Thermon Group Holdings Inc (THR) 2025 Q1 法說會逐字稿

Hello, and welcome to the Thermon Q1 2025 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Ivonne Salem. Please go ahead, Ivonne.

您好，歡迎參加賽盟 2025 年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給伊馮·塞勒姆。請繼續，伊馮。

Thank you, Diego. Good morning, and thank you for joining Thermon's Fiscal 2025 first-quarter results conference call. Leading the call today are CEO, Bruce Thames; and Vice President and Corporate Controller, Greg Lucas. Earlier this morning, we issued an earnings press release, which has been filed with the SEC on Form 8-K and it's also available on the Investor Relations section of our website. Additionally, the slides for this conference call can be found in our IR website under News & Events IR Calendar Earnings Conference Call Q1 2025.

謝謝你，迭戈。早安，感謝您參加賽盟 2025 財年第一季業績電話會議。今天主持會議的是執行長 Bruce Thames；副總裁兼公司財務總監格雷格·盧卡斯 (Greg Lucas)。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。此外，本次電話會議的幻燈片可以在我們的 IR 網站的新聞與活動 IR 日曆 2025 年第一季財報電話會議下找到。

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. 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.

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。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. 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 may be required by law. Today's call will begin with remarks from our CEO, Bruce Thames, who will provide a review of our recent business performance, including an update on the progress we have made on our strategic initiatives, followed by a financial update and review from our Vice President and Corporate Controller, Greg Lucas. Bruce will then wrap up our prepared remarks and update on our business outlook.

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。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，除非法律要求。今天的電話會議將首先由我們的執行長布魯斯·泰晤士(Bruce Thames) 發表講話，他將回顧我們最近的業務業績，包括我們在戰略舉措方面取得的進展的最新情況，然後是我們的副總裁和副總裁的財務更新和回顧。然後布魯斯將總結我們準備好的演講並更新我們的業務前景。

At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Bruce.

在準備好的發言結束後，我們將開放提問專線。這樣，我就把電話轉給布魯斯。

Thank you, Ivonne, and good morning to everyone joining us on the call today. I'm extremely proud of the team's hard work and disciplined execution during the first quarter against the backdrop of a weaker global growth environment where we were able to deliver top line and adjusted EBITDA growth and strong cash flow. The quarter was highlighted by continued favorable momentum in our diversified end markets, the successful integration and positive contribution from our Vapor Power acquisition and disciplined financial management leading to solid free cash flow conversion. But most importantly, this quarter demonstrated our successful execution on a couple of our key strategic pillars, namely our focus on growing our installed base as well as diversifying our revenue and end market exposure.

謝謝你，伊馮娜，祝今天參加我們電話會議的每個人早安。我對團隊在第一季的辛勤工作和嚴格執行感到非常自豪，在全球成長環境疲軟的背景下，我們能夠實現營收和調整後的 EBITDA 成長以及強勁的現金流。本季的亮點是我們多元化終端市場的持續良好勢頭、Vapor Power 收購的成功整合和積極貢獻以及導致穩定自由現金流轉換的嚴格財務管理。但最重要的是，本季展示了我們在幾個關鍵策略支柱上的成功執行，即我們專注於擴大我們的安裝基礎以及多元化我們的收入和終端市場曝險。

Starting at slide 4, we generated nearly 8% revenue growth during the first quarter, which was driven largely by the contribution from our Vapor Power acquisition. The integration of Vapor Power is on track, and we're excited by the revenue synergies we have quickly identified that were not contemplated in our initial strategy. However, excluding Vapor Power, our revenues declined roughly 5% on an organic basis. While we're disappointed by the organic revenue decline, it's important to note that our organic revenues declined only modestly despite a 34% decline in our large project revenue during the quarter.

從幻燈片 4 開始，我們在第一季實現了近 8% 的營收成長，這主要得益於 Vapor Power 收購的貢獻。Vapor Power 的整合已步入正軌，我們對我們很快發現的收入協同效應感到興奮，而這在我們最初的策略中並未考慮到。然而，不包括蒸汽動力，我們的收入有機下降了約 5%。雖然我們對有機收入下降感到失望，但值得注意的是，儘管本季我們的大型專案收入下降了 34%，但我們的有機收入僅小幅下降。

This type of performance would not have been possible if not for our focus on diversifying our end market exposure and growing our installed base of customers. In addition, consistent with the trends noted during our last earnings call, our Canadian business grew 9% in the first quarter on a year-over-year basis after a weak second half of fiscal '24. The continued pressure on our large project revenue, which is generally tied to our customers' capital spending budgets, was somewhat offset by 22% growth in our point in time on material sales and small project revenues, which together we refer to as OpEx revenues, which are generally tied to our customers' annual operating budgets. As we detail on Slide 5, our materials and small project revenues were $98 million during the first quarter.

如果不是我們專注於終端市場多元化和擴大客戶群，這種業績是不可能實現的。此外，與我們上次財報電話會議中指出的趨勢一致，在經歷了 24 財年下半年的疲軟之後，我們的加拿大業務在第一季同比增長了 9%。我們的大型專案收入（通常與客戶的資本支出預算相關）所面臨的持續壓力，在一定程度上被我們材料銷售和小型專案收入（我們統稱為營運支出收入）22% 的成長所抵消，這通常與我們客戶的年度營運預算相關。正如我們在幻燈片 5 中詳細介紹的那樣，第一季我們的材料和小型專案收入為 9800 萬美元。

Revenues associated with OpEx spending represented nearly 85% of our total revenues, while our large project revenues were only 50% of the total compared to a 75%, 25% mix in the prior year. Excluding Vapor Power, our OpEx revenue increased 4% organically. We're proud of this result and believe this demonstrates the benefits of our deep installed base and recurring revenue exposure. Our current mix provides a more stable and predictable revenue stream as well as a more profitable mix, given our OpEx revenues consistently generate higher gross margins.

與營運支出相關的收入占我們總收入的近 85%，而我們的大型專案收入僅佔總收入的 50%，而前一年的比例為 75%、25%。不包括蒸氣發電，我們的營運支出收入有機成長了 4%。我們對此結果感到自豪，並相信這證明了我們深厚的安裝基礎和經常性收入敞口的優勢。鑑於我們的營運支出收入持續產生更高的毛利率，我們目前的組合提供了更穩定和可預測的收入流以及更有利可圖的組合。

In addition to benefiting from recurring revenues during the first quarter, we were also aided by our more diversified end market exposure. An important aspect of our strategy you've heard me discuss has been our goal to reduce exposure to the oil and gas market. We have a goal of getting our diversified end market revenue to at least 70% of the total and as a result of our efforts, together with inclusion of Vapor Power, we've achieved our goal on a trailing 12-month basis, which has been a positive driver to our results given the recent weakness in the oil and gas sector. While oil and gas is an important part of our business, it is no longer the key driver of our results that it once was.

除了受益於第一季的經常性收入外，我們還受益於更多元化的終端市場曝險。您聽到我討論過的我們策略的一個重要方面是我們的目標是減少對石油和天然氣市場的曝險。我們的目標是使多元化終端市場收入至少佔總收入的 70%，透過我們的努力，加上蒸汽動力的納入，我們在過去 12 個月的基礎上實現了我們的目標，這鑑於近期石油和天然氣產業的疲軟，這對我們的業績起到了積極的推動作用。雖然石油和天然氣是我們業務的重要組成部分，但它不再像以前那樣成為我們業績的關鍵驅動力。

Our oil and gas revenues declined 7% during the first quarter, so we're very pleased we were able to generate solid financial results despite the weakness in these markets. We're very proud of the work we've accomplished to position our business to be more successful across the business cycle. We have built a business that we believe is more durable and one that is equipped to generate stable, more predictable operating results across a range of economic scenarios and spending cycles. All that said, the large project business is still an important driver to grow the installed base for Thermon, and we are well positioned to benefit as large project spending trends improve.

第一季我們的石油和天然氣收入下降了 7%，因此我們很高興儘管這些市場疲軟，但我們仍能取得穩健的財務表現。我們為使我們的業務在整個商業週期中取得更大成功而完成的工作感到非常自豪。我們相信我們已經建立了一項更持久的業務，並且能夠在一系列經濟情景和支出週期中產生穩定、更可預測的經營業績。儘管如此，大型專案業務仍然是賽盟安裝基礎成長的重要驅動力，隨著大型專案支出趨勢的改善，我們已做好充分準備受益。

As we discussed in recent quarters, large capital projects have experienced extended sales cycles driven by customer uncertainty related to the macro environment, the upcoming elections and the uncertain trajectory of interest rates. While we don't have a crystal ball and timing is difficult to predict, we do remain cautiously optimistic that large project spending will improve in the second half of our fiscal year as we get some clarity on the November elections, and we hopefully start to see some Fed rate cuts in September as the market currently expects. We remain encouraged that our quoting activity continues to be robust, up almost 13%, and our total bid pipeline is up 9%, both on a year-over-year basis. Unfortunately, project decisions have been delayed given the market uncertainty, but we believe we are very well positioned when normal spending patterns resume.

正如我們在最近幾季所討論的，由於宏觀環境、即將到來的選舉和不確定的利率軌跡等客戶不確定性，大型資本項目經歷了較長的銷售週期。雖然我們沒有水晶球，而且時機也很難預測，但我們仍然保持謹慎樂觀的態度，隨著我們對11 月的選舉有了一定的了解，大型項目支出將在本財年下半年有所改善，而我們希望開始預期聯準會將在 9 月降息，正如市場目前所預期的那樣。我們仍然感到鼓舞的是，我們的報價活動持續強勁，同比增長了近 13%，而我們的總投標渠道增長了 9%。不幸的是，由於市場的不確定性，專案決策被推遲，但我們相信，當正常支出模式恢復時，我們處於非常有利的位置。

Now, turning to slide 6 and our strategic pillars, I've already spent quite a bit of time on our focus in growing our installed base and diversifying our end market exposure. However, I do want to quickly give an update on decarbonization opportunities and our execution on our capital allocation priorities. We continue to see our sales pipeline of decarbonization opportunities grow to now over $320 million, representing roughly 30% of the total. During the quarter, we secured approximately $9 million in orders related to decarbonization or approximately 7% of the incoming orders in the quarter.

現在，轉向投影片 6 和我們的策略支柱，我已經花了相當多的時間來專注於擴大我們的安裝基礎和使我們的終端市場曝光多樣化。然而，我確實想快速介紹脫碳機會以及我們對資本配置優先事項的執行情況的最新情況。我們繼續看到我們的脫碳機會銷售管道成長至目前超過 3.2 億美元，約佔總額的 30%。本季度，我們獲得了約 900 萬美元的脫碳相關訂單，約佔本季收到訂單的 7%。

As it relates to our capital allocation, Greg will provide more of the details, but suffice it to say we are very pleased with our solid financial discipline, which has enabled us to quickly delever following the Vapor Power acquisition. We're in a strong financial position with our leverage ratio of 1.1 times, coming in nicely below our targeted range of 1.5 times to 2 times. We believe this provides us with more than sufficient capacity to pursue our growth objectives and capital allocation priorities. With that, I'll turn it over to Greg, who will provide a more detailed review of our first quarter results before I wrap up with some remarks on our financial outlook. Greg?

由於這與我們的資本配置有關，格雷格將提供更多細節，但足以說明我們對我們堅實的財務紀律感到非常滿意，這使我們能夠在收購 Vapor Power 後迅速去槓桿化。我們的財務狀況良好，槓桿率為 1.1 倍，遠低於我們 1.5 倍至 2 倍的目標範圍。我們相信，這為我們提供了足夠的能力來實現我們的成長目標和資本配置優先事項。接下來，我將把它交給格雷格，他將對我們第一季的業績進行更詳細的審查，然後我對我們的財務前景進行一些評論。格雷格？

Thank you, Bruce, and good morning, everyone. I will provide some additional details on the quarter and give an update on our working capital and free cash flow and conclude with a commentary on our balance sheet and liquidity. Moving now to slide 7 and our first quarter performance, revenue in the first quarter was $115 million, a year-over-year increase of 8%, primarily driven by the inclusion of Vapor Power, which contributed $13.9 million of revenue during the first quarter. Excluding Vapor power, first quarter organic sales decreased 5%, primarily related to the softness in large CapEx projects that Bruce has already discussed.

謝謝你，布魯斯，大家早安。我將提供有關本季度的一些其他詳細信息，並提供有關我們的營運資金和自由現金流的最新信息，最後對我們的資產負債表和流動性進行評論。現在轉到幻燈片 7 和我們第一季的業績，第一季的營收為 1.15 億美元，年成長 8%，主要是由於納入 Vapor Power，該公司在第一季度貢獻了 1390 萬美元的收入。不包括蒸氣發電，第一季有機銷售額下降了 5%，這主要與 Bruce 已經討論過的大型資本支出項目的疲軟有關。

Large project revenue was $18 million during the first quarter, down 34% from the same period last year as customers continue to delay decisions on large capital projects. The weakness was more pronounced in our oil and gas end markets, but the weakness was broad-based. While large project spending was weak, our OpEx revenues were $98 million during the first quarter, an increase of over 20% compared to last year as our customers shifted their priorities to maintenance and repair spending. Excluding Vapor Power, our OpEx revenues increased 4%, demonstrating the benefits of our balanced revenue model and the strength of our long-term customer relationships and deep installed base. From a geographic perspective, we saw sales improved 9% year-over-year in Canada and 7% in APAC.

由於客戶繼續推遲對大型資本項目的決策，第一季大型專案收入為 1800 萬美元，比去年同期下降 34%。我們的石油和天然氣終端市場的疲軟更為明顯，但疲軟的範圍廣泛。儘管大型專案支出疲軟，但隨著我們的客戶將重點轉向維護和維修支出，我們第一季的營運支出收入為 9,800 萬美元，比去年增長了 20% 以上。不包括蒸氣發電，我們的營運支出收入成長了 4%，這證明了我們平衡收入模式的優勢以及我們長期客戶關係和深厚安裝基礎的實力。從地理角度來看，加拿大的銷售額年增 9%，亞太地區的銷售額年增 7%。

While sales in our US-LAM segment, excluding Vapor Power, declined 14% and sales in our EMEA region declined 19%. Adjusted EBITDA was $23.2 million during the first quarter, up from $22.1 million last year due to the contribution from Vapor Power. Adjusted EBITDA margin was 20.2% during the first quarter, slightly down from 20.7% in the same period last year. Our margins benefited from an increased mix of materials revenue during the quarter, which generally carry higher gross margins. However, this was offset by certain contracts with higher labor content, which dilutes our margins as well as the continued investments we have made in our strategic initiatives. Last quarter, we discussed our manufacturing rooftop consolidation program, which is a key component of our operational excellence strategy. This program includes the consolidation of our rail and transit production lines from Denver into our San Marcos facility. From this effort and a concurrent reduction in force, we incurred a charge of $2.3 million during the quarter and expect another $0.3 million to $0.5 million over the next few quarters as we complete this initiative.

我們的 US-LAM 部門（不包括蒸汽動力）的銷售額下降了 14%，歐洲、中東和非洲地區的銷售額下降了 19%。由於 Vapor Power 的貢獻，第一季調整後 EBITDA 為 2,320 萬美元，高於去年的 2,210 萬美元。第一季調整後 EBITDA 利潤率為 20.2%，略低於去年同期的 20.7%。我們的利潤率得益於本季材料收入組合的增加，這些收入通常具有較高的毛利率。然而，這被某些勞動力含量較高的合約所抵消，這稀釋了我們的利潤以及我們對策略性舉措的持續投資。上季度，我們討論了我們的製造屋頂整合計劃，這是我們卓越營運策略的關鍵組成部分。該計劃包括將我們從丹佛的鐵路和交通生產線整合到我們的聖馬科斯工廠。由於這項工作和同時減少​​的兵力，我們在本季度產生了 230 萬美元的費用，預計在接下來的幾個季度完成這項計劃後，我們將再產生 30 萬至 50 萬美元的費用。

This effort is on track, and we expect the cost to implement this reduction in force and facilities consolidation to be less than our original estimate. As a reminder, we are targeting $5.7 million in annualized savings. We continue to target just over $4 million in realized savings during fiscal 2025, and we saw the savings begin to benefit our results during the first quarter. Backlog was $198.5 million compared to backlog of $172.1 million as of the first quarter last year.

這項工作正在按計劃進行，我們預計減少兵力和設施整合的成本將低於我們最初的估計。謹此提醒，我們的目標是每年節省 570 萬美元。我們繼續目標是在 2025 財年實現略高於 400 萬美元的節省，我們看到這些節省在第一季開始有利於我們的業績。截至去年第一季度，積壓訂單為 1.985 億美元，而去年第一季的積壓訂單為 1.721 億美元。

Excluding backlog attributable to Vapor Power of $44.3 million, backlog declined 10% on an organic basis. Orders during the first quarter were $127.2 million compared to $114.1 million in the same period last year, an increase of 12%. On an organic basis, orders declined 5%. It is important to note that over 70% of our incoming orders in the quarter were from diverse end markets.

排除 Vapor Power 造成的 4,430 萬美元的積壓訂單，積壓訂單有機下降了 10%。第一季訂單為 1.272 億美元，較去年同期的 1.141 億美元成長 12%。從有機角度來看，訂單下降了 5%。值得注意的是，本季超過 70% 的訂單來自不同的終端市場。

Moving now to slide 8 for an update on our balance sheet and liquidity. Net working capital was 31.4% of sales during the first quarter, down from 34.6% last year as we continue to optimize our supply chain while also improving lead times and on-time deliveries to our customers. CapEx was $3.9 million during the first quarter of 2025, up from $2.8 million last year. As a result of our sound working capital management, free cash flow was $8.8 million in the quarter, an improvement of nearly $11 million versus last year.

現在轉到投影片 8，了解我們的資產負債表和流動性的最新情況。第一季淨營運資本佔銷售額的 31.4%，低於去年的 34.6%，因為我們繼續優化供應鏈，同時縮短交貨時間並按時向客戶交貨。2025 年第一季的資本支出為 390 萬美元，高於去年的 280 萬美元。由於我們健全的營運資金管理，本季的自由現金流為 880 萬美元，比去年增加了近 1,100 萬美元。

We expect our continued focus on fiscal discipline, combined with our expectation of solid operating results to deliver another year of strong free cash flow conversion. We paid down roughly $3 million of term debt during the quarter, bringing our net debt balance to $120 million. Net leverage declined from 1.1 times at the end of the first quarter, down from 1.2 times at the end of the previous fiscal quarter and down from 1.5x immediately following the acquisition of Vapor Power. Our ability to quickly delever following the Vapor Power acquisition highlights the strong free cash flow capabilities of our business.

我們預計，我們將繼續專注於財政紀律，再加上我們對穩健經營業績的預期，將在新的一年實現強勁的自由現金流轉換。本季我們償還了約 300 萬美元的定期債務，使我們的淨債務餘額達到 1.2 億美元。淨槓桿率從第一季末的 1.1 倍下降，從上一財季末的 1.2 倍下降，從收購 Vapor Power 後的 1.5 倍下降。我們在收購 Vapor Power 後迅速去槓桿化的能力凸顯了我們業務強大的自由現金流能力。

Based on our total cash and available liquidity of $141.8 million, we remain well capitalized and have ample flexibility to continue to support our capital allocation priorities. Assuming no additional acquisitions, we expect to target incremental debt paydown of $20 million to $40 million during fiscal 2025. In summary, we are pleased with our financial execution during the quarter as we made further progress on operational excellence initiatives, which should drive further margin benefits in the coming quarters, and we continue our strict financial discipline, resulting in strong free cash flow performance. With that, I will turn the call back over to Bruce.

基於我們 1.418 億美元的現金和可用流動資金總額，我們仍然資本充足，並具有足夠的靈活性來繼續支持我們的資本配置優先事項。假設不進行額外收購，我們預期 2025 財年的增量債務償還目標為 2,000 萬至 4,000 萬美元。總而言之，我們對本季度的財務執行情況感到滿意，因為我們在卓越營運計劃方面取得了進一步進展，這將在未來幾個季度進一步推動利潤率收益，並且我們將繼續嚴格的財務紀律，從而實現強勁的自由現金流表現。這樣，我會將電話轉回布魯斯。

Thanks, Greg. Now if you'll turn to slide 9, we'll wrap up with our outlook for fiscal 2025. While trends in the large project market remain depressed, so far, the year is tracking roughly in line with our expectations. Our OpEx revenues are benefiting from a shift in our customers' priorities to MRO spending and our more diverse end market exposure is helping us overcome the weakness in the oil and gas markets. We are continuing to execute on our operational excellence priorities, including our supply chain initiatives and manufacturing rationalization program.

謝謝，格雷格。現在，如果您翻到投影片 9，我們將總結 2025 財年的展望。儘管大型專案市場的趨勢仍然低迷，但到目前為止，今年的情況大致符合我們的預期。我們的營運支出收入受益於客戶優先事項向 MRO 支出的轉變，而我們更多樣化的終端市場曝險正在幫助我們克服石油和天然氣市場的弱點。我們將繼續執行卓越營運的優先事項，包括我們的供應鏈計劃和製造合理化計劃。

These efforts helped drive savings in the first quarter, and we expect more progress from these and other operational efficiency programs over the balance of the year. As a result of these factors, we are maintaining our full year 2025 guidance that calls for revenue in the range of $527 million to $553 million, which includes expected revenue from Vapor Power of $55 million to $59 million, adjusted EBITDA in a range of $112 million to $120 million and adjusted EPS in a range of $1.90 to $2.06 per share. Historically, the seasonality in our business has resulted in roughly 55% to 56% of our revenue being generated in the back half of the year. And given the expected ramp in our large project revenue through this fiscal year, we have communicated and anticipate revenue to be more heavily back-end weighted to around 57% to 59% in fiscal 2025.

這些努力有助於推動第一季的節約，我們預計這些和其他營運效率計畫在今年餘下的時間裡會取得更多進展。由於這些因素，我們維持 2025 年全年指引，即收入在 5.27 億美元至 5.53 億美元之間，其中包括 Vapor Power 的預期收入 5500 萬美元至 5900 萬美元，調整後 EBITDA 在 112 美元範圍內百萬至1.2 億美元，調整後每股收益為1.90 至2.06 美元。從歷史上看，我們業務的季節性導致我們約 55% 至 56% 的收入產生於下半年。考慮到本財年我們大型專案收入的預期成長，我們已經溝通並預期 2025 財年收入將更加註重後端權重，達到 57% 至 59% 左右。

The team remains laser-focused on executing to achieve our FY '26 goals and objectives. Finally, just to wrap up things on slide 10, we were pleased with our first quarter results, which we think demonstrate the progress we've made in developing a business that is more stable, profitable and durable across a cycle. We're not nearly as reliant on large projects or the CapEx cycles in the oil and gas markets. Our large and growing installed base of loyal customers provides us with a resilient aftermarket franchise, which gives us access to a steady stream of predictable and highly profitable MRO revenues.

團隊仍然專注於執行以實現我們 26 財年的目標和目標。最後，在投影片 10 上總結一下，我們對第一季的業績感到滿意，我們認為這證明了我們在開發跨週期更穩定、盈利和持久的業務方面取得的進展。我們不太依賴石油和天然氣市場的大型專案或資本支出週期。我們龐大且不斷成長的忠實客戶群為我們提供了有彈性的售後市場特許經營權，這使我們能夠獲得穩定的可預測且高利潤的 MRO 收入。

We also remain well positioned to benefit from several powerful secular growth drivers. These include the energy transition and decarbonization, onshoring in North America and infrastructure spending. While the recent macro uncertainty has delayed some of this spending, we don't think that anything has changed to impact these long-term drivers, and we remain confident that this only serves to create pent-up demand when customer confidence improves. Lastly, we benefit from a high margin, low capital intensity business that yield significant cash flow.

我們還處於有利地位，可以從幾個強大的長期成長動力中受益。其中包括能源轉型和脫碳、北美本土外包和基礎設施支出。雖然最近的宏觀不確定性推遲了部分支出，但我們認為沒有任何變化會影響這些長期驅動因素，我們仍然相信，這只會在客戶信心改善時創造被壓抑的需求。最後，我們受惠於高利潤、低資本密集度的業務，可產生大量現金流。

This enabled us to quickly delever following the Vapor acquisition and leaves us in a strong financial position. We have ample flexibility to pursue our capital allocation priorities, which include investment in growth, both organic and through acquisition, capital returns and debt paydown, all with a focus on creating long-term shareholder value. That completes our prepared remarks. We're now ready for the question-and-answer portion of our call.

這使我們能夠在收購 Vapor 後迅速去槓桿化，並保持強勁的財務狀況。我們有足夠的靈活性來追求我們的資本配置優先事項，其中包括對有機成長和收購成長的投資、資本回報和債務償還，所有這些都注重創造長期股東價值。我們準備好的發言就到此結束了。我們現在已準備好進行電話問答部分。

(Operator Instructions) Brian Drab, William Blair.

（操作員說明）Brian Drab、William Blair。

Could we just start off by, Bruce, maybe you giving us a little more detail around your visibility to the project revenue recovering later this year? And are there certain projects that you have line of sight to? And what needs to happen for that revenue to come in?

布魯斯，我們可以先向我們介紹一下您對今年稍後專案收入恢復的了解嗎？您是否關注某些項目？需要做什麼才能獲得收入？

Yes, it's a great question, Brian, so I'll start with our pipeline of sales and project opportunities. That's all the opportunities that are 100,000 and greater. That pipeline is over $1 billion in revenue opportunities, and it's grown about 9% year-over-year. And so if I start there, and then I'll look at our quoting activity, it's up 12% to 13% year-over-year, so that's been quite strong.

是的，這是一個很好的問題，布萊恩，所以我將從我們的銷售和專案機會管道開始。這就是 100,000 個及以上的所有機會。該通路的收入機會超過 10 億美元，並且年增約 9%。因此，如果我從這裡開始，然後我會看看我們的報價活動，它同比增長了 12% 到 13%，所以這是相當強勁的。

And then, I look to just our incoming order rates with the positive book-to-bill, which this is the first positive book-to-bill we've had in a couple of quarters, so some of those trends are leading indicators. We'll need to continue to see book-to-bill being positive in Q2, but we feel like we have the pipeline of opportunities. The quote volume is there and our win rates are flat to improving. So we feel like we're very well positioned to capitalize on these opportunities as these projects move forward.

然後，我只關注我們的新訂單率和積極的訂單出貨比，這是我們幾個季度以來首次出現積極的訂單出貨比，因此其中一些趨勢是領先指標。我們需要繼續看到第二季的訂單出貨量呈現正面成長，但我們覺得我們有很多機會。報價量就在那裡，我們的勝率持平甚至有提高。因此，我們認為，隨著這些專案的進展，我們已經做好充分利用這些機會的準備。

Okay. Great. I mean, I'm still trying to sort through all the numbers. So maybe you just help us reconcile that positive move up 9% for the pipeline, up 13% quoting activity with what you're actually seeing in the backlog.

好的。偉大的。我的意思是，我仍在嘗試對所有數字進行排序。因此，也許您只是幫助我們將管道中 9% 的積極變化、13% 的報價活動與您在積壓訂單中實際看到的情況進行協調。

Yes. So as I look at backlog, if we look year-over-year, backlog was down year-over-year, 10%, but it was up 5% sequentially. And I'll just remind you that as we look at backlog, we're talking about these are the large projects in backlog. Typically, our flow business, our MRO business that we referenced in OpEx spending is in and out of backlog very quickly. And the fact that we had 85% of our revenues in our first quarter were tied to these types of revenues really speaks to the flow and the velocity.

是的。因此，當我查看積壓訂單時，如果我們逐年查看，積壓訂單比去年同期下降了 10%，但環比增長了 5%。我只是提醒您，當我們查看待辦事項時，我們談論的是這些待辦事項中的大型專案。通常，我們在營運支出支出中提到的流程業務、MRO 業務的積壓工作非常快。事實上，我們第一季 85% 的收入都與這些類型的收入相關，這確實說明了流量和速度。

It comes in and out of backlog within the period, so I think two things to note. One is the backlogs have risen sequentially based on the positive book-to-bill. Second, the change in mix to more OpEx spending, which we're very well positioned with our large installed base to be able to capitalize on. Those two things are the dynamics that we're looking at in backlog year-over-year and sequentially.

在此期間，它會出現積壓的情況，所以我認為有兩件事需要注意。一是積壓訂單在訂單出貨比積極的基礎上連續上升。其次，組合的變化導致更多的營運支出支出，我們擁有龐大的安裝基礎，可以充分利用這一點。這兩件事是我們逐年連續觀察積壓情況的動態。

Got it. So at the moment, when you have a mix like this, the backlog kind of becomes less relevant, it really does.

知道了。所以目前，當你有這樣的組合時，積壓工作就變得不那麼重要了，確實如此。

Yes. Particularly, when we're talking about OpEx revenues.

是的。特別是當我們談論營運支出收入時。

Yes. Maybe just one more question for now. And I may have missed, but did you mention what percentage of orders coming in or what percent of the backlog is tied to decarbonization and renewables and how is that trending?

是的。也許現在還有一個問題。我可能錯過了，但你有沒有提到有多少百分比的訂單或積壓訂單與脫碳和再生能源有關，以及趨勢如何？

Yes, it was $9 million in orders during the quarter and 7% of total bookings.

是的，該季度的訂單量為 900 萬美元，佔總預訂量的 7%。

Got it. Okay.

知道了。好的。

The pipeline has grown to $320 million, up from roughly $250 million at the end of our fiscal '24.

該管道已從 2024 財年末的約 2.5 億美元增至 3.2 億美元。

That's good to know.

很高興知道這一點。

Justin Ages, CJS Securities.

賈斯汀·艾格斯 (Justin Ages)，CJS 證券。

Can you unpack the diversified end markets a bit, good progress on that, but I wanted to get your thoughts on food and beverage, transport, what trends you're seeing in those end markets?

您能否稍微解釋一下多元化的終端市場，這方面進展良好，但我想了解您對食品和飲料、交通的看法，以及您在這些終端市場看到的趨勢是什麼？

Yes. The areas we've seen the most activity have really been in petrochemical power has been very strong as we look there. Certainly, some of the opportunities that we've seen around infrastructure and rail and transit as we look forward, those are all significant opportunities. And I did note some of the building pipeline of opportunities we have in decarbonization and electrification opportunities that is really spread across a wide range of end markets.

是的。我們看到最活躍的領域實際上是石化電力，正如我們所看到的那樣，該領域的表現非常強勁。當然，我們在基礎設施、鐵路和交通領域看到的一些機遇，正如我們所期望的那樣，這些都是重大機會。我確實注意到我們在脫碳和電氣化方面的一些正在建造的機會，這些機會確實分佈在廣泛的終端市場。

I appreciate that color. And then -- sure. Go ahead.

我很欣賞那種顏色。然後——當然。前進。

Yes. One other thing to note, we do have a significant number of opportunities in the LNG liquefaction facilities, particularly in North America.

是的。另一件值得注意的事情是，我們在液化天然氣液化設施方面確實有大量機會，特別是在北美。

Okay. And then on capital allocation strategy, can you give us an update on what you're seeing in the M&A market, especially as it pertains to reaching that $600 million to $700 million kind of revenue target for fiscal '26?

好的。然後關於資本配置策略，您能否向我們介紹您在併購市場中看到的最新情況，特別是與實現 26 財年 6 億至 7 億美元的收入目標有關的情況？

Yes. First of all, we have a really healthy pipeline of M&A opportunities that we believe are actionable within the next 12 to 18 months, so I think that's very positive. Certainly, our balance sheet is in good shape. These things are binary. So certainly, it's a win or lose scenario, but we think we're very well positioned, and we see a number of opportunities that really fit squarely within our strategic initiatives.

是的。首先，我們擁有非常健康的併購機會管道，我們相信這些機會在未來 12 到 18 個月內是可行的，所以我認為這是非常積極的。當然，我們的資產負債表狀況良好。這些東西都是二元的。因此，當然，這是一個贏或​​輸的情況，但我們認為我們處於非常有利的位置，並且我們看到了許多真正適合我們策略舉措的機會。

(Operator Instructions) Jon Braatz, Kansas City Capital.

（操作員說明）Jon Braatz，堪薩斯市首府。

Bruce, just back when we look at the big project and the prospects for business in that area. Should the spending on the CapEx budgets begin to increase, let's say, after the election with some interest rate cuts, would you see a cut in sort of the operating expense budgets? What kind of give and take between those two budgets are there for your clients?

布魯斯，剛才我們正在研究這個大項目以及該領域的業務前景。如果資本支出預算的支出開始增加，比如說，在大選後進行了一些降息，您會看到營運支出預算有所削減嗎？對於您的客戶來說，這兩個預算之間有什麼樣的取捨？

I really don't believe they're closely related. Operating expenditures are much less susceptible to economic cycles. And I really view those as being fairly stable. It's one of the reasons we've really focused to have that be a larger part of our incoming revenue stream, so I'd start there.

我真的不相信他們有密切的關係。營運支出受經濟週期的影響要小得多。我確實認為這些相當穩定。這就是我們真正專注於讓其成為我們收入來源的很大一部分的原因之一，所以我將從這裡開始。

As far as the CapEx, as I look at this, the customers that we've spoken with haven't had significant cuts in CapEx budgets. In fact, in most cases, they're flat. And in some cases, they're even projected to increase this year. But what we've seen, particularly in the last two quarters, our fourth quarter of '24 and into this quarter, we have seen a slowdown in decision-making.

就資本支出而言，據我觀察，與我們交談過的客戶並未大幅削減資本支出預算。事實上，在大多數情況下，它們是平坦的。在某些情況下，預計今年的數量甚至會增加。但我們所看到的，特別是在過去兩個季度，即 24 年第四季度以及進入本季度，我們發現決策速度有所放緩。

So we continue to see that pipeline of opportunities grow, but the time between when that's quoted and when we actually receive orders has become more protracted. So our hope would be in the latter part of this year, we get through and maybe get some clarity from the Fed around interest rates as well as around the election that customers would feel more comfortable in moving forward with some of that spending.

因此，我們繼續看到機會的管道正在成長，但報價與我們實際收到訂單之間的時間變得更加漫長。因此，我們希望在今年下半年，我們能夠度過難關，也許聯準會會就利率和選舉問題提供一些明確的訊息，讓客戶對推進部分支出感到更加放心。

Sure. Any sense on your part that there was some catch-up in the maintenance spending by your clients?

當然。您是否感覺到客戶的維護支出增加？

No, that's long in the rearview mirror from like two years back.

不，那是兩年前的事了。

Yes. Okay. Good. And then on Vapor, I think that's going to be a very nice acquisition. Are you seeing things fall into place for Vapor as you expected? And secondly, maybe is there an expectation that maybe Vapor will contribute more and growth at Vapor can accelerate a little bit because of these electrification trends that we're seeing?

是的。好的。好的。然後對於 Vapor，我認為這將是一次非常好的收購。您是否看到 Vapor 的一切都如您所預期的那樣順利？其次，也許由於我們看到的這些電氣化趨勢，Vapor 會做出更多貢獻，Vapor 的成長會加速一點嗎？

So Vapor, first of all, strategically, we're beginning to see that it's probably even a little better as far as the opportunities in the marketplace that we're seeing, particularly around electrification. And I would highlight particularly the electrode boiler line as well as our resistance electric boilers. And really that shift from hydrocarbon-fired heating and industrial processes to electric. So that trend has been positive. I think the other thing that's really surprised us to the upside is just the number of inquiries we've received in our sales organization and our traditional channels having added Vapor to the mix.

因此，首先，從策略上講，我們開始看到，就我們所看到的市場機會而言，它可能會更好一點，特別是在電氣化方面。我要特別強調電極鍋爐系列以及我們的電阻電鍋爐。確實是從碳氫化合物加熱和工業流程轉向電力。所以這種趨勢是正面的。我認為另一件真正令我們驚訝的事情是我們在銷售組織和傳統管道中收到的詢問數量，其中添加了 Vapor。

So we're really getting better market coverage, and we're seeing more opportunities. Quite frankly, right now, our biggest challenge is scaling capacity, and we're focused on implementing the Thermon Business System in the Vapor Power operations, both in Franklin Park and Morristown. And so we're heavy at work trying to unlock capacity there that would give us the ability to deliver upside to the current plan. I can tell you there's work to be done.

因此，我們確實獲得了更好的市場覆蓋，並且看到了更多機會。坦白說，目前我們最大的挑戰是擴大產能，我們專注於在富蘭克林公園和莫里斯敦的蒸氣發電業務中實施 Thermon 業務系統。因此，我們正在努力釋放那裡的產能，這將使我們有能力為當前計劃帶來好處。我可以告訴你還有工作要做。

Our teams are busy, really working on those opportunities to debottleneck and improve both the supply chain as well as manufacturing capacity in our facilities. And so certainly, that would be our hope, maybe if not in this year, to see upside in the coming years as we build capacity in that operation.

我們的團隊非常忙碌，真正致力於抓住這些機會來消除瓶頸並改善供應鏈以及我們工廠的製造能力。因此，當然，這將是我們的希望，也許如果不是今年的話，我們希望在未來幾年隨著我們在該業務中的能力建設而看到積極的一面。

Would you envision an increase in your cap spending to support the growth at Vapor? A new facility or expanded facility beyond improving supply chain and other things?

您是否會增加支出上限以支持 Vapor 的成長？除了改善供應鏈和其他方面之外，還有新設施或擴建設施嗎？

We believe our current estimates for CapEx include capital to debottleneck and increase capacity within those operations. But on a go-forward basis, as things evolve, certainly, in subsequent years, we might see that there could be additional CapEx depending on if demand ramps faster than what we had originally contemplated.

我們認為，我們目前對資本支出的估計包括消除瓶頸和增加這些業務產能的資本。但在未來的基礎上，隨著事情的發展，當然，在接下來的幾年裡，我們可能會看到可能會有額外的資本支出，這取決於需求的成長速度是否快於我們最初的預期。

We reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

我們的問答環節結束了。我想重新發言以徵求進一步的意見或結束意見。

Kevin, thank you. And again, I'd like to thank our Thermon employees around the globe for serving our customers with excellence each and every day. And I'd like to thank all of you for your time and interest in Thermon. If we don't speak during the quarter, we look forward to speaking to you again on our next quarterly call. Have a good day.

凱文，謝謝你。再次，我要感謝全球賽盟員工每天為我們的客戶提供卓越的服務。我要感謝大家花時間關注 Thermon。如果我們在本季度不講話，我們期待在下一個季度電話會議上再次與您交談。祝你有美好的一天。

Thanks, everyone.

謝謝大家。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。