Vontier Corp (VNT) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Vontier third-quarter 2024 earnings call. (Operator Instructions) This call is being recorded on Thursday, October 31, 2024, and a replay will be available shortly after.

女士們、先生們，早安，歡迎參加 Vontier 2024 年第三季財報電話會議。（操作員指示）此通話於 2024 年 10 月 31 日星期四進行錄音，之後不久將提供重播。

I would now like to turn the call over to Ryan Edelman, Vontier's Vice President of Investor Relations. Please go ahead.

現在我想將電話轉給 Vontier 投資者關係副總裁 Ryan Edelman。請繼續。

Thank you. Good morning, everyone, and thank you for joining us on the call this morning to discuss our third-quarter results. With me today are Mark Morelli, our President, and Chief Executive Officer; and Anshooman Aga, our Senior Vice President and Chief Financial Officer.

謝謝。大家早安，感謝您今天上午參加我們的電話會議討論我們的第三季業績。今天與我在一起的有我們的總裁兼執行長馬克‧莫雷利 (Mark Morelli)；以及我們的資深副總裁兼財務長 Anshooman Aga。

You can find both our press release as well as our slide presentation that we will refer to during today's call on the Investor Relations section of our website at investors.vontier.com. Please note that during today's call, we will present certain non-GAAP financial measures. We will also make forward-looking statements within the meanings of the federal securities laws, including statements regarding events or developments that we expect or anticipate will or may occur in the future.

您可以在我們網站 investors.vontier.com 的投資者關係部分找到我們的新聞稿以及我們在今天的電話會議上參考的幻燈片簡報。請注意，在今天的電話會議中，我們將介紹某些非 GAAP 財務指標。我們還將根據聯邦證券法的含義做出前瞻性陳述，包括有關我們預期或預計將來會發生或可能發生的事件或發展的陳述。

These forward-looking statements are subject to risks and uncertainties. Actual results might differ materially from any forward-looking statements that we make today, and we do not assume any obligation to update them. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available on our website and in our SEC filings.

這些前瞻性陳述受風險和不確定性的影響。實際結果可能與我們今天所做的任何前瞻性陳述有重大差異，我們不承擔任何更新它們的義務。有關這些因素的資訊可能導致實際結果與這些前瞻性陳述有重大差異，可在我們的網站和美國證券交易委員會文件中查閱。

With that, I'd like to turn the call over to Mark.

說到這裡，我想把電話轉給馬克。

Thanks, Ryan, and good morning, everyone. Thank you for joining us on today's call. I'll provide a high-level overview of our performance in Q3 and a brief update on our end markets and the progress we're making on our strategy. Anshooman will then provide a deeper dive into our results and outlook for the full year.

謝謝，瑞安，大家早安。感謝您參加今天的電話會議。我將概述我們第三季的業績，並簡要介紹我們的終端市場和我們的策略進展。然後，Anshooman 將更深入地探討我們的全年業績和展望。

Let's get started with a summary of the quarter on slide 3. We delivered solid results in the third quarter as we continue to capitalize on strong momentum across our convenience retail and fueling end markets, supported by increased adoption of our market-leading technologies. Core sales increased 3%, above the high end of our guidance range with upside from both our Environmental & Fueling and Mobility Technologies segments.

讓我們從投影片 3 上的本季總結開始。由於我們繼續利用便利零售和加油終端市場的強勁發展勢頭，並得益於我們市場領先技術的不斷普及，我們在第三季度取得了穩健的業績。核心銷售額成長 3%，高於我們預期範圍的高位，這得益於環境與燃料以及行動技術部門的成長。

Disciplined operational performance drove operating margins toward the better end of our guidance and EPS above the high end of our range. Vontier has a unique competitive advantage within the mobility ecosystem with a purpose-built portfolio of connected hardware and software solutions. We continue to make solid progress on our connected mobility strategy, which places us at the forefront of our customers' digital transformation journey.

嚴格的營運績效推動營業利潤率達到我們預期的較高水平，每股盈餘也高於我們預期的較高水平。Vontier 憑藉專門建構的連接硬體和軟體解決方案組合，在行動生態系統中擁有獨特的競爭優勢。我們繼續在互聯行動策略方面取得紮實進展，這使我們處於客戶數位轉型之旅的最前沿。

A great example of how we're delivering differentiated solutions is the traction we are seeing with our Invenco offerings in payment and enterprise productivity. Invenco sales increased more than 20% in the quarter, driven by higher adoption of our recently launched FlexPay 6 payment terminal as well as our vehicle identification system discussed on last quarter's call.

我們提供差異化解決方案的一個很好的例子是，我們的 Invenco 產品在支付和企業生產力方面所取得的進展。本季度，Invenco 的銷售額成長了 20% 以上，這得益於我們最近推出的 FlexPay 6 支付終端以及上個季度電話會議上討論的車輛識別系統的採用率提高。

As we connect, manage, and scale the mobility ecosystem, our focus on reinvigorating R&D and new product introductions are delivering tangible results. Our environmental and fueling business improved sequentially and delivered nearly 9% core growth in the quarter with broad-based demand across regions and product lines.

在我們連接、管理和擴展行動生態系統的過程中，我們對重振研發和新產品引進的關注正在產生實際的成果。我們的環境和燃料業務持續改善，本季實現近 9% 的核心成長，受各地區和產品線廣泛需求的推動。

Growth was particularly strong in North America across the entire product portfolio. The pipeline of new site build activity continues to expand and the increased adoption of FlexPay 6 is helping to reaccelerate retrofit and refresh activity. Total Vontier orders were encouraging in the quarter, up 10% year over year organically and resulting in a book-to-bill over one for the third consecutive quarter. Some of this reflects the benefit of Q2 order recoveries, but the underlying booking trends were a positive indicator.

北美地區整個產品組合的成長尤為強勁。新建站點建設活動的管道不斷擴大，FlexPay 6 的採用率不斷提高，有助於重新加速改造和更新活動。本季 Vontier 的總訂單量令人鼓舞，與去年同期相比有機成長了 10%，連續第三個季度訂單出貨比超過 1。這在一定程度上反映了第二季度訂單恢復的好處，但潛在的預訂趨勢是一個積極的指標。

We are still in the early innings of our simplification program under Pillar 1, Optimize the Core, and we will continue to execute against the pipeline of opportunities, leveraging VBS and the 80-20 principles embedded in our focus and prioritization program. Operating profit margins benefited from accelerated cost actions announced last quarter, delivering approximately $5 million in savings.

我們仍處於支柱 1「優化核心」下的簡化計劃的早期階段，我們將繼續針對機會管道進行執行，利用 VBS 和我們重點和優先計劃中嵌入的 80-20 原則。營業利潤率受益於上季宣布的加速成本行動，節省了約 500 萬美元。

Let's turn to slide 4. Looking across our primary end markets and the individual verticals within each, we continue to see momentum for most of the portfolio. Convenience retail and fueling, our largest end market, has unmatched channel presence with leading share positions. Demand here remains robust with the one exception being car wash, which accounts for about 7% to 8% of total Vontier sales.

讓我們翻到第 4 張投影片。縱觀我們的主要終端市場以及每個市場內的各個垂直市場，我們繼續看到大多數投資組合的強勁發展勢頭。便利零售和加油是我們最大的終端市場，擁有無與倫比的通路影響力和領先的份額。這裡的需求依然強勁，只有一個例外，那就是洗車，這佔 Vontier 總銷售額的約 7% 至 8%。

Successful C-store operators continue to execute their multiyear site expansion and modernization plans and the industry continues to consolidate. This favors the large national and regional operators where we have the higher market share and where we are focusing innovation. We're seeing more evidence that the organic and inorganic investments we've made to accelerate growth, executing on Pillars 2 and 3 of our framework are paying off, giving us even stronger conviction around this end market.

成功的便利商店營運商繼續執行其多年的站點擴張和現代化計劃，並且該行業繼續整合。這有利於大型國家和地區營運商，我們在這些營運商中擁有較高的市場份額，並且我們專注於創新。我們看到越來越多的證據表明，我們為加速成長而進行的有機和無機投資以及執行我們框架的第二支柱和第三支柱正在產生回報，讓我們對這個終端市場更有信心。

As you may recall, Pillar 2, Expanding the Core, is about leveraging our current market positions to accelerate profitable growth with a focus on driving share gains through innovation and market-leading product vitality. We're advancing our Invenco product strategy, and we are seeing increased customer adoption of our innovative payment, point-of-sale and forecourt automation solutions.

您可能還記得，第二支柱「擴大核心」是關於利用我們當前的市場地位來加速獲利成長，重點是透過創新和市場領先的產品活力來推動份額成長。我們正在推進我們的 Invenco 產品策略，我們看到越來越多的客戶採用我們的創新支付、銷售點和前院自動化解決方案。

We are standardizing our convenience retail offerings around our iNFX microservices architecture. This allows us to deliver a customizable, scalable platform that unlocks the ability to drive growth, reduce costs, and enhance the consumer experience.

我們正在圍繞 iNFX 微服務架構標準化我們的便利零售產品。這使我們能夠提供可客製化、可擴展的平台，從而推動成長、降低成本並增強消費者體驗。

As an example, we were recently selected by one of our long-standing customers, Costco, to deploy our unified payment solution across their footprint in Canada. This includes our FlexPay 6 payment terminal and iNFX microservices software. With this solution, Costco will have the ability to seamlessly integrate their existing hardware, software and services while enabling over-the-air updates, optimizing payment security compliance, and customizing loyalty programs.

例如，我們的長期客戶之一 Costco 最近選中我們，在其加拿大境內部署我們的統一支付解決方案。這包括我們的 FlexPay 6 支付終端和 iNFX 微服務軟體。透過此解決方案，Costco 將能夠無縫整合其現有的硬體、軟體和服務，同時實現無線更新、優化支付安全合規性並客製化忠誠度計畫。

The critical value proposition we are offering customers like Costco is improved uptime, faster transaction times, and lower cost to operate. The end result is improved productivity and throughput for our customers and a better user experience for the consumer. We also secured a contract with a major global C-store operator in the third quarter with a total contract value of approximately $10 million.

我們為 Costco 等客戶提供的關鍵價值主張是提高正常運作時間、加快交易時間並降低營運成本。最終結果是提高了客戶的生產力和產量，並為消費者帶來了更好的用戶體驗。我們也在第三季與一家全球大型便利商店營運商簽訂了合同，合約總價值約為 1000 萬美元。

This project involves upgrading and converting legacy payment technology to FlexPay 6 across their acquired sites in North America. This serves as a clear example of how industry consolidation drives increased retrofit activity as operators standardize technology platforms following acquisitions.

該項目涉及在其位於北美的收購站點上升級和轉換傳統支付技術至 FlexPay 6。這是一個清晰的例子，顯示隨著營運商在收購後標準化技術平台，產業整合如何推動改造活動的增加。

At Environmental Fueling, we won three large multiyear tenders in India in Q3 with a total contract value of approximately $70 million. This was a direct result of our VBS initiatives to design out costs and improve the quality and security of our dispenser equipment as well as localized production.

在環境燃料方面，我們在第三季贏得了印度的三個大型多年期招標，合約總價值約為 7000 萬美元。這是我們的 VBS 計劃的直接成果，旨在降低成本並提高分配器設備的品質和安全性以及實現在地化生產。

Just last week, we were awarded a fourth tender to install underground submersible tank pumps across their network, which is an incremental contract value of approximately $15 million over the next 12 to 18 months. These wins are reflective of the significant effort by our teams and another example of how we are growing market share and improving market-leading margins in our EFS segment.

就在上週，我們贏得了第四個招標，將在他們的網路中安裝地下潛水泵，該合約價值在未來 12 到 18 個月內增加約 1500 萬美元。這些勝利體現了我們團隊的巨大努力，也是我們如何在 EFS 領域擴大市場份額和提高市場領先利潤率的另一個例子。

Pillar 3 is about delivering profitable growth from adjacent markets. We are pursuing opportunities to expand into adjacent end markets with solutions leveraging new and existing offerings and channels to market. We continue to see strong evidence that convenience stores will be a big beneficiary of the build-out of EV charging infrastructure as the preferred stop for on-the-go charging.

支柱三是關於從鄰近市場實現獲利成長。我們正在尋找機會，利用新的和現有的產品和通路將解決方案推向市場，從而拓展到鄰近的終端市場。我們不斷看到強有力的證據表明，便利商店將成為電動車充電基礎設施建設的巨大受益者，成為旅途中充電的首選站點。

Our Konect turnkey EV solution launched in May specifically targets this market and continues to gain momentum. We were recently awarded a $2 million contract by a large regional convenience store chain to begin deploying Konect at its sites across the US. Konect includes EV chargers, network software management and leverages our extensive channel and service network from GVR. It also incorporates our FlexPay 6 payment terminal to deliver the same reliability and integrated payment capability used across convenience retail sites.

我們在 5 月推出的 Konect 交鑰匙 EV 解決方案專門針對這個市場，並且持續獲得發展動力。我們最近與一家大型區域便利商店連鎖店簽訂了一份價值 200 萬美元的合同，開始在其美國各地的門市部署 Konect。Konect 包括電動車充電器、網路軟體管理，並利用我們來自 GVR 的廣泛管道和服務網路。它還結合了我們的 FlexPay 6 支付終端，提供與便利零售網站相同的可靠性和整合支付功能。

The first sites go live this month, and we are managing everything from site selection and NEVI funding applications to installation and technical support. Driivz is now a leading software offering for charge point operators to manage their growing network of EV chargers. We are accelerating our plugs under management further, now sitting at over 100,000, more than doubling year over year. 80% of these are located in Western Europe, which is the leader in the world for EV adoption.

首批站點將於本月上線，我們負責管理從站點選擇和 NEVI 資金申請到安裝和技術支援的所有事務。Driivz 目前是為充電點營運商提供的領先軟體，用於管理其不斷增長的電動車充電器網路。我們正在進一步加快管理插頭的數量，目前已超過 100,000 個，比去年同期增長一倍多。其中 80% 位於西歐，西歐是全球電動車普及率最高的地區。

In October, we signed one of the largest global fleet operators with 1.5 million vehicles under management to support their fleet electrification efforts. Driivz's revenue is up nearly 50% year to date and contributing to overall Vontier growth for 2024 and beyond.

10月份，我們與全球最大的車隊營運商之一簽約，該營運商管理150萬輛汽車，以支援其車隊電氣化工作。Driivz 的營收今年迄今已成長近 50%，並為 2024 年及以後的 Vontier 整體成長做出貢獻。

While we're seeing healthy demand across most of our end markets, there are two primary areas that are experiencing some pressure near term: car wash and auto repair. The car wash industry continues to transition from a multiyear hyper growth phase for tunnel car wash systems to a more normalized growth rate.

雖然我們看到大多數終端市場的需求都很強勁，但有兩個主要領域近期面臨一些壓力：洗車和汽車維修。洗車產業繼續從隧道洗車系統的多年高速成長階段過渡到更正常化的成長率。

After rising significantly, construction costs for tunnel systems have now stabilized and interest rates are beginning to move in the right direction. However, we anticipate there will be a lag between these developments and an inflection in demand for greenfield tunnel systems.

隧道系統建設成本在大幅上漲之後，目前已趨於穩定，利率也開始朝著正確的方向發展。然而，我們預期這些發展與綠地隧道系統需求的變化之間會存在滯後。

Turning to the auto repair end market, as we noted previously, headwinds at Repair Solutions are related to slower discretionary spending by service technicians resulting from persistent inflation and general uncertainty regarding the US economic and political environment. While the volume declines in Q3 played out largely as we anticipated, order rates and distributors sell-through volumes are showing improvement.

談到汽車維修終端市場，正如我們先前所指出的，修復解決方案面臨的阻力與服務技術人員的可自由支配支出放緩有關，而這主要是由於持續的通貨膨脹和美國經濟及政治環境的普遍不確定性所致。雖然第三季的銷售下降基本上符合我們的預期，但訂單率和分銷商的銷售量正在改善。

The backdrop for auto repair remains strong. Technician wages and employment are healthy, and the age and complexity of the car park is increasing, providing demand for auto repair.

汽車維修市場前景依然強勁。技術人員的薪資和就業狀況良好，而且停車場的年齡和複雜性正在增加，為汽車維修提供了需求。

A similar transformation to convenience stores is happening in the commercial and industrial fleet market. As the industry looks to modernize and decarbonize, managing fleets is a major challenge and requires multiple technologies, fuel types, and the integration of traditionally disparate systems and data. Our cross-business solutions optimize fleet depot management with the lowest total cost of ownership while achieving sustainability and compliance goals.

商業和工業車隊市場正在發生與便利商店類似的轉變。隨著業界尋求現代化和脫碳，車隊管理是一項重大挑戰，需要多種技術、燃料類型以及傳統上分散的系統和數據的整合。我們的跨業務解決方案以最低的總體擁有成本優化車隊倉庫管理，同時實現永續性和合規性目標。

Turning to slide 5. Earlier this month, our teams gathered at the annual NACS trade show in Las Vegas, the convenience store industry's largest trade show of the year, where we were able to showcase the full breadth and depth of the Vontier portfolio. This was a great opportunity to highlight the outcomes of our connected mobility strategy with a best-in-class suite of end-to-end solutions that deliver enhanced consumer engagement and productivity while lowering the cost to operate.

翻到幻燈片 5。本月初，我們的團隊齊聚拉斯維加斯舉行的年度 NACS 貿易展，這是便利商店行業今年最大的貿易展，我們得以展示 Vontier 產品組合的廣度和深度。這是一個絕佳的機會，可以透過一流的端到端解決方案套件來突出我們的互聯行動策略的成果，這些解決方案可以提高消費者參與度和生產力，同時降低營運成本。

At NACS, we introduced the Hub, a great example of the unique capabilities of our portfolio. The Hub is built on the iNFX microservices architecture and seamlessly integrates all existing devices at a retail site onto a single cloud-based platform to manage their infrastructure remotely and more efficiently. We also introduced several differentiated solutions and feature sets that expand our existing portfolio of productivity and revenue generation capabilities. Feedback from customers at the show validates our strategy around delivering best-in-class, end-to-end, open architecture solutions.

在 NACS，我們推出了 Hub，這是我們產品組合獨特功能的絕佳範例。該 Hub 建立在 iNFX 微服務架構上，將零售站點的所有現有設備無縫整合到單一基於雲端的平台上，以遠端和更有效率地管理其基礎設施。我們也推出了幾種差異化解決方案和功能集，擴展了我們現有的生產力和創收能力。展會上客戶的回饋證實了我們圍繞提供一流、端到端、開放式架構解決方案的策略。

I'm confident we're on the right trajectory. We are well positioned in durable, attractive end markets with long-term profitable growth opportunities. Our leading market share positions, business simplification opportunities and cash generation profile are bolstering our position, and we expect to capture even greater operating leverage as demand accelerates.

我確信我們正走在正確的軌道上。我們在耐用且具吸引力的終端市場中佔有有利地位，擁有長期獲利的成長機會。我們領先的市場份額地位、業務簡化機會和現金產生狀況正在鞏固我們的地位，隨著需求的加速，我們預計將獲得更大的經營槓桿。

With that, let me turn the call over to Anshooman.

說完這些，讓我把電話轉給 Anshooman。

Thanks, Mark, and good morning, everyone. I'll start on slide 6 with a summary of our consolidated results for the third quarter. Reported sales were $750 million with core growth of approximately 3%, led by solid growth from our Environmental & Fueling and Mobility Technologies segment.

謝謝，馬克，大家早安。我將從第 6 張投影片開始總結我們第三季的綜合業績。報告的銷售額為 7.5 億美元，核心成長約 3%，這得益於環境與燃料以及行動技術部門的穩健成長。

Adjusted operating profit margin declined 80 basis points at the better end of our guide as contributions from positive price cost and accelerated cost actions were more than offset by lower volume and unfavorable mix associated with lower sales at DRB and Repair Solutions. This resulted in adjusted EPS of $0.73 for the quarter, ahead of our expectations. Adjusted free cash flow was $109 million with conversion of 98%.

調整後的營業利潤率下降了80 個基點，低於我們的預期，因為積極的價格成本和加速成本行動帶來的貢獻被DRB 和修復解決方案銷售額下降導致的銷量下降和不利的產品組合所抵消。這使得本季調整後的每股盈餘達到 0.73 美元，高於我們的預期。調整後的自由現金流為 1.09 億美元，轉換率為 98%。

Let's review our segment results, starting on slide 7. Environmental & Fueling Solutions achieved core growth of 9% in the quarter, driven by broad-based strength across the portfolio. Total dispenser sales increased high single digits with US dispensers contributing mid-single-digit growth.

讓我們回顧一下各部分的結果，從第 7 張投影片開始。得益於整個產品組合的廣泛實力，環境與燃料解決方案業務在本季實現了 9% 的核心成長。分配器總銷量呈現高個位數成長，其中美國分配器貢獻了中等個位數成長。

Aftermarket parts sales increased over 20% in the quarter, bringing year-to-date growth into the high teens. We continue to leverage our large and expanding installed base and focus on higher-value components, accelerating growth in this higher-margin offering. Environmental Solutions grew low single digits with strong growth in North America, supported by new product launches earlier in the year, partially offset by a strong 30% prior year comparison in international markets.

本季售後零件銷售額成長超過 20%，使年初至今的增幅達到了百分之十幾。我們將繼續利用我們龐大且不斷擴大的安裝基礎並專注於更高價值的組件，加速這一高利潤產品的成長。環境解決方案部門實現低個位數成長，其中北美地區成長強勁，這得益於今年稍早推出的新產品，但國際市場年增 30% 在一定程度上抵消了這一成長。

Segment operating profit margins expanded 50 basis points in the quarter on positive price cost and continued execution on our ongoing simplification efforts. Year to date, segment operating profit margins at EFS are up 160 basis points over the prior year. The team has done an incredible job executing, leveraging VBS and Pillar 1 initiatives.

由於積極的價格成本和持續實施的簡化措施，本季分部營業利潤率擴大了 50 個基點。年初至今，EFS 部門營業利潤率較上年同期上升了 160 個基點。團隊在執行、利用 VBS 和 Pillar 1 計劃方面做得非常出色。

Turning to slide 8. Mobility Technologies reported a core sales increase of over 4% in the quarter, driven by robust demand for payment and enterprise productivity solutions, partially offset by our car wash business. Invenco achieved impressive double-digit orders and sales growth for Q3 and year to date, demonstrating the effectiveness of our investments in new product development.

翻到幻燈片 8。行動技術公司報告稱，本季核心銷售額成長超過 4%，這得益於支付和企業生產力解決方案的強勁需求，但被洗車業務部分抵消。Invenco 第三季和年初至今的訂單和銷售均實現了令人印象深刻的兩位數成長，證明了我們在新產品開發方面的投資的有效性。

Sales at DRB declined as expected in the quarter with revenue stabilizing sequentially on a dollar basis. Mobility Technologies operating profit margin declined approximately 270 basis points versus the prior year due primarily to ongoing R&D investments at Invenco and unfavorable mix.

DRB 的銷售額在本季如預期般下降，營收以美元計算季比保持穩定。行動科技業務的營業利潤率較上年下降約 270 個基點，主要原因是 Invenco 持續進行研發投資以及產品組合不利。

Moving to our Repair Solutions segment on slide 9. Core sales declined 5% as expected due to ongoing macro uncertainty, pressuring technician spending, particularly for more discretionary, larger ticket items. However, we're seeing signs of improvement. Tool storage sales declined just over 10%, which is a significant improvement from Q2's exit rate.

前往投影片 9 上的「修復解決方案」部分。由於持續的宏觀不確定性，核心銷售如預期下降 5%，對技術人員支出造成壓力，特別是對於更可自由支配、價格較大的產品。然而，我們看到了改善的跡象。工具儲存銷售額下降了 10% 多一點，但與第二季的退出率相比有了顯著改善。

As demand for most product lines has come under pressure, we have leveraged our agile business model to pivot product vitality towards the tools that service technicians need most, lower price point tools that add value and productivity in their day-to-day workloads. From our most recent technician survey, we know they continue to prioritize power tools, hardline hand tools, and diagnostics.

由於大多數產品線的需求都面臨壓力，我們利用敏捷的業務模式，將產品活力轉向服務技術人員最需要的工具，即能夠在日常工作中增加價值和生產力的低價工具。從我們最近的技術人員調查中，我們知道他們繼續優先考慮電動工具、強力手動工具和診斷工具。

Segment operating profit margins declined 560 basis points, driven by lower volumes and mix as well as timing of bad debt reserves year over year. Sequentially, margins are up 10 basis points, in line with what we were anticipating.

由於銷量和產品組合下降以及壞帳準備金計提時間的同比下降，分部營業利潤率下降了 560 個基點。利潤率連續上升了 10 個基點，符合我們的預期。

Looking at our balance sheet and cash flow on slide 10. Our net leverage ratio remained flat sequentially at 2.7 times but improving from 2.9 times a year ago. We completed $105 million in share repurchases in the quarter through both an accelerated share repurchase plan and open market transaction. Year to date, through September, we have repurchased $165 million or approximately 4.7 million shares. Our balance sheet remains healthy with strong liquidity, over $300 million in cash on hand, and an undrawn credit revolver.

請參閱投影片 10 上的資產負債表和現金流量。我們的淨槓桿率與上一季持平，為 2.7 倍，但較一年前 2.9 倍有所改善。我們本季透過加速股票回購計畫和公開市場交易完成了 1.05 億美元的股票回購。截至今年 9 月份，我們已回購了價值 1.65 億美元或約 470 萬股。我們的資產負債表依然健康，流動性強勁，手頭上有超過 3 億美元的現金，還有一筆未提取的循環信貸。

We continue to believe there is a significant valuation disconnect relative to our long-term growth, profitability, and cash generation potential. As a result, we expect to continue to deploy free cash flow to buybacks in the fourth quarter and plan to repay a small amount of debt.

我們仍然認為，相對於我們的長期成長、獲利能力和現金創造潛力，估值存在顯著脫節。因此，我們預計將在第四季度繼續部署自由現金流用於回購，並計劃償還少量債務。

With that, let me provide an update on our thinking for the fourth quarter and full year. I'm on slide 11. For the full year, we are narrowing our guidance ranges around the midpoint of our prior guide and now expect revenue of approximately $2.97 billion, which reflects core growth of slightly above 1%.

接下來，讓我介紹一下我們對第四季和全年的想法。我在第 11 張投影片。對於全年而言，我們將預期範圍縮小至先前預期的中點附近，目前預計收入約為 29.7 億美元，反映出略高於 1% 的核心成長。

Operating margin will be relatively flat year over year. We are maintaining our prior adjusted EPS midpoint of approximately $2.90. This translates to 1.5% core growth at the midpoint for the fourth quarter with operating profit margins down approximately 20 basis points, equating to EPS of roughly $0.79.

營業利潤率將與去年同期相比相對持平。我們維持先前調整後的每股盈餘中位數約 2.90 美元不變。這意味著第四季中期核心成長率為 1.5%，營業利潤率下降約 20 個基點，相當於每股收益約 0.79 美元。

Before I turn the call back over to Mark, I wanted to provide some early thoughts on 2025. While it is too early to provide guidance, as you start to fine-tune your models, there are a few things to consider. We expect demand for majority of our end markets to remain healthy next year, supporting overall growth and margin expansion.

在我將電話轉回給馬克之前，我想提供一些關於 2025 年的初步想法。雖然現在提供指導還為時過早，但當您開始微調模型時，有幾件事需要考慮。我們預計明年大多數終端市場的需求將保持健康，從而支持整體成長和利潤率擴大。

Although we are seeing early signs of recovery in repair solutions and car wash markets, the timing of the eventual inflection is difficult to predict. That said, expectations are that both markets likely trend flattish next year.

儘管我們看到維修解決方案和洗車市場出現復甦的早期跡象，但最終出現轉折點的時間卻很難預測。儘管如此，預計明年這兩個市場可能都趨於穩定。

Additionally, for Q1, we will have a tough compare at EFS, which grew 10% and expanded margins nearly 400 basis points this year. Also, our annual Matco Expo event will move from Q1 to Q2 in 2025, shifting approximately $30 million between the two quarters.

此外，對於第一季度，我們將與 EFS 進行艱難的比較，今年 EFS 成長了 10%，利潤率擴大了近 400 個基點。此外，我們的年度 Matco Expo 活動將於 2025 年從第一季移至第二季度，兩個季度之間的轉移金額約為 3000 萬美元。

With that, I'd like to pass the call back over to Mark.

說完這些，我想把電話轉回給馬克。

Thanks, Anshooman. I'm encouraged by our progress year to date as we're gaining traction in our end markets that are strong, offsetting some weaker segments with innovation and beginning to see signs of stabilization and recovery in the businesses that have softened earlier this year.

謝謝，Anshooman。我對今年迄今為止的進展感到鼓舞，因為我們在強勁的終端市場中獲得了吸引力，透過創新抵消了一些較弱的細分市場，並且開始看到今年早些時候疲軟的業務出現穩定和復甦的跡象。

We're executing on our connected mobility strategy, and our focus on innovation is delivering critical new product introductions at a faster pace. We have a good setup for 2025 to continue to accelerate growth and profitability. Vontier is uniquely positioned to lead the digital transformation of the mobility ecosystem, which is still in the early innings. We're enabling our customers to manage an increasingly complex infrastructure through best-in-class technology and a portfolio of multi-energy solutions.

我們正在實施我們的互聯行動策略，我們專注於創新，以更快的速度推出重要的新產品。我們已經為2025年做好了良好的準備，將繼續加速成長和獲利。Vontier 具有獨特的優勢，可引領行動生態系統的數位轉型，目前該轉型仍處於早期階段。我們透過一流的技術和多能源解決方案組合幫助我們的客戶管理日益複雜的基礎設施。

As we connect, manage, and scale the mobility ecosystem, we expect our continued portfolio transformation will enable sustainable growth and allow us to deliver top-tier financial returns. I'd like to thank our teams around the world for their commitment to execution and dedication to delivering for our customers. Our performance is directly attributable to our culture of continuous improvement, which our employees demonstrate every day.

隨著我們連接、管理和擴展行動生態系統，我們預計我們持續的投資組合轉型將實現永續成長，並使我們能夠提供頂級的財務回報。我要感謝我們遍布全球的團隊對執行的承諾以及為客戶服務的奉獻精神。我們的表現直接歸功於我們持續改善的文化，而我們的員工每天都在展現這種文化。

With that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions) Nigel Coe, Wolfe.

（操作員指令） Nigel Coe，Wolfe。

Thanks. Good morning, everyone. Thanks for the question. Anshooman, I just wonder maybe you can just kick off with just any additional color on how you see 4Q so that 1.5% organic growth breaking out between the segments? And then the -- I think you're guiding for 50 bps of sequential margin expansion, which would be obviously very normal with the 4Q seasonality. But again, any color on the segments would be helpful.

謝謝。大家早安。謝謝你的提問。Anshooman，我只是想知道您是否可以先介紹一下您對第四季度的看法，以便各部門之間能夠實現 1.5% 的有機增長？然後 — — 我認為您預計利潤率將連續擴大 50 個基點，這對於第四季度的季節性因素來說顯然是非常正常的。但同樣，片段上的任何顏色都是有幫助的。

Yeah. Morning, Nigel. So from an environmental and fueling perspective, that business should continue to have good growth in the fourth quarter. We're expecting high single-digit growth for EFS. They're coming off a really strong quarter of bookings and a good book-to-bill.

是的。早安，奈傑爾。因此，從環境和燃料角度來看，該業務在第四季度應該會繼續保持良好的成長。我們預計 EFS 將實現高個位數成長。他們的本季的預訂量非常強勁，訂單出貨比也很好。

Mobility Technologies, also book-to-bill was above one in actually all our businesses, but Mobility Technology business should be flattish for the fourth quarter from a revenue perspective. We continue to see good growth and good traction on Invenco with our innovation really paying off.

行動技術，實際上我們所有業務的訂單出貨比都高於 1，但從收入角度來看，行動技術業務第四季應該會持平。我們繼續看到 Invenco 的良好成長和良好的發展勢頭，我們的創新確實獲得了回報。

The car wash market, as we talked about, we're seeing sequentially it stabilized. But from a year-on-year perspective, that would be a headwind for us. So that leads to a flattish number for Mobility Technologies. And then Repair Solutions, again, while the market is stabilizing, we expect it still to be down on a year-to-date basis -- year-over-year basis of about mid-single digits.

正如我們所討論的，我們看到洗車市場逐漸趨於穩定。但從同比角度來看，這對我們來說是一個阻力。因此這導致行動技術的數位持平。然後是修復解決方案，雖然市場正在穩定下來，但我們預計修復解決方案的銷售額將同比今年同期仍將下降，降幅約為中等個位數。

Okay. That's helpful. And then just wanted to dig into the aftermarket strength within the EFS segment. I mean, 20% growth for parts and aftermarket is an extraordinary number. Is there anything here? Is there a sort of dilapidated installed base? Are there some growth initiatives coming to bear here, share gains? I know that you've been showing double-digit growth here, but I just wanted to just dig into that. And just remind us how big is that portion of the segment?

好的。這很有幫助。然後只是想深入 EFS 領域內的售後市場實力。我的意思是，零件和售後市場 20% 的成長率是一個非凡的數字。這裡有什麼東西嗎？是否存在某種破舊的安裝基礎？這裡是否有一些成長措施可以產生效益、分享效益？我知道你們在這裡已經顯示出兩位數的成長，但我只是想深入研究這一點。能否提醒我們一下該部分的比例有多大？

So Nigel, I'll take that question. It's Mark. Look, this is a beneficiary of the EMV cycle that we all had to live through, but the installed base went up, and I think we demonstrated we gained share during that cycle. And at the same time, it was one of our earlier profitable growth initiatives that we launched post spin to re-segment this as a separate business inside of Vontier and then have that business run with a strong focus on VBS and putting in place some of these 80-20 principles to try to, one, clean up some of the offerings.

那麼奈傑爾，我來回答這個問題。是馬克。看，這是我們都必須經歷的 EMV 週期的受益者，但安裝基數上升了，我認為我們證明了我們在該週期中獲得了份額。同時，這是我們早期推出的盈利增長計劃之一，我們在分拆後將其重新細分為 Vontier 內部的一項獨立業務，然後讓該業務重點關注 VBS，並實施一些這些80-20原則的目的是嘗試，第一，清理一些供品。

A great example of that is we do some refurb manufacturing of boards was one of the new launch efforts. And then we took out some of the SKUs so that we could try to get some more acceleration on that. So you've seen a great trend on that business, and I think it continues to show that this is going to be a business for a long time where we get that. And then the total revenue for the business is over $200 million at above fleet margins, by the way.

一個很好的例子就是我們進行一些電路板的翻新製造，這是我們新推出的舉措之一。然後我們取出一些 SKU，以便我們可以嘗試加速這一進程。所以，你已經看到了這項業務的良好趨勢，而且我認為這繼續表明，這將是一項長期的業務。順便說一下，該業務的總收入超過 2 億美元，高於船隊利潤率。

Great. Thanks, Mark, I appreciate it.

偉大的。謝謝，馬克，我很感激。

Julian Mitchell, Barclays.

巴克萊銀行的朱利安·米切爾。

Thanks very much and good morning. Maybe just coming off the back of some of the initial comments on 2025. If I'm thinking organic sales, you're exiting this year up low single digits with the headwinds of auto repair and car wash versus low single digits for next year. At least the first half looks reasonable for now.

非常感謝，早安。也許只是對 2025 年的一些初步評論的回應。如果我考慮有機銷售，那麼今年的銷售額將以個位數低位增長，面臨汽車維修和洗車的逆風，而明年的銷售額將以個位數低位增長。至少目前來看上半部還比較合理。

And then anything on operating leverage or below the line to emphasize? I think operating leverage, you have the low 30s placeholder from the Investor Day. Any reason that would not apply in '25? And then anything sort of below the line to emphasize if you look at it today?

關於經營槓桿或線下有什麼需要強調的嗎？我認為，經營槓桿，從投資者日開始就處於 30 多歲的佔位符。有什麼理由不適用於'25 年嗎？那麼，如果今天再看一遍，有什麼需要強調的嗎？

So, hey, Nigel -- excuse me, Julian, this is, I think, a great setup for 2025 for us. I think the areas that we're really encouraged about is, one, we're seeing stabilization in some of the markets that we talked about that were choppy. We're seeing some really great innovation read through. And we're, of course, bringing on the call some really specific examples where there's uptake on this integrated network that is getting a lot of favorability with our customers.

所以，嘿，奈傑爾——對不起，朱利安，我認為這對我們來說是 2025 年的絕佳設置。我認為真正令我們感到鼓舞的領域是，首先，我們看到一些我們談論的波動市場正在趨於穩定。我們看到了一些真正偉大的創新。當然，我們在電話會議上提出了一些非常具體的例子，顯示這種綜合網路的採用已經得到了客戶的高度青睞。

So we think we're going to get uplift in the markets that have been stronger. And the self-help issues in our Pillar 1 are going to help [buoy] the margins. So the sort of the setup for '25 looks pretty positive from us. Of course, mix has not been our friend with some of our profitable businesses being weighed down. But I think we've got the right actions in place regardless of what the markets bring next year. It's a little bit too early to give guidance specifically on that, but really encouraged by the setup we see.

因此我們認為我們將在更強勁的市場中獲得提振。我們支柱一中的自助問題將有助於提高利潤率。因此，我們認為 25 年的安排相當樂觀。當然，混合模式對我們並不友好，它拖累了我們的一些獲利業務。但我認為，無論明年市場表現如何，我們都已經採取了正確的行動。現在就給出具體指導還為時過早，但我們看到的設定確實令人鼓舞。

Anshooman, did you want to jump in there?

Anshooman，你想跳進去嗎？

Yeah, Julian. So the incrementals that you mentioned, the 30% to 35% should play out. We're in the early innings of our Pillar 1 and with the power of VBS around continuous improvement.

是的，朱利安。因此，您提到的增量，即 30% 到 35% 應該會實現。我們正處於支柱 1 的初期，並藉助 VBS 的力量不斷改進。

So we feel confident that we should drive margin expansion next year. Also below the line, obviously, with the buybacks we've done, the share count of about $152 million is where we stand right now for the fourth quarter, that will continue. So there should be some benefit into next year when we look at the year on year.

因此我們有信心明年推動利潤率擴大。另外，顯然，透過我們已經完成的回購，目前第四季的股票數量約為 1.52 億美元，這一水平還將繼續。因此，當我們從同比角度看時，明年應該會有一些好處。

And then your point on the low single-digit growth, just I will point out, which I also said during the prepared remarks, Q1, we have a difficult compare for EFS, but also the Matco Expo, which is our largest sales event, is moving from Q1 to Q2, which moves about $30 million out of Matco's revenue orders and sales for Q1 into Q2. No change for the first half but just a shift between quarters.

然後你提到的低個位數成長，我只想指出，我在準備好的發言中也說過，第一季度，我們對 EFS 進行了艱難的比較，但 Matco Expo 是我們最大的銷售活動，從第一季轉移到第二季度，這將導致Matco 第一季的訂單和銷售額中約有3000 萬美元轉移到第二季度。上半年沒有變化，只是季度之間的轉變。

That's helpful. Thank you. And just I wanted to make sure on the sort of margins for the fourth quarter. You have that sequential uplift with normal seasonality firm wide. Just any points of emphasis on which segment might lead or lag in terms of the sequential margin increase in Q4?

這很有幫助。謝謝。我只是想確定第四季的利潤率。在正常的季節性因素影響下，公司整體呈現連續成長。就第四季的連續利潤率成長而言，哪個部門可能會領先或落後，您能否強調一下？

Julian, some of the fall-through from the incremental revenue, obviously, will play out. For EFS, we expect margins to be relatively flat to potentially slightly down year on year. They had a good Q4 last year from a margin perspective. Repair Solutions should be sequentially flat, again, to potentially slightly up. So that's -- we've seen the margins stabilize out there from Q2 to Q3, and we should see that continue into Q4.

朱利安，增量收入的一些下降顯然將會出現。對於 EFS，我們預計利潤率將相對持平或同比略有下降。從利潤率角度來看，他們去年第四季表現良好。修復解決方案應該會繼續持平，甚至可能略有上升。所以，我們看到利潤率從第二季到第三季趨於穩定，我們應該看到這種趨勢持續到第四季。

That's great. Thank you.

那太棒了。謝謝。

Thanks, Julian.

謝謝，朱利安。

(Operator Instructions) Andrew Obin, Bank of America.

（操作員指示）美國銀行安德魯‧奧賓 (Andrew Obin)。

Good morning. This is David Ridley-Lane on for Andrew. On the India tender, should we think that flows in over two to three years? I heard that the -- just to confirm, it's 15 for the underground stuff is coming 12 to 18 months. What about the other portion?

早安.大衛·里德利·萊恩 (David Ridley-Lane) 代替安德魯 (Andrew) 發言。對於印度的招標，我們是否應該認為這將在兩到三年內完成？我聽說——只需確認一下，地下工程需要 15 個月，持續 12 至 18 個月。其餘部分怎麼樣？

Yeah. So of the $70 million that we called out in terms of bookings, there's two components of it. There's the hardware that goes over the next 18 months or so, and then we have the services that goes over multiple years.

是的。因此，我們所說的 7,000 萬美元預訂金額由兩部分組成。我們將在未來 18 個月左右推出硬件，然後提供未來數年的服務。

Just from a bookings perspective, our policy is to book the next 12 months. So we booked about $25 million of the $70 million in the third quarter. So what you can expect over the next 12 months, $25 million of that hardware revenue will flow through of the $70 million that we called out for the third quarter.

僅從預訂的角度來看，我們的政策是預訂未來 12 個月。因此，我們在第三季確認了 7,000 萬美元中的約 2,500 萬美元。因此，您可以預期，在未來 12 個月內，我們預計第三季的硬體收入將達到 7,000 萬美元，其中 2,500 萬美元將流入。

Got it. Thank you. And then on the $12 million cost-cutting benefit here in 2024, that would imply you have a kind of $12 million carryover benefit next year. I wanted to get a sense, I know you're doing R&D investments in Invenco and other places to accelerate the NPI. How much of that do you think would be used for reinvestment versus flowing through?

知道了。謝謝。那麼，2024 年的 1,200 萬美元成本削減收益就意味著您明年將獲得 1,200 萬美元的結轉收益。我想了解一下，我知道您正在 Invenco 和其他地方進行研發投資以加速 NPI。您認為其中有多少將用於再投資而不是流通？

Of the $12 million, what we said last quarter, about two-thirds of it is permanent and there's a little bit that is temporary. So you could expect about $8 million of it to carry forward into next year. It's a little early to give guidance, but -- and early to have finalized plans, but we expect R&D as a percentage of sales to stay relatively stable going into next year.

我們上個季度說過的 1200 萬美元中，大約有三分之二是永久性的，還有一點點是臨時的。因此，您可以預計其中約 800 萬美元將結轉至明年。現在給予指引還為時過早，而且還未最終確定計劃，但我們預計，到明年，研發佔銷售額的百分比將保持相對穩定。

And if I could squeeze one more in. On the Matco bad debt reserves, do you just mathematically lap those next year? Or could there still be --?

如果我可以再擠進一個的話。關於 Matco 壞帳準備金，您是否只是在明年從數學上將其重疊？或者可能還會有--？

We do. Yeah, we lap them on next year. And the market for the financial portfolio isn't getting worse. It's stabilized. So when we look at our actual bad debt expense for Q1, Q2, Q3, it's relatively flat every quarter over those three years. It's just a compare issue. The market stabilized. Our portfolio is relatively healthy. And especially when you compare it to some of the credit card industry data, we're doing actually better and it's stable.

是的。是的，明年我們會超越他們。金融投資組合市場並沒有變得更糟。已經穩定了。因此，當我們查看第一季、第二季、第三季的實際壞帳支出時，會發現這三年來每季的壞帳支出都相對穩定。這只是一個比較問題。市場趨於穩定。我們的投資組合相對健康。尤其是當你將其與一些信用卡行業數據進行比較時，我們的表現實際上更好且更穩定。

Thank you. Thank you very much.

謝謝。非常感謝。

Thank you. And it seems like no further questions that came through. I would now like to hand back the call over to Mark. Please go ahead, sir.

謝謝。似乎沒有其他問題出現。現在我想把電話轉回馬克。先生，請繼續。

Yeah. Thanks, John. We appreciate folks joining us on today's call, and we appreciate the interest in Vontier and look forward to engaging many of you on the road in the next several weeks. Have a good day.

是的。謝謝，約翰。我們感謝各位參加今天的電話會議，我們感謝大家對 Vontier 的關注，並期待在接下來的幾週內與大家交流。祝你有美好的一天。

Thank you. This concludes our conference for today. Thank you all for participating. You may now disconnect your lines.

謝謝。今天的會議到此結束。感謝大家的參與。現在您可以斷開線路了。