美國西屋制動公司 (WAB) 2023 Q4 法說會逐字稿

Good day, and welcome to the Wabtec Fourth Quarter and Year-End 2023 Earnings Conference Call and Webcast. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Kristine Kubacki, Vice President of Investor Relations. Please go ahead.

美好的一天，歡迎參加西屋制動 2023 年第四季和年終收益電話會議和網路廣播。 （操作員說明）請注意，今天的活動正在錄製中。現在我想將會議交給投資者關係副總裁克里斯汀·庫巴基 (Kristine Kubacki)。請繼續。

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

謝謝你，接線生。大家早安，歡迎參加西屋制動 2023 年第四季財報電話會議。今天與我們在一起的有總裁兼執行長拉斐爾桑塔納 (Rafael Santana)；財務長約翰‧奧林；和財務資深副總裁 John Mastalerz。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，可以透過 wabteccorp.com 的投資者關係標籤進行存取。

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 relating to our forward-looking statements, please see the disclosures in our earnings release and presentation. 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。有關我們的前瞻性陳述的更詳細的風險、不確定性和假設，請參閱我們的收益發布和演示中的揭露。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揭露和調節表。

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. I'll start with an update on our business, my perspectives on the quarter, our progress against our long-term value creation framework, and then, John will cover the financials.

謝謝克里斯汀，大家早安。我將首先介紹我們業務的最新情況、我對本季的看法、我們在長期價值創造框架方面的進展，然後約翰將介紹財務狀況。

We delivered a strong year with another solid quarter, as evidenced by robust sales growth, margin expansion and increased earnings and cash flow. We achieved deals despite continued uncertainty in the broader economy and in the North American rail industry.

我們度過了強勁的一年，又一個穩定的季度，強勁的銷售成長、利潤率擴張以及盈利和現金流的增加就證明了這一點。儘管整體經濟和北美鐵路行業仍然存在不確定性，但我們還是達成了交易。

Sales were $2.5 billion, which was up 9.5% versus prior year. Revenue growth was driven by strong performance from both the Freight and Transit segments. And adjusted EPS was up 18.5% from the year ago quarter, driven by margin expansion across both segments. Total cash flow from operations for the quarter was $686 million, and total year cash flow was $1.2 billion. The 12-month backlog was $7.5 billion, up 10%, signifying continued momentum and visibility across the business into 2024. And total multi-year backlog was $22 billion.

銷售額為 25 億美元，比上年增長 9.5%。貨運和運輸部門的強勁表現推動了收入成長。受兩個細分市場利潤擴張的推動，調整後每股盈餘較去年同期成長 18.5%。該季度營運現金流總額為 6.86 億美元，全年現金流總額為 12 億美元。 12 個月的積壓訂單為 75 億美元，成長 10%，這表明整個業務到 2024 年仍將保持強勁勢頭和可見性。多年積壓訂單總額為 220 億美元。

Overall, the Wabtec team delivered a strong year. Looking forward, I'm encouraged by both the underlying momentum across the business and the team's unrelenting focus on delivering for our customers. I believe Wabtec is well positioned to drive profitable growth ahead.

總體而言，西屋煞車團隊度過了強勁的一年。展望未來，我對整個業務的潛在動力和團隊對為客戶提供服務的不懈關注感到鼓舞。我相信西屋煞車已做好充分準備來推動未來的獲利成長。

Our financial position remains strong. We continue to execute against our capital allocation framework to maximize shareholder value by investing for future growth and returning cash to shareholders. And as a result of our performance in 2023 and our confidence in the future of the company, our Board of Directors approved an 18% increase in the quarterly dividend and a $1 billion share buyback authorization that replaces our existing program.

我們的財務狀況依然強勁。我們繼續執行我們的資本分配框架，透過投資未來成長並向股東返還現金來最大化股東價值。鑑於我們 2023 年的業績以及對公司未來的信心，我們的董事會批准了將季度股息增加 18%，並批准了 10 億美元的股票回購授權，以取代我們現有的計劃。

Shifting our focus to Slide 5. Let's talk about 2024 and market expectations in more details. While key metrics across our Freight business remain mixed, we continue to be encouraged by the strength of the business, international markets and our robust pipeline of opportunities across geographies. North American carloads were up 2.8% in the quarter, while the Active Locomotive Fleet was down slightly when compared to where the industry exited last year. Yet, we continue to see significant opportunities across the globe in demand for new locomotives, modernizations and digital technologies as our customers invest in solutions that continue to drive reliability, productivity, safety and fuel efficiency.

將我們的焦點轉移到幻燈片 5。讓我們更詳細地討論 2024 年和市場預期。儘管我們貨運業務的關鍵指標仍然好壞參半，但我們的業務實力、國際市場以及我們跨地區的強勁機會管道繼續令我們感到鼓舞。本季北美車輛裝載量增加了 2.8%，而現役機車車隊與去年該行業退出的情況相比略有下降。然而，隨著我們的客戶投資於持續提高可靠性、生產力、安全性和燃油效率的解決方案，我們繼續看到全球對新型機車、現代化和數位技術的巨大機會。

Looking at the North American railcar build, demand for new railcars showed growth in 2023 at approximately 45,000 cars. The industry outlook for 2024 is for about 38,000 cars to be delivered. Internationally, activity is strong across core markets such as Latin America, Australia, Africa and Kazakhstan. Significant investments to expand and upgrade infrastructure are continuing to support our robust international orders pipeline.

綜觀北美鐵路車的建設情況，2023 年新鐵路車的需求將出現成長，約 45,000 輛。預計 2024 年產業交付量約 38,000 輛。在國際上，拉丁美洲、澳洲、非洲和哈薩克等核心市場的活動十分活躍。擴大和升級基礎設施的大量投資繼續支持我們強勁的國際訂單管道。

In Mining, commodity prices and an aging fleet are supporting activity to refresh and upgrade the truck fleet. Finally, moving to the Transit sector, the megatrends of urbanization and decarbonization remain in place, driving the need for clean, safe and efficient transportation solutions around the globe.

在採礦業，大宗商品價格和車隊老化正在支持更新和升級卡車車隊的活動。最後，轉向交通領域，城市化和脫碳化的大趨勢仍然存在，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 won a multi-year order for over 200 modernizations from CSX, demonstrating customer demand for a best-in-class solution to improve productivity while driving down fuel usage and emissions. Looking at our Mining business, we are seeing continued momentum and visibility. The team signed orders totaling over $300 million in the quarter, which is up double digits versus last year.

接下來，讓我們轉向投影片 6 討論近期的一些業務亮點。在北美，我們贏得了 CSX 的 200 多項現代化改造的多年期訂單，這表明客戶需要一流的解決方案來提高生產率，同時降低燃料使用和排放量。看看我們的採礦業務，我們看到了持續的動力和知名度。該團隊本季簽署的訂單總額超過 3 億美元，比去年增加了兩位數。

In Transit, we won a major order worth over $150 million to supply high-performance brake systems in India. These brake systems will provide improved operating performance, efficiency and safety for a new line of 1,200 electric locomotives. Also, during the quarter, we announced our entrance into the railcar telematics market. Our innovative telematics platform will improve shipment visibility. It will increase on-time performance and expand asset utilization to make shipping freight by rail more competitive.

在 Transit 領域，我們贏得了價值超過 1.5 億美元的大訂單，為印度供應高性能煞車系統。這些煞車系統將為新生產線的 1,200 輛電力機車提供改進的操作性能、效率和安全性。此外，在本季度，我們宣布進入軌道車遠端資訊處理市場。我們創新的遠端資訊處理平台將提高貨運可見度。它將提高準點率並擴大資產利用率，使鐵路貨運更具競爭力。

Finally, during December, we acquired the remaining 50% of our JV in Kazakhstan. This strategic acquisition enhances our manufacturing capability, both globally and in the region poised for continued long-term growth. All of this demonstrates the continued momentum across the business, the team's relentless focus on delivering for our customer and strong pipeline of opportunities we're executing on. Wabtec is well positioned to capture profitable growth with innovative and scalable technologies that address our customers' most pressing needs.

最後，我們在 12 月收購了哈薩克合資企業剩餘 50% 的股份。此次策略性收購增強了我們在全球和該地區的製造能力，為持續長期成長做好了準備。所有這些都證明了整個業務的持續發展勢頭、團隊對為客戶提供服務的不懈專注以及我們正在執行的強大機會管道。西屋煞車處於有利地位，能夠透過創新和可擴展的技術來實現獲利成長，滿足客戶最迫切的需求。

Moving to Slide 7. Before turning it over to John, I want to briefly discuss our ability to deliver strong results through the economic cycle. Over the last 4 years, Wabtec has demonstrated a solid track record of managing through challenging markets and significant disruptions. We believe our favorable end markets, combined with our leading technologies and solutions will enable us to remain resilient and more predictable.

轉到幻燈片 7。在將其交給約翰之前，我想簡要討論一下我們在經濟週期中取得強勁成果的能力。在過去 4 年裡，西屋煞車在應對充滿挑戰的市場和重大干擾方面展現了良好的業績記錄。我們相信，有利的終端市場加上我們領先的技術和解決方案將使我們保持彈性和更具可預測性。

Our 12-month backlog of $7.5 billion provide significant visibility and support for growth. The 12-month backlog has consistently grown over the past 4 years despite a challenging North American rail market and a volatile macroeconomy. And finally, we have consistently demonstrated our ability to execute our strategies, generate strong cash flow, deliver growth and create value through disciplined capital allocation.

我們 12 個月的 75 億美元積壓訂單為成長提供了重要的可見性和支援。儘管北美鐵路市場充滿挑戰且宏觀經濟不穩定，但 12 個月的積壓量在過去 4 年中持續成長。最後，我們始終如一地證明了我們執行策略、產生強勁現金流、實現成長並透過嚴格的資本配置創造價值的能力。

Our track record of strong operating margin expansion across the business is evidence of our ability to deliver productivity, manage costs and price for inflation. Our execution combines with the strength of our business, leading products and technologies, which result in Wabtec being resilient through economic cycles, delivering predictable earnings and superior shareholder returns.

我們整個業務營運利潤率強勁成長的記錄證明了我們有能力提高生產力、管理成本和通膨價格。我們的執行力與我們的業務實力、領先的產品和技術相結合，使西屋制動能夠在經濟週期中保持彈性，提供可預測的收益和卓越的股東回報。

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

這樣，我將把電話轉給約翰，以審查季度業績和我們的整體財務表現。約翰？

Thanks, Rafael, and hello, everyone. Turning to Slide 8, I will review our fourth quarter results in more detail. We finished the year with another solid quarter of operational and financial performance. Sales for the fourth quarter were $2.53 billion, which reflects a 9.5% increase versus the prior year. Sales were driven by strong growth across both the Freight and Transit segments.

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四季的業績。我們以又一個穩健的季度營運和財務業績結束了這一年。第四季銷售額為 25.3 億美元，較上年成長 9.5%。貨運和運輸領域的強勁成長推動了銷售。

For the quarter, GAAP operating income was $308 million, driven by higher sales, improved gross margin and focused cost management. Adjusted operating margin in Q4 was 17.0%, up 1.7 percentage points versus the prior year. This increase was driven by a higher gross margin of 1.2 percentage points and 0.5 percentage points of lower SG&A and engineering expenses as a percent of sales. GAAP earnings per diluted share were $1.20, which was up 39.5% versus the fourth quarter a year ago.

在銷售額增加、毛利率提高和集中成本管理的推動下，本季 GAAP 營業收入為 3.08 億美元。第四季調整後營業利益率為 17.0%，較上年同期上升 1.7 個百分點。這一增長是由於毛利率提高了 1.2 個百分點，以及 SG&A 和工程費用佔銷售額的百分比降低了 0.5 個百分點。 GAAP 攤薄後每股收益為 1.20 美元，較去年第四季成長 39.5%。

During the quarter, we had pretax charges of $47 million, of which $19 million was 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. In addition, we are exiting some small nonstrategic product lines and related assets, which generated a Q4 charge of $28 million.

本季度，我們的稅前費用為4700 萬美元，其中1900 萬美元用於重組，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9,000 萬美元的運作率。此外，我們正在退出一些小型非策略性產品線和相關資產，這些資產在第四季度產生了 2,800 萬美元的費用。

Finally, in the quarter, our acquisition of the remaining 50% interest in our LKZ assembly joint venture generated a gain of $35 million on our existing ownership interest. I will talk more about our progress on Integration 2.0 and Portfolio Optimization in more detail in a few minutes. In the quarter, adjusted earnings per diluted share were $1.54, up 18.5% versus prior year. Overall, Wabtec delivered another solid quarter, demonstrating the underlying strength of the business.

最後，在本季度，我們收購了 LKZ 組裝合資企業剩餘 50% 的股權，為我們現有的所有權權益帶來了 3,500 萬美元的收益。我將在幾分鐘內更詳細地討論我們在整合 2.0 和投資組合優化方面的進展。本季度，調整後每股攤薄收益為 1.54 美元，較去年同期成長 18.5%。整體而言，西屋煞車又實現了一個穩健的季度業績，展現了該業務的潛在實力。

Turning to Slide 9. Let's review our product lines in more detail. Fourth quarter consolidated sales were up 9.5%. Equipment sales were down 19.3% from last year as higher mining sales were more than offset by lower locomotive deliveries during the quarter. Recall that second half locomotive deliveries as planned were significantly skewed to the third quarter. Total equipment sales for the year were up a very strong 15.8%.

轉向幻燈片 9。讓我們更詳細地回顧一下我們的產品線。第四季綜合銷售額成長 9.5%。設備銷售額較去年下降 19.3%，因為本季機車交付量的下降抵消了採礦銷售額的成長。回想一下，下半年機車交付量按計畫明顯偏向第三季。今年設備總銷售額強勁成長 15.8%。

Component sales were up 17.4% versus last year, largely driven by the higher demand for railcar products along with increased sales from industrial products. Sales also benefited from the acquisition of L&M earlier in the year by $32 million. Digital Intelligence sales were down 6.7% from last year, which was driven by lower revenues in our North American market, partially offset by higher demand for international PTC, next-gen on-board locomotive products and digital mining.

零件銷售額比去年增長 17.4%，這主要是由於軌道車產品需求增加以及工業產品銷售增加所致。今年稍早收購 L&M 也使銷售額增加了 3,200 萬美元。數位智慧銷售額比去年下降 6.7%，這是由於北美市場收入下降所致，但部分被國際 PTC、下一代車載機車產品和數位採礦的需求增加所抵消。

Our Services sales grew 23.9%. Sales growth was driven by significantly higher modernization deliveries. In contrast to new locomotive sales, our planned second half mods deliveries were significantly skewed to the fourth quarter. Additionally, parts sales continued to show strength as our customers continued to recognize the superior performance, reliability, efficiency and availability across their Wabtec locomotive fleets.

我們的服務銷售額成長了 23.9%。現代化交付量的顯著提高推動了銷售成長。與新機車銷售相比，我們計劃的下半年改裝交付量明顯偏向第四季。此外，隨著我們的客戶繼續認識到其 Wabtec 機車車隊的卓越性能、可靠性、效率和可用性，零件銷售繼續表現強勁。

Across our Transit segment, OE and aftermarket sales increased versus last year. Segment sales were up 14.3% to $728 million behind execution of our growing backlog. The momentum in this segment is strong across our core markets as secular drivers such as urbanization and decarbonization accelerate the need for global 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有所增長。由於執行了不斷增長的積壓訂單，該部門銷售額增長了 14.3%，達到 7.28 億美元。由於城市化和脫碳等長期驅動因素加速了全球對永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. GAAP gross margin was 30.3%, which was up 2.0 percentage points from Q4 last year. Adjusted gross profit margin was up 1.2 percentage points, driven by higher sales, favorable price mix and foreign currency exchange as well as improved productivity. Our team continues to execute well to mitigate the impact of continued cost pressures by driving operational productivity and lean initiatives.

轉到投影片 10。GAAP 毛利率為 30.3%，比去年第四季上升 2.0 個百分點。受銷售額增加、有利的價格組合、外匯兌換以及生產力提高的推動，調整後毛利率上升 1.2 個百分點。我們的團隊繼續表現良好，透過提高營運生產力和精益計劃來減輕持續成本壓力的影響。

Now turning to Slide 11. For the fourth quarter, GAAP operating margin was 12.2%, which was up 1.5 percentage points versus last year, while adjusted operating margin improved 1.7 percentage points to 17.0%. GAAP and adjusted SG&A expenses were down as a percentage of revenue as we leverage higher sales with a strong focus on managing costs.

現在轉向投影片 11。第四季，GAAP 營業利潤率為 12.2%，比去年上升 1.5 個百分點，而調整後的營業利潤率則提高 1.7 個百分點，達到 17.0%。由於我們利用更高的銷售額並專注於管理成本，因此 GAAP 和調整後的 SG&A 費用佔收入的百分比有所下降。

Engineering expense was $61 million, about flat with Q4 last year. We continue to invest engineering resources in current business opportunities, but more importantly, we are investing in our future as an industry leader in decarbonization and digital technologies that improve our customers' productivity, capacity utilization and safety.

工程費用為 6,100 萬美元，與去年第四季基本持平。我們繼續在目前的商機上投資工程資源，但更重要的是，我們正在投資我們作為脫碳和數位技術行業領導者的未來，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 segment results on Slide 12, starting with the Freight segment. As I already discussed, Freight segment sales were up 7.7% during the quarter. GAAP segment operating income was $246 million for an operating margin of 13.7%, up 1.2 percentage points versus last year. GAAP operating income includes $28 million of portfolio optimization costs. Adjusted operating income for the Freight segment was $347 million, up 22.2% versus the prior year.

現在讓我們來看看投影片 12 上的分段結果，從貨運分段開始。正如我已經討論過的，本季貨運部門銷售額成長了 7.7%。 GAAP 部門營業收入為 2.46 億美元，營業利潤率為 13.7%，比去年增長 1.2 個百分點。 GAAP 營業收入包括 2,800 萬美元的投資組合優化成本。貨運部門調整後營業收入為 3.47 億美元，比上年成長 22.2%。

Adjusted operating margin in the Freight segment was up 2.3 percentage points from the prior year at 19.3%. The increase was driven by significantly higher gross margin, which benefited from higher sales, favorable price mix and improved productivity and absorption. At the same time, SG&A and engineering expenses were lower as a percentage of revenue.

貨運業務調整後營業利益率較前一年上升 2.3 個百分點，達 19.3%。這一增長是由毛利率顯著提高推動的，而毛利率得益於銷量的增加、有利的價格組合以及生產率和吸收率的提高。同時，SG&A 和工程費用佔收入的百分比較低。

Finally, segment 12-month backlog was $5.45 billion, up 11.2% from the same period a year ago. The multi-year backlog was $17.83 billion, down 4.3% from the prior year. Both our 12-month and multi-year backlogs demonstrate good visibility into 2024 and beyond.

最後，該部門12個月的積壓訂單為54.5億美元，比去年同期成長11.2%。多年積壓訂單為 178.3 億美元，較上年下降 4.3%。我們的 12 個月和多年積壓訂單都顯示出對 2024 年及以後的良好可見度。

Turning to Slide 13. Transit segment sales were up 14.3% to $728 million. When adjusting for foreign currency, Transit sales were up 9.9%. GAAP operating income was $86 million, up 36.5%. Restructuring costs related to Integration 2.0 activities were $17 million in Q4. Adjusted segment operating income was $108 million, which was up 13.7%.

轉向投影片 13。交通部門銷售額成長 14.3%，達到 7.28 億美元。以外幣匯率調整後，全順銷售額成長了 9.9%。 GAAP 營業收入為 8,600 萬美元，成長 36.5%。第四季與 Integration 2.0 活動相關的重組成本為 1700 萬美元。調整後分部營業收入為 1.08 億美元，成長 13.7%。

Adjusted operating margin of 14.9% was up 0.1 percentage points from last year, driven by the benefits of volume growth and Integration 2.0 savings. Finally, Transit segment 12-month backlog for the quarter was $2.01 billion, up 8.0% versus a year ago. The multi-year backlog was also up 9.7% to $4.17 billion.

受銷售成長和整合 2.0 節省的推動，調整後營業利潤率為 14.9%，比去年上升 0.1 個百分點。最後，交通部門本季 12 個月的積壓訂單為 20.1 億美元，比去年同期成長 8.0%。多年積壓訂單也成長了 9.7%，達到 41.7 億美元。

Moving to Slide 14. Over the next 2 slides, I would like to touch on both our progress against our Integration 2.0 initiative as well as provide details on our portfolio optimization. The efforts of both these programs in 2024 will unlock greater profitability and margin expansion across the portfolio.

轉向幻燈片 14。在接下來的 2 張幻燈片中，我想談談我們在 Integration 2.0 計劃方面取得的進展，並提供有關我們的產品組合優化的詳細資訊。到 2024 年，這兩項計劃的努力將為整個投資組合帶來更大的獲利能力和利潤率擴張。

With regards to Integration 2.0, recall that during our Investor Day in 2022, we announced a restructuring program comprised of estimated one-time expenses between $135 million and $165 million that would yield an incremental $75 million to $90 million of run rate savings by 2025. These savings are to be achieved through a combination of actions, which simplify, streamline and consolidate parts of our operations. With program to date restructuring expenses of $118 million, we achieved $22 million of run rate savings as we exited 2023. We expect savings to ramp more meaningfully in 2024, and we remain on track to meet our 2025 goals.

關於整合2.0，請回想一下，在2022 年投資者日期間，我們宣布了一項重組計劃，其中包括估計一次性費用1.35 億至1.65 億美元，到2025 年將節省7500 萬至9000 萬美元的運行費用。這些節省將透過一系列行動來實現，這些行動簡化、精簡和整合了我們部分業務。迄今為止，計劃重組費用為1.18 億美元，到2023 年結束時，我們實現了2200 萬美元的運行費用節省。我們預計節省額將在2024 年更加有意義地增加，並且我們將繼續朝著實現2025年目標的方向前進。

Now turning to Slide 15. As you are aware, we are very focused on driving improved shareholder value through the addition of strategic bolt-on acquisitions with accretive earnings, margins and return on invested capital. In the second quarter of 2023, we acquired L&M, a business that is very complementary to our heat transfer portfolio and enhances our mining installed base. In the short time that we have owned this business, we are pleased with its performance. And more importantly, we are excited about its future potential for driving long-term profitable growth for Wabtec.

現在轉向投影片 15。如您所知，我們非常注重透過增加策略性補充收購來提高股東價值，從而增加收益、利潤和投資資本回報。 2023 年第二季度，我們收購了 L&M，該業務與我們的傳熱產品組合非常互補，並增強了我們的採礦安裝基礎。在我們擁有這項業務的短時間內，我們對其業績感到滿意。更重要的是，我們對其未來推動西屋煞車長期獲利成長的潛力感到興奮。

Also, as Rafael stated, late in the fourth quarter, we acquired the remaining 50% stake of our unconsolidated LKZ assembly joint venture in Kazakhstan for $81 million net of cash received. As a result of the transaction, we recorded a $35 million noncash gain in the quarter, which is excluded from adjusted earnings. Going forward, this business will be 100% owned by Wabtec and consolidated in our financial results. We would expect virtually no impact to sales and limited benefit to earnings in 2024.

此外，正如 Rafael 所說，在第四季度末，我們以 8,100 萬美元（扣除收到的現金）收購了位於哈薩克斯坦的未合併 LKZ 組裝合資企業剩餘 50% 的股份。透過此交易，我們在本季實現了 3,500 萬美元的非現金收益，該收益不包括在調整後的收益中。展望未來，該業務將由西屋制動 100% 持有，並合併到我們的財務業績中。我們預計 2024 年銷售幾乎不會受到影響，獲利收益也有限。

We're also announcing today the exit of some nonstrategic product lines in 2024. Pruning of these product lines will improve focus and profitability while reducing manufacturing complexity. Sales from these product lines totaled about $110 million of sales in 2023 and represented a lower-than-average margin profile. The expected net exit charges of roughly $85 million are largely noncash, of which we recognized $28 million of noncash charges in our Q4 GAAP results. Both our progress against our Integration 2.0 initiative and the announced portfolio moves will help position Wabtec to drive multi-year margin expansion.

今天我們也宣布將於 2024 年退出一些非策略性產品線。修剪這些產品線將提高專注度和獲利能力，同時降低製造複雜性。 2023 年，這些產品線的銷售額總計約為 1.1 億美元，利潤率低於平均值。預期淨退出費用約為 8,500 萬美元，大部分為非現金費用，其中我們在第四季度 GAAP 業績中確認了 2,800 萬美元的非現金費用。我們在 Integration 2.0 計劃方面取得的進展以及宣布的投資組合舉措都將有助於西屋制動推動多年利潤率擴張。

Now let's turn to our financial position on Slide 16. Fourth quarter cash generation was strong at $686 million, resulting in total cash from operations of $1.2 billion versus $1.04 billion in the prior year, an increase of 15.7%. Cash flow benefited from higher earnings and improved working capital.

現在讓我們來看看投影片 16 上的財務狀況。第四季現金產生強勁，達到 6.86 億美元，營運現金總額為 12 億美元，而去年同期為 10.4 億美元，成長了 15.7%。現金流受益於收入的增加和營運資本的改善。

Our balance sheet and financial position continued to be strong. We ended the quarter with liquidity of $2.12 billion. And our net debt leverage ratio was 1.9x at the end of the fourth quarter, which was favorable versus the prior year's 2.2x debt leverage. During 2023, we invested $308 million on the strategic acquisitions of L&M and the LKZ joint venture and returned $532 million to shareholders through share repurchases and dividends. Finally, we improved ROIC during the year by 1.2 percentage points. We continue to allocate capital in a disciplined and balanced way to maximize returns for our shareholders.

我們的資產負債表和財務狀況持續保持強勁。本季結束時，我們的流動性為 21.2 億美元。截至第四季末，我們的淨負債槓桿率為 1.9 倍，優於去年同期的 2.2 倍債務槓桿。 2023年，我們投資了3.08億美元用於策略性收購L&M和LKZ合資企業，並透過股票回購和股息向股東返還5.32億美元。最後，我們今年的投資報酬率提高了 1.2 個百分點。我們繼續以嚴格和平衡的方式分配資本，以最大限度地提高股東的回報。

Moving to Slide 17, quickly recapping the year. Overall, the team delivered a strong year for all our stakeholders. Despite macro challenges, we drove strong revenue growth, expanded our operating margins and generated robust cash flows. The resiliency of the business and strong execution provides us with a solid foundation for profitable growth as we enter 2024.

轉到幻燈片 17，快速回顧這一年。總體而言，該團隊為所有利益相關者帶來了強勁的一年。儘管面臨宏觀挑戰，我們仍然推動了營收的強勁成長，擴大了營業利潤並產生了強勁的現金流。業務的彈性和強大的執行力為我們在進入 2024 年時實現獲利成長奠定了堅實的基礎。

With that, I'd like to turn the call back over to Rafael to provide our 2024 financial guidance.

至此，我想將電話轉回 Rafael，以提供我們 2024 年的財務指導。

Thanks, John. Now let's turn to Slide 18 to discuss our 2024 outlook and guidance. We believe that the underlying customer demand for our products and solutions continues across our business. This is the strongest order pipeline we've had since 2019. Our 12-month and multi-year backlogs as well as our orders pipeline continue to be strong, providing solid visibility for profitable growth ahead.

謝謝，約翰。現在讓我們轉向幻燈片 18 來討論我們的 2024 年展望和指導。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持續存在。這是我們自 2019 年以來最強勁的訂單管道。我們的 12 個月和多年積壓訂單以及訂單管道繼續強勁，為未來的盈利增長提供了堅實的可見性。

The team is committed to driving topline growth and margin expansion in 2024 despite an uncertain macro environment. With these factors in mind, we expect 2024 sales of $10.2 billion at the midpoint, over 5% growth versus last year and adjusted EPS midpoint of $6.70 per share, up about 13% from last year. We also expect cash flow conversion to be greater than 90%. Looking ahead, I'm confident that Wabtec is well positioned to drive profitable growth in 2024, which is aligned to our long-term financial framework.

儘管宏觀環境不確定，但團隊仍致力於在 2024 年推動營收成長和利潤率擴張。考慮到這些因素，我們預計 2024 年銷售額中位數將達到 102 億美元，比去年增長 5% 以上，調整後每股收益中位數將達到 6.70 美元，比去年增長約 13%。我們也預期現金流轉換率將超過 90%。展望未來，我相信西屋煞車有能力在 2024 年推動獲利成長，這與我們的長期財務框架相符。

Now let's wrap up on Slide 19. As you've heard today, our team delivered a solid quarter to finish out a very strong year, thanks in large part to our resilient install base, world-class team, innovative technologies and our continued focus on our customers. These results were in line with our long-term value creation framework. I'd like to take a moment to thank all the employees of Wabtec, whose dedication and focus on execution made these strong results possible.

現在讓我們總結一下投影片19。正如您今天所聽到的，我們的團隊在本季度取得了穩健的業績，結束了非常強勁的一年，這在很大程度上要歸功於我們富有彈性的安裝基礎、世界級的團隊、創新技術和我們持續的關注關於我們的客戶。這些結果符合我們的長期價值創造框架。我想花點時間感謝西屋制動的所有員工，是他們的奉獻精神和對執行的專注使這些強勁的成果成為可能。

With solid underlying demand across the portfolio, increased visibility through our backlog and intense focus on continuous improvement, Wabtec is well positioned to drive profitable long-term growth and maximize shareholder returns.

憑藉整個產品組合堅實的潛在需求、透過積壓訂單提高可見性以及對持續改進的強烈關注，西屋制動完全有能力推動盈利性長期增長並最大化股東回報。

With that, I want to thank you for your time this morning. I'll 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。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. But before we do, and out of consideration for others on the call, I ask that you limit yourself to 1 question and 1 follow-up question. If you have additional questions, please rejoin the queue.

謝謝你，拉斐爾。我們現在將繼續提問。但在我們這樣做之前，出於對通話中其他人的考慮，我要求您將自己限制在 1 個問題和 1 個後續問題上。如果您還有其他問題，請重新加入佇列。

Operator, we're ready for our first question.

接線員，我們準備好回答第一個問題了。

(Operator Instructions) Today's first question comes from Justin Long with Stephens.

（操作員說明）今天的第一個問題來自 Justin Long 和 Stephens。

So maybe to start with the question on freight margins, if you look at the fourth quarter, we saw a decline relative to the third quarter despite mix looking like it, got better. Equipment sales were down a lot sequentially. Services revenue was up a lot sequentially. So can you talk about what drove that pressure kind of quarter-to-quarter in freight margins and what you're anticipating for the progression of freight margins as we look at the 2024 guide?

因此，也許從運費利潤率的問題開始，如果你看看第四季度，我們會發現相對於第三季度有所下降，儘管混合情況看起來有所改善。設備銷量較上月大幅下降。服務收入季比大幅成長。那麼，您能否談談是什麼推動了貨運利潤率的季度壓力，以及在我們查看 2024 年指南時您對貨運利潤率進展的預期？

Yes. Justin, this is John. I probably wouldn't characterize it as pressure between the third and the fourth quarter. A lot of that is just seasonality of our overall margin structure. We've talked about the back half margins versus a year ago being the strongest in the back half and even stronger in the fourth quarter, and that's exactly what we saw with the fourth quarter, company margins being up 1.7%. But when we dig down a little bit deeper into that and we look at the Freight segment, they were up 2.3 percentage points.

是的。賈斯汀，這是約翰。我可能不會將其描述為第三節和第四節之間的壓力。其中很大一部分只是我們整體利潤結構的季節性。我們已經討論過下半年的利潤率與一年前相比，下半年的利潤率最高，第四季度的利潤率甚至更高，這正是我們在第四季度看到的情況，公司利潤率增長了1.7%。但當我們更深入研究貨運業務時，我們發現貨運業務成長了 2.3 個百分點。

So again, we feel real good about those margins that we did deliver in the fourth quarter in the Freight segment. And when we look forward, we've talked about the overall guidance, you've seen the guidance, and we would expect both our Freight and Transit segments to grow revenue as well as margin in 2024.

再說一遍，我們對第四季貨運部門實現的利潤率感到非常滿意。當我們展望未來時，我們已經討論了總體指導，您已經看到了指導，我們預計我們的貨運和運輸部門將在 2024 年實現收入和利潤的成長。

Okay. Great. That's helpful. And I guess as a follow-up, I know we can see some lumpiness in the business on a quarterly basis because of mix and the timing of deliveries, similar to what we saw here in the fourth quarter. So as we think about the 2024 guidance, is there anything you can share on the expected quarterly cadence of revenue and earnings?

好的。偉大的。這很有幫助。我想作為後續行動，我知道由於混合和交付時間的原因，我們每個季度的業務都會出現一些波動，類似於我們在第四季度看到的情況。因此，當我們考慮 2024 年的指導時，您可以分享有關收入和收益的預期季度節奏的資訊嗎？

Yes. Let's keep that -- I'm talking about it in half to half. Again, Justin, any given quarter can be moved pretty much by a handful or 2 of locomotives. So the most important part is that we expect '24 revenue and operating margins to be up versus 2023 and generally in line with our long-term growth framework. But more specifically, in '24, we expect to see higher revenue growth in the first half versus the second half, and we also expect to see modestly higher margin growth in the first half than the second half. So when we look at the drivers of the cadence, one continues to be on the volume side, hinges on the timing of our loco and mods deliveries and comping against higher 2023 margins in the second half.

是的。讓我們保持這一點——我是從一半到一半來談論它。賈斯汀，再說一遍，任何給定的四分之一都可以通過少數或兩個機車來移動。因此，最重要的是，我們預計 24 年的收入和營業利潤率將比 2023 年有所上升，並且總體上符合我們的長期成長框架。但更具體地說，24 年，我們預計上半年的營收成長將高於下半年，我們也預計上半年的利潤成長將略高於下半年。因此，當我們審視節奏的驅動因素時，銷售方面仍然是一個因素，這取決於我們機車和改裝件的交付時間，以及與下半年更高的 2023 年利潤率相比。

Okay. Great. I'll leave it at that.

好的。偉大的。我就這樣吧。

And our next question today comes from Matt Elkott with TD Cowen. Mr. Elkott, your line is open. Are you perhaps muted?

今天我們的下一個問題來自 Matt Elkott 和 TD Cowen。埃爾科特先生，您的路線已接通。也許你靜音了？

Sorry about that. Can you guys give us some more insight on the 5% revenue growth at the midpoint? You know, price versus volume, are there any acquisitions baked in? I also ask because your backlog is 10% higher and your revenue growth is 5%. Last year, you did 16% revenue growth. Is this just a function of comps being more difficult for revenue this year?

對於那個很抱歉。你們能給我們更多關於中點 5% 收入成長的見解嗎？你知道，從價格與數量來看，是否有任何收購？我問這個問題也因為您的積壓訂單增加了 10%，而您的收入增加了 5%。去年，您的收入成長了 16%。這僅僅是因為今年的收入比較困難嗎？

Matt, a couple of things. First, the fundamentals for the business are strong. We have the coverage. We have the orders to execute here. The portfolio is well positioned to provide customers with fairly significant payback. Fleets are old, and we're still coming out of a trough in terms of customers' investments in their fleets.

馬特，有幾件事。首先，業務基礎雄厚。我們有覆蓋範圍。我們這裡有要執行的命令。該產品組合能夠為客戶提供相當可觀的回報。機隊已經過時，而就客戶對其機隊的投資而言，我們仍處於走出低谷的階段。

There's also significant drivers globally. International, as you've heard, is very strong, which drives demand, not just on the locomotive front, but if you think about mining, transit, digital and the overall freight. Emissions, as you know, it's -- emission regulation is a tailwind for us.

全球範圍內也有重要的驅動因素。正如您所聽說的，國際化非常強勁，這推動了需求，不僅在機車方面，而且在採礦、運輸、數位化和整體貨運方面也是如此。如您所知，排放法規對我們來說是一個順風車。

We have continued to expand our visibility with really improved backlog coverage, which goes beyond '24. And that really positions us well to deliver ahead of our long-term guidance. With that being said, our guidance takes into consideration a number of factors. If you think about '24, you still have North American carloads, continues to be on the low end. We expect parkings to continue to go up, and freight car build is actually down. With that, our approach has consistently ensured really strong say-do ratio with results ahead of our commitments. And we continue to be committed to over deliver.

我們繼續擴大我們的知名度，真正改善了積壓工作覆蓋範圍，這超出了 24 年。這確實使我們能夠領先於我們的長期指導。話雖如此，我們的指導考慮了許多因素。如果你想想 24 年，你仍然有北美的車輛裝載量，仍然處於低端。我們預計停車位將繼續增加，而貨車建造量實際上會下降。這樣，我們的方法始終確保了真正強大的說做率，結果超出了我們的承諾。我們將繼續致力於超額交付。

That's helpful, Rafael. And my follow-up question, some of the kind of headwinds you mentioned, is that the reason why the freight's organic -- the organic freight revenue contribution to growth in the fourth quarter was lower than 3Q and basically the lowest in the last couple of years, if I'm doing my numbers correctly? And do you expect that to continue to trend downward in '24?

這很有幫助，拉斐爾。我的後續問題，你提到的一些不利因素，是貨運有機的原因——第四季度有機貨運收入對成長的貢獻低於第三季度，基本上是過去幾年中最低的幾年了，如果我的數字正確的話？您預計 24 年這數字會繼續下降嗎？

I'm sorry, Matt, I'm not sure I completely understand the question. Can you repeat the driver of...

抱歉，馬特，我不確定我完全理解這個問題。你能重複駕駛嗎...

Yes, John, like the $92 million organic freight revenue contribution in the fourth quarter. If I look back over the last 2 years, it's the lowest number we've seen from organic freight revenue. Is that a function of the headwinds in the North American rail market? And do you expect it to continue to trend downwards?

是的，John，喜歡第四季 9,200 萬美元的有機貨運收入貢獻。如果我回顧過去兩年，這是我們從有機貨運收入中看到的最低數字。這是北美鐵路市場逆風的結果嗎？您預計它會繼續呈下降趨勢嗎？

So let me just be clear here. Our backlog is strong. We feel good about it. The pipeline of opportunities show it. As I said, the strongest pipeline we've looked at in the last 5 years. And despite of some of the dynamics here we just described to you in North America with carloads and so forth, we're continuing to see really customers investing for cost, investing for reliability. And we continue to see both an element of growth, both for us in North America and international. You're going to have variation here, as John described, quarter-to-quarter, but we're continuing to look at profitable growth as we go into '24. And most importantly, I think we've got a stronger element of international here that really provides us visibility now into '25, '26 and '27.

所以讓我在這裡澄清一下。我們的積壓量很大。我們對此感覺很好。機會的管道表明了這一點。正如我所說，這是我們過去 5 年來見過的最強大的管道。儘管我們剛剛向您描述了北美的整車裝載量等情況，但我們仍然看到真正的客戶在投資成本、投資可靠性。我們繼續看到北美和國際市場的成長因素。正如約翰所描述的那樣，每個季度都會有變化，但隨著進入 24 年，我們將繼續關注獲利成長。最重要的是，我認為我們在這裡擁有更強大的國際元素，這確實讓我們現在能夠了解「25」、「26」和「27」。

And our next question comes from Jerry Revich with Goldman Sachs.

我們的下一個問題來自高盛的傑瑞·雷維奇（Jerry Revich）。

Rafael, I'm wondering can you just provide an update on how your customers are thinking about the discussions with California on sub Tier 4 locomotives in the fleet? And how do you folks see the regulatory process and timeline unfolding? And is that driving customer preference for new versus mods that wouldn't fit the new CARB-proposed standards? Can you just talk about how the ebbs and flows are going and the timeline that you expect to drive from a clarity standpoint for the industry?

Rafael，我想知道您能否提供最新信息，說明您的客戶如何考慮與加利福尼亞州就機隊中的 4 級以下機車進行的討論？你們如何看待監理流程和時間表的展開？這是否會促使客戶偏好新的改裝零件，而不是不符合 CARB 新標準的改裝零件？您能否從行業清晰的角度談談潮起潮落的進展情況以及您期望推動的時間表？

Yes. So Jerry, last November, CARB petitioned the EPA for a waiver and supports for a regulation for in-use locomotives. EPA has not responded to California's waiver request, and the ruling became effective beginning of this year. In one end, I'd say the outcome of the role remains fluid. But we're technically very well positioned to support our customers here for all outcomes. We have the best-in-class products, lowest fuel consumption, lowest emission, best reliability, best availability. And regardless of further regulation, what I'll tell you the good news is our entire installed base will be able to burn bio and renewable fuels.

是的。傑瑞，去年 11 月，CARB 向 EPA 請求豁免並支持對在用機車進行監管。美國環保署尚未對加州的豁免請求做出回應，該裁決於今年初生效。一方面，我想說這個角色的結果仍然不穩定。但我們在技術上處於非常有利的位置，可以為我們的客戶提供所有結果的支援。我們擁有一流的產品、最低的油耗、最低的排放、最佳的可靠性、最佳的可用性。無論進一步的監管如何，我要告訴您的好消息是我們的整個安裝基地將能夠燃燒生物和可再生燃料。

But what's more exciting to me is our newer fleets, they will ultimately go beyond bio and renewable fuel. We firmly believe we can bridge customers here to their ultimate near-zero emission goals. We are aggressively testing alternative fuels, hydrogen being part of that mix, in our newer internal combustion engines and with really an eye towards enabling customer sustainability journey and in parallel reintegrate batteries and ultimately hybrid systems into our fleet. So we have not incorporated regulatory change into our guidance. So that would be a tailwind for us.

但令我更興奮的是我們更新的船隊，它們最終將超越生物和再生燃料。我們堅信我們可以幫助客戶實現最終的近零排放目標。我們正在積極測試替代燃料，其中氫氣是我們新型內燃機的一部分，並真正著眼於實現客戶的可持續發展之旅，同時將電池和最終混合動力系統重新整合到我們的車隊中。因此，我們沒有將監管變化納入我們的指導中。所以這對我們來說將是一個順風車。

Super. And then can I just ask, you've been very clear on the cash flow from operations conversion rate at over 90%? The CapEx that we're seeing at 2% of sales, is that the run rate that we should be thinking about, John? Or are there any ebbs and flows as we think about what total net income to free cash flow conversion should be like over the next couple of years depending on your CapEx plan?

極好的。那我想問一下，營運現金流轉換率在90%以上，您說的很清楚嗎？我們看到的資本支出佔銷售額的 2%，這就是我們應該考慮的運作率嗎，約翰？或者，當我們考慮未來幾年總淨利潤到自由現金流的轉換應該是什麼樣子時，是否存在任何潮起潮落，具體取決於您的資本支出計劃？

So when we look out over the rest of our investment horizon that we came out with a couple of years ago, we would expect 2% range of CapEx over that entire period of time.

因此，當我們審視幾年前提出的其餘投資期間時，我們預期整個時期內的資本支出範圍為 2%。

And our next question today comes from Rob Wertheimer with Melius Research.

今天我們的下一個問題來自 Melius Research 的 Rob Wertheimer。

And I guess a little bit similar to Jerry's question, but I think you had a healthy order for mods from CSX that just came through. I wonder if you can give us any sense of where your total number of mods was in '23? Just for perspective on what that order kind of means in context. And then more generally, even if we leave aside California, there's also the climate goals that the rails have and there's a fairly old fleet that they're running or maybe a record old fleet that they're running. So in your conversations with your customers in North America, how much are they actually thinking about new locomotives right now with and without California? How is that balance looking? Does anybody think they can get to their climate goals with just mods? Maybe just any color around that level of mods and then how to think about new.

我想這與 Jerry 的問題有點相似，但我認為您剛剛從 CSX 收到了一份健康的模組訂單。我想知道您能否告訴我們 23 年您的模組總數是多少？只是為了了解該順序在上下文中的含義。更一般地說，即使我們拋開加州，鐵路也有氣候目標，而且他們正在運行一個相當老的車隊，或者他們正在運行一個創紀錄的老車隊。那麼，在您與北美客戶的對話中，他們現在實際上在多大程度上考慮了有或沒有加州的新機車？這種平衡看起來怎麼樣？有人認為僅靠模組就能實現氣候目標嗎？也許只是該級別模組周圍的任何顏色，然後如何考慮新的。

Rob, our customers invest for returns at the end of the day. So it just really comes down to making sure as they look into their fleets, they've got really the opportunity here to continue to drive costs down, to drive reliability up and improve service levels. And I think that continues. When I look at that investment, of course, we're coming from trough levels here in the past. We have growth coming into '23. We have still significant growth in '24. And the recent order that you just referred to just gives us greater visibility into really continue to grow market.

羅布，我們的客戶投資最終是為了回報。因此，歸根結底，就是確保在他們調查自己的車隊時，他們確實有機會繼續降低成本、提高可靠性並提高服務水準。我認為這種情況仍在繼續。當然，當我審視這項投資時，我們正處於過去的低谷水平。進入 23 年，我們將實現成長。 24 年我們仍有顯著成長。您剛才提到的最近的訂單讓我們能夠更好地了解真正持續成長的市場。

I think we still have, I think, an opportunity to grow here as we get closer here to, what I'll call, average replacement rates with really the oldest fleets we've had. I think some of the elements on what customers decide to invest in could be shaped here, certainly by regulation. But most importantly, I think it's going to get shaped by some of the elements of technology that we're introducing that allows a faster payback, a greater payback and greater flexibility to really, I'll call, ultimately bridge customers here into a lower emissions environment. And that's how we look at it.

我認為，隨著我們越來越接近我們所擁有的最古老機隊的平均替換率，我認為我們仍然有機會在這裡成長。我認為客戶決定投資的一些因素可以在這裡形成，當然是透過監管。但最重要的是，我認為它將受到我們引入的一些技術元素的影響，這些技術元素可以實現更快的回報、更大的回報和更大的靈活性，最終將客戶帶入更低的成本。排放環境。我們就是這樣看待它的。

And our next question today comes from Scott Group with Wolfe Research.

今天我們的下一個問題來自斯科特集團和沃爾夫研究公司。

So within the revenue guidance, just directionally, are you guys expecting better Freight or Transit growth? And when you just think about all the moving pieces with your growth, how should we think about mix as a tailwind or not this year?

因此，在收入指引範圍內，就方向而言，你們是否預期貨運或運輸會出現更好的成長？當你只考慮與你的成長有關的所有活動時，我們今年應該如何考慮混合是否是一種順風？

Great question, Scott. When we look at across our 5 business groups and look into '24, we expect equipment to be the fastest growing, again, for the reasons that Rafael had just mentioned on the last question. And with that -- and actually, in looking at mods as well, we expect both mods and locos combined to be growing at a faster rate than our average, the midpoint of the revenue growth. And that will put a little bit of mix headwind in 2024. And again, as I've said before, in this world, Scott, there's 2 kinds of mix. There's good mix and bad mix. And this is a case of really good mix as we mix down a little bit because we're putting out assets in the marketplace that will be generating revenues for us for decades to come. So we feel really good. But there will be a little bit of mix headwinds going forward.

好問題，史考特。當我們縱觀我們的 5 個業務部門並展望 24 年時，我們預計設備將再次成長最快，原因正如拉斐爾剛剛在最後一個問題中提到的。事實上，在考慮模組時，我們預期模組和機車的成長速度將高於我們的平均水平，也就是收入成長的中點。這將在 2024 年給混合帶來一些阻力。正如我之前所說，斯科特，在這個世界上有兩種混合。有好的混合，也有壞的混合。這是一個非常好的混合案例，因為我們在市場上投放了一些資產，這些資產將在未來幾十年為我們帶來收入。所以我們感覺非常好。但未來將會出現一些混合阻力。

Okay. Helpful. And then I just want to clarify, just on the mod side, are you seeing -- I think you've been talking about pretty consistent double-digit growth in mods the last bunch of years, do we have that again this year? And then any update on the battery, loco and timing of first delivery and all that?

好的。有幫助。然後我想澄清一下，在模組方面，您是否看到了 - 我想您一直在談論過去幾年模組的兩位數增長，今年我們還會有這種情況嗎？那麼電池、機車和首次交貨時間等方面有更新嗎？

With regards to the mods, we tend to look at one or the other mods and new. If we look at combined mods and new in the year, we said they'd be up double digit, and they were in 2023. As we look forward, as I had just mentioned, we do expect them to grow faster than the average of those combined to grow faster than the average.

關於模組，我們傾向於關注其中一個模組和新模組。如果我們看看今年的組合模組和新產品，我們說它們將增長兩位數，而且是在 2023 年。 正如我剛才提到的，我們確實預計它們的增長速度將快於平均水平這些加起來的成長速度高於平均。

So strong growth here going to '24. And Scott, with greater visibility I had on your question on battery electric, we're continuing to make progress here in the fourth quarter. As you know, we unveiled the first heavy haul battery electric locomotive with over 7 megawatts of power. These units will start running this year in Australia. And on that, I think fuel continues to be one of the biggest costs for customers. There's a continued focus here on driving efficiency. We've got a number of pilots and demo projects. And we -- while we do not expect broad adoption of these, there's going to be some really key opportunities here that we're ready to work on and support customers on.

到 24 年，這裡的成長如此強勁。斯科特，隨著我對你關於電池電力的問題有了更多的了解，我們將在第四季度繼續取得進展。如您所知，我們推出了第一台功率超過 7 兆瓦的重型電池電力機車。這些裝置將於今年在澳洲開始運作。就此而言，我認為燃料仍然是客戶最大的成本之一。這裡持續關注提高效率。我們有許多試點和演示項目。雖然我們並不期望這些技術得到廣泛採用，但這裡將會有一些非常關鍵的機會，我們已準備好為客戶提供支援。

And our next question today comes from Allison Poliniak with Wells Fargo.

今天我們的下一個問題來自富國銀行的艾莉森‧波利尼亞克。

I just want to see if you could expand on the digital intelligence piece of your business, particularly in North America. It seems like that's been a bit slower. Just is -- any color there, are folks pushing off some these investments from a cyclical standpoint, understanding the long-term drivers are still there? Just any color on that near term.

我只是想看看您是否可以擴展您的數位智慧業務，特別是在北美。看來這速度是慢了一些。只是——有任何顏色，人們是否從週期性的角度推遲了一些投資，了解長期驅動因素仍然存在？近期的任何顏色都可以。

Yes. So number one, I think during the quarter, I think in one side, while we saw higher demand from international, when you think about PTC, onboard locomotive, digital mine, we saw really a softer demand here, which is continuing with the U.S., driven by really discretionary OpEx and the commuter signaling business. What I'd say is the pipeline of opportunities remain strong, driven primarily by international and also by digital mining solutions. I'd say recurring revenues and short-term convertibility continues to be a focus area for the group.

是的。因此，第一，我認為在本季度，一方面，雖然我們看到來自國際的需求增加，但當你想到PTC、車載機車、數位礦山時，我們確實看到了這裡的需求疲軟，這種情況在美國仍在繼續。 ，由真正可自由支配的運營支出和通勤信號業務驅動。我想說的是，機會管道仍然強勁，主要由國際和數位採礦解決方案推動。我想說，經常性收入和短期可兌換仍然是集團的重點領域。

But I think what's more exciting here, something we announced in the fourth quarter, which is really tied to us entering the railcar telematics market. We are creating a platform here with proven technology. And this is a market of 1.6 million freight cars. It is a multibillion-dollar opportunity for us, one that we will be providing real-time data to railcar and tank car owners. And where it's opportunities like this, we'll keep propelling growth and profitable growth for this business.

但我認為更令人興奮的是我們在第四季度宣布的事情，這確實與我們進入軌道車遠端資訊處理市場息息相關。我們正在這裡創建一個擁有成熟技術的平台。這是一個擁有160萬輛貨車的市場。這對我們來說是一個價值數十億美元的機會，我們將向軌道車和油罐車車主提供即時數據。只要有這樣的機會，我們將繼續推動該業務的成長和獲利成長。

Got it. And then on the cost optimization, could you maybe give us any color on how we should think about run rate exiting 2024? And then was that portfolio pruning part of that? Is that incremental? Just any color there.

知道了。然後在成本優化方面，您能否給我們一些關於我們應該如何考慮 2024 年退出運行率的資訊？那麼投資組合修剪是其中的一部分嗎？這是增量的嗎？那裡有任何顏色。

Yes. Allison, this is John. So they're separate. Integration 2.0, we couldn't be more pleased with the performance of that. And to date, most of the investment is behind us and most of the savings are in front of us. So as we exited 2023, we had a run rate of $22 million. And as we exit 2025, the run rate that we will exit at will be $75 million to $90 million. So over the next 2 years, we would expect a significant ramp in moving from $22 million to the $75 million to $90 million. And they'll probably be somewhat equal as we ramp from here to on the exit period.

是的。艾莉森，這是約翰。所以他們是分開的。 Integration 2.0，我們對其性能非常滿意。迄今為止，大部分投資已經過去，大部分儲蓄也已經實現。因此，到 2023 年結束時，我們的營運費用為 2,200 萬美元。當我們在 2025 年退出時，我們退出的運行費用將為 7500 萬至 9000 萬美元。因此，在接下來的兩年裡，我們預計將從 2,200 萬美元大幅增加到 7,500 萬美元至 9,000 萬美元。當我們從現在開始進入退出期時，它們可能會有些相等。

Our next question today comes from Ken Hoexter with Bank of America.

今天我們的下一個問題來自美國銀行的 Ken Hoexter。

Great. So Rafael and John, can you talk a bit about the -- you've kind of gone over the mix of product type, but how about international versus domestic? And kind of maybe talk us through to understand margin differentials or mix issues as one is growing versus the other in -- within your 5% growth outlook?

偉大的。拉斐爾和約翰，你們能談談──你們已經討論了產品類型的組合，但是國際與國內怎麼樣？或許可以告訴我們，在您的 5% 成長前景內，了解產品相對於另一種產品的成長時的利潤率差異或混合問題？

Yes. When you think of revenues, I think you heard me describing stronger international pipeline, which I think ultimately wants to reflect stronger growth internationally as we look at -- especially beyond '24 in that regard. So we see a strong pipeline of deals, some of them signed last year. We'll see a part of those converting into backlog this year; which we'll continue to see growing all, really the strength that we've got longer term in the business.

是的。當你想到收入時，我想你聽到我描述了更強大的國際管道，我認為這最終希望反映出我們所看到的更強勁的國際成長——尤其是在這方面超過 24 年之後。因此，我們看到了大量的交易，其中一些是去年簽署的。今年我們將看到其中一部分轉化為積壓訂單；我們將繼續看到這一點不斷成長，這確實是我們在業務中長期擁有的實力。

I think with regards to specific margins, I mean this is really a project-by-project driven. As John described, I think there's an element of still headwinds just associated with the pace in which we grow both the new locomotive business, but also the mods business at a rate -- at a growth rate faster than the overall company.

我認為就具體利潤而言，我的意思是這實際上是一個由專案驅動的專案。正如約翰所描述的，我認為仍然存在一些阻力因素，這與我們新機車業務和改裝業務的成長速度有關——成長速度快於整個公司。

So maybe we can delve into that for a quick one for my follow-up. Just the backlog conversion, it looks like the backlog is building up maybe double-digit rates, right? Freight is up 11%, Transit up 8%. Just wondering, is that a good signal or read-through for that revenue growth? I mean you're targeting 5%, the backlog is growing near double digit. How do we reconcile the 2? What -- where is their loss, I guess, in the conversion?

所以也許我們可以在我的後續行動中快速深入研究這一點。只是積壓的轉換，看起來積壓的速度可能達到兩位數，對嗎？貨運上漲 11%，運輸上漲 8%。只是想知道，這對收入成長來說是一個好的訊號還是解讀？我的意思是，您的目標是 5%，積壓訂單正在成長接近兩位數。我們如何協調兩者呢？我猜他們在轉換過程中的損失在哪裡？

So a couple of things. I mean we will have variation here quarter-to-quarter. Just reflect on the last 4 quarters. I mean we had quarters on low single digits, we had quarters on double digits. And I think you're going to see some of that variation. How we run the business? Just making sure that we've got that convertibility built out 12 months out, 18 months out, and we got to really think about the lead times we've got associated with our products. So it's making sure that we have that coverage.

有幾件事。我的意思是我們每個季度都會有變化。回顧過去 4 個季度。我的意思是，我們有幾季的低個位數，也有幾季的兩位數。我想你會看到其中的一些變化。我們如何經營業務？只要確保我們能夠在 12 個月、18 個月後建立可轉換性，我們就必須真正考慮與我們的產品相關的交貨時間。所以它要確保我們有這樣的覆蓋範圍。

If you think in specific about '24, I think there's some elements of coverage, especially for the flow products that really need to -- really be executed through the year. And if you keep in mind, you've got things like the freight car build, which is down. So you do have some elements here that play out through the year. But bottom line is we feel strong about both the coverage and about the ability here to continue to drive profitable growth with the pipeline we have.

如果你具體考慮 24 年，我認為有一些覆蓋要素，特別是對於真正需要全年執行的流程產品。如果你記住的話，你會遇到諸如貨運車廂建造之類的事情，但這些事情已經下降了。所以這裡確實有一些元素貫穿全年。但最重要的是，我們對覆蓋範圍和利用我們現有的管道繼續推動獲利成長的能力都充滿信心。

And our next question comes from Angel Castillo with Morgan Stanley.

我們的下一個問題來自摩根士丹利的安吉爾·卡斯蒂略。

Just maybe kind of expanding on that in a little bit longer term. As you think about your book-to-bill for 2024, focused in particular on locomotives, new locomotives, how are you thinking about that kind of evolving? It sounds like deliveries will be ramping up during the year. But just based on what you're hearing from your conversations with your customers, how do you kind of see that throughout the year in terms of above 1, below 1? Just any more color there would be helpful.

從長遠來看，也許會對此進行擴展。當您考慮 2024 年的訂單交付時，特別關注機車、新機車，您如何看待這種演變？聽起來今年的交貨量將會增加。但僅根據您從與客戶的對話中聽到的內容，您如何看待全年高於 1 和低於 1 的情況？只要有更多的顏色就會有幫助。

Angel, on average, we expect our book-to-bill to be over 1 because we expect to continue to grow in the mid-single digits over the sustainable future, right? So -- but again, going back to -- some of these orders can be lumpy from time to time, and a lot of them are multi-year. So we're not -- we don't provide a guidance in terms of what we expect forward-looking book-to-bill be. But over time, we would certainly expect it to be over 1.

Angel，平均而言，我們預計我們的訂單出貨比將超過 1，因為我們預計在永續的未來將繼續以中個位數成長，對嗎？因此，但再次回到過去，其中一些訂單可能會不時出現波動，而且其中許多都是多年期的。所以我們不會——我們不會就我們預期的前瞻性訂單到賬單提供指導。但隨著時間的推移，我們肯定會期望它會超過 1。

Got it. And then maybe just on the portfolio divestitures or pruning that you talked about. Could you quantify that from an EPS perspective how much of that is kind of -- what was kind of the impact embedded in the guidance? And any kind of incremental pruning that you see as kind of opportunities here?

知道了。然後也許只是您談到的投資組合剝離或修剪。您能否從 EPS 的角度量化指導中包含的影響有多大？您認為任何類型的增量修剪是一種機會嗎？

Yes. So when we look at portfolio optimization, again, we're looking very focused on overall company profitability. And certainly, Integration 2.0 is helping to drive that. But in addition to that, we're looking at -- taking a hard look at the portfolio and looking at the product lines that are not carrying the weight, are not delivering the profitability that we expect or the value that we expect. And with that, we're going out and removing about $110 million of revenue. So when you look at our overall guidance, you got to realize, too, that this revenue isn't going to be there in 2024. So that's putting a little bit of headwind on the overall midpoint that we've given.

是的。因此，當我們考慮投資組合優化時，我們再次非常關注公司的整體獲利能力。當然，Integration 2.0 正在幫助推動這一目標。但除此之外，我們正在仔細審視產品組合，並審視那些沒有發揮作用、沒有提供我們預期的獲利能力或我們預期的價值的產品線。這樣一來，我們將減少約 1.1 億美元的收入。因此，當您查看我們的整體指導時，您也必須意識到，這筆收入在 2024 年不會出現。因此，這對我們給出的總體中點帶來了一些阻力。

But to answer your question, this is very low margin or no margin, Angel. So it's not having an impact on our profitability going forward, but it is bringing our revenue down. And, therefore, we would expect a little bit upward pressure on or upward momentum on margin percent.

但要回答你的問題，天使，這是非常低的利潤或沒有利潤。因此，這不會對我們未來的獲利能力產生影響，但會導致我們的收入下降。因此，我們預期利潤率會出現一些上行壓力或上行動能。

And our next question today comes from Saree Boroditsky with Jefferies.

今天我們的下一個問題來自 Jefferies 的 Saree Boroditsky。

So you announced the $1 billion in share buyback authorization. Can you just talk about how you're thinking about using the cash flow this year between repurchases and M&A, the expected timeline for completing this authorization and is any of this baked into your EPS guidance for the year?

所以你們宣布了 10 億美元的股票回購授權。您能否談談您如何考慮如何使用今年回購和併購之間的現金流量、完成此授權的預期時間表以及這些是否已納入您今年的每股盈餘指導中？

So Saree, number one is in terms of capital allocation, we are on track to do what we've done in 2023. Again, we couldn't be more pleased with the balance that we had in 2023. When you look at the free cash of about $900 million, operating cash of $1.2 billion, it would sound pretty split between M&A and share repurchases.

因此，Saree，第一是在資本配置方面，我們正在按計劃完成我們在 2023 年所做的事情。同樣，我們對 2023 年的餘額感到非常滿意。當你看到免費的現金約為9 億美元，營運現金為12 億美元，聽起來併購和股票回購之間的比例相當大。

When we look forward, as you know, we will prioritize M&A over share repurchases as long as we have good strategic bolt-on M&A. And if not, we will return excess cash to our shareholders in the form of share repurchases.

如你所知，當我們展望未來時，只要我們有良好的策略性補充併購，我們就會優先考慮併購而不是股票回購。如果沒有，我們將以股票回購的形式將多餘的現金回饋給股東。

In relationship to the authorization, it replaced the old authorization that we had. So we've got the ability to spend up to $1 billion in share repurchases. And again, that will be determined throughout the year as far as what we have in M&A opportunities.

就授權而言，它取代了我們擁有的舊授權。因此，我們有能力花費最多 10 億美元進行股票回購。再說一次，這將在全年取決於我們在併購機會方面的情況。

But is it fair to say that any of that -- any additional share buybacks this year is not included in your EPS guidance?

但可以公平地說，今年任何額外的股票回購都不包含在您的每股盈餘指引中嗎？

Our guidance includes all of our business aspects as well as the use of cash in 2024.

我們的指導包括我們所有的業務方面以及 2024 年現金的使用。

Okay. So it does include share buybacks?

好的。那麼它確實包括股票回購嗎？

Share buybacks, M&A or the use of that cash, yes.

股票回購、併購或使用現金，是的。

Okay. And then for the next question, I know you're hesitant to kind of put a number on freight margin performance for this year, but maybe comment on incremental margins in freight. Because I think you should have easier comps with the absence of a strike, you have higher volumes and you're exiting lower-margin products. So what can we think about for incremental freight margins this year?

好的。對於下一個問題，我知道您對今年的貨運利潤率表現有些猶豫，但也許會對貨運利潤率的增量發表評論。因為我認為在沒有罷工的情況下你應該有更容易的競爭，你有更高的銷售量並且你正在退出利潤率較低的產品。那麼今年貨運利潤率的增量我們可以考慮什麼呢？

Well, overall, you can figure out where we're -- what we're looking at for incremental margins on a company in total. Freight will certainly be a driver of that, but we also expect margin growth on the Transit side. When you look at, we are lapping some of -- some impact to the strike that we had, and that's been incorporated in our overall guidance, right? So when we look at the margins in general, we're looking at favorable productivity and absorption. And certainly, the benefits of Integration 2.0 as well as portfolio optimization that you mentioned. Now again, there's going to be some headwinds to that on unfavorable mix.

好吧，總的來說，你可以弄清楚我們在哪裡——我們正在尋找一家公司整體增量利潤的目標。貨運肯定會成為其中的推動力，但我們也預期運輸方面的利潤率會成長。當你看時，我們正在對我們的罷工產生一些影響，這已經納入我們的整體指導中，對吧？因此，當我們整體考慮利潤率時，我們關注的是有利的生產力和吸收率。當然，還有您提到的 Integration 2.0 以及產品組合最佳化的好處。現在，不利的組合將再次帶來一些阻力。

And our next question today comes from Chris Wetherbee with Citigroup.

今天我們的下一個問題來自花旗集團的 Chris Wetherbee。

This is Rob on for Chris. If I could dig a little bit further into Integration 2.0, it looks like on a run rate basis exiting 2024, you more than doubled the savings. Can you give us a sense of the cadence you're expecting to realize that run rate throughout '24?

這是 Rob 替補的 Chris。如果我能進一步深入研究 Integration 2.0，從 2024 年退出的運行率來看，您可以節省一倍以上。您能否讓我們了解一下您希望在整個 24 年實現運行率的節奏？

Yes. We wouldn't expect any unusual aspect of that. There's numerous projects that make up Integration 2.0, and most of them have all been executed. And now it is just different levels of -- as the savings start to drive forward. So for purposes of modeling, probably more straight line is more accurate than any other way to look at them -- that build.

是的。我們預計不會有任何不尋常的方面。 Integration 2.0 有許多項目，其中大部分都已經執行。現在只是不同程度的節約開始向前推進。因此，出於建模的目的，可能更多的直線比任何其他查看它們的方式（即構建）更準確。

That's really helpful. And then just to kind of circle back on Justin's question about the cadence of earnings and revenue growth. Can you give us any -- can you fine-tune kind of the percentage of revenue you're expecting in the first half versus the second half? Clearly, it's going to be more weighted to the first half, but...

這真的很有幫助。然後回到賈斯汀關於獲利和收入成長節奏的問題。您能給我們一些資訊嗎？您能否對上半年與下半年的預期收入百分比進行微調？顯然，上半場的權重會更大，但是......

Yes. We would just expect revenue growth to be higher in the first half than the second half, again, largely how we have some of our delivery of the high-ticket items planned. But, again, whenever you move a few locomotives from one period to the other or deliveries a little bit ahead or behind, it's hard to get too fine tuned on that. So suffice to say that the first half revenue growth will be a little bit higher than the second half.

是的。我們只是預計上半年的營收成長將高於下半年，這很大程度上取決於我們如何計劃交付一些高價商品。但是，再次強調，每當您將一些機車從一個時期移動到另一個時期或提前或落後一點交付時，就很難對此進行太精細的調整。可以說，上半年的營收成長將略高於下半年。

And our next question comes from Bascome Majors with Susquehanna.

我們的下一個問題來自巴斯科姆梅傑斯和薩斯奎哈納。

You talked about a roughly neutral volume environment for North American rail. How much would that have to deteriorate to start to meaningfully impact your service revenue on the locomotive contracts?

您談到了北美鐵路的大致中性的運量環境。這種情況必須惡化到什麼程度才能開始對機車合約的服務收入產生有意義的影響？

So what we described was carloads being, I'll call it, to some extent muted for the year. That has, of course, been included into our guidance. What I think you have that more than offsets this is the continued opportunity here for customers to really invest for returns. It's really by driving productivity, lowering costs, replacing in some cases 3 units for 2 units. And I think those dynamics remain in place and remain in place not just for '24, as you see reflected here by the orders that we just got. We think at least from a fleet perspective and parkings, service levels have really -- the focus on service levels has really kept the active fleet relatively stable. And we would expect us to continue to be -- have a favorable market dynamics for North America included.

因此，我們所描述的是，我稱之為，今年的車輛裝載量在某種程度上保持沉默。當然，這已包含在我們的指導中。我認為您所擁有的不僅僅是抵消了這一點，而是為客戶提供了真正投資以獲得回報的持續機會。這實際上是透過提高生產力、降低成本、在某些情況下將 3 個單位替換為 2 個單位來實現的。我認為這些動態仍然存在，並且不僅在 24 年保持不變，正如您所看到的我們剛剛收到的訂單所反映的那樣。我們認為，至少從車隊和停車的角度來看，服務水準確實——對服務水準的關注確實使活躍車隊保持相對穩定。我們預計我們將繼續擁有包括北美在內的有利的市場動態。

And moving to international. On the buyout in Kazakhstan, you talked about not much 2024 impact from that. As you look at longer term, is the deal structured in a way where all of the benefits from any of this $2 billion-plus of MOUs converting to orders would accrue to Wabtec? And just longer term, when did that become a meaningful contributor to your overall profit profile?

並走向國際。關於哈薩克的收購，您談到了這對 2024 年的影響不大。從長遠來看，這筆交易的結構是否使得西屋煞車將獲得超過 20 億美元的諒解備忘錄轉化為訂單的所有收益？從長遠來看，這何時對您的整體利潤狀況產生了有意義的貢獻？

Bascome, I would think about the LKZ venture that we have as an assembly joint venture. So it doesn't have any impact on our overall revenue growth or growth into the CIS region. What it does is it improves our supply chain, right? A lot of the things that we were driving through the joint venture were kits that we would make, and a lot of the parts were made in other parts of the world and shipped in there, and the JV was for the assembly side of it. So now this just gives us a great operational -- complete control over the operational supply chain in an area of the world that we believe is going to show significant growth going forward.

Bascome，我會考慮我們作為組裝合資企業的 LKZ 合資企業。因此，這對我們的整體收入成長或獨聯體地區的成長沒有任何影響。它的作用是改善我們的供應鏈，對嗎？我們透過合資企業生產的許多東西都是我們製造的套件，許多零件是在世界其他地方製造並運送到那裡的，而合資企業則負責組裝。因此，現在這使我們能夠完全控制世界某個地區的營運供應鏈，我們相信該地區未來將顯示出顯著的成長。

We have significant growth in '24. We have significant growth in '25. And we have an opportunity here to utilize that installed -- that manufacturing footprint to export outside of Kazakhstan, and I think that's a significant element here on the top of just had some really strong returns for us.

我們在 24 年取得了顯著的成長。我們在 25 年取得了顯著的成長。我們在這裡有機會利用已安裝的製造足跡將其出口到哈薩克以外的地區，我認為這是一個重要的因素，除了為我們帶來了一些非常強勁的回報之外。

And our next question comes from Steve Barger with KeyBanc Capital Markets.

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

John, you said equipment will be the fastest-growing group. But if I'm remembering right, that category is pretty evenly split between locomotive and mining, marine and drilling. Are you thinking locomotive outgrows the industrial products? Or do you expect more equal growth from those kind of 2 categories?

約翰，你說設備將是成長最快的群體。但如果我沒記錯的話，這個類別在機車和採礦、船舶和鑽井之間相當均勻地分佈。您是否認為機車的發展速度超過了工業產品的發展速度？或者您期望這兩個類別的成長更加平等？

Yes. We don't break it out specifically, Steve. But when we look at 2024, our equipment group, we expect good growth out of both locomotives as well as mining equipment.

是的。我們不會具體分解它，史蒂夫。但當我們展望 2024 年我們的設備組時，我們預計機車和採礦設備都會出現良好成長。

Got it. So similar growth rates, no big variance between the 2?

知道了。那麼相似的成長率，兩者之間沒有太大差異嗎？

Steve, it's, I think, a challenge here. We might have, again, variation as we go through it. But they're strong, they're strong, both strong. And a lot of it really internationally driven and beyond '24.

史蒂夫，我認為這是一個挑戰。當我們經歷它時，我們可能會再次遇到變化。但他們很強，他們很強，都很強。其中許多確實是國際驅動的，並且超越了 24 世紀。

Got it. And for transit, you're coming off a tough comp, but really the best growth in years. And with equipment and services on the freight side outgrowing consolidated guidance, does that mean freight is more like high single digit for the year and transit low single digit?

知道了。對於交通來說，你的競爭很艱難，但確實是多年來最好的成長。隨著貨運方面的設備和服務超越綜合指導，這是否意味著今年貨運量更像是高個位數，而過境運輸則是低個位數？

We won't get into the specifics we're guiding for Transit or for Freight. What I'll tell you, on Transit, the fundamentals for the business continue to be strong. Book-to-bill ratio closed over 1 for the year. While we are pleased with the progress, we're continuing to do a significant work here to simplify the footprint. This business will deliver on margin expansion in '24. Integration 2.0 is a significant contributor to that. But we will continue to have variation quarter-to-quarter, driven by really mix and timing of projects.

我們不會詳細介紹我們針對運輸或貨運所指導的具體細節。我要告訴你的是，Transit 的業務基礎依然強勁。全年訂單出貨比超過 1。雖然我們對進展感到滿意，但我們將繼續在這裡做大量工作來簡化足跡。該業務將於 2024 年實現利潤率擴張。 Integration 2.0 對此做出了重要貢獻。但在專案的實際組合和時間表的推動下，我們將繼續出現季度與季度之間的變化。

Ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to Kristine Kubacki for any closing remarks.

女士們先生們，我們的問答環節到此結束。我想將會議轉回克里斯汀·庫巴基 (Kristine Kubacki) 致閉幕詞。

Thank you, Rocco, and thank you, everyone, for your participation today. We look forward to speaking with you next quarter.

謝謝羅科，也謝謝大家今天的參與。我們期待下個季度與您交談。

This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。