美國西屋制動公司 (WAB) 2023 Q2 法說會逐字稿

Good morning, and welcome to Wabtec's Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

早上好，歡迎參加西屋制動 2023 年第二季度收益電話會議。 （操作員說明）請注意，該事件正在被記錄。

I would like to turn the call over to Ms. Kristine Kubacki, Vice President, Investor Relations. Please go ahead, ma'am.

我想將電話轉給投資者關係副總裁 Kristine Kubacki 女士。請繼續，女士。

Thank you, operator. Good morning, everyone, and welcome to Wabtec's Second Quarter 2023 Earnings Call. With us today are President and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalerz.

謝謝你，接線員。大家早上好，歡迎參加西屋制動 2023 年第二季度財報電話會議。今天與我們在一起的有總裁兼首席執行官拉斐爾·桑塔納 (Rafael Santana)；首席財務官約翰·奧林；和財務高級副總裁 John Mastalerz。

Today's slide presentation, along with our earnings release and financial disclosures were posted to our website earlier today and can be accessed on Investor Relations tab on wabteccorp.com. Some statements we're making are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties and assumptions related to our forward-looking statements, please see the disclosures in our earnings release and presentation.

今天的幻燈片演示以及我們的收益發布和財務披露已於今天早些時候發佈到我們的網站上，可以通過 wabteccorp.com 的投資者關係選項卡進行訪問。我們所做的一些陳述具有前瞻性，並且基於我們對世界和當今業務的最佳看法。有關與我們的前瞻性陳述相關的更詳細的風險、不確定性和假設，請參閱我們的收益發布和演示中的披露。

We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics.

我們還將討論非公認會計準則財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的披露和調節表。

I will now turn the call over to Rafael.

我現在將把電話轉給拉斐爾。

Thanks, Kristine, and good morning, everyone. Let's move to Slide 4. I'll start with an update on our business, my perspectives on the quarter, and progress against our long-term value creation framework, and then John will cover the financials.

謝謝克里斯汀，大家早上好。讓我們轉到幻燈片 4。我將首先介紹我們的業務最新情況、我對本季度的看法以及我們長期價值創造框架的進展，然後約翰將介紹財務狀況。

We delivered another strong quarter, evidenced by robust sales and earnings per share growth. We achieved these despite continued volatility and economic challenges. Sales were $2.41 billion, which was up 17.5% versus prior year.

我們再次實現了強勁的季度業績，強勁的銷售和每股收益增長證明了這一點。儘管持續的波動和經濟挑戰，我們還是實現了這些目標。銷售額為 24.1 億美元，比上年增長 17.5%。

Revenue was driven by strong performance from both the Freight and Transit segments. Total cash flow from operations was $115 million. Overall, our financial position remained strong. We continued to execute against our capital allocation framework to maximize shareholder value by investing for the future growth, executing on the strategic M&A like our recent acquisition of L&M, and returning cash to shareholders.

貨運和運輸部門的強勁表現推動了收入的增長。運營現金流總額為 1.15 億美元。總體而言，我們的財務狀況依然強勁。我們繼續執行我們的資本配置框架，通過投資未來增長、執行戰略併購（例如我們最近收購 L&M）以及向股東返還現金，實現股東價值最大化。

The 12-month backlog was $7.2 billion, up 10%, signifying growing momentum and visibility across the business. The total multiyear backlog was $22.4 billion. Overall, the Wabtec team delivered a strong second quarter, marking a good first half of 2023.

12 個月的積壓訂單金額為 72 億美元，增長 10%，表明整個業務的增長勢頭和知名度。多年積壓總額為 224 億美元。總體而言，西屋制動團隊在第二季度表現強勁，為 2023 年上半年帶來了良好的業績。

Looking forward, I'm encouraged by the underlying strength and robust momentum across the business. Wabtec is well-positioned to continue driving profitable growth even amidst a challenging economy.

展望未來，我對整個業務的潛在實力和強勁勢頭感到鼓舞。即使在經濟充滿挑戰的情況下，西屋制動也有能力繼續推動盈利增長。

Shifting our focus to Slide 5. Let's talk about our 2023 end market expectations in more details. As we look at key metrics across our Freight business, we remain encouraged by the underlying business momentum and our robust pipeline of opportunities across geographies. North America carloads continue to be down in the quarter and locomotive parkings moved up slightly as we exited the second quarter, but better than we had anticipated as customers prioritize service and fluidity.

將我們的焦點轉移到幻燈片 5。讓我們更詳細地討論 2023 年終端市場的預期。當我們審視整個貨運業務的關鍵指標時，我們仍然對潛在的業務勢頭和跨地區的強勁機會渠道感到鼓舞。本季度北美車輛運載量繼續下降，第二季度結束時機車停車位略有增加，但好於我們的預期，因為客戶優先考慮服務和流動性。

We continue to see significant opportunities across the globe in demand for new locomotives, modernizations and digital solutions as our customers invest in solutions that continue to drive reliability, productivity and fuel efficiency.

隨著我們的客戶投資於能夠持續提高可靠性、生產力和燃油效率的解決方案，我們繼續看到全球對新型機車、現代化和數字解決方案的巨大需求。

Looking at the North American railcar builds demand for railcar continues to show growth. The industry outlook for 2023 is for about 45,000 cars to be delivered. Overall, we believe we have an opportunity to continue building significant long-term momentum with growth in modernizations, new locomotive sales, railcar builds, and digital solutions.

縱觀北美鐵路車建造情況，對鐵路車的需求繼續呈現增長趨勢。預計 2023 年行業交付量約為 45,000 輛汽車。總體而言，我們相信，我們有機會通過現代化、新機車銷售、軌道車輛製造和數字解決方案的增長，繼續建立顯著的長期勢頭。

Internationally, activity is strong in core markets, such as Brazil, Australia, India, and the CIS region, significant investments to expand and upgrade infrastructure are supporting a very strong international order pipeline.

在國際上，巴西、澳大利亞、印度和獨聯體地區等核心市場的活動強勁，擴大和升級基礎設施的大量投資正在支持非常強大的國際訂單渠道。

Finally, moving to the Transit sector, the mega trends remain in place, driving the need for clean, safe and efficient transportation solutions around the globe.

最後，轉向交通領域，大趨勢仍然存在，推動了全球對清潔、安全和高效交通解決方案的需求。

Next, let's turn to Slide 6 to discuss a few recent business highlights. In North America, we secured several key wins, including orders for 30 new locomotives and order for 69 locomotives under our certified preowned program and an order for 60 modernizations from Canadian National that closed after the end of the quarter.

接下來，讓我們轉向幻燈片 6 討論近期的一些業務亮點。在北美，我們贏得了幾項關鍵勝利，包括30 台新機車的訂單和根據我們認證的二手車計劃訂購69 台機車的訂單，以及加拿大國家航空(Canadian National) 在本季度末完成的60 台現代化機車訂單。

In Australia, we recently won a strategic order for 17 locomotives from CBH, which will support the continued growth of agricultural commodities in the region.

在澳大利亞，我們最近獲得了CBH 17台機車的戰略訂單，這將支持該地區農產品的持續增長。

And with regards to our zero emissions portfolio, we also recently signed a strategic order with Vale for 3 FLXdrive locomotives. These locomotives will pull the world's largest iron ore train, and is expected to remove 63,000 tons of carbon, the equivalent of 14,000 passenger cars per year.

關於我們的零排放產品組合，我們最近還與淡水河谷簽署了 3 台 FLXdrive 機車的戰略訂單。這些機車將拉動世界上最大的鐵礦石列車，預計每年可去除63,000噸碳，相當於14,000輛客車。

In Transit, we won a major order to supply passenger information systems and pantographs for up to 504 Stadler cars for Germany and Austria.

在 Transit 領域，我們贏得了一份大訂單，為德國和奧地利的多達 504 輛 Stadler 車輛提供乘客信息系統和受電弓。

And finally, during June, we completed the bolt-on acquisition of L&M. This strategic acquisition will enhance Wabtec's existing heat transfer portfolio, and we will extend our installed base in mining, providing a solid platform for domestic and international profitable growth.

最後，在 6 月份，我們完成了對 L&M 的補強收購。此次戰略收購將增強西屋制動現有的傳熱產品組合，並且我們將擴大我們在採礦業的裝機基礎，為國內和國際盈利增長提供堅實的平台。

All of this demonstrates the growing momentum across the business, the team's relentless focus on delivering for our customers and a strong pipeline of opportunities we continue to execute on, Wabtec is well-positioned to continue to capture profitable growth with innovative and scalable technologies that address our customers' most pressing needs.

所有這些都表明了整個業務的增長勢頭、團隊對為客戶提供服務的不懈關注以及我們繼續執行的強大機會渠道，西屋制動已做好充分準備，通過創新和可擴展的技術繼續實現盈利增長，這些技術解決了我們客戶最迫切的需求。

Turning to Slide 7. I'd like to highlight how Wabtec will provide efficient solutions for our customers by driving their productivity, reducing fuel consumption, and improving safety, while leading the decarbonization of rail across the industry. Wabtec is uniquely positioned to shape a more sustainable future for rail by inventing and developing technologies that provide customers with adaptable and efficient solutions to meet their carbon reduction goals, while providing strong investment returns to our customers given improved reliability, haulage-ability and fuel efficiency.

轉向幻燈片 7。我想重點介紹西屋制動如何通過提高客戶生產力、降低油耗和提高安全性，為客戶提供高效的解決方案，同時引領整個行業的鐵路脫碳。西屋制動擁有獨特的優勢，通過發明和開發技術，為客戶提供適應性強、高效的解決方案來實現其碳減排目標，同時通過提高可靠性、運輸能力和燃油效率，為客戶提供豐厚的投資回報，從而塑造更可持續的鐵路未來。 。

Ultimately, we will help lead the industry towards a zero-emissions rail network and we have already started laying that path to get there through new locomotives, modernizations with advancements in utilizing renewable and biofuels, leading in battery electric applications, investing in hydrogen technology, and providing a wide range of digital solutions.

最終，我們將幫助引領行業走向零排放鐵路網絡，我們已經開始鋪設這條道路，通過新機車、利用可再生能源和生物燃料方面的進步實現現代化、領先電池電動應用、投資氫技術、並提供廣泛的數字解決方案。

With that, I'll turn the call over to John to review the quarter, segment results and our overall financial performance. John?

接下來，我將把電話轉給約翰，讓他審查本季度、部門業績和我們的整體財務業績。約翰？

Thanks, Rafael, and hello everyone. Turning to Slide 8, I will review our second quarter results in more detail. We delivered another strong quarter of operational and financial performance with underlying business momentum strengthening through the first half of the year.

謝謝拉斐爾，大家好。轉向幻燈片 8，我將更詳細地回顧我們第二季度的業績。我們在上半年實現了又一個強勁的季度運營和財務業績，基本業務勢頭不斷增強。

Sales for the second quarter were $2.41 billion, which reflects a 17.5% increase versus the prior year. Sales were driven by strong growth across all major product lines.

第二季度銷售額為 24.1 億美元，比去年同期增長 17.5%。所有主要產品線的強勁增長推動了銷售。

For the quarter, GAAP operating income was up $48 million, driven by higher sales. Adjusted operating margin in Q2 was 16.4%, down 0.3 percentage points versus the prior year. The benefits of higher sales were offset by a less rich mix of sales between and within segments.

在銷售額增加的推動下，本季度 GAAP 營業收入增長了 4800 萬美元。第二季度調整後營業利潤率為 16.4%，較上年下降 0.3 個百分點。銷售額增加的好處被細分市場之間和內部銷售組合的不那麼豐富所抵消。

GAAP earnings per diluted share were $1.06, which was up 16.5% versus the second quarter a year ago. During the quarter, we had pretax charges of $10 million for restructuring which was primarily related to our Integration 2.0 initiative to further integrate Wabtec's operations and to drive $75 million to $90 million of run rate savings by 2025.

GAAP 攤薄後每股收益為 1.06 美元，較去年第二季度增長 16.5%。本季度，我們的重組稅前費用為1000 萬美元，這主要與我們的Integration 2.0 計劃有關，該計劃旨在進一步整合西屋制動的業務，並在2025 年之前節省7500 萬至9000 萬美元的運行率。

In the quarter, adjusted earnings per diluted share were $1.41, up 14.6% versus the prior year.

本季度，調整後每股攤薄收益為 1.41 美元，較上年增長 14.6%。

Overall, Wabtec executed a good quarter and a strong first half of 2023. We outperformed our expectations, demonstrating the underlying strength and momentum of the business and as a result, we are raising our full year outlook for sales and adjusted earnings.

總體而言，西屋制動在2023 年上半年表現出色，業績強勁。我們的表現超出了我們的預期，展示了業務的潛在實力和勢頭，因此，我們上調了全年銷售和調整後收益的預期。

Now turning to Slide 9. Let's review our product lines in more detail. Second quarter consolidated sales were very strong, up 17.5%. Equipment sales were up 8.9% due to higher locomotive sales this quarter versus last year's second quarter.

現在轉向幻燈片 9。讓我們更詳細地回顧一下我們的產品線。第二季度綜合銷售額非常強勁，增長了 17.5%。由於本季度機車銷量高於去年第二季度，設備銷量增長 8.9%。

Components sales were up 23.1% versus last year, largely driven by the higher OE railcar build and an increase in our market share due to product availability, along with increased demand for industrial products. We also closed the strategic acquisition of L&M late in the quarter, which did not have an impact on components sales during the quarter.

零部件銷售額比去年增長了 23.1%，這主要是由於原廠軌道車製造量增加、產品可用性導致我們的市場份額增加以及工業產品需求增加所致。我們還在本季度末完成了對 L&M 的戰略收購，這並未對本季度的零部件銷售產生影響。

Digital Intelligence sales were up 18.9%, which was driven by robust demand for onboard locomotive products and international PTC, along with revenue contribution from the acquisitions in Q2 of last year.

數字智能銷售額增長 18.9%，這得益於對車載機車產品和國際 PTC 的強勁需求，以及去年第二季度收購帶來的收入貢獻。

Our Services sales grew 13.9%. Sales growth was driven by higher sales from increased modernization deliveries and increased parts sales. Our customers continue to recognize a superior performance, reliability, efficiency, and availability across their Wabtec locomotive fleets.

我們的服務銷售額增長了 13.9%。現代化交付量的增加和零部件銷售的增加推動了銷售額的增長。我們的客戶不斷認可其 Wabtec 機車車隊的卓越性能、可靠性、效率和可用性。

Across our Transit segment, OE and aftermarket sales significantly increased versus last year. Segment sales were up 25.3% to $699 million. The momentum in this segment is strong across our core markets as secular drivers such as urbanization and decarbonization accelerate the need for investments in sustainable infrastructure.

在我們的運輸部門，原廠和售後市場銷售額與去年相比顯著增長。部門銷售額增長 25.3%，達到 6.99 億美元。由於城市化和脫碳等長期驅動因素加速了對可持續基礎設施投資的需求，我們的核心市場該領域的勢頭強勁。

Moving to Slide 10. As forecasted, gross profit margin was slightly lower, driven by a less rich mix and higher manufacturing costs. Mix was unfavorable driven by strong sales from the Transit segment and higher sales of new locomotives and modernizations within the Freight segment. Raw material costs, while still elevated, were largely flat on a year-over-year basis.

轉到幻燈片 10。正如預測的那樣，由於產品組合不太豐富和製造成本上升，毛利率略有下降。運輸部門的強勁銷售以及貨運部門內新機車和現代化改造的銷售增加，推動了組合的不利發展。原材料成本雖然仍然較高，但與去年同期基本持平。

Foreign currency exchange was unfavorable to sales by $7 million or 0.3 percentage point, and it reduced our second quarter gross profits by $2 million.

外匯兌換對銷售額不利700萬美元，即0.3個百分點，並使我們第二季度的毛利潤減少200萬美元。

Finally, manufacturing costs were positively impacted by favorable fixed cost absorption, more than offset by manufacturing inefficiencies at our Erie facility in June.

最後，製造成本受到有利的固定成本吸收的積極影響，但被我們伊利工廠 6 月份的製造效率低下所抵消。

Our team continues to execute well to mitigate the impact of continued cost pressures by driving operational productivity and lean initiatives.

我們的團隊繼續表現良好，通過提高運營生產力和精益計劃來減輕持續成本壓力的影響。

Turning to Slide 11. For the second quarter, GAAP operating margin was 12.9%, which was flat versus last year, while adjusted operating margin declined 0.3 percentage points to 16.4%. GAAP SG&A was $285 million, and adjusted SG&A was $283 million, both of which were up versus the prior year, but down significantly as a percent of sales.

轉向幻燈片 11。第二季度，GAAP 運營利潤率為 12.9%，與去年同期持平，而調整後運營利潤率下降 0.3 個百分點，至 16.4%。 GAAP SG&A 為 2.85 億美元，調整後的 SG&A 為 2.83 億美元，兩者均較上年有所增長，但佔銷售額的百分比大幅下降。

Engineering expense increased from last year according to plan, yet was down 0.2 percentage points as a percentage of sales at 2.2%. We continue to invest engineering resources and current business opportunities but more importantly, we are investing in our future as the leader in decarbonization and digital technologies that improve our customers' productivity, capacity utilization and safety.

工程費用比去年按計劃增加，但佔銷售額的比例下降了0.2個百分點，為2.2%。我們繼續投資工程資源和當前的商業機會，但更重要的是，我們正在投資於我們作為脫碳和數字技術領導者的未來，以提高客戶的生產力、產能利用率和安全性。

Now let's take a look at the segment results on Slide 12, starting with the Freight segment. As I already discussed, Freight segment sales were strong for the quarter, up 14.6%. GAAP segment operating income was $271 million for an operating margin of 15.9%, up 0.2 percentage points versus last year. Adjusted operating income for the Freight segment was $346 million, up 15% versus the prior year.

現在讓我們看一下幻燈片 12 上的分段結果，從貨運分段開始。正如我已經討論過的，本季度貨運部門的銷售強勁，增長了 14.6%。 GAAP 部門營業收入為 2.71 億美元，營業利潤率為 15.9%，比去年上升 0.2 個百分點。貨運部門調整後營業收入為 3.46 億美元，比上年增長 15%。

Adjusted operating margin in the Freight segment was flat with prior year at 20.3%. The benefits of increased sales, including fixed cost absorption and lower SG&A as a percentage of revenue were offset by unfavorable mix from higher sales of international locos and modernizations as well as nonrecurring expenses from our labor negotiations in Erie.

貨運部門調整後營業利潤率為 20.3%，與上年持平。銷售額增加的好處，包括固定成本吸收和較低的銷售、管理費用佔收入的百分比，被國際機車和現代化的銷售額增加以及伊利勞資談判產生的非經常性費用的不利組合所抵消。

Finally, segment multiyear backlog was $18.3 billion, down 6.8% from the end of Q2 last year, while the 12-month backlog was $5.3 billion, up 10.3% over the same period. The 12-month backlog continues to show momentum beyond 2023. Conversely, the year-over-year reduction in the backlog was driven by lapping last year's significant multiyear order from Union Pacific for over $1 billion of modernizations.

最後，該部門多年積壓訂單為 183 億美元，較去年第二季度末下降 6.8%，而 12 個月積壓訂單為 53 億美元，同比增長 10.3%。 12 個月的積壓訂單在 2023 年之後繼續呈現勢頭。相反，積壓訂單的同比減少是由於去年聯合太平洋公司 (Union Pacific) 超過 10 億美元的現代化改造訂單的重要多年訂單的推動。

Now turning to Slide 13. Transit segment sales were up 25.3%, driven by strong OE and aftermarket sales. GAAP operating income was $66 million, up 32.0% and GAAP operating income increased as a result of higher sales and benefits from our Integration 2.0 activities, partially offset by higher restructuring costs. Adjusted segment operating income was $76 million which was up 31.0%. This resulted in adjusted operating margin of 11.1%, up 0.8 percentage point from last year.

現在轉向幻燈片 13。在強勁的原廠設備和售後市場銷售的推動下，交通運輸部門的銷售額增長了 25.3%。 GAAP 營業收入為 6600 萬美元，增長 32.0%，GAAP 營業收入的增加是由於我們的 Integration 2.0 活動帶來的銷售額和收益的增加，但部分被更高的重組成本所抵消。調整後分部營業收入為 7600 萬美元，增長 31.0%。調整後營業利潤率為 11.1%，較去年上升 0.8 個百分點。

Finally, Transit segment multiyear backlog for the quarter was $4.1 billion, up 15.4% versus a year ago.

最後，本季度交通部門的多年積壓訂單為 41 億美元，比去年同期增長 15.4%。

Now let's turn to our financial position on Slide 14. Q2 cash from operations was $115 million. While cash flow benefited from higher earnings, we are continuing to invest in the businesses growth, which is driving working capital higher, in particular, receivables and inventory. Despite that, we continue to drive toward a greater than 90% cash conversion for the full year.

現在讓我們看看幻燈片 14 上的財務狀況。第二季度來自運營的現金為 1.15 億美元。雖然現金流受益於較高的收益，但我們仍在繼續投資於業務增長，這推動了營運資本的增加，特別是應收賬款和庫存。儘管如此，我們仍繼續努力實現全年現金轉化率超過 90%。

Our debt leverage ratio was 2.4x at the end of the second quarter, which was flat versus prior year, primarily due to the acquisition of L&M. As we look forward, we have a $250 million senior note at 4.38% coming due in August. We intend to roll that debt into our delayed draw term facility.

第二季度末，我們的債務槓桿率為 2.4 倍，與去年同期持平，這主要是由於收購了 L&M。展望未來，我們有一張利率為 4.38% 的 2.5 億美元優先票據將於 8 月到期。我們打算將該債務轉入我們的延遲提款期限貸款中。

I'd like to spend just a moment on providing some additional color on L&M. As Rafael mentioned, during the quarter, we completed the bolt-on acquisition of L&M. This strategic acquisition will extend and complement our portfolio of premium heat transfer solutions in mining. We purchased L&M for $223 million in cash, and the business is expected to have calendar year 2023 sales of about $130 million.

我想花點時間為 L&M 提供一些額外的色彩。正如拉斐爾提到的，在本季度，我們完成了對 L&M 的補強收購。此次戰略收購將擴展和補充我們在採礦領域的優質傳熱解決方案產品組合。我們以 2.23 億美元現金收購了 L&M，預計該業務 2023 年的銷售額約為 1.3 億美元。

And finally, we returned $105 million of capital back to shareholders in the quarter through share repurchases and dividends. As you can see in these results, our financial position is strong, and we continue to allocate capital and a balanced strategy to maximize shareholder returns.

最後，我們在本季度通過股票回購和股息向股東返還了 1.05 億美元的資本。正如您在這些結果中看到的，我們的財務狀況強勁，我們繼續分配資本和平衡策略，以最大限度地提高股東回報。

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

有了這個，我想把電話轉回給拉斐爾。

Thanks, John. Let's flip to Slide 15 to discuss our updated 2023 financial guidance. We believe that the underlying customer demand for our products and solutions is growing across our business. Our order pipeline and 12-month backlog continued to strengthen, providing solid visibility for profitable growth for the rest of 2023 and beyond.

謝謝，約翰。讓我們翻到幻燈片 15，討論我們更新的 2023 年財務指引。我們相信，客戶對我們產品和解決方案的潛在需求在我們的整個業務中不斷增長。我們的訂單渠道和 12 個月的積壓訂單繼續加強，為 2023 年剩餘時間及以後的盈利增長提供了堅實的可見性。

The team is committed to driving strong top line growth while managing costs. We are also committed to driving adjusted margin expansion in 2023 despite a still challenging macro environment. With these factors in mind, we are increasing our previous guidance. We now expect 2023 sales of $9.25 billion to $9.50 billion, up 12% from last year at the midpoint and adjusted EPS to be between $5.50 and $5.80 per share, up 16% at the midpoint.

該團隊致力於在管理成本的同時推動營收的強勁增長。儘管宏觀環境仍然充滿挑戰，但我們還致力於在 2023 年推動調整後的利潤率擴張。考慮到這些因素，我們正在增加之前的指導。我們目前預計 2023 年銷售額為 92.5 億美元至 95 億美元，比去年中值增長 12%，調整後每股收益將在每股 5.50 美元至 5.80 美元之間，中值增長 16%。

We also expect cash flow conversions to be greater than 90%.

我們還預計現金流轉化率將超過 90%。

Now let's wrap up on Slide 16. As you heard today, our team delivered another strong quarter to the year despite an uncertain and volatile environment. Thanks in large part to our resilient installed base, world-class team, innovative solutions and our relentless focus on our customers.

現在讓我們總結一下幻燈片 16。正如您今天所聽到的，儘管環境不確定且不穩定，但我們的團隊在今年的季度中再次表現強勁。這在很大程度上要歸功於我們富有彈性的安裝基礎、世界一流的團隊、創新的解決方案以及我們對客戶的不懈關注。

Our results remain on track for us to deliver on our 5-year outlook that we provided at our Investor Day last year, with strong momentum across the portfolio, increased visibility through our strengthening order pipeline, and a rigorous focus on execution, Wabtec is well-positioned to drive profitable long-term growth and maximize shareholder returns.

我們的業績仍有望實現我們去年在投資者日提供的 5 年展望，整個投資組合勢頭強勁，通過加強訂單渠道提高了可見性，並且嚴格注重執行，西屋制動表現出色-旨在推動盈利性長期增長並實現股東回報最大化。

With that, I want to thank you for your time this morning. And I'll now turn the call over to Kristine to begin the Q&A portion of our discussion. Kristine?

在此，我要感謝您今天早上抽出寶貴的時間。現在我將把電話轉給克里斯汀，開始我們討論的問答部分。克里斯汀？

Thank you, Rafael. We will now move on to questions. (Operator Instructions)

謝謝你，拉斐爾。我們現在將繼續提問。 （操作員說明）

Operator, we are now ready for our first question.

接線員，我們現在準備好回答第一個問題。

Thank you. (Operator Instructions) First will be from Justin Long from Stephens.

謝謝。 （操作員說明）首先來自 Stephens 的 Justin Long。

Based on the updated full year guidance, I was wondering if you could share how you're expecting third quarter and fourth quarter to look on a relative basis. Do you think they'll look similar from a revenue and earnings perspective? I just wanted to better understand the cadence that you're anticipating when you think about the timing of deliveries, mix, or anything else we should be mindful of in the back half?

根據更新的全年指引，我想知道您是否可以分享一下您對第三季度和第四季度相對情況的預期。您認為從收入和收益的角度來看它們看起來相似嗎？我只是想更好地理解當你考慮交付時間、混音或其他我們在後半段應該注意的事情時，你所預期的節奏？

Great, Justin. This is John. Justin, when we look at the back half cadence, starting with revenue, we would expect the majority of our revenue growth to come in the third quarter versus the fourth quarter. And again, this is due to the way the orders have come in and production is scheduled as well as we got a little lapping benefit over a slightly easier comp from a revenue standpoint.

太棒了，賈斯汀。這是約翰。賈斯汀，當我們看後半段節奏時，從收入開始，我們預計大部分收入增長將來自第三季度，而不是第四季度。再說一次，這是由於訂單的進來和生產的安排方式，以及從收入的角度來看，我們比稍微容易一點的競爭獲得了一些重疊的好處。

When we look at the earnings side or margin side of the equation, we would see the opposite or expect the opposite, Justin. We would expect the majority of our earnings growth our margin growth to come in the fourth quarter versus the third quarter. And that is simply because we're lapping a much easier comp in the fourth quarter of last year than we have in the third quarter.

當我們查看等式的收益方面或利潤方面時，我們會看到相反的情況或預期相反的情況，賈斯汀。我們預計我們的大部分盈利增長和利潤率增長將來自第四季度（與第三季度相比）。這僅僅是因為我們去年第四季度的表現比第三季度要容易得多。

Okay. That's very helpful. Second question I had was on the Freight Services segment. We saw some notable strength there in the second quarter. Is there a way you can help us think about the growth in that segment if you exclude mods? And then going forward, I was wondering if you could share what you're assuming for locomotive utilization. It sounds like parkings were maybe a little bit better than you thought, but we're hearing from some of the rails that locomotives are getting put into storage. So I just wanted to kind of marry those 2 trends.

好的。這非常有幫助。我的第二個問題是關於貨運服務領域的。我們在第二季度看到了一些顯著的優勢。如果您排除模組，有什麼方法可以幫助我們考慮該細分市場的增長嗎？然後，我想知道您是否可以分享您對機車利用率的假設。聽起來停車場可能比你想像的要好一點，但我們從一些鐵路部門聽說機車正在入庫。所以我只是想結合這兩種趨勢。

So Justin, you're right. So I think we'll see, especially as we go into the second half of the year, and beyond the second half, I think you'll see acceleration of growth in services. Some of that, I mean, you see it with some recent order that we announced here. So mods is a growth case continuing to us moving forward, so that continues to be a positive.

所以賈斯汀，你是對的。因此，我認為我們會看到，特別是當我們進入今年下半年時，以及下半年之後，我認為您會看到服務業的加速增長。我的意思是，其中一些你可以從我們在這裡宣布的最近的一些訂單中看到。所以模組是我們繼續前進的一個增長案例，所以這仍然是一個積極的方面。

When it comes down to parkings, We're seeing really active fleet staying steady side, any elements of really fluctuation within the year, but the focus on services continues, and we feel very good about our fleet stands out there providing really, I'll call, significant benefits to the customer when compared to our competitors' fleets. And that's both in terms of reliability, availability, fuel efficiency, which is a significant element here. We stand with really -- feel better than in average more than 5% on every single one of our platforms. So we don't expect no signs of any significant changes on that active fleet either.

當談到停車位時，我們看到真正活躍的車隊保持穩定，年內沒有任何真正波動的因素，但對服務的關注仍在繼續，我們對我們的車隊脫穎而出感到非常滿意，我真的”與我們競爭對手的車隊相比，這將為客戶帶來顯著的優勢。這既涉及可靠性、可用性、燃油效率，也是這裡的一個重要因素。在我們的每一個平台上，我們確實感覺比平均水平好 5% 以上。因此，我們預計該活躍機隊也不會出現任何重大變化的跡象。

Our next question will be from Chris Wetherbee of Citi.

我們的下一個問題將來自花旗銀行的克里斯·韋瑟比。

It's Rob on for Chris. Could you give us a sense in terms of the backlog, obviously, it increased over the 12 months sequentially. How should we think about just that conversion in '23 versus kind of '24?

羅布替補克里斯。您能給我們介紹一下積壓情況嗎？顯然，積壓情況在 12 個月內連續增加。我們應該如何看待 23 世紀與 24 世紀的轉變？

Okay. I'll start just with, I feel very good about our overall backlog. I feel strong about the pipeline of opportunities that the team is working on. I think the overall underlying growth fundamentals of the business is also strong. As you said, the 12 months is up 10%. It's accelerating. Last quarter was up 4.4%.

好的。首先，我對我們的整體積壓工作感覺非常好。我對團隊正在努力的機會渠道感到強烈。我認為該業務的整體潛在增長基礎也很強勁。正如你所說，12 個月上漲了 10%。它正在加速。上季度增長 4.4%。

The current total backlog is also healthy. So while it's down 3.5%, I look at it in conjunction with the multiyear $1 billion order that we got from Union Pacific and the auto multibillion-dollar order opportunities were being worked right now and with the team. So we see good momentum internationally. We see it in North America. It's positive. We're progressing, and we're continuing to grow and our pipeline supports it.

目前的積壓總量也很健康。因此，雖然它下跌了 3.5%，但我將其與我們從聯合太平洋公司獲得的多年期 10 億美元訂單以及目前正在與團隊合作的數十億美元汽車訂單機會結合起來。因此，我們在國際上看到了良好的勢頭。我們在北美看到了這一點。這是積極的。我們正在進步，我們正在繼續成長，我們的管道支持它。

In terms of the convertibility, the 12 months, already provides you a view into '24, and we continue to see strength in the pipeline.

就可兌換性而言，12 個月已經為您提供了 24 年的前景，我們繼續看到管道中的力量。

That's helpful. And just to piggyback on Justin's question. In your response you said -- I thought I heard you saying that you're expecting acceleration of services growth. So should I think about that stepping up from the roughly 14% you guys did in 2Q in the back half of the year. And maybe if you could provide a little bit more context.

這很有幫助。只是為了順應賈斯汀的問題。在您的回復中，您說——我想我聽到您說您期望服務增長加速。因此，我是否應該考慮一下，從今年下半年第二季度的大約 14% 的水平開始提高。也許您可以提供更多背景信息。

First half versus second half of the year. That's where I made the comment.

上半年對比下半年。這就是我發表評論的地方。

Okay. That's helpful. And how are you thinking about services growth longer term?

好的。這很有幫助。您如何看待服務業的長期增長？

It continues. I mean, as you saw, I think the demand for a lot of the solutions we have there continues to be robust. We have an opportunity to modernize a significant part of the fleet out there. I think customers are really looking into it. You see based on the announcement we just made yesterday. When you're looking at 18% fuel savings, 40% improvement on reliability, 55% on pulling power. Those are significant numbers that are really compelling in terms of driving, not just the quality of the service you're providing to your customers, but reducing your costs. And I think that these are some of the fundamentals we'll continue to build on growth for the modernization of the fleet and demand for new units as well.

它還在繼續。我的意思是，正如您所看到的，我認為對我們擁有的許多解決方案的需求仍然強勁。我們有機會對大部分機隊進行現代化改造。我認為客戶確實正在研究它。你看到的是根據我們昨天剛剛發布的公告。當您考慮節省 18% 的燃油、提高 40% 的可靠性、提高 55% 的牽引力時。這些數字在駕駛方面確實具有吸引力，不僅是您為客戶提供的服務質量，而且還降低了您的成本。我認為這些是我們將繼續建立在機隊現代化增長和新機組需求基礎上的一些基礎。

Next question will be from Rob Wertheimer from Melius Research.

下一個問題將由 Melius Research 的 Rob Wertheimer 提出。

So just to clarify on gross margin, obviously, you mentioned that you had mix headwinds between segments and within. Is mix the entire driver of the down gross margin? Or is there any price/cost or anything else to catch up still? And then was there a mix drag within Transit as a segment?

因此，為了澄清毛利率，顯然，您提到您在細分市場之間和內部都遇到了混合阻力。混合是毛利率下降的全部原因嗎？或者還有什麼價格/成本或其他東西需要趕上嗎？那麼 Transit 作為一個細分市場是否存在混合拖累？

Okay, Rob, this is John. Looking at the quarter, we came in -- margin came in 16.4%, down 0.3 percentage point. As we talked about in the earlier quarter, we expected the first half to be flat on margin. So margins were down a little bit more than we expected. The key driver of that, Rob, was the inefficiencies we're experiencing at our facility in Erie behind the strike. So that is the biggest driver.

好的，羅布，這是約翰。看看本季度，我們的利潤率為 16.4%，下降了 0.3 個百分點。正如我們在上一季度談到的那樣，我們預計上半年的利潤率將持平。因此，利潤率下降幅度比我們預期的要大一些。羅布，造成這種情況的關鍵因素是我們在伊利的工廠在罷工後遇到的低效率問題。所以這是最大的驅動力。

The mix we anticipated, the mix within the groups we anticipated on locomotives and mods in the original guidance. But the difference really is the inefficiencies at our facility at York -- I mean, at Erie.

我們預期的混合，我們在原始指南中預期的機車和模組組內的混合。但真正的區別在於我們在約克的工廠——我是說，在伊利的工廠效率低下。

Perfect. Okay. Got it. And then if I can ask a different one, on hybrid electric, the wind and mining, the biggest iron ore train in the world. I don't know what the size of that market is and what your expectation for the pace of testing validation and potential future orders maybe? I wonder if you have any comments you can make.

完美的。好的。知道了。然後我是否可以問一個不同的問題，關於混合動力電動、風能和採礦、世界上最大的鐵礦石列車。我不知道該市場的規模有多大，以及您對測試驗證速度和未來潛在訂單的期望是什麼？不知您有何意見可以提出。

I do. We're continuing to first make progress on battery electric. I think that order is a great example of that. We're developing a supply chain around it to make sure that we make a -- really the overall product reliable first deliveries are happening next year. We're continuing to work actively with customers, both in North America and internationally.

我願意。我們將繼續首先在電池電動方面取得進展。我認為該命令就是一個很好的例子。我們正在圍繞它開發一條供應鏈，以確保我們能夠在明年實現真正可靠的整體產品首次交付。我們將繼續與北美和國際客戶積極合作。

There is demand out there to further expand the use of the technology. We're working with customers to really make sure that we pace as we step into it. Fuel continues to, of course, be a significant element of cost for our customers. I think there is a really significant opportunity for us to continue to grow that, and we're going to pace it as we grow into different geographies. That's I think the exciting piece. It's not a demand around one specific customer or one specific segment. I think we have an opportunity to apply that battery concept also in conjunction with, protocol, not just a hybrid product, but hybrid systems as well. I recently came back from Europe and there's, I'll call it, significant opportunity for us there as well.

人們需要進一步擴大該技術的使用。我們正在與客戶合作，以​​確保我們能夠跟上步伐。當然，燃料仍然是我們客戶成本的重要組成部分。我認為我們有一個非常重要的機會來繼續發展這一點，並且隨著我們在不同地區的發展，我們將加快步伐。我認為這就是令人興奮的作品。這不是針對某一特定客戶或某一特定細分市場的需求。我認為我們有機會將電池概念與協議結合應用，不僅是混合產品，還包括混合系統。我最近從歐洲回來，我稱之為，我們在那裡也有重要的機會。

Our next question will be from Saree Boroditsky of Jefferies.

我們的下一個問題將來自 Jefferies 的 Saree Boroditsky。

This is James on for Saree. So I wanted to touch on Integration 2.0. So can you provide an update on how Integration 2.0 is progressing? And how should we think about cost savings into 2024?

這是詹姆斯在紗麗上的表演。所以我想談談 Integration 2.0。您能否提供有關 Integration 2.0 進展情況的最新信息？我們應該如何考慮 2024 年的成本節約？

Great, James. So as we've talked out, when we announced Integration 2.0 a little bit over a year ago that we would invest $135 million to $165 million and expect ongoing savings of $75 million to $90 million. We're off to a great start as we talked about at the end of the '22, investment was a little bit ahead of schedule, which is a good thing.

太棒了，詹姆斯。正如我們所說，當我們一年多前宣布集成 2.0 時，我們將投資 1.35 億至 1.65 億美元，並預計持續節省 7500 萬至 9000 萬美元。正如我們在 22 世紀末談到的那樣，我們有了一個良好的開端，投資比計劃提前了一點，這是一件好事。

And as we ended last year, we were at run rate savings of $5 million. In the 6 months that we've had this year, we've over doubled that, and the trajectory will continue through the remainder of 2023, and add to a fair amount of our incremental margin in 20 -- in the back half as well as through 2024 as we head up to that $75 million to $90 million run rate in 2025.

截至去年年底，我們的運行率節省了 500 萬美元。在今年的 6 個月裡，我們的利潤增長了一倍多，而且這一軌跡將持續到 2023 年剩餘時間，並在 20 年後增加我們的增量利潤——下半年也是如此到2024 年，我們將在2025 年達到7500 萬至9000 萬美元的運行率。

Great. That's helpful. And just following up on the Erie plant strike. So can you provide like a little bit more detail on the strike and how that is affecting the production schedule like revenue mix given that the facility was more focused on like components like customized locomotive for international and electric locomotives?

偉大的。這很有幫助。剛剛跟進伊利工廠罷工。那麼，鑑於該工廠更專注於國際機車和電力機車的定制機車等組件，您能否提供有關罷工的更多詳細信息，以及罷工如何影響生產計劃（例如收入組合）？

I'll start with, over the last 2 years, we have successfully reached an agreement with all of our union and nonunion side. So we're working on collaboration. We remain committed to the workforce with that, We remain optimistic that we can reach an agreement here in a timely manner. From a financial perspective, we've planned to realize for a variety of outcomes and contingencies here and we do not anticipate any impact to the full year revenue.

首先，在過去的兩年裡，我們已經成功地與所有工會和非工會方面達成協議。所以我們正在努力合作。我們仍然致力於勞動力，我們仍然樂觀地認為我們能夠及時達成協議。從財務角度來看，我們計劃在這裡實現各種結果和意外情況，並且我們預計不會對全年收入產生任何影響。

Our next question will be from Allison Poliniak of Wells Fargo.

我們的下一個問題將來自富國銀行的艾莉森·波利尼亞克。

Just a quick question on the outlook. Your 5% revenue growth at 5% earnings growth. So it really implies sort of lack of leverage on that revenue. Is that just simply a mix situation that's driving that? Just any -- if you could walk us through that.

只是一個關於前景的簡單問題。您的收入增長 5%，盈利增長 5%。因此，這實際上意味著該收入缺乏槓桿作用。這僅僅是一種混合情況造成的嗎？任何一個——如果你能引導我們完成這個過程的話。

Allison, you're talking about within the quarter?

艾利森，你說的是本季度內嗎？

No, for the full year, the guidance raise nice revenue guidance raise, but EPS really just in line with that revenue guide, just implies the lower incrementals. I just want to understand if that's just purely a mix, if there's something else within that that's driving sort of that lack of incrementals there.

不，對於全年來說，指導提高了很好的收入指導提高，但每股收益實際上與該收入指導一致，只是意味著增量較低。我只是想了解這是否純粹是一種混合，其中是否還有其他原因導致了增量的缺乏。

Sure, Allison. So yes, we're thrilled to be able to raise our revenue guidance, went from a midpoint of up 6% to up 12%. And driven by the underlying momentum that we've experienced, right? And that's continued from the back half of last year into the -- through the first half of this year.

當然，艾莉森。所以，是的，我們很高興能夠提高我們的收入指導，從中間值 6% 提高到 12%。並受到我們所經歷的潛在動力的推動，對吧？這種情況從去年下半年一直持續到今年上半年。

When we look at the earnings guide, it was up from a midpoint of 5.65% or up 10% to up 16%. So what we're seeing is a couple of things. You're not seeing the full increase in revenue coming through in earnings. And Allison, that's for 3 reasons.

當我們查看盈利指南時，它從中值 5.65% 或上漲 10% 上升至上漲 16%。所以我們看到的是一些事情。您沒有看到收入的全部增長。艾莉森，這有三個原因。

One is, in the first quarter, we had some additional investment in our next-generation technology for our PDS software that's dispatch software. And so that's a onetime event that kind of will bring the earnings down on a full year basis.

一是，在第一季度，我們對 PDS 軟件（即調度軟件）的下一代技術進行了一些額外投資。因此，這是一次性事件，會導致全年收益下降。

The second driver of that is the strike at Erie. That does have costs. Rafael had mentioned, we don't expect any impact on revenue for the year, but it does have a cost. And we had cost in that in the first and the second quarter, but we'll also have some costs in the third quarter. So that's included in that as well, again, more on the onetime side.

第二個推動因素是伊利的罷工。這確實是有成本的。拉斐爾曾提到，我們預計不會對今年的收入產生任何影響，但它確實會產生成本。我們在第一季度和第二季度有這方面的成本，但在第三季度我們也會有一些成本。所以這也包含在其中，再次，更多的是一次性的。

And the third area is higher interest cost. As you could see in the quarter, interest was up about 25% to $11 million. We would expect interest to be higher in the back half as well. partly behind the L&M acquisition, but also the refinancing of some debt that we've got coming due. So Allison, when you take those 3 things that's the difference between the growth rate of revenue and the growth rate of earnings.

第三個方面是更高的利息成本。正如您在本季度所看到的，利息增長了約 25%，達到 1100 萬美元。我們預計後半段的興趣也會更高。部分是 L&M 收購的背後，也是我們即將到期的一些債務的再融資。艾利森，當你考慮這三件事時，這就是收入增長率和收益增長率之間的差異。

Great. That's very helpful. And then on the digital side, if I recall, it's always been more, I would say, cyclically sensitive and it doesn't seem to be exhibiting that sort of same trend. Is it sort of a change in how your customers are approaching that product? Is this sort of the investment that you've done that they can gain maybe even more efficiencies than they did in prior cycles so they're pushing through that investment? Just trying to understand sort of how -- why a book that's risk cyclical or just trying to use to exhibit?

偉大的。這非常有幫助。然後在數字方面，如果我沒記錯的話，我想說的是，它總是對周期性更加敏感，而且似乎並沒有表現出那種相同的趨勢。您的客戶使用該產品的方式是否發生了變化？您所做的這種投資是否可以使他們獲得比之前週期更高的效率，以便他們推動這項投資？只是想了解如何——為什麼一本具有周期性風險的書或只是想用來展示？

So a couple of points here, Allison. First. I mean, as you saw, I mean, we had significant order buildups in the last 2 years has positioned the business really well. from a backlog perspective. A good chunk of that was drilling international orders, somewhere, multi year agreements. As we go more international, it's a bit more lumpy. So we would expect that to play out over the different quarters. But -- and the auto comment I would make no different than the previous years. we need to really drive convertibility into the shorter-term orders that continue to deliver on the year results.

艾莉森，這裡有幾點。第一的。我的意思是，正如您所看到的，我的意思是，我們在過去兩年中積累了大量訂單，這使我們的業務定位非常好。從積壓的角度來看。其中很大一部分是在某個地方鑽探國際訂單、多年協議。隨著我們更加國際化，情況變得更加崎嶇。因此，我們預計這種情況會在不同季度發生。但是——我對汽車的評論與前幾年沒有什麼不同。我們需要真正推動短期訂單的可轉換性，以繼續實現今年的業績。

But backlog coverage is better than we've had before. So, we like the fundamentals of the business, but we would expect to be lumpy.

但積壓的覆蓋率比以前更好。因此，我們喜歡該業務的基本面，但我們預計會出現波動。

Our next question will be from Scott Group of Wolfe Research.

我們的下一個問題將來自沃爾夫研究的斯科特小組。

It's Ivan Yi on for Scott. First of all, your revenue guidance updated to $9.4 billion at the midpoint implies a 12% increase in total sales this year. How much of that 12% increase is volume versus how much of that is price?

伊万·易 (Ivan Yi) 替補斯科特 (Scott)。首先，您的收入指導中點更新為 94 億美元意味著今年總銷售額將增長 12%。這 12% 的增長中有多少是數量的增長，而其中有多少是價格的增長？

We would look at price on a full year basis to be in the 1% to 2% range.

我們認為全年價格將在 1% 至 2% 的範圍內。

Perfect. And secondly, can you provide some background on the pace of absolute locomotive modernizations, meaning how many mods did you do in '22? What are you expecting in '23? And can you talk about '24? And then lastly, what is the timing of the 60 mods for CN?

完美的。其次，您能否提供一些關於絕對機車現代化步伐的背景信息，即您在 22 年做了多少改裝？你對23年有什麼期待？你能談談'24嗎？最後，CN 的 60 個 mod 的發佈時間是什麼時候？

So I think we're not getting into any specifics of '24. Of course, it's kind of early for that. But we expect growing momentum on modernization portfolio. And you see that. I think the order you just asked about CN. It's part of that, and we see that growth momentum not just going to '23. We see that momentum going into really '24 and beyond. So just a good backlog.

所以我認為我們不會討論“24”的任何細節。當然，現在說還為時過早。但我們預計現代化投資組合的勢頭將不斷增長。你看到了。我想你剛才問的順序是CN。這是其中的一部分，我們看到增長勢頭不僅僅出現在 23 年。我們看到這種勢頭將持續到 24 世紀及以後。所以只是一個很好的積壓。

Our next question will be from Jerry Revich of Goldman Sachs.

我們的下一個問題將來自高盛的傑里·雷維奇。

Rafael and John, I'm wondering if you could just talk about in Transit, you've had really strong bookings for 3 quarters now, The top line inflection this quarter. Are we at a point where this business has earned the right to grow, and we could see more substantial pickup in top line now that the margins are where you need them -- being In other words, is there more runway based on the bookings and the performance this quarter for the momentum to continue in Transit?

拉斐爾和約翰，我想知道你們是否可以談談 Transit，你們已經有 3 個季度的預訂量非常強勁，本季度的頂線拐點。我們是否處於該業務已贏得增長權利的階段，並且既然利潤率達到了您所需要的水平，我們就可以看到收入的大幅回升——換句話說，根據預訂量和預訂量是否有更多的發展空間？本季度的業績表現能否讓全順的勢頭得以延續？

Jerry, first, the fundamentals for the business remain strong. I think despite of a more competitive environment, I look at our book-to-bill ratios over 1, The 12-month backlog is up 9%. The multiyear is up double digits. But I'll tell you, while we are pleased with the progress, there's significant work ahead of us to simplify the footprint to further improve and sustain margins. We're going to have variation quarter-to-quarter but the mandates there, and the team is executing on expanding margins.

傑里，首先，業務的基本面依然強勁。我認為，儘管競爭更加激烈，但我們的訂單出貨比仍超過 1，12 個月的積壓訂單增加了 9%。多年增長兩位數。但我要告訴你，雖然我們對進展感到滿意，但我們還有大量工作要做，以簡化足跡，以進一步提高和維持利潤率。我們每個季度都會有變化，但那裡的要求和團隊正在擴大利潤率。

And we feel we're building competitiveness in the business. So we ultimately drive profitable growth. So it feels good from that perspective. And we're going to continue to drive that there. We continue to have opportunities.

我們覺得我們正在增強業務競爭力。因此，我們最終會推動盈利增長。所以從這個角度來看感覺很好。我們將繼續推動這一目標。我們繼續有機會。

So this point where we're putting up north of 20% top line growth. It sounds like, based on the backlog, that should continue into the back half?

因此，我們的營收增長率將超過 20%。聽起來，根據積壓的情況，這應該持續到後半部分？

So the backlog is strong, but we're also overlapping what are called easy comps from last year. if you think about just the top line, if you remember, some of the disruptions we had associated with, not just supply chain, but we also had, at that point, a cyber incident.

因此，積壓的訂單量很大，但我們也重疊了去年所謂的簡單補償。如果你只考慮最重要的一點，如果你還記得我們所遇到的一些中斷，不僅僅是供應鏈，而且當時我們還遇到了網絡事件。

And in Freight, really impressive performance in service in an environment where freight volumes have obviously not been very good. Can you just talk about for your Service business ex mods, what are some factors that are contributing to the performance because if all of the year-over-year sales growth was driven by mods? That would be a pretty dramatic ramp. So it feels like the core business is doing pretty well ex mods given the gap versus freight volumes. I'm wondering if you could just comment on that if you don't mind, Rafael.

在貨運方面，在貨運量顯然不是很好的環境下，服務表現確實令人印象深刻。您能否談談您的服務業務前改裝，如果所有同比銷售增長都是由改裝推動的，那麼有哪些因素對業績做出了貢獻？這將是一個非常戲劇性的斜坡。因此，考慮到與貨運量的差距，核心業務在前改裝方面表現得相當不錯。我想知道如果你不介意的話，是否可以對此發表評論，拉斐爾。

Fleet is active. It's running hard, right? What if I look at in the different markets we serve, start with Kazakhstan or Australia. I think there's just strong demand out there when you look at the pipeline of opportunities. So I think those things are ultimately connected.

艦隊活躍。跑起來很辛苦吧？如果我看看我們服務的不同市場，從哈薩克斯坦或澳大利亞開始。我認為，當你看看機會的渠道時，就會發現那裡有強勁的需求。所以我認為這些事情最終是相互關聯的。

In North America, where you could have expected that change in the active fleet. I think it's holding, holding strong. It's again back to the focus on both services. And I think we stand with a significant advantage in our fleet in terms of fuel savings, in terms of haulage capability, and reliability. And that's really critical to our customers right now.

在北美，你可以預料到活躍機隊的變化。我認為它正在堅持，堅持得很堅強。再次回到對這兩項服務的關注。我認為我們的機隊在節省燃油、運輸能力和可靠性方面具有顯著優勢。現在這對我們的客戶來說確實至關重要。

Our next question will be from Steve Barger, KeyBanc Capital Markets.

我們的下一個問題將來自 KeyBanc Capital Markets 的 Steve Barger。

Can you talk about the margin profile for new business you're booking relative to the margin profile in the next 12-month backlog? And then just generally, is new business looking higher margin than old business?

您能否談談您預訂的新業務的保證金情況與未來 12 個月積壓訂單的保證金情況之間的關係？那麼一般而言，新業務的利潤率是否比舊業務更高？

Yes. Steve, this is John. Absolutely. We've watched our margins come up over the last couple of years, and that is a function of bringing in better orders at higher profit. And so as we look forward to the backlog we've talked about, we feel great about it overall, not only from a standpoint of the revenue, it will drive in the future, but also from a profitability standpoint. And it is booked at a higher margin than we've seen in the past.

是的。史蒂夫，這是約翰。絕對地。在過去的幾年裡，我們的利潤率不斷上升，這是以更高的利潤帶來更好的訂單的結果。因此，當我們期待我們所討論的積壓時，我們總體上感覺很好，不僅從收入的角度來看，它將推動未來，而且從盈利的角度來看。而且它的預訂利潤比我們過去看到的要高。

Got it. And total backlog has contracted. I know it's not much, but it's been a couple of quarters now. When you think about the size of the new deals you're signing and the pipeline, versus what's scheduled to come out of backlog in the back half. Would you expect it to continue contracting this year?

知道了。積壓總量有所減少。我知道這並不多，但已經過去了幾個季度了。當你考慮你正在簽署的新交易的規模和管道，以及計劃在後半段完成的積壓訂單時。您預計今年會繼續收縮嗎？

Steve, I'll tell you is the following. Yes, the total backlog is down. It's going to be lumpy as we have those, I'll call multibillion-dollar deals. We've got more than a couple of those being worked right now, so that could drive some lumpiness. I think our focus here is making sure that we've got the convertibility moving forward. And of course, as you look into the convertibility 12 months, 18 months and 24 months. So we track that, and we feel very strong about that. And it's really in the pipeline of the deals that we're working on, and we're continuing to grow that and it's really supported by our pipeline.

史蒂夫，我會告訴你以下內容。是的，積壓總量下降了。正如我們所擁有的那樣，它將會變得不穩定，我稱之為數十億美元的交易。我們現在已經有不止幾個正在處理中，所以這可能會導致一些混亂。我認為我們的重點是確保可兌換性取得進展。當然，當你考慮 12 個月、18 個月和 24 個月的可兌換性時。所以我們對此進行了跟踪，並且對此感到非常強烈。它確實在我們正在處理的交易中，並且我們正在繼續發展它，並且它確實得到了我們管道的支持。

Our next question will be from Adam Roszkowski of Bank of America.

我們的下一個問題將來自美國銀行的 Adam Roszkowski。

Adam Roszkowski on for Ken Hoexter. So we've covered a lot. Maybe just to touch on the M&A pipeline. Is there anything you can share broadly about verticals or geographies of interest in this space?

亞當·羅斯科夫斯基 (Adam Roszkowski) 換下肯·霍克斯特 (Ken Hoexter)。所以我們已經涵蓋了很多內容。也許只是為了觸及併購渠道。關於這個領域感興趣的垂直行業或地區，您有什麼可以廣泛分享的嗎？

Of course, I mean, we're not going to go into any of the specifics here. We are continuing to explore bolt-on acquisitions. We're going to be very opportunistic here. They will be strategic, they will drive a higher ROIC, ultimately accelerate profitable growth path for Wabtec and increase shareholder value. I think L&M is really a great example of that. So we're active, really trying to make sure that we find those opportunities.

當然，我的意思是，我們不會在這裡討論任何細節。我們正在繼續探索補強收購。我們在這裡會非常機會主義。他們將具有戰略性，將推動更高的投資回報率，最終加速西屋制動的盈利增長之路並增加股東價值。我認為 L&M 確實是一個很好的例子。所以我們很積極，努力確保找到這些機會。

And then maybe just going over to Transit. You've mentioned a mid-teens margin target in the past. Just -- maybe give us a sense of how we are trending there versus initial expectations? Any view over the next coming years? Maybe that could be achieved earlier than initially thought.

然後也許就去公交。您過去曾提到過十幾歲左右的利潤率目標。只是——也許能讓我們了解我們的趨勢與最初的預期相比如何？對未來幾年有什麼看法嗎？也許這可以比最初想像的更早實現。

I'll maybe start, and I'll pass it on to John. I think we're continuing the mandate. We feel strong about it. Pascal and the team are working on really continuing that trajectory. It's never steady and precise. There's always some bumps along the way, but we feel strong about continuing to drive the simplification on that business improving the competitiveness and a lot of opportunities here.

也許我會開始，然後我會將其傳遞給約翰。我認為我們正在繼續執行任務。我們對此感覺很強烈。帕斯卡和團隊正在努力真正延續這一軌跡。它從來都不是穩定和精確的。一路上總會遇到一些坎坷，但我們堅信繼續推動該業務的簡化，提高競爭力並創造大量機會。

Yes. And as I mentioned earlier on the question on Integration 2.0, right? We're going to see that continue to ramp. The majority of the benefit will accrue to our Transit group. So we feel great about the consolidation, the integration that's happening there and the results that it's starting to spin. And part of the benefit we saw in margin in growth in Transit in the quarter was due to Integration 2.0.

是的。正如我之前提到的關於集成 2.0 的問題，對嗎？我們將看到這一數字繼續上升。大部分收益將歸我們的交通集團所有。因此，我們對那裡正在發生的整合、整合以及它開始產生的結果感到非常高興。我們在本季度看到的 Transit 利潤率增長的部分好處是由於集成 2.0。

And the other one is, the other question with regards to the backlog. As we continue to bring in volume in the backlog, we're very focused on making sure that it is coming in at a higher margin. And we are focused on bringing in good, profitable business versus revenue in the Transit Group.

另一個是關於積壓的另一個問題。隨著我們繼續增加積壓訂單量，我們非常注重確保其利潤率更高。我們致力於為 Transit 集團帶來良好、有利可圖的業務和收入。

Our next question will be from Matt Elkott, TD Cowen.

我們的下一個問題將來自 TD Cowen 馬特·埃爾科特。

On the 69 certified preowned locomotives, do you guys foresee any similar opportunities going forward? And if you can provide some insight maybe on to like the revenue and margin profiles of those locomotives, if not on an absolute basis, at least kind of relative to mods?

對於 69 輛經過認證的二手機車，你們預計未來還會有類似的機會嗎？如果您能提供一些關於這些機車的收入和利潤狀況的見解，如果不是絕對的，至少是相對於改裝的？

I'm not going to get into the specifics of that program. But what I'll tell you, that program provides a significant opportunity for us to, number one, as we think about our products, it's how we cascade those products down. So they're not just on core mainline, we often focus a lot of the dialogue here around 16,000 locomotives that we got and running out there. There's a number of auto locomotives running in short lines in yards, and we see an opportunity to cascade that fleet down and cascaded with a fleet that's more efficient, it causes less emissions, able to pull more.

我不打算詳細介紹該計劃。但我要告訴你的是，該計劃為我們提供了一個重要的機會，第一，當我們考慮我們的產品時，這就是我們如何將這些產品級聯下來。所以它們不只是在核心主線上，我們經常將大量對話集中在我們獲得併在那裡運行的 16,000 輛機車周圍。有許多汽車機車在院子里以短線運行，我們看到了一個機會，可以將機車級聯下來，並與效率更高、排放更少、牽引力更強的機車組級聯。

So a lot of those same fundamentals. And I think that's where we look at building and it provides, again, a significant strength for our Services business as there will be a pull there in terms of providing of spare parts and things like that. So really excited about gaining momentum on that front, sure.

很多相同的基本原理。我認為這就是我們關注的建設領域，它再次為我們的服務業務提供了巨大的優勢，因為在提供備件和類似的東西方面將會有拉力。當然，我對在這方面獲得動力感到非常興奮。

And Rafael, also it sounds like this is not something that you guys have done actively to any meaningful extent in the past and it's kind of a fairly new area for you, these certified preowned units.

拉斐爾，聽起來這並不是你們過去在任何有意義的程度上積極做過的事情，這對你們來說是一個相當新的領域，這些經過認證的二手單位。

I'd say we've done some of that stuff for the class ones, especially bringing, what I'll call, older dash nice and modernizing those into AC technology. I think it's the first time we do upsize with like a fort line. And I think there is a significant opportunity there. So you're right about that.

我想說我們已經為班級做了一些事情，特別是帶來了，我稱之為，舊的破折號很好，並將它們現代化為交流技術。我認為這是我們第一次像堡壘線那樣擴大規模。我認為那裡有一個重要的機會。所以你是對的。

Okay. And then are these -- is the guidance raise partly in part because of this order that I think you got it last month?

好的。然後是這些——指導上調部分是因為我認為你們上個月收到的命令嗎？

I would say that -- I would say not. There'll be a little bit in there, but not to the extent to drive the overall guidance, Matt. It's the underlying momentum we've talked about for the last year, continues to come at us and then the backlog continues to fill. It'll be more of an impact on the future growth as we look to '24 and beyond.

我會說——我會說不是。那裡會有一點，但不會達到推動整體指導的程度，馬特。這是我們去年談到的潛在動力，繼續向我們襲來，然後積壓的訂單繼續增加。當我們展望 24 世紀及以後時，這將對未來的增長產生更大的影響。

Exactly.

確切地。

Got it. And then just one question on the 30 new loco orders in North America. You called them strategic. Can you tell us what that means? And given the fact that it's good to see new orders starting to come back in North America over the past year or so, what does that mean to the new build versus mod mix for next year?

知道了。接下來是關於北美 30 個新機車訂單的一個問題。你稱它們為戰略性的。你能告訴我們這意味著什麼嗎？鑑於在過去一年左右的時間裡看到北美開始恢復新訂單是一件好事，這對明年的新建與改裝組合意味著什麼？

I think it just validates what we've been saying, I mean, in some cases, customers will look at modernization as a better solution for some of the fleet dynamics they've got, in some other cases, it's going to come with really new locomotives. And so we see both active, and I think the fact that you continue to see that. I think that's really a positive in terms of the dynamics that we're looking into the North America market.

我認為這只是驗證了我們一直在說的，我的意思是，在某些情況下，客戶會將現代化視為他們所擁有的某些機隊動態的更好解決方案，在其他一些情況下，它將真正帶來新機車。所以我們看到兩者都很活躍，我認為事實上你會繼續看到這一點。我認為這對於我們正在研究北美市場的動態來說確實是一個積極的因素。

So there is really a commitment to continue to drive service to invest in the fleets that are really at this stage at the oldest levels in at least a couple of decades. So a good opportunity here.

因此，我們確實承諾繼續推動服務，投資於現階段至少幾十年來最古老水平的機隊。所以這裡是一個很好的機會。

And Matt, from a financial standpoint, we're pretty indifferent, whether it's a modernization or a new, right? We talked about new comes with a higher revenue and modernizations with a higher margin. And so overall, we're pretty indifferent as long as they're Wabtec locomotives, we're good.

馬特，從財務角度來看，我們相當漠不關心，無論是現代化還是全新的，對吧？我們討論了新產品帶來的更高收入和現代化帶來的更高利潤。所以總的來說，只要它們是西屋制動機車，我們就相當無所謂，我們就很好。

And if I missed it, did you guys say what the purpose of those? -- These are just diesel locomotives for replacement? Or is there a technology angle?

如果我錯過了，你們有說那些的目的是什麼嗎？ -- 這些只是替換用的內燃機車？或者有技術角度嗎？

I think there's both. I mean, there's certainly a technology element here, and they're going to be used to really pull freight more efficiently about there.

我認為兩者都有。我的意思是，這里肯定有一個技術元素，它們將被用來真正更有效地拉動貨物。

Next question will be from Steve Barger, KeyBanc Capital Markets.

下一個問題將來自 KeyBanc Capital Markets 的 Steve Barger。

Just a quick clarification. I think you said the Erie situation could be a swing factor in the back half, but I also thought I heard you say that it would be onetime. So can you clarify if expected costs from that are included or excluded in the back half EPS range?

只是快速澄清一下。我想你說過伊利的情況可能是後半場的一個搖擺因素，但我也想我聽到你說這只是一次。那麼，您能否澄清一下預期成本是否包含在後半段每股收益範圍內？

They are absolutely included in our revised guidance Steve.

它們絕對包含在我們修訂後的指南中，史蒂夫。

Thank you. That concludes our question-and-answer session. I'd like to turn the call back over to Ms. Kristine Kubacki for closing remarks. Please go ahead.

謝謝。我們的問答環節到此結束。我想將電話轉回給克里斯汀·庫巴奇女士做結束語。請繼續。

Thank you, operator. And thank you, everyone, for your time today. We appreciate it, and we look forward to talking with you next quarter. Goodbye.

謝謝你，接線員。謝謝大家今天抽出時間。我們對此表示讚賞，並期待下個季度與您交談。再見。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。