Thermon Group Holdings Inc (THR) 2025 Q3 法說會逐字稿

Greetings and welcome to the Thermon Group Holdings third quarter fiscal year 2025 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

問候並歡迎參加賽盟集團控股 2025 財年第三季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to your host, Ivonne Salem, Vice President of FP&A and Investor Relations. Thank you. You may begin.

現在，我將會議交給主持人、FP&A 和投資者關係副總裁 Ivonne Salem。謝謝。你可以開始了。

Thank you. Good morning and thank you for joining Thermo Group's fiscal 2025 third-quarter results conference call. Leading the call today are CEO, Bruce Thames; and Chief Financial Officer, Jan Schott.

謝謝。早安，感謝您參加Thermo Group 2025財年第三季業績電話會議。今天主持電話會議的是執行長布魯斯泰晤士 (Bruce Thames)；和財務長 Jan Schott。

Earlier this morning, we issued an early press release which has been filed with the SEC on a 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 - Q3 2025.

今天早些時候，我們發布了一份早期新聞稿，該新聞稿已以 8-K 表格的形式提交給美國證券交易委員會 (SEC)，您也可以在我們網站的「投資者關係」部分查閱。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」、「收益電話會議 - 2025 年第三季」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 a substitute for measures of financial performance reported in accordance with GAAP.

在通話中，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 GAAP 指標進行協調。這些非 GAAP 指標應被視為依照 GAAP 報告的財務績效指標的補充，而不是替代。

I would like to remind you that during this call, we might make certain point statements regarding our company. 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.

我想提醒您，在這次通話中，我們可能會就我們的公司發表一些觀點。有關我們的前瞻性陳述的更多信息，包括可能影響我們未來業績的風險和不確定性，請參閱我們向美國證券交易委員會提交的年度報告和最新季度報告。

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, further developments or otherwise, except as may be required by law.

我們的實際結果可能與這些前瞻性陳述所預期的結果有重大差異，我們不承擔因新資訊、進一步發展或其他原因而公開更新任何前瞻性陳述的義務，除非法律可能要求。

Today's call will begin with remarks from our CEO, Bruce, who will provide a review of our recent business performance, including an update on the progress we have made to our strategic investments followed by a financial update and review from our CFO, Jan Schott.

今天的電話會議將以我們執行長布魯斯的演講開始，他將回顧我們最近的業務表現，包括我們在戰略投資方面取得的進展的最新情況，隨後是我們首席財務官簡·肖特 (Jan Schott) 的財務最新情況和回顧。

Bruce will then wrap up our prepared remarks with an update on our business outlook. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Bruce.

布魯斯隨後將總結我們準備好的演講並介紹我們的業務前景。在這些準備好的發言結束後，我們將開放提問專線。說完這些，我將把電話轉給布魯斯。

Thank you, Ivonne, and good morning to everyone joining us on the call today. I'll begin my commentary with the third-quarter highlights, which we detailed on slide 3 of our presentation.

謝謝你，伊馮娜，早安，今天參加我們電話會議的所有人。我將從第三季的亮點開始我的評論，我們在簡報的第 3 張投影片中對此進行了詳細介紹。

The third quarter was another period of solid execution by our global team which resulted in continued strength in our OpEx-related revenue, bookings momentum, strong margin capture, and efficient free cash flow conversion. Based on our discipline and execution against our strategic priorities, the cash flow generation of this business and our strong balance sheet, we are strategically positioned to benefit from the improving demand drivers which we expect will translate to an improved growth trajectory in the coming quarters.

第三季是我們全球團隊又一個穩健執行的時期，這使得我們的營運支出相關收入、訂單量勢頭、強勁的利潤率和高效的自由現金流轉換繼續保持強勁。基於我們對戰略重點的紀律和執行、該業務的現金流創造以及強勁的資產負債表，我們在戰略上處於有利地位，可以從不斷改善的需求驅動因素中受益，我們預計這將轉化為未來幾季改善的成長軌跡。

We continue to benefit from our strategic focus on diversifying our revenue base and increasing our exposure to short cycle projects and MRO-related recurring revenue. This has resulted in a revenue base that is both more stable and more profitable.

我們繼續受益於我們的策略重點，即多元化我們的收入基礎以及增加我們對短週期專案和MRO相關經常性收入的投資。這使得收入基礎更加穩定且更有利可圖。

We were also encouraged by the continued momentum and order trends during the third quarter and our strong backlog growth. Our orders increased 11% on a reported basis and grew up modestly organically on a constant currency basis. This resulted in another quarter with a positive book to bill.

第三季持續的動能和訂單趨勢以及強勁的積壓訂單成長也令我們感到鼓舞。我們的訂單量以報告基礎計算增加了 11%，以固定匯率計算則實現了適度的自然成長。這使得該季度又出現了訂單出貨比正值。

Importantly, our backlog increased nearly 38% on a reported basis and was up 9% organically. This strong backlog growth is being driven by the solid order trends as well as the slightly extended backlog conversion I discussed last quarter. While the solar backlog burn has been a bit of a headwind to our near-term revenue growth, the higher backlog and heavy workload in engineering gives us increased visibility and growing confidence in our growth trends moving forward.

重要的是，我們的積壓訂單按報告基礎增加了近 38%，並且有機增長了 9%。強勁的積壓訂單成長是由穩固的訂單趨勢以及我上個季度討論過的略微延長的積壓訂單轉換推動的。雖然太陽能訂單積壓對我們近期的收入成長造成了一些阻力，但更高的訂單積壓和繁重的工程工作量使我們對未來的成長趨勢有了更大的了解和信心。

The favorable business mix was the key driver that enabled us to generate an adjusted EBITDA margin of nearly 24% during the third quarter, which came despite a modest margin drag from our recent acquisitions. While mix was a key factor in the improvement, we also benefited from the cost savings and productivity initiatives we've instituted across the business.

良好的業務組合是我們在第三季實現近 24% 調整後 EBITDA 利潤率的關鍵驅動因素，儘管我們最近的收購對利潤率造成了輕微拖累。雖然組合是改進的關鍵因素，但我們也受益於整個企業實施的成本節約和生產力措施。

We were very pleased with our margin capture during the quarter and believe our third quarter of profitability highlights the overall margin potential for the business providing confidence in the ability to achieve our long-term profitability targets.

我們對本季的利潤率非常滿意，並相信第三季度的盈利能力凸顯了業務的整體利潤潛力，為我們實現長期盈利目標的能力提供了信心。

And finally, our strict financial discipline resulted in strong free cash flow conversion during the quarter. In the first nine months of fiscal 2025, we've generated $24 million in free cash flow, which is up $3 million from last year despite slightly lower EBITDA. As a result, we paid down $12 million in debt during the third quarter, bringing our net leverage at quarter end down to just over 1 times.

最後，我們嚴格的財務紀律使得本季的自由現金流轉換強勁。在 2025 財年的前九個月，我們產生了 2,400 萬美元的自由現金流，儘管 EBITDA 略有下降，但仍比去年增加了 300 萬美元。結果，我們在第三季償還了 1,200 萬美元的債務，使季末的淨槓桿率降至略高於 1 倍。

So with that, I'd like to turn the third quarter results starting on slide 4. Jan will cover the financials in more detail, but I want to highlight a few key items. While we are focused on growing our diversified end markets, oil and gas remains an important end market for our business, and we are seeing improving trends in this sector. As already discussed, we continue to experience improved order intake during the third quarter, which was driven by broad market strength including solid trends in chemical petrochemical, transit, general industrial, in addition to a rebound in oil and gas.

因此，我想從第 4 張投影片開始介紹第三季的業績。Jan 將更詳細地介紹財務狀況，但我想強調幾個關鍵項目。雖然我們專注於發展多元化的終端市場，但石油和天然氣仍然是我們業務的重要終端市場，我們看到該領域的改善趨勢。正如前面所討論的，我們在第三季度繼續經歷訂單量的增加，這是由廣泛的市場實力推動的，包括化學石化、運輸、一般工業的穩健趨勢，以及石油和天然氣的反彈。

We're still seeing extended decision cycles on larger capital projects where we believe customer confidence is improving and we remain encouraged by the growing opportunities pipeline and strong quoting activity. The recent aggressive and broad approach to tariffs has unfortunately created additional uncertainty in the business. With the given nature of trade-offs underway, the final outcomes are in question and we have not yet fully contemplated the potential impact on customer behaviors and the business.

我們仍然看到大型資本項目的決策週期延長，我們相信客戶信心正在增強，不斷增長的機會管道和強勁的報價活動讓我們感到鼓舞。不幸的是，最近激進而廣泛的關稅政策為業務帶來了額外的不確定性。由於正在進行的權衡取捨的性質，最終結果仍有疑問，我們尚未完全考慮到對客戶行為和業務的潛在影響。

However, I would like to take a moment to reinforce Thermon's manufacturing strategy. We would like to be close to our customers with our people, our services, and our manufacturing operations. Our footprint in both the US and Canada allow us to produce in country to be responsive to customer needs.

不過，我想花一點時間來強調 Thermon 的製造策略。我們希望透過我們的員工、我們的服務和我們的製造業務更加貼近我們的客戶。我們在美國和加拿大均有業務，這使我們能夠在國內生產以滿足客戶的需求。

Our acquisition of [Fabbrica] is a further move in this direction. While improving our competitive position, this approach also serves as a natural heads to fluctuations in currency and import duties. We'll be monitoring these trade negotiations closely as the magnitude, breadth, and duration of tariffs becomes clearer. Jan will talk more about the potential exposure later in the call.

我們對[Fabbrica]的收購是朝著這個方向邁出的又一步。在提高我們競爭地位的同時，這種方法也自然而然地成為了應對貨幣和進口關稅波動的一種方式。隨著關稅的幅度、廣度和持續時間變得更加清晰，我們將密切關注這些貿易談判。Jan 稍後將在電話會議中進一步討論潛在的風險。

Our reported revenues declined by 2% during the quarter driven by the ongoing pressure in large CapEx projects. However, our short-cycle revenues remain resilient. Turning to slide 5. Our OpEx revenues increased 13% during the third quarter and were essentially flat organically despite the challenging CapEx spending environment in our business.

由於大型資本支出項目持續的壓力，我們報告的收入在本季下降了 2%。然而，我們的短週期收入依然保持彈性。翻到幻燈片 5。儘管我們的業務面臨嚴峻的資本支出環境，但我們的營運支出收入在第三季成長了 13%，並且基本上保持穩定。

On a trailing 12-month basis, our OpEx revenues represented 84% of our total revenues up from the low 7% range just a few years ago. We do anticipate a rebound in large capital expenditures which will have an impact on the mix. But the increased exposure to OpEx revenue should continue to provide a more predictable and profitable revenue stream going forward.

在過去 12 個月中，我們的營運支出收入佔總收入的 84%，而幾年前這一比例僅為 7% 以下。我們確實預計大規模資本支出將出現反彈，這將對組合產生影響。但營運支出收入的增加應會繼續為未來提供更可預測且更有利可圖的收入來源。

In addition to improving our revenue stability, our evolving business mix is driving enhanced margin performance. Our 23.7% adjusted EBITDA margin during the quarter was our highest quarterly margin performance in two years and has enabled us to grow our third-quarter EBITDA despite the modest revenue decline.

除了提高我們的收入穩定性之外，我們不斷發展的業務組合也推動了利潤率的提高。本季度，我們的調整後 EBITDA 利潤率為 23.7%，是兩年來最高的季度利潤率表現，儘管收入略有下降，但這仍使我們第三季的 EBITDA 有所增長。

Now turning to slide 6 in our strategic pillars. We continue to make important progress on our strategic priorities during the third quarter as evidenced by our favorable OpEx revenue trends, margin expansion, and backlog growth. And a key aspect of our strategy has been our goal to reduce exposure to the gas sector. As I discussed last quarter, we achieved our FY26 goal of generating at least 70% of revenues from diversified in markets.

現在轉到我們的策略支柱中的第 6 張投影片。第三季度，我們在策略重點上持續取得重要進展，這體現在我們的營運支出收入趨勢良好、利潤率擴大和積壓訂單成長。我們策略的一個關鍵方面是減少對天然氣產業的投資。正如我上個季度所討論的那樣，我們實現了 26 財年的目標，即至少 70% 的收入來自多元化市場。

While we remain committed to maintaining or further improving this metric, oil and gas is still an important market for Thermon. So we've been encouraged by the recent momentum we've seen in this business. In particular, we've seen a pickup in our Canadian oil and gas business driven by increased maintenance activity and joint programs to support LG export and additional export capacity with the newly conditioned Trans Mountain pipeline.

雖然我們仍致力於維持或進一步改善這項指標，但石油和天然氣仍然是 Thermon 的重要市場。因此，我們對該業務近期的發展勢頭感到鼓舞。特別是，我們看到加拿大石油和天然氣業務的回暖，這得益於維護活動的增加以及支持 LG 出口和新修建的 Trans Mountain 輸油管道增加出口能力的聯合計劃。

I will discuss our end market out in more detail later in my remarks, but we are encouraged by some of the pockets of (inaudible) with oil and gas and expect we could see further momentum given the priorities of the new administration. We remain focused on our disciplined in capital allocation strategy which is based on a balanced approach between investments and organic growth, strategic M&A, maintaining financial flexibility, and opportunistic return of capital.

我將在稍後的演講中更詳細地討論我們的終端市場，但我們對石油和天然氣領域的一些表現感到鼓舞，並預計考慮到新政府的優先事項，我們可以看到進一步的發展勢頭。我們仍然專注於嚴謹的資本配置策略，該策略基於投資與有機成長、策略併購、維持財務靈活性和機會性資本回報之間的平衡方法。

We continue to successfully integrate the recently acquired Vapor Power and F.A.T.I businesses. F.A.T.I generated solid financial results during our first quarter of owning the business. At Vapor power, we continue to see strong backlog trends and are focused on expanding capacity to convert the current backlog while building on the strong market momentum.

我們持續成功整合最近收購的 Vapor Power 和 F.A.T.I 業務。F.A.T.I 在我們擁有該業務的第一個季度取得了穩健的財務業績。在 Vapor power，我們繼續看到強勁的積壓趨勢，並專注於擴大產能以轉換當前的積壓，同時鞏固強勁的市場勢頭。

We purchased 6.2 million of our shares thus far during fiscal '25 and have approximately 33 million remaining under our $50 million share repurchase program. We continue to see a robust M&A pipeline and with our current leverage comfortably below our 1.5 times to 2 times net leverage range, leaving us in a strong position to continue to execute on our capital allocation priorities.

截至目前，我們在 25 財年已回購了 620 萬股股票，並且根據我們的 5,000 萬美元股票回購計劃，還剩餘約 3,300 萬股。我們繼續看到強勁的併購管道，我們目前的槓桿率遠低於 1.5 倍至 2 倍的淨槓桿率範圍，這使我們能夠繼續有利地執行我們的資本配置優先事項。

With that, I'll turn it over to Jan who will provide a more detailed review of our third-quarter results before I wrap up with some remarks on our financial outlook.

說完這些，我將把發言權交給 Jan，他將對我們的第三季業績進行更詳細的回顧，然後我會對我們的財務前景發表一些評論。

Thank you, Bruce, and good morning, everyone. I will review financial results for the quarter, give an update on working capital and free cash flow, and conclude with comments on the balance sheet and liquidity.

謝謝你，布魯斯，大家早安。我將回顧本季的財務結果，更新營運資本和自由現金流，並對資產負債表和流動性進行評論。

Moving now to slide 7, revenue in the third quarter was $134.4 million, a year-on-year, year-over-year decrease of 1.5%. Vapor Power and F.A.T.I. combined to contribute $13 million of revenue during the third quarter. Acquisition revenues coupled with continued resilience and OpEx revenues mitigated the impact of the ongoing headwinds in our large project business.

現在轉到第 7 張投影片，第三季的營收為 1.344 億美元，年減 1.5%。Vapor Power 和 F.A.T.I.合計在第三季貢獻了 1,300 萬美元的收入。收購收入加上持續的彈性和營運支出收入減輕了我們大型專案業務持續逆風的影響。

Excluding Vapor Power and F.A.T.I. third-quarter organic sales decreased 11% versus record results last year, mostly from large project sales. Large project revenue was $18.6 million during the third quarter, down 45% from last year as customers continue to delay decisions on large capital projects. Geographically, this weakness was primarily in the US Latin American region and was fairly consistent across our verticals -- our various small verticals.

不包括 Vapor Power 和 F.A.T.I.第三季度有機銷售額與去年的創紀錄業績相比下降了 11%，主要來自大型項目的銷售。第三季大型專案收入為 1,860 萬美元，較去年下降 45%，因為客戶繼續推遲對大型資本專案的決策。從地理上看，這種弱點主要出現在美國拉丁美洲地區，並且在我們的垂直行業（各個小型垂直行業）中相當一致。

Our OpEx revenues were $115.8 million during the third quarter, an increase of 12.6% compared to last year as our customers continue to prioritize maintenance and repair spending. Excluding the contributions from Vapor Power and F.A.T.I., our OpEx revenues were essentially flat in the quarter. We believe that the stable results in our OpEx revenues despite the challenging capital spending environment demonstrate the benefits of our long-term customer relationships, deep installed base, and the resilience of MRO spending by our customers.

由於我們的客戶繼續優先考慮維護和維修支出，我們的第三季營運支出收入為 1.158 億美元，比去年增長 12.6%。除去 Vapor Power 和 F.A.T.I. 的貢獻，我們的營運支出收入在本季基本持平。我們相信，儘管面臨嚴峻的資本支出環境，我們的營運支出收入仍然保持穩定，這證明了我們與客戶的長期關係、深厚的安裝基礎以及客戶 MRO 支出的彈性所帶來的好處。

Demand in Canada remains favorable with sales of $43.5 million, up 6% year over year. EMEA sales were $13.8 million, up 11%. APAC sales of $9.8 million declined 3% and US Latin America sales of $67.2 million declined 8% driven by the continued contraction in large project sales.

加拿大的需求依然良好，銷售額為 4,350 萬美元，年增 6%。歐洲、中東和非洲地區的銷售額為 1,380 萬美元，成長 11%。亞太地區銷售額為 980 萬美元，下降 3%，美國拉丁美洲銷售額為 6,720 萬美元，下降 8%，原因是大型專案銷售持續萎縮。

As we were discussing our geographic exposure, we'll take a quick minute to build on Bruce's comments regarding tariffs. At this point, the tariff situation is very [fluid], and it is clearly too early to predict what the ultimate impact might be on the business. Importantly, as Bruce already highlighted, our manufacturing strategy to be close to our customer helps insulate us from any potential tariffs.

當我們討論我們的地理暴露時，我們將花一點時間來快速闡述藍調關於關稅的評論。目前，關稅情況非常不穩定，顯然預測其最終會對業務產生什麼影響還為時過早。重要的是，正如布魯斯已經強調的那樣，我們的製造策略是貼近客戶，這有助於我們免受任何潛在關稅的影響。

Our total cost of goods sold exposed to US-Canada tariffs is roughly 10% and our products were not impacted by the initial countermeasures Canada had proposed. We believe that our Mexico and China exposure is limited given we have no manufacturing presence, and the combined markets represent roughly 5% of revenue.

我們受美加關稅影響的總銷售成本約為 10%，而且我們的產品並未受到加拿大最初提出的反制措施的影響。我們認為，由於我們沒有製造業基地，我們在墨西哥和中國的影響力有限，這兩個市場的合併收入約佔總收入的 5%。

Adjusted EBITDA was $31.8 million during the third quarter, up from $30.7 million last year, an increase of 3% due to strength in our short-cycle revenues and the contributions from Vapor Power and F.A.T.I. These were partially offset by declines in our project revenue and continued investments in growth initiatives. Adjusted EBITDA margin was 23.7% during the third quarter, up from 22.5% last year due to a more favorable revenue mix and productivity gains from operational excellence initiatives.

第三季調整後 EBITDA 為 3,180 萬美元，高於去年的 3,070 萬美元，成長 3%，這得益於我們的短週期收入強勁以及 Vapor Power 和 F.A.T.I. 的貢獻。這些部分被我們專案收入的下降和對成長計劃的持續投資所抵消。第三季調整後 EBITDA 利潤率為 23.7%，高於去年的 22.5%，這得益於更有利的收入組合和卓越營運措施帶來的生產力提高。

Orders during the third quarter were $139 million compared to $124 million in the same period last year, an increase of 11.4%. We saw broad momentum in our order trends highlighted by notable strength in petrochem, transit, and oil and gas. Importantly, nearly 70% of our income in orders in the quarter were once again from diverse end markets. As a result of the solid order momentum, backlog was $235.6 million at the end of the third quarter, up 48% compared to the third quarter last year.

第三季訂單金額為1.39億美元，較去年同期的1.24億美元成長11.4%。我們看到訂單趨勢呈現出廣泛的勢頭，尤其突出的是石化、運輸、石油和天然氣領域的強勁表現。重要的是，本季我們訂單收入的近 70% 再次來自不同的終端市場。由於訂單勢頭強勁，第三季末積壓訂單為 2.356 億美元，比去年第三季成長 48%。

Excluding Vapor Power and F.A.T.I., backlog increased 9% on an organic basis. Moving to slide 8 for an update on our balance sheet and liquidity, working capital decreased by 7% to $177.2 million at the end of the quarter as we continue to supply chain optimization efforts while improving lead times and on-time deliveries to our customers.

不包括 Vapor Power 和 F.A.T.I.，積壓訂單有機成長了 9%。前往投影片 8 以了解我們的資產負債表和流動性的最新情況，由於我們繼續努力優化供應鏈，同時縮短交貨時間並按時交付給客戶，因此本季末營運資本減少了 7％ 至 1.772 億美元。

CapEx was $1.4 million during the third quarter of '25, down from $2.2 million last year. As a result of our strict financial discipline, free cash flow was $8.5 million in the quarter, bringing our year-to-date free cash flow to $24 million, up $3 million or 14% from the same period last year. We believe our focus on working capital management and solid operating results will deliver another year of strong free cash flow conversion.

25 年第三季的資本支出為 140 萬美元，低於去年的 220 萬美元。由於我們嚴格的財務紀律，本季的自由現金流為 850 萬美元，使我們年初至今的自由現金流達到 2,400 萬美元，比去年同期增加 300 萬美元，增幅為 14%。我們相信，我們對營運資本管理和穩健經營績效的關注將帶來另一年強勁的自由現金流轉換。

We paid down $12 million of debt during the quarter, bringing our net debt balance to $115 million. Net leverage was 1.1 times at the end of the third quarter, down from 1.5 times last year. This past October, we completed the consolidation of our Denver facility and the sale of the property which brought in net cash of $5.8 million and a gain of about $3 million in the quarter.

我們在本季償還了 1,200 萬美元的債務，使淨債務餘額達到 1.15 億美元。第三季末，淨槓桿率為1.1倍，低於去年的1.5倍。去年 10 月，我們完成了丹佛工廠的合併和財產的出售，這為本季帶來了 580 萬美元的淨現金和約 300 萬美元的收益。

In summary, we are pleased with our financial execution during the quarter as we made further progress on operational excellence initiatives, and we generated strong free cash flow which enabled us to reduce our leverage. Based on our total cash and available liquidity of $136 million, we remain well capitalized and have ample flexibility to continue to support our capital allocation needs, which will be a balance of investment and growth, debt paydown, and opportunistic share repurchases.

總而言之，我們對本季的財務執行感到滿意，因為我們在卓越營運計劃方面取得了進一步的進展，並且產生了強勁的自由現金流，這使我們能夠降低槓桿率。基於我們的 1.36 億美元的總現金和可用流動資金，我們仍然資本充足，並有足夠的靈活性來繼續支持我們的資本配置需求，這將是投資和成長、債務償還和機會性股票回購之間的平衡。

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

說完這些，我將把電話轉回給布魯斯。

Thanks, Jan. Before I wrap up with our financial outlook, I thought it might be helpful to provide some updated thoughts on what we're seeing in some of our key markets as the [interviewing] calendar year, particularly with the new administration taking over.

謝謝，Jan。在我總結我們的財務展望之前，我認為提供一些最新的想法可能會有所幫助，這些想法涵蓋了我們在[採訪]日曆年中看到的一些主要市場的情況，特別是在新政府上台之後。

Over the last several quarters, the industry has faced headwinds due to the pause in large project capital spending, particularly in US LatAm. We believe the delayed investment decision timelines over the last year were due in large part to the uncertainty surrounding interest rates, the Presidential election, and the overall economy.

過去幾個季度，由於大型專案資本支出暫停，該行業面臨阻力，尤其是在美國拉美地區。我們認為，過去一年投資決策時間的延遲很大程度上是由於利率、總統選舉和整體經濟的不確定性。

While the timing and magnitude and further (inaudible), it is yet to be determined and the macroeconomic environment is still uncertain. Customer confidence appears to be improving particularly with the election now behind us. While our overall momentum in Q4 remain robust, we haven't yet been able to assess how the threat of tariffs may impact customer behavior going forward.

雖然時間和規模以及進一步（聽不清楚）尚未確定，宏觀經濟環境仍不確定。隨著選舉的結束，顧客信心似乎正在增強。雖然我們第四季的整體動能依然強勁，但我們還無法評估關稅威脅可能如何影響未來的客戶行為。

The improved [automotive] and quoting activity we've witnessed over the last couple of quarters have been broad-based. I'd like to provide some color on some of the key areas of strength. First, while we are focused on growing our diversified end markets, oil and gas remains an important end market for our business and we're seeing improving trends in this sector.

過去幾個季度，我們見證了汽車行業和報價活動的全面改善。我想就一些關鍵的優勢領域提供一些說明。首先，雖然我們專注於發展多元化的終端市場，但石油和天然氣仍然是我們業務的重要終端市場，我們看到該領域的改善趨勢。

LNG project activity has notably increased following the lifting of the hold previously placed on new LNG export permits. Given our technical capabilities and customer relationships, we are well positioned to benefit as project activity resumes.

隨著先前對新的液化天然氣出口許可證的限制被取消，液化天然氣計畫活動顯著增加。鑑於我們的技術能力和客戶關係，我們完全有能力在專案活動恢復時獲益。

We continue to see favorable trends in our power business due in large part to increasing demands on the current on the grid driven by growth in population, data centers, and EVs. The current administration recently announced Project Stargate which will provide up to $500 billion in funding for computing infrastructure in support of AI. This program has made $100 billion of funding available immediately with 10 data centers already under construction in Texas.

我們的電力業務繼續呈現良好趨勢，這在很大程度上是由於人口、資料中心和電動車的成長推動了對電網電流的需求不斷增加。現任政府最近宣布了星際之門計劃，該計劃將為支援人工智慧的運算基礎設施提供高達 5000 億美元的資金。該計劃已立即提供 1000 億美元的資金，目前德州已有 10 個資料中心正在建造中。

In slide 9, we see an example of an electric boiler being used as load banks in liquid data centers to simulate both the heat and electrical load of these facilities during the startup phase. These systems are also used for maintenance and testing throughout the life of the data center. While liquid-cooled data centers represent only 10% of the market today, they have the distinct advantages of being more cost efficient and allowing higher server densities. These estimated that liquid-cooled data centers represent as much as 40% to 50% of the new data centers plan for construction in 2025.

在投影片 9 中，我們看到了電鍋爐在液體資料中心中用作負載庫的範例，以模擬啟動階段這些設施的熱負載和電力負載。這些系統也用於資料中心整個生命週期的維護和測試。雖然液冷資料中心目前僅佔 10% 的市場份額，但它們具有更經濟高效和更高伺服器密度的明顯優勢。據估計，到2025年，液冷資料中心將占到新資料中心建設計畫的40%至50%。

Another area of strength has been the chemical and petrochemical markets. Both projections for this sector range from 5% to 6% through 2034 and our sales pipeline shows this is the largest sector representing 16% of the total opportunities through FY27. Overall, we continue to be encouraged by the growing momentum in our business, particularly in some of the markets that have been facing headwinds over the last year such as LNG and oil and gas.

另一個強勢領域是化工和石化市場。到 2034 年，該行業的預測範圍均為 5% 至 6%，而我們的銷售管道顯示，這是最大的行業，到 2027 財年將佔總機會的 16%。總體而言，我們繼續對業務的成長勢頭感到鼓舞，特別是在液化天然氣和石油和天然氣等過去一年面臨阻力的一些市場。

This improved momentum combined with the favorable secular trends we're benefiting from such as restoring, electrification, and decarbonization, we must increase confidence in our growth trajectory and we're beginning to see this in our improved cooling activity, lower rates, and backlog growth.

這種改善的勢頭加上我們受益於的恢復、電氣化和脫碳等有利的長期趨勢，我們必須增強對我們的成長軌蹟的信心，而且我們開始從改善的冷卻活動、較低的利率和積壓增長中看到這一點。

Before I discuss our FY 2025 financial outlook, I want to provide some brief comments on the fiscal 2026 targets we provided at our 2023 Investor Day. We're currently developing our FY26 plan and we'll provide full-year guidance when we report on our fourth-quarter results in May. I do want to provide some additional color on our targets, which includes [$600 million to $700 million] in revenue and adjusted EBITDA margins of approximately 24% and at least 17% of revenue to be derived from the markets.

在討論我們的 2025 財年財務前景之前，我想對我們在 2023 年投資者日提出的 2026 財年目標做一些簡短的評論。我們目前正在製定 FY26 計劃，並將在 5 月報告第四季業績時提供全年指引。我確實想對我們的目標提供一些額外的說明，其中包括[6 億到 7 億美元]的收入和約 24% 的調整後 EBITDA 利潤率以及至少 17% 的收入來自市場。

The team has made tremendous progress towards obtaining these objectives over the last four years, driving revenue growth, diversification, and EBITDA margin expansion. And while we remain confident in our ability to achieve these goals, there are two key factors outside our control that will affect timing. First will be the overall macroeconomic backdrop; and second, the timing and magnitude of acquisitions in our M&A pipeline. Without strength in both, the timeline for achievement will likely push beyond the fiscal year 2026.

過去四年來，該團隊在實現這些目標方面取得了巨大進展，推動了收入成長、多元化和 EBITDA 利潤率擴大。雖然我們對實現這些目標的能力充滿信心，但有兩個我們無法控制的關鍵因素會影響時間安排。首先是整體宏觀經濟背景；第二，我們併購計畫中的收購時機與規模。如果在這兩方面都表現不佳，那麼實現這一目標的時間可能會推遲到 2026 財年之後。

And now, please turn to slide 10. I'd like to discuss our outlook for fiscal 2025. Based on everything we've shared this morning, we're maintaining our full year 2025 guidance that calls for revenue in the range of $495 million to $550 million, adjusted EBITDA in a range from $105 million to $110 million, and adjusted EPS in a range of $1.77 to $1.89 per share. The potential impacts of tariffs have not been contemplated in this guidance.

現在，請翻到第 10 張投影片。我想討論一下我們對 2025 財年的展望。根據我們今天早上分享的所有內容，我們維持 2025 年全年預期，即營收在 4.95 億美元至 5.5 億美元之間，調整後 EBITDA 在 1.05 億美元至 1.1 億美元之間，調整後每股收益在 1.77 美元至 1.89 美元之間。本指南尚未考慮關稅的潛在影響。

Finally, just to wrap things up on slide 11, we're optimistic in our business outlook and the opportunities ahead remain as strong as ever. We made significant progress in developing a business that is more stable, profitable, and durable across cycles. We believe our large and growing installed base provides us with a resilient aftermarket franchise which gives us access to a steady stream of predictable and highly profitable MRO revenues.

最後，在第 11 頁總結一下，我們對我們的業務前景持樂觀態度，未來的機會仍然像以往一樣強勁。我們在發展更穩定、更獲利、更持久的跨週期業務方面取得了重大進展。我們相信，我們龐大且不斷增長的安裝基礎為我們提供了有彈性的售後市場特許經營權，使我們能夠獲得穩定的、可預測的、高利潤的 MRO 收入流。

We also remain well positioned to benefit from several secular growth drivers including the energy transition and decarbonization, onshoring in North America, and infrastructure spending. We remain confident in these trends and we believe that the recent spending delays only serve to create intensive demand when customer confidence improves.

我們也將繼續處於有利地位，受益於幾個長期成長動力，包括能源轉型和脫碳、北美在岸生產以及基礎設施支出。我們對這些趨勢仍然充滿信心，我們相信最近的支出延遲只有在客戶信心增強時才會產生強烈的需求。

Lastly, we benefit from a high-margin, low-capital intensity business that use significant cash flow. We continue to maintain strong financial discipline and with leverage of just over 1 times, we have the flexibility to pursue our capital allocation priorities. We remain focused on following a disciplined approach to capital allocation and we will balance these priorities, all with a focus on creating long-term shareholder value.

最後，我們受益於高利潤、低資本強度且使用大量現金流的業務。我們繼續保持嚴格的財務紀律，並且槓桿率略高於 1 倍，我們可以靈活地追求我們的資本配置優先事項。我們將繼續專注於遵循嚴謹的資本配置方法，並平衡這些優先事項，重點是創造長期股東價值。

That completes our prepared remarks and we're now ready for the question-and-answer portion of our call.

我們的準備好的演講到此結束，現在我們準備進行電話會議的問答部分。

(Operator Instructions) Brian Drab, William Blair.

（操作員指示） Brian Drab，William Blair。

Hi, good morning. Thanks for taking my questions. The point in time revenue, $99 million, it was, I think an all-time record. And I'm just wondering if you could talk about that number a little bit and then the dynamics. I mean, it's obviously the heating season that drives this time of year to be strong. But is there anything else in there that was unusual in the quarter? And are we reaching kind of a new baseline level? I mean, again, acknowledging that this is a seasonally strong period, but a new baseline level of a point in time revenue going forward?

嗨，早安。感謝您回答我的問題。當時的收入為 9,900 萬美元，我認為這創下了歷史新高。我只是想知道您是否可以稍微談一談這個數字以及其動態。我的意思是，顯然供暖季節是導致一年中這個時候氣溫升高的原因。但本季還有哪些不尋常的事情發生呢？我們是否達到了某種新的基線水平？我的意思是，再次承認這是一個季節性的強勁時期，但未來某個時間點的收入的新基線水平是怎樣的？

Yeah, Brian, so a couple of things to note. First of all, we have seen a more normalized [EV] season and so that is certainly contributed, and we have been focusing on driving and recurring revenues on the installed base. It's been a key piece of the strategy and we're seeing success in those efforts.

是的，布萊恩，有幾點要注意。首先，我們看到了一個更正常化的[EV]季節，這肯定有所貢獻，而且我們一直專注於推動已安裝基礎的經常性收入。這是該策略的關鍵部分，我們看到這些努力取得了成功。

And then also, we've had contributions from some of the new acquisitions with point-in-time revenue generated through those as well. And so when you think about those things combined, yes, I think the point-in-time revenues, as far as the volume levels we're seeing are really a step change in our business and something we'll continue to drive on a go-forward basis.

此外，我們也從一些新的收購中獲得了一些貢獻，並透過這些收購產生了即時收入。因此，當你把這些因素結合起來考慮時，是的，我認為就我們所看到的銷售水平而言，即時收入實際上是我們業務的重大變化，也是我們將繼續向前推動的事情。

Okay, great. And by the way, I guess I should round up to $100 million. It was $99.6 million. And following on to that, I guess, Bruce, you can envision at some point, maybe it's a few quarters from now where the overtime large revenue lines has kicked back in and then you have this point-in-time foundation that's larger. I mean, it seems like once that over time large kicks in, that's your target. That's your expectation, right? A few quarters from now?

好的，太好了。順便說一句，我想我應該把這個數字湊整到 1 億美元。金額為 9,960 萬美元。接下來，布魯斯，我想，你可以想像在某個時候，也許是從現在起的幾個季度後，加班的收入線會重新開始，然後你就會有更大的時間點基礎。我的意思是，似乎一旦隨著時間的推移，大規模開始發揮作用，這就是你的目標。這是您的期望，對嗎？從現在起幾個季度後？

Yes, Brian. And I think a couple of things to note, our focus has been heavily on driving recurring revenues on the installed base, but we really can't lose sight of the fact that growing that installed base through overtime project activity is really how we continue to drive growth. So we are still very focused on the CapEx piece of our business as a means to grow that installed base.

是的，布萊恩。我認為有幾點需要注意，我們的重點一直放在推動已安裝基礎的經常性收入上，但我們不能忽視這樣一個事實，即透過加班專案活動來擴大已安裝基礎才是我們繼續推動成長的真正方式。因此，我們仍然非常注重業務的資本支出部分，以此作為擴大安裝基數的手段。

Given the bookings momentum, given the backlog growth organically of 9%, given the load that we currently have in our engineering organization and the overall quoting activity, it's pointing towards a return to capital spending and growth there. When we do see that, we would expect to see this revert back, I mean, we're at a very mix of OpEx-related spending. That would probably begin to move back towards the 75% to 80% range whenever we do see this CapEx cycle or improve and customers begin to release larger CapEx spending.

考慮到預訂勢頭、考慮到積壓訂單有機增長 9%、考慮到我們工程組織當前的負載以及整體報價活動，這表明資本支出和增長將會恢復。當我們確實看到這一點時，我們預計會看到這種恢復，我的意思是，我們正處於與營運支出相關的支出混合的狀態。每當我們看到這個資本支出週期或改善並且客戶開始釋放更大的資本支出時，該比率可能會開始回升至 75% 到 80% 的範圍。

And can you talk a little bit about the potential for the release of some of that large CapEx spending? And specifically, you mentioned LNG projects. What are the other types of projects? I know you've talked about hydrogen and biofuel projects. How about also combined cycle natural gas plants and -- what kind of big projects might we expect to hear you talking about in the next, call it four quarters next year?

能否談談釋放部分大型資本支出的可能性？具體來說，您提到了液化天然氣計畫。其他類型的項目有哪些？我知道您談論過氫和生物燃料項目。那麼聯合循環天然氣工廠怎麼樣呢？我們預計在明年接下來的四個季度會聽到您談論什麼樣的大項目？

One of the big things that we've seen is really since the new administration has been in place and they've lifted the ban on ex-LNG export permits is there's been a really big surge of activity around LNG. And so a lot of those projects, largely along the Gulf Coast, are moving forward. And as I had noted in the prepared remarks, our technical capabilities, the breadth of our solution set, and our customer relationships position as well to take advantage of that.

我們看到的一件大事是，自從新政府上台並取消了對液化天然氣出口許可證的禁令以來，液化天然氣領域的活動出現了大幅增長。因此，許多項目（主要位於墨西哥灣沿岸）正在推進。正如我在準備好的演講中提到的，我們的技術能力、解決方案的廣度以及我們的客戶關係也能夠利用這一點。

The other areas where we see the emphasis on subsidies around wind, solar, EVs, we do expect to see a pickup in the combined cycle of natural gas fired plants. And that's really front and center for our market and we're very well positioned to take advantage there. We've also seen a renewed interest in nuclear. And so we've seen some of those projects around refurbishments and expansions in North America.

我們看到，在對風能、太陽能、電動車等其他領域的補貼力度加大的同時，我們預計天然氣聯合發電廠的補貼將會回升。這確實是我們市場的焦點，我們完全有能力利用這一點。我們也看到人們對核能的興趣重新燃起。我們已經看到了北美的一些翻新和擴建項目。

But one of the things we're really excited about and it's a little further out, but we just won a very nice engineering award for a small modular reactor for a customer in Europe. And so we're excited about that and being able to participate in the development of that technology for building some about 3 megawatts capacity in Central Europe.

但讓我們真正興奮的事情之一，雖然有點遙遠，但我們剛剛為歐洲的一位客戶贏得了一個非常好的工程獎，因為我們生產了一個小型模組化反應器。因此，我們對此感到非常興奮，並能夠參與該技術的開發，為中歐建造約 3 兆瓦的發電容量。

So those are some of the areas we we've seen moving. Petrochem and chem remain strong. It's been a bright spot. General and industrial as well. And certainly, we'll see what happens with tariffs and it's very fluid. But that could drive more onshoring in the US particularly, which would be a tailwind as well.

這些就是我們看到的一些正在改變的領域。石油化工和化工產業依然保持強勁。這是一個亮點。通用和工業用途也是如此。當然，我們將關注關稅的變化，它是非常不穩定的。但這可能會推動更多企業在美國本土外包，這也將是一個順風。

Okay. And then the last question for now, could you comment on gross margin, which was obviously a function of a strong point-in-time revenue? But comment on that. I think it's got to be the highest gross margin that we've seen for many quarters, at least maybe a few years. But how should we expect gross margin to look in the fourth quarter and maybe beyond, if you'd give us a sneak peek at the next year?

好的。那麼現在的最後一個問題，您能否評論一下毛利率，這顯然是強勁的即時收入的函數？但對此進行評論。我認為這可能是近幾個季度以來，甚至至少近幾年來最高的毛利率。但是，如果您能向我們透露明年的情況，那麼我們應該如何預期第四季度及以後的毛利率呢？

Yes. So I think the assumption we've got in the fourth quarter is we are going to begin to see a stronger mix of projects in the fourth quarter. Now, I think one comment I would want to make is we've got to see the customer sentiment shift. If we don't see movement there, which we've seen some positive indications that we don't see movement there, I think there could be some downside. We would probably land on the lower end of our revenue guidance.

是的。因此，我認為我們在第四季度的假設是，我們將在第四季度開始看到更強勁的專案組合。現在，我想說的一點是我們必須看到客戶情緒的轉變。如果我們沒有看到那裡的動靜，我們已經看到一些積極的跡象表明我們沒有看到那裡的動靜，我認為可能會有一些不利因素。我們的收入可能會達到預期的低端。

But gross margins would be quite strong and still put us in the midpoint of our EPS guidance. So I think that's an important thing to note. When I look at gross margins mix, it's about half of the improvement year over year. The other half is related to productivity and continuous improvement initiatives as well as price. So it's pretty evenly balanced. And I would go on to say that organically, those margins are quite strong. We've seen about 164 basis points dilution from the acquisitions, but we're very confident that we can bring those businesses up to a similar margin profile over say, the next 18 to 24 months.

但毛利率會相當強勁，仍處於每股收益預期的中間點。所以我認為這是一件值得注意的重要事情。當我查看毛利率組合時，發現其同比毛利率大約有一半的改善。另一半則與生產力和持續改善措施以及價格有關。因此它是相當均衡的。我想繼續說，從有機角度來看，這些利潤率相當高。我們看到收購帶來的利潤稀釋約為 164 個基點，但我們非常有信心，在未來 18 到 24 個月內，我們可以將這些業務的利潤率提高到類似的水平。

Okay. I am going to ask one more just because I think this is important to make sure that I and everyone has this clear. You're saying, it's likely that you'd be it for the full year closer to the end, closer to the low end of the revenue range, but gross margin, although maybe down a little sequentially solid -- margin overall solid, putting you at the midpoint -- closer to the midpoint of the EPS range for the full year. Is that right?

好的。我要再問一個問題，因為我認為這很重要，以確保我和每個人都清楚這一點。您的意思是，您很可能會將全年營收接近年末，接近收入範圍的低端，但毛利率，儘管可能比上一季度下降了一點，但整體利潤率還是穩固的，使您處於中點，接近全年每股收益範圍的中點。是嗎？

Yes, the risk will be, Brian, is just on project execution in the quarter. Should that continue to drag? We would expect to be on the lower end of the revenue guide, but in the midpoint of the easiest guide given the margin profile of the business.

是的，布萊恩，風險僅在於本季的專案執行。這還要繼續拖下去嗎？我們預計收入將處於指南的低端，但考慮到業務的利潤率狀況，會處於最簡單指南的中間點。

Yeah, thanks very much.

是的，非常感謝。

Thank you.

謝謝。

Chip Moore, ROTH Capital Partners.

羅仕證券 (ROTH Capital Partners) 的奇普摩爾 (Chip Moore)。

Good morning. Hey, thanks for taking the question. You touched on some of this already, but maybe you can provide a little more color on, I guess just the current bid pipeline and make-up since the new administration took over in January. And then you talked about some of the puts and takes for fiscal '26. Maybe talk about the biggest things you're watching there, obviously M&A is timing dependent but any thoughts on '26?

早安.嘿，謝謝你回答這個問題。您已經談到其中的一些內容，但也許您可以提供更多細節，我想只是自一月份新政府上台以來的當前競標管道和組成情況。然後您談到了 26 財年的一些利弊。也許可以談談您正在關注的最大的事情，顯然併購取決於時間，但對 26 年有什麼想法嗎？

Yeah. So first of all, we'll give full guidance in our May earnings call for fiscal 2026. But I would say at this time, given just the quote volume and what we believe is improving customer sentiment and optimism, I'd say we're cautiously optimistic about growth in FY26 returning to that organic growth. And then certainly, we'll have the contributions of the acquisitions in addition to that.

是的。因此首先，我們將在 5 月的 2026 財年收益電話會議上提供完整的指導。但我想說，目前，僅考慮報價量以及我們認為正在改善的客戶情緒和樂觀情緒，我會說我們對 26 財年恢復有機成長持謹慎樂觀的態度。當然，除此之外，我們還會有收購的貢獻。

So, we're cautiously optimistic about an improving overall scenario, particularly as it relates to a larger capital spending in the coming year. Since the new administration has been in place, we have seen a resurgence in quoting activity around a number of different projects. I would say oil and gas activity has picked up in Canada. We've actually seen growth there year over year, which we've noted. And so that's been very positive. I think part of that is related just to a more normal winter, but also just MRO spending with our customer base.

因此，我們對整體情勢的改善持謹慎樂觀的態度，特別是因為它與未來一年更大的資本支出有關。自新政府上任以來，我們看到圍繞許多不同項目的報價活動再次活躍起來。我想說加拿大的石油和天然氣活動已經回升。我們實際上看到了那裡逐年的增長，我們已經注意到了這一點。因此，這是非常積極的。我認為部分原因在於冬季更為正常，也與我們的客戶群的 MRO 支出有關。

Very helpful. And I guess, a follow-up on tariffs, I think you did a great job outlining how those could impact you. Is the risk maybe more indirect around some of that project capital spend? Is that uncertainty -- is that something you're concerned about?

非常有幫助。關於關稅的後續問題，我認為您很好地概述了關稅可能對您產生的影響。圍繞部分專案資本支出的風險是否可能更間接？這種不確定性是您所擔心的事情嗎？

Yeah, I think we understand roughly, I mean, depends on the magnitude, the breadth, and the duration of any types of tariffs and the impact on the business. Our approach to business and our manufacturing philosophy really in country for country helps to insulate us from some of this. The real unknown is what impact might this have on customer sentiment. And so that gives us a little pause. We like to see where things land and really understand how customers may or may not react or respond.

是的，我認為我們大致了解，我的意思是，取決於任何類型的關稅的幅度、廣度和持續時間以及對業務的影響。我們的經營方式和製造理念確實是針對各個國家而製定的，這有助於我們免受其中一些問題的困擾。真正未知的是這會對顧客情緒產生什麼影響。這讓我們稍微停頓了一下。我們希望觀察事情的進展，並真正了解客戶可能會或可能不會做出反應或回應。

Helpful. Maybe I can ask one last one. Liquid cooling in the data center, very interesting. I hadn't thought about that as they're usually trying to get the heat out. So interesting opportunity for you. Is that a market -- you're still nascent, but is that a market you're active in already? Or how are you thinking about that opportunity? And then maybe, you play six, play two sides of it as well.

很有幫助。也許我可以問最後一個問題。資料中心的液體冷卻，非常有趣。我沒有想到這一點，因為他們通常都在試圖散發熱量。這對你們來說是一個非常有趣的機會。那是一個你們仍處於起步階段的市場，但你們已經活躍於其中了嗎？或者您如何看待這個機會？然後也許，你玩六個，也玩其中的兩面。

Yes. So yeah, that's a great question. So we've been trying to highlight where we play in some of these opportunities. This is very nice and very new, but I'll tell you, we've won three orders that total around $10 million and we've identified a very large market opportunity. We believe that will be developing on a go-forward basis. And so we're excited about the application.

是的。是的，這是一個很好的問題。因此，我們一直在嘗試強調我們在這些機會中所扮演的角色。這是非常好的，非常新穎的，但我要告訴你，我們已經贏得了三份總額約 1000 萬美元的訂單，並且我們發現了一個非常大的市場機會。我們相信這將會繼續向前發展。因此我們對這個應用程式感到非常興奮。

And it's one illustration of how we play. Certainly, when we think about demand growth for power, much of that's driven by data centers, EVs, population growth. We're very well positioned to benefit from that and especially in the changes in environmental regs that will make natural gas fired power plants more in favor. That certainly is going to be an area of benefit. But this is another area we've identified, and we've won some nice business just in the last two quarters.

這只是我們如何比賽的一個例證。當然，當我們考慮電力需求成長時，很大一部分是由資料中心、電動車和人口成長所推動的。我們完全有能力從中受益，尤其是環境法規的變化將使天然氣發電廠更受青睞。這肯定會是一個有益的領域。但這是我們確定的另一個領域，並且僅在過去兩個季度我們就贏得了一些不錯的業務。

Very good color. Appreciate it. Thank you, Bruce.

顏色非常好。非常感謝。謝謝你，布魯斯。

Jon Braatz, Kansas City Capital.

喬恩‧布拉茨 (Jon Braatz)，堪薩斯市首府。

Morning, Bruce. Good morning, Jan. Jan, just some commentary, if you could, on your SG&A spending. It continued to be pretty high and I know you're investing on growth initiatives and so on. But as we look ahead, will that begin to ease a little bit and we begin to see some leverage on that line?

早安，布魯斯。早上好，Jan。 Jan，如果可以的話，我來就你的銷售、一般及行政開支做一些評論。它仍然處於相當高的水平，我知道你正在投資成長計劃等等。但當我們展望未來時，這種情況是否會開始有所緩解，並開始看到一些影響力？

I think on the near term, we would expect it to be relatively flat going forward and that's really a function of just the -- if you look historically, the M&A that we added on with F.A.T.I. and Vapor Power. But I would say, kind of where we were for the third quarter, probably staying flat for the near term going forward at that rate.

我認為，在短期內，我們預計它會相對平穩，而這實際上只是 — — 如果你回顧歷史，你會發現我們透過 F.A.T.I. 增加的併購。和蒸汽動力。但我想說，以第三季的速度，短期內可能會保持穩定。

At that dollar rate or the [mix] ratio?

按該美元匯率或[混合]比率？

(inaudible)

（聽不清楚）

I'm sorry, what?

抱歉，啥？

The dollar rate.

美元匯率。

All right. Okay. And the acquisition, $13.3 million contribution in the quarter. I guess I was looking for a little bit more, but can you parse it out a little bit between Vapor and the Italian acquisition? And is Vapor continuing -- it has been -- is Vapor continuing to perform in line with your expectations?

好的。好的。此次收購為本季貢獻了 1,330 萬美元。我想我還想了解更多，但是您能稍微分析一下 Vapor 和義大利收購之間的關係嗎？Vapor 的表現是否持續符合您的預期？

Yeah, Jon, so couple of things. One is revenues from acquisitions were below our expectations. F.A.T.I. in our first quarter of ownership actually performed exceptionally well. And just as a reminder, there's about a EUR12.5 million trailing 12 revenue business with a backlog of $15 million. So very strong backlog. The challenge there is really around growing capacity. And in fact, this week, we've got teams there doing events, reorganizing the factory floor and working to improve throughput.

是的，喬恩，有幾件事。一是收購收入低於我們的預期。法國提議局我們在第一季的所有權實際上表現得非常出色。需要提醒的是，過去 12 年，我們的營收業務約為 1,250 萬歐元，積壓訂單量為 1,500 萬美元。積壓訂單非常多。真正的挑戰在於提高產能。事實上，本週，我們的團隊在那裡舉辦活動、重組工廠車間並努力提高產量。

Vapor is a business that really fell short. We had some couple of major projects or major orders that were going through production and did not convert in the quarter. And so we fell fairly short in revenue and we expect to pick up some of that in the fourth quarter. But our big focus there is on increasing capacity both on the factory floor as well as in the supply chain in order to convert what is roughly a $45 million backlog in that business.

Vapor 是一家確實失敗的企業。我們有幾個主要項目或主要訂單正在進行生產，但本季並未完成轉換。因此，我們的收入遠低於預期，我們預計第四季度的收入將有所回升。但我們的重點是提高工廠車間和供應鏈的產能，以便轉化該業務中約 4,500 萬美元的積壓訂單。

And well, we've seen really strong market momentum. We had another quarter of positive book to bill in that business. And so we're excited about the market potential for growth, but we really got to work through some of the capacity constraints to take full advantage of it.

而且，我們看到了非常強勁的市場動能。我們在該業務中又獲得了一個季度的正訂單出貨量。因此，我們對市場的成長潛力感到非常興奮，但我們必須克服一些產能限制才能充分利用它。

And I will add just, even with that, what Bruce said, our measure for kind of evaluating our M&A on first year accretive, we were about flat with Vapor Power, and we expect that trend to kind of reverse out and be accretive going forward and with the next quarter.

我還要補充一點，即便如此，正如布魯斯所說，我們評估第一年併購增值情況的指標與 Vapor Power 持平，我們預計這種趨勢將在未來和下一季出現逆轉並實現增值。

Okay, thank you. And Bruce, on the LNG front, obviously there's a big opportunity there and in December, the DOE came out with their LNG report and it wasn't that flattering and I know the Trump administration has to come up with a rebuttal, so to speak. And I guess I am concerned and I don't know how concerned the industry is that now that the pause has been lifted, if the rebuttal report, so to speak, isn't all that strong, are we just going to see some additional lawsuits filed and things just get further pushed to the right in the LNG area? And I guess, how is the industry thinking about that?

好的，謝謝。布魯斯，在液化天然氣方面，顯然存在著巨大的機會。去年 12 月，美國能源部發布了液化天然氣報告，但報告卻不那麼令人欣喜，我知道川普政府必須提出反駁。我想我很擔心，而且我不知道業界有多擔心，既然暫停已經解除，如果反駁報告不是那麼有力，我們是否會看到一些額外的訴訟被提起，而液化天然氣領域的事態會進一步向好？我想問一下，業界是怎麼看待這個問題的？

Yeah, Jon, I'll tell you just from our customer engagement. It feels like they're very positive on the outlook of being able to secure permits on a go-forward basis. We've also seen a number of customers take existing permits and use those and expand the plans for the capacity for export. So we've seen some of that type of activity. And I'll be honest, I don't really have an opinion or any insight or information as to any litigation or legal actions that may happen.

是的，喬恩，我只從我們的客戶參與度來告訴你。看起來他們對未來獲得許可的前景非常樂觀。我們也看到許多客戶利用現有許可證來擴大出口能力的計畫。我們已經看到了一些此類活動。而且說實話，我對可能發生的任何訴訟或法律行動真的沒有任何意見、見解或資訊。

All right, Bruce. Thank you very much.

好的，布魯斯。非常感謝。

Thank you.

謝謝。

Thank you. And there are no further questions at this time. I'll hand the floor back to management for closing remarks.

謝謝。目前沒有其他問題。我將把發言權交還給管理階層，請他們作結束語。

All right, thank you, Diego and thank you all for joining on the call today. We appreciate it. We don't speak to you between now and the May timeframe. We look forward to reporting out on our full year at the end of May.

好的，謝謝你，迭戈，也謝謝大家今天的電話會議。我們對此表示感謝。從現在到五月我們不會跟你說話。我們期待在五月底報告我們的全年業績。

Thank you. With that, we conclude today's call. All parties may disconnect. Have a good day.

謝謝。今天的電話會議到此結束。各方均可斷開連線。祝你有美好的一天。