, I guess if I could ask one last one. Sounds like integration's going very well. I think you've got even called out some projects in this quarter there to be delivered. But maybe on the cross-selling side, I think you mentioned that a nice synergistic sale already, but any more to detail to provide on synergies? Thanks.

這非常有幫助。就在蒸汽上，我想我是否可以問最後一個問題。聽起來整合進展得很順利。我認為您甚至已經在本季度提出了一些需要交付的項目。但也許在交叉銷售方面，我認為您已經提到了很好的協同銷售，但是否有更多細節來提供協同效應？謝謝。

Yeah. So on synergies, first of all, we have some supply chain synergies and some operational synergies that were factored into the financial returns, and we're progressing those well. No one of those is just the vertical integration of thermal supplying all the heating elements that transition has already been completed and we are moving in a really we're actually own pace or ahead of pace in realizing the other cost synergies that it identified as a business.

是的。因此，在綜效方面，首先，我們有一些供應鏈綜效和一些營運綜效，這些都已計入財務回報中，而且我們在這些方面進展順利。其中沒有一個只是供熱所有加熱元件的垂直整合，過渡已經完成，我們正在以真正的步伐前進，或者在實現其確定的其他成本協同效應方面領先於其他成本協同效應。

As we look at the sales synergies, again, I'll reinforce none of those were factored into the financial returns, but we had noted in the last call that we had a number of opportunities that had been identified through the traditional Thermon sales channels that were not on really in line of sight to the vapor power business and sales team.

當我們審視銷售協同效應時，我再次強調，這些都沒有計入財務回報，但我們在上次電話會議中指出，我們有許多透過傳統賽盟銷售管道發現的機會，我們並不真正處於蒸汽動力業務和銷售團隊的視線範圍內。

And we actually we've converted a couple of. But what is really notable is a very large college and university institution where they purchased the system and that's via Thermon's traditional sales channels that was over $2 million in bookings and would be delivered this year. And so if you think about what was a $50 million business a couple of million synergy sale has a significant impact when you think about the growth profile.

事實上我們已經轉換了一些。但真正值得注意的是一家非常大的學院和大學機構，他們透過 Thermon 的傳統銷售管道購買了該系統，該​​系統的預訂量超過 200 萬美元，並將於今年交付。因此，如果您考慮價值 5000 萬美元的業務，那麼當您考慮成長概況時，數百萬美元的協同銷售會產生重大影響。

So we're really very pleased with what we've identified through our current channels and the ability to help find and close on opportunities in the marketplace that really provide a broader reach than mail, what the vapor power sales team and channels may have provided previously, so it's really a good early indicator.

因此，我們對透過當前管道確定的內容以及幫助尋找和抓住市場機會的能力感到非常滿意，這些機會真正提供了比郵件更廣泛的覆蓋範圍，而蒸汽動力銷售團隊和管道可能已經提供了這些機會以前，所以這確實是一個很好的早期指標。

Excellent. Great to hear. I appreciate the color. Thanks.

出色的。很高興聽到。我很欣賞它的顏色。謝謝。

Thank you.

謝謝。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hi, good morning. Thanks for taking my question. I just want to follow up on one of the questions. I was just asked a second ago on the margin trajectory through the year. Can you give a little more color specifically on gross margins? My sense is that if we're going to lean a little bit more toward MRO or small project type work that maybe that mixes favorable for gross margin? And can you just comment on that and how does gross margin proceed as we go through the year?

早安.感謝您提出我的問題。我只想跟進其中一個問題。剛才有人問我全年的利潤軌跡。能具體介紹一下毛利率嗎？我的感覺是，如果我們要更傾向於 MRO 或小型專案類型的工作，也許這會對毛利率有利？您能否對此發表評論以及我們這一年的毛利率如何？

Yes. So good question, Brian. Certainly, as we would see weaker CapEx spending, we would anticipate some improvement in the gross margin profile, certainly and some of the type of activity we're seeing in Canada, particularly around turnarounds that would support that. So in a weaker CapEx environment, we would typically see some expansion in gross margins and that should flow through EBITDA margins as well.

是的。好問題，布萊恩。當然，由於我們會看到資本支出疲軟，我們預計毛利率狀況會有所改善，當然還有我們在加拿大看到的一些活動類型，特別是圍繞支持這一點的扭虧為盈。因此，在資本支出疲軟的環境下，我們通常會看到毛利率有所擴張，這也應該會影響 EBITDA 利潤率。

Okay. And then, Bruce, you commented on the Trans Mountain pipeline completion and I was wondering if you could elaborate a little bit on that potential impact on your business from that and also the timing of any potential impact?

好的。然後，布魯斯，您對跨山管道的竣工發表了評論，我想知道您是否可以詳細說明一下這對您的業務的潛在影響以及任何潛在影響的時間？

When we think about our oil and gas business we've got the greatest exposure in Canada and certainly the following 590,000 barrels of oil per day of incremental takeaway capacity is significant for the sales and they'll have to ramp up production to be at full capacity. And so certainly as they look at drilling, particularly in some of the insite B sites, we will benefit from that of they'll use our heat tracing as well as the use our environmental heaters on some of the rigs and in some cases for equipment and various things out the field. So we don't lose tend to help support our revenues there in Canada. Where we see improvement or increase in drilling activity.

當我們考慮我們的石油和天然氣業務時，我們在加拿大擁有最大的曝光度，當然，接下來每天 590,000 桶石油的增量外運能力對銷售來說意義重大，他們必須提高產量才能充分發揮作用容量。因此，當他們考慮鑽井時，特別是在一些現場 B 場地，我們肯定會從中受益，因為他們將使用我們的伴熱系統，並在一些鑽機和某些情況下的設備上使用我們的環境加熱器以及場外的各種事情。因此，我們不會失去幫助支持我們在加拿大的收入的傾向。我們看到鑽井活動有所改善或增加。

Is that something that impacts fiscal '25 and or does it take some time to ramp up?

這是否會影響 25 財年，或是否需要一些時間才能提升？

I would state will begin to see it this year, but most certainly and I'm not certain when what's the time line is for the ramp up in that capacity that we would see that really should be fairly well correlated to that ramped up in capacity to fill that pipeline.

我想說的是，今年將開始看到這一點，但最肯定的是，我不確定產能增加的時間線是什麼時候，我們會看到，這確實應該與產能的增加有很好的相關性來填充該管道。

Great. And then I guess just the last question for now is, based on your comments toward the end of the prepared remarks, you talked about the quoting activity. I think you mentioned a figure of $750 million potential projects. Can you provide some frame of reference for everyone regarding that $750 million and some of those other numbers that you gave it in a relative to history. I know those are really healthy levels, but if you could kind of quantify --

偉大的。然後我想現在的最後一個問題是，根據您在準備好的演講結束時的評論，您談到了引用活動。我想你提到了一個價值 7.5 億美元的潛在項目的數字。您能否為大家提供一些關於這 7.5 億美元以及您在相對於歷史中給出的其他一些數字的參考框架？我知道這些確實是健康的水平，但如果你能量化一下--

Yeah, just overall, our sales pipeline. Our CRM pipeline for opportunities is in excess of $1 billion, which is very robust. And we've seen growth year over year. I think the things that I'm noting here and off and is that is pretty heavily loaded towards the next 24 months back three quarters of that pipeline is loaded towards next, what I would say more or less than 24 months, probably more in the 20 month timeframe.

是的，總的來說，我們的銷售管道。我們的 CRM 機會管道超過 10 億美元，非常強勁。我們看到了逐年增長。我認為我在這裡和斷斷續續地註意到的事情是，在接下來的24 個月裡，該管道的四分之三的負載相當重，我想說的是或多或少的24 個月，可能更多20 個月的時間範圍。

So it's pretty heavily weighted over the balance of '25 and '26. So that is pretty significant as pan out. And as I look forward, the question is when will we see those begin to convert. And so we're watching that very closely, and we would anticipate that to begin to convert through the first half of the year and then begin to positively impact backlog. And then, of course, with larger capital projects will be some delay in timing of execution, which is factored into our guide for the fiscal year.

因此，它在 25 年和 26 年的餘額中所佔的比重相當大。所以這對於平手來說非常重要。正如我所期待的，問題是我們什麼時候才能看到這些開始轉變。因此，我們正在非常密切地關注這一情況，我們預計這將在今年上半年開始轉變，然後開始對積壓產生積極影響。當然，對於較大的資本項目，執行時間會有所延遲，這已納入我們本財年的指南中。

So just to be clear, anything converts from pipeline to actual orders. And then convert to revenue is another step. I mean, it sounds like I didn't I don't want to put words in your mouth, but I mean, it seems like the view is that it's going to be, maybe fiscal even fiscal '26 before you really meaningfully start to benefit from the revenue from that pretty significant pipeline?

所以需要明確的是，任何事情都會從管道轉換為實際訂單。然後轉化為收入是另一個步驟。我的意思是，聽起來我沒有，我不想把話放在你嘴裡，但我的意思是，似乎人們的觀點是，也許在你真正有意義地開始之前，可能是財政年度，甚至是26財年從這條相當重要的管道中獲得的收入中受益嗎？

It will be the latter part of this year and into fiscal '26 when we will get. So yes, there's two conversion, one convert from a pipeline to orders, which we would expect to start over the next couple of quarters and then second, to convert from backlog into revenue, which would then begin to follow that end.

我們將在今年下半年和 26 財年實現這一目標。所以，是的，有兩種轉換，一是從管道轉換為訂單，我們預計將在接下來的幾個季度開始，然後第二，從積壓轉換為收入，然後開始遵循這一目標。

On average, our backlog takes around 12 to 15 months to execute. So it gives you a sense for maybe the timing associated with that.

平均而言，我們的積壓工作需要大約 12 到 15 個月的時間來執行。因此，它可以讓您了解與此相關的時間安排。

Yeah, again, very helpful.

是的，再次，非常有幫助。

Backlog being heavily weighted towards large capital projects.

積壓的訂單主要集中在大型資本項目。

Yeah. Understood. Okay. Thanks for the detail.

是的。明白了。好的。謝謝你的詳細資料。

Thank you.

謝謝。

Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to Bruce Thames for closing remarks.

謝謝。我們的問答環節已經結束。現在我想請布魯斯泰晤士 (Bruce Thames) 致閉幕詞。

Thank you all for joining us today for your interest in Thermon. I hope you have a good day.

感謝大家今天加入我們對賽盟的興趣。希望你今天過得好。

Thank you. On behalf of the Thermon team this does conclude today's teleconference. Thank you for your participation. Have a great day and you may disconnect at this time.

謝謝。我謹代表 Thermon 團隊結束今天的電話會議。感謝您的參與。祝你有美好的一天，此時您可能會斷開連接。