美國西屋制動公司 (WAB) 2024 Q3 法說會逐字稿

Good day and welcome to the Webtech third quarter 2024 earnings conference call. (Operator Instructions). Please note this event is being recorded. I now would like turn the conference over to Kyra Yates, Vice President, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Webtech 2024 年第三季財報電話會議。（操作員說明）。請注意此事件正在被記錄。我現在想將會議交給投資者關係副總裁凱拉·耶茨 (Kyra Yates)。請繼續。

Thank you, operator. Good morning, everyone, and welcome to Wabtec's third quarter 2024 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 discussion, Rogers were posted to our website earlier today and can be accessed on the Investor Relations tab. Some statements we're making are forward-looking and based on our best view of the world in our business today.

謝謝你，接線生。大家早安，歡迎參加西屋制動 2024 年第三季財報電話會議。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。今天早些時候，羅傑斯的幻燈片演示以及我們的收益發布和財務討論已發佈到我們的網站上，可以在“投資者關係”選項卡上訪問。我們所做的一些陳述具有前瞻性，並且基於我們對當今業務的最佳世界觀。

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. I will now turn the call over to Rafael.

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 GAAP 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整表。我現在將把電話轉給拉斐爾。

Thanks, Kyra, and good morning, everyone. Let's move to slide 4. I will 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. We delivered another solid quarter, evidenced by sales growth, margin expansion, increased earnings and strong cash flow.

謝謝凱拉，大家早安。讓我們轉到投影片 4。我將首先介紹我們業務的最新情況、我對本季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。我們又實現了一個穩健的季度，銷售成長、利潤率擴大、收益增加和強勁的現金流證明了這一點。

Sales were $2.7 billion, which was up nearly 4.5% versus the prior year. Revenue growth was driven by both the Freight and Transit segments. Adjusted EPS was up nearly 18% from the year ago quarter driven by increased sales and margin expansion. Total cash flow from operations for the quarter was $542 million. We continue to execute against our capital allocation framework to maximize shareholder value by investing for future growth and returning cash to our shareholders.

銷售額為 27 億美元，比上年增長近 4.5%。收入成長由貨運和運輸部門推動。由於銷售額增加和利潤率擴張，調整後每股盈餘較去年同期成長近 18%。本季營運現金流總額為 5.42 億美元。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。

The 12 month backlog was $7.6 billion, up 7.5%, signifying continued momentum and visibility across the business. And the total multiyear backlog was $22 billion. Overall, the Wabtec team delivered a solid third quarter behind an intense focus on execution. Looking ahead, I'm encouraged by the underlying strength and momentum across the business and believe Wabtec is positioned for continued profitable growth ahead.

12 個月的積壓訂單為 76 億美元，成長 7.5%，顯示整個業務的持續成長動能和可見度。多年積壓總額為 220 億美元。整體而言，西屋煞車團隊在高度重視執行的同時，第三季業績表現出色。展望未來，我對整個業務的潛在實力和勢頭感到鼓舞，並相信西屋制動已做好了未來持續盈利增長的準備。

Shifting our focus to slide 5. Let's talk about 2024 end market expectations in more details. While key metrics across our Freight business remain mixed, we are encouraged by the underlying momentum of our business, the continued strength of our international markets and the robust pipeline of opportunities across geographies.

將我們的焦點轉移到投影片 5。讓我們更詳細地談談2024年終端市場預期。儘管我們貨運業務的關鍵指標仍然好壞參半，但我們業務的潛在勢頭、國際市場的持續強勁以及跨地區的強勁機會管道令我們感到鼓舞。

North American carloads continued to be up in the quarter despite this carload growth, the industries and Wabtec's active locomotive fleet was largely flat when compared to last year's third quarter. Looking at the North American railcar build. Last quarter, the industry outlook for 2024 was 38,000 cars to be delivered, which has now been raised by the industry sources to 41,000 cars, down from last year's build of 45,000 cars.

儘管運載量成長，但北美地區的運載量在本季持續成長，但與去年第三季相比，該產業和西屋煞車的活躍機車車隊基本持平。看看北美的鐵路車建造情況。上個季度，該行業對 2024 年交付量的預期為 38,000 輛汽車，目前行業消息人士已將這一數字上調至 41,000 輛，低於去年的 45,000 輛汽車的產量。

Internationally, we're seeing significant investments to expand and upgrade infrastructure, which are supporting a robust international locomotive borders pipeline. This is the strongest it has been over the last five years. In mining, commodity prices and an aging fleet continue to support activity to refresh and upgrade the truck fleet.

在國際上，我們看到大量投資用於擴大和升級基礎設施，這些投資正在支持強大的國際機車邊境管道。這是過去五年來最強勁的一次。在採礦業，大宗商品價格和車隊老化繼續支持更新和升級卡車車隊的活動。

Finally, moving to the Transit factor we continue to see underlying indicators for growth. Ridership levels are increasing in key geographies, along with the fleet expansion and renewals. There also continues to be a strong push with regulation and customer initiatives on decarbonization and sustainable transportation solutions.

最後，轉向交通因素，我們繼續看到潛在的成長指標。隨著機隊的擴張和更新，主要地區的乘客量正在增加。監管和客戶倡議也繼續大力推動脫碳和永續運輸解決方案。

Next, let's turn to slide 6 to discuss a few business highlights. Last year, in the third quarter, we announced the signing of a strategic MOU with KTZ, the National Railway Company in Kazakhstan, for over $2 billion. Since that time, we have worked to finalize orders associated with that MOU, a multiyear new locomotive order with KTZ for $405 million.

接下來，讓我們轉向投影片 6 來討論一些業務亮點。去年第三季度，我們宣布與哈薩克國家鐵路公司 KTZ 簽署了價值超過 20 億美元的戰略諒解備忘錄。從那時起，我們一直致力於敲定與該諒解備忘錄相關的訂單，這是與 KTZ 簽署的一份價值 4.05 億美元的多年新機車訂單。

These locomotives will provide the efficiency, reliability and operational savings to effectively support the growing demand on the Trans-Caspian international route that connects China to Europe. Moving to North America. We secured the long-term parts agreement with a class I railroad for over $300 million. In Transit, we signed a contract for $70 million with Siemens Mobility to supply passenger information systems for 90 Munich S-Bahn trains.

這些機車將提高效率、可靠性並節省營運成本，以有效滿足連接中國和歐洲的跨里海國際航線不斷增長的需求。搬到北美。我們與一家 I 級鐵路公司簽訂了價值超過 3 億美元的長期零件協議。在 Transit 領域，我們與西門子交通簽署了價值 7000 萬美元的合同，為 90 輛慕尼黑 S-Bahn 列車提供乘客資訊系統。

And earlier in the quarter, we expanded our service contract with Indian Railways for another $30 million. This agreement expands Wabtec's locomotive service capabilities into the southern part of the country. All of this demonstrates the underlying strength across our businesses, the team's relentless focus on execution and the strong pipeline of opportunities, which we continue to execute on.

本季早些時候，我們與印度鐵路公司的服務合約又增加了 3,000 萬美元。該協議將西屋煞車的機車服務能力擴展到該國南部地區。所有這些都證明了我們業務的潛在實力、團隊對執行的不懈關注以及我們將繼續執行的強大機會管道。

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、部門表現和我們的整體財務表現。約翰？

Thanks, Rafael, and hello, everyone. Turning to slide 7, I will review our third quarter results in more detail. Our third quarter results played out largely as we planned with revenue and better than expected with our operating margins. As we discussed in the last quarter call, we expected both revenue and margin growth to be higher in the first half than in the second half, with the second half growth to be at a much more tempered pace than we experienced in the first half.

謝謝拉斐爾，大家好。轉向幻燈片 7，我將更詳細地回顧我們第三季的業績。我們第三季的業績在收入方面基本上符合我們的計劃，並且營業利潤率也比預期好。正如我們在上一季度電話會議中討論的那樣，我們預計上半年的收入和利潤增長將高於下半年，而下半年的增長速度將比上半年放緩得多。

We also noted during the last call that within the second half of this year, we expected the third quarter's growth to be greater than the fourth quarter's growth. This is still the case. Sequentially, we expect margins in Q4 to come down from Q3, driven by the reverse of what we saw in Q3 regarding business group revenue mix.

我們在上次電話會議中也指出，今年下半年，我們預計第三季的成長將高於第四季的成長。現在仍然如此。因此，我們預計第四季度的利潤率將低於第三季度，這是由於業務集團收入組合與第三季度的情況相反。

In Q3, we saw robust services growth, which comes at a higher margin, while the equipment business, which comes at a lower margin, was down versus prior year. This was largely a result of the timing of our production between new locomotives, modernizations and engine overhauls.

在第三季度，我們看到服務業務強勁成長，利潤率較高，而設備業務的利潤率較低，與去年同期相比有所下降。這主要是由於我們的生產時間安排在新機車、現代化改造和引擎大修之間。

In Q4, we expect a significant mix headwind, which will temper Q4 adjusted operating margins to be modestly higher than year ago levels. We expect double-digit sales growth in our Equipment Group due to increased locomotive deliveries while Services sales are expected to be down double digit on a year-over-year basis, basically the reverse of our production timing in Q3.

在第四季度，我們預計將出現重大的混合逆風，這將使第四季度調整後的營業利潤率略高於去年同期的水平。由於機車交付量增加，我們預計設備集團的銷售額將達到兩位數成長，而服務銷售額預計將年減兩位數，這與我們第三季的生產時間基本相反。

Sales for the third quarter were $2.66 billion, which reflects a 4.4% increase versus the prior year. Sales growth in the quarter was driven by both the Freight and Transit segments. For the quarter, GAAP operating income was $433 million. The increase was driven by higher sales, improved gross margin and an unrelenting focus on continuous improvement and productivity. Adjusted operating margin in Q3 was 19.7%, up 1.8-percentage-points versus the prior year. This increase was driven by improved gross margin of 1.8-percentage-points.

第三季銷售額為 26.6 億美元，較上年成長 4.4%。本季的銷售成長是由貨運和運輸部門推動的。本季 GAAP 營業收入為 4.33 億美元。這一增長是由銷售額增加、毛利率提高以及對持續改進和生產力的不懈關注所推動的。第三季調整後營業利益率為 19.7%，較上年成長 1.8 個百分點。這一增長是由於毛利率提高了 1.8 個百分點。

GAAP earnings per diluted share were $1.63, which was up 22.6% versus the year ago quarter. During the quarter, we had net pretax charges of $18 million for restructuring, which were primarily related to our Integration 2.0 and our portfolio optimization initiative to further integrate and streamline Wabtec's operations.

GAAP 攤薄後每股收益為 1.63 美元，較去年同期成長 22.6%。本季度，我們的重組稅前淨費用為 1,800 萬美元，這主要與我們的 Integration 2.0 以及旨在進一步整合和簡化 Wabtec 營運的投資組合優化計劃相關。

As you may recall, Integration 2.0 is expected to drive $75 million to $90 million of run rate savings by 2025. And our portfolio optimization initiative will eliminate roughly $110 million of low margin, nonstrategic revenue while reducing manufacturing complexity. In the quarter, adjusted earnings per diluted share was $2, up 17.6% versus the prior year. Overall, Wabtec delivered another solid quarter, demonstrating the underlying strength of the business.

您可能還記得，到 2025 年，Integration 2.0 預計將節省 7,500 萬至 9,000 萬美元的營運費用。我們的產品組合優化計畫將消除約 1.1 億美元的低利潤、非策略性收入，同時降低製造複雜性。本季度，調整後每股攤薄收益為 2 美元，較上年增長 17.6%。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 8. Let's review our product lines in more detail. Third quarter consolidated sales were up 4.4%. Our quarter results were driven by growth in our services, digital intelligence and Transit businesses, partially offset by our Equipment business. Equipment sales were down 17.3% from last year's third quarter. This decline was planned and driven by the timing of new locomotive deliveries.

轉到投影片 8。讓我們更詳細地回顧一下我們的產品線。第三季綜合銷售額成長 4.4%。我們的季度業績是由服務、數位智慧和交通業務的成長所推動的，但部分被我們的設備業務所抵消。設備銷售額較去年第三季下降17.3%。這種下降是由新機車交付時間規劃和推動的。

As mentioned earlier, we expect this to reverse in Q4, with Equipment sales expected to be up double digit. Component sales were up 1.0% versus last year due to higher international freight car sales and industrial product growth, which was offset by lower North American freight car build. The industry is forecasting the 2024 freight car build to be down 9% from last year.

如前所述，我們預計這種情況將在第四季度扭轉，設備銷售額預計將成長兩位數。由於國際貨運汽車銷量增加和工業產品成長，零件銷售較去年增長 1.0%，但被北美貨運汽車建造量下降所抵消。業界預測 2024 年貨運車輛產量將比去年下降 9%。

Digital Intelligence sales were up 12.7% from last year. This was driven by growth in our international sales of PTC, next-generation onboard products and digital mining products. Our Services sales grew 16.5%. Sales growth was driven primarily by higher year-over-year modernizations and overhauls. As mentioned earlier, we expect the timing of our mods and overhaul production and deliveries to reverse in Q4, resulting in our year-over-year service revenue to be down double digits.

數位智慧銷售額比去年成長 12.7%。這是由我們的 PTC、下一代車載產品和數位採礦產品的國際銷售成長所推動的。我們的服務銷售額成長了 16.5%。銷售成長主要是由同比現代化和檢修的增加所推動的。如前所述，我們預計我們的改裝和大修生產和交付的時間將在第四季度逆轉，導致我們的服務收入同比下降兩位數。

In our Transit segment, sales were up 9.6%. During the quarter, we saw our OE revenue grew 13.3%. On a constant currency basis, sales grew 8.4%. The momentum in the Transit segment continues to remain positive as secular drivers such as urbanization and decarbonization accelerate the need for investments in sustainable infrastructure.

在我們的交通部門，銷售額成長了 9.6%。本季度，我們的 OE 營收成長了 13.3%。以固定匯率計算，銷售額成長 8.4%。由於城市化和脫碳等長期驅動因素加速了對永續基礎設施投資的需求，交通領域的勢頭繼續保持積極。

Moving to slide 9. GAAP gross margin was 33.0%, which was up 2.0-percentage-points from the third quarter last year. Adjusted gross margin was also up 1.8-percentage-points during the quarter. In addition to the higher sales, gross margin benefited from favorable mix between business groups.

轉到投影片 9。GAAP 毛利率為 33.0%，較去年第三季上升 2.0 個百分點。本季調整後毛利率也成長了 1.8 個百分點。除了銷售額增加外，毛利率還受益於業務集團之間的有利組合。

Mix within the Freight segment was better than expected due to growth in our Services business behind the timing of mods and overhauls in the quarter, partially offset by a planned decline in locomotive production and deliveries. Foreign currency exchange was a slight headwind to revenue as well as gross profit and operating margin in the quarter.

由於我們的服務業務成長落後於本季度的改裝和大修時間，貨運部門的混合情況好於預期，部分被機車生產和交付的計劃下降所抵消。外匯兌換對本季的營收、毛利和營業利潤率構成輕微阻力。

During the quarter, we also benefited from increased productivity and the benefits of our Integration 2.0 and portfolio optimization efforts as well as lapping last year's Erie strike that ran through a portion of the third quarter of 2023. Our team continues to execute well by driving operational productivity and lean benefits.

在本季度，我們還受益於生產力的提高、整合 2.0 和投資組合優化工作的好處，以及去年伊利罷工貫穿 2023 年第三季度的部分時間。我們的團隊透過提高營運生產力和精益效益，持續保持良好執行力。

Now turning to slide 10. For the third quarter, GAAP operating margin was 16.3%, which was up 1.8-percentage-points versus last year. Adjusted operating margin improved 1.8-percentage-points to 19.7%. GAAP and adjusted SG&A and engineering expenses were up versus prior year, but largely flat as a percentage of revenues.

現在翻到投影片 10。第三季度，GAAP 營運利潤率為 16.3%，比去年同期成長 1.8 個百分點。調整後營業利益率提高 1.8 個百分點，達到 19.7%。公認會計原則 (GAAP) 以及調整後的銷售、行政管理 (SG&A) 和工程費用與前一年相比有所增加，但佔收入的百分比基本持平。

Engineering expense was $50 million, slightly lower than Q3 last year. We continue to invest engineering resources and 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 5000 萬美元，略低於去年第三季。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 the segment results on slide 11, starting with the Freight segment. As I already discussed, Freight segment sales were up 2.6% during the quarter. GAAP segment operating income was $390 million for an operating margin of 20.2%, up 2.9-percentage-points versus last year.

現在讓我們來看看投影片 11 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 2.6%。GAAP 部門營業收入為 3.9 億美元，營業利潤率為 20.2%，比去年增長 2.9 個百分點。

GAAP operating income included $10 million of restructuring costs primarily related to Integration 2.0 and portfolio optimization. Adjusted operating income for the Freight segment was $467 million, up 17.6% versus the prior year. Adjusted operating margin in the Freight segment was 24.1%, up 2.9-percentage-points from the prior year.

GAAP 營業收入包括 1,000 萬美元的重組成本，主要與 Integration 2.0 和投資組合最佳化相關。貨運部門調整後營業收入為 4.67 億美元，比上年增長 17.6%。貨運業務調整後營業利益率為 24.1%，較上年成長 2.9 個百分點。

The increase was driven by improved gross margin behind favorable business mix, strong operational execution, Integration 2.0 savings and as we lap last year's manufacturing inefficiencies caused by the strike in Erie. At the same time, SG&A and engineering expense were slightly lower as a percentage of revenue.

這一成長的推動因素包括有利的業務組合、強大的營運執行力、Integration 2.0 節省的毛利率以及去年伊利罷工造成的製造效率低下。同時，SG&A 和工程費用佔收入的百分比略有下降。

Finally, segment 12 month backlog was $5.59 billion, up 6.4% from the same period a year ago. The multiyear backlog was $17.76 billion, up 1.1% from prior year. Turning to slide 12. Transit segment sales were up 9.6% at $733 million. When adjusting for foreign currency, Transit sales were up 8.4%.

最後，該部門 12 個月積壓訂單為 55.9 億美元，較去年同期成長 6.4%。多年積壓訂單為 177.6 億美元，比上年增長 1.1%。轉到投影片 12。交通部門銷售額成長 9.6%，達到 7.33 億美元。以外幣匯率調整後，全順銷售額成長了 8.4%。

GAAP operating income was $79 million. Restructuring costs related to Integration 2.0 were $8 million in Q3. Adjusted segment operating income was $93 million, adjusted operating income as a percent of revenue was 12.8%, up 0.3-percentage-points.

GAAP 營業收入為 7,900 萬美元。第三季與 Integration 2.0 相關的重組成本為 800 萬美元。調整後分部營業收入為 9,300 萬美元，調整後營業收入佔收入的百分比為 12.8%，上升 0.3 個百分點。

During the quarter, adjusted gross margin was down modestly behind unfavorable mix, partially offset by Integration 2.0 savings. Margins also benefited from SG&A and engineering expenses being lower as a percent of revenue. Finally, Transit segment 12 month backlog for the quarter was $2.04 billion, up 10.8% versus a year ago. Now let's turn to our financial position on slide 13. Third quarter cash flow was another highlight for the quarter with operating cash coming in at $542 million.

本季度，由於不利的組合，調整後的毛利率小幅下降，但部分被 Integration 2.0 節省的成本所抵消。利潤率也受益於銷售管理費用和工程費用佔收入的百分比較低。最後，交通部門本季 12 個月的積壓訂單為 20.4 億美元，比去年同期成長 10.8%。現在讓我們來看看投影片 13 上我們的財務狀況。第三季現金流是本季的另一個亮點，營運現金達 5.42 億美元。

During the quarter, cash flow benefited from higher earnings and $95 million of higher securitization borrowings. We continue to expect greater than 90% cash conversion for the full year. Our balance sheet and financial position continue to be very strong as evidenced by: first, our liquidity position, which ended the quarter at $1.9 billion; and our net debt leverage ratio, which ended the third quarter at 1.7 times, which was lower versus the same quarter a year ago at 2.1 times debt leverage.

本季度，現金流受益於更高的收益和 9,500 萬美元的證券化借款。我們仍然預計全年現金轉換率將超過 90%。我們的資產負債表和財務狀況仍然非常強勁，具體體現在：首先，我們的流動性狀況，本季末為 19 億美元；我們的淨債務槓桿率，第三季末為 1.7 倍，低於去年同期的 2.1 倍債務槓桿率。

We continue to allocate capital to maximize returns for our shareholders. During the quarter, we repurchased $599 million of our shares and paid $35 million in dividends. With that, I'd like to turn the call back over to Rafael to talk about our 2024 financial guidance.

我們繼續分配資本，以最大限度地提高股東的回報。本季度，我們回購了 5.99 億美元的股票，並支付了 3,500 萬美元的股息。說到這裡，我想將電話轉回拉斐爾，討論我們的 2024 年財務指引。

Thanks, John. Now let's turn to slide 14 to discuss our 2024 full year guidance. As you heard today, our team delivered a solid third quarter, which was ahead of our expectations. Consequently, we are increasing our previous adjusted EPS guidance. We now expect adjusted EPS to be in the range of $7.45 to $7.65, at the midpoint, up 27.5%. Our revenue and cash flow conversion guidance remain unchanged.

謝謝，約翰。現在讓我們轉向幻燈片 14 來討論我們的 2024 年全年指導。正如您今天所聽到的，我們的團隊在第三季的業績表現出色，超出了我們的預期。因此，我們提高了先前調整後的每股盈餘指引。我們現在預計調整後每股收益將在 7.45 美元至 7.65 美元之間，中間值將成長 27.5%。我們的收入和現金流轉換指引保持不變。

Looking ahead, I'm confident that Wabtec is well positioned to drive profitable growth into 2024 and beyond. Now let's wrap up on slide 15. As you heard today, our team continues to deliver on our value creation framework, thanks in large part to our resilient installed base, world-class team, innovative technologies and our continued focus on our customers.

展望未來，我相信西屋煞車已做好準備，能夠在 2024 年及以後推動獲利成長。現在讓我們結束投影片 15。正如您今天所聽到的，我們的團隊繼續交付我們的價值創造框架，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、創新技術以及我們對客戶的持續關注。

With solid underlying demand for our products and technologies and rigorous focus on continuous improvement in cost management, consistent with our previous guidance, we continue to expect to drive mid-single-digit organic growth while driving double-digit EPS growth through our planning horizon, thereby maximizing our shareholders' returns.

由於對我們的產品和技術的堅實的潛在需求以及對成本管理的持續改進的嚴格關注，與我們之前的指導一致，我們繼續期望在我們的規劃範圍內推動中個位數的有機增長，同時推動兩位數的每股收益成長，從而實現股東回報最大化。

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

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

Thank you, Rafael. (Event Instructions) Operator, we are now ready for our first question in our first question.

謝謝你，拉斐爾。（活動說明）接線員，我們現在準備好第一個問題了。

(Operator Instructions) Angel Castillo, Morgan Stanley.

（操作員指示）Angel Castillo，摩根士丹利。

Morning. Thanks for taking the question and congrats on the strong quarter. I wanted to maybe start on maybe preliminary thoughts. I know you don't necessarily provide guidance for '25. But just curious, as you see your backlog continuing to grow and you're getting these contract wins or turning MOU's to orders. What does that tell you in terms of preliminary in terms of price, volume kind of margins, at least directionally, any sense that you could provide based on your backlog?

早晨。感謝您提出問題，並祝賀本季的強勁表現。我想也許可以從初步的想法開始。我知道你不一定為 '25 提供指導。但只是好奇，當您看到您的積壓訂單繼續增長並且您正在贏得這些合約或將諒解備忘錄轉變為訂單時。從價格、數量、利潤的初步情況來看，至少在方向上，你可以根據積壓訂單提供什麼資訊？

Well, first, it's certainly early to be providing guidance into '25. But the fundamentals for the business are strong. We're finishing '24 with really every single one of our businesses are growing. Year-to-date orders are up double digit. Profitability is up across the board as well. And I'll finish with consistent with what we've given on previous guidance. We continue to expect to drive mid-single-digit organic growth while delivering double-digit EPS growth through our planning horizon.

嗯，首先，現在提供 25 年的指導肯定還為時過早。但該業務的基本面很強勁。24 世紀即將結束，我們的每項業務都在成長。年初至今的訂單量增加了兩位數。獲利能力也全面上升。最後，我將與我們在先前的指導中給出的內容保持一致。我們繼續期望在我們的規劃範圍內推動中個位數的有機成長，同時實現兩位數的每股盈餘成長。

Understood. And maybe switching over to Integration 2.0. I just wanted to maybe get a little bit more color on maybe what's the run rate thus far versus that $75 million to $90 million target? And just kind of how that's shaping out.

明白了。也許會切換到 Integration 2.0。我只是想了解到目前為止的運行率與 7500 萬至 9000 萬美元的目標相比是多少？這就是它的形成方式。

Great. As Integration 2.0, as we came out of last year, savings were $22 million, and we were looking to get to a mid-point of $82.5 million. So that leaves a ramp of $60 million over '24 and '25. And what I'll tell you, Angel, is that we are on track and actually exceeding our expectations a bit. Not only are we getting a little bit more than we anticipated, but it's coming a little bit earlier.

偉大的。正如我們去年推出的 Integration 2.0 那樣，節省了 2,200 萬美元，我們希望達到 8,250 萬美元的中間值。因此，在 24 年和 25 年期間將增加 6,000 萬美元。安吉爾，我要告訴你的是，我們正在步入正軌，而且實際上有點超出了我們的預期。我們不僅得到的比我們預期的多一點，而且來得也早了一點。

And we're really seeing that inflection in the third quarter. And as you see, we're raising our guidance. Part of that is driven by the over-delivery on Integration 2.0 in the third quarter, and we expect that to kind of compound into the fourth quarter. So we feel really good about where we're at today.

我們確實在第三季看到了這種轉變。正如你所看到的，我們正在提高我們的指導意見。部分原因是第三季整合 2.0 的超額交付，我們預計這種情況將在第四季度出現。所以我們對今天的處境感覺非常好。

Most of the spending is behind us. We finished the quarter program to date with $140 million of spending. That's on the low end of our range. We will have a little bit more spending to go, but tracking well on the expense side. And on a little bit ahead on the savings side.

大部分支出都已經過去了。迄今為止，我們已支出 1.4 億美元完成了季度計畫。這是我們範圍的低端。我們將有更多的支出，但支出方面進展順利。在儲蓄方面稍微領先一點。

Very helpful. Thank you.

非常有幫助。謝謝。

Saree Boroditsky, Jefferies.

薩雷·博羅迪茨基，傑弗里斯。

Good morning and congratulations on the quarter. Maybe just kind of talking a little bit more about Freight margins, obviously, very strong again at 24%, better than your expectations. So maybe just walk through what drove the upside surprise? How much did mix contribute to this? And then maybe a little bit on the sustainability at Freight margins at this level and how that sets you up for 2025?

早上好，恭喜這個季度。也許只是更多地談論一下貨運利潤率，顯然，再次非常強勁，達到 24%，比您的預期要好。那麼，也許只是簡單回顧一下是什麼推動了上行驚喜？mix對此有何貢獻？然後也許會介紹一下這個水準的貨運利潤率的可持續性，以及這如何為您的 2025 年做好準備？

Saree, this is John. When we look at the margins up being up 1.8-percentage-points, it was higher than our expectations, and it was driven in two areas, Saree. Number one is on mix and the other is on cost. First, on mix, while we knew there was going to be favorable mix because of the Services production coming in at a higher margin at the expense of some of the locals produced in the equipment group that we planned on.

紗麗，這是約翰。當我們看到利潤率成長了 1.8 個百分點時，它高於我們的預期，這是由兩個領域推動的：紗麗。第一個是混合，另一個是成本。首先，在混合方面，雖然我們知道將會出現有利的混合，因為服務生產的利潤率較高，但犧牲了我們計劃的設備組中生產的一些本地產品。

What we didn't was there was additional mix favorability in our overhauls, which come at a pretty good margin as well as in our mining business, we lean more towards the aftermarket in our sales in the third quarter than OE. And we were expecting a little bit more on the OE side. So that's on the mix side. And we don't expect that to transcend from the third quarter into the fourth quarter.

我們沒有註意到的是，我們的檢修有額外的組合優惠，這在我們的採礦業務中具有相當不錯的利潤，我們在第三季的銷售中比原廠更傾向於售後市場。我們對 OE 方面的期望更高一些。這是混合方面的。我們預計這種情況不會從第三季延續到第四季。

The second piece of it is on the cost side, and there's two elements to that. One is productivity. Every day, continuous improvement productivity was very strong during the quarter, and we certainly got a nod to the manufacturing and the supply chain folks. They're running the system extremely well. And for that, we're getting rewarded on additional productivity.

第二部分是成本方面，其中有兩個要素。一是生產力。本季度，生產力的持續改善每天都非常強勁，我們當然得到了製造和供應鏈人員的認可。他們的系統運作得非常好。為此，我們因生產力的提升而獲得回報。

The second area on the cost side is what I just spoke to Angel about is the Integration 2.0 is coming in better and faster than expected. That -- both of those cost items benefited the third quarter and will benefit the fourth quarter. And those two combined are -- I'm sorry, the mix and the cost combined is what got us the increase in EPS at the midpoint of $0.20.

成本方面的第二個面向是我剛剛與 Angel 談到的，Integration 2.0 的進展比預期更好、更快。這兩項成本項目都使第三季受益，並將使第四季度受益。很抱歉，這兩者加起來就是 - 混合和成本加起來使我們的每股收益增加了 0.20 美元的中點。

When we look now to the fourth quarter, we're going to see a reverse of what we saw in the third quarter between the production of mods, locals and overhauls. And with that, we expect in the fourth quarter that equipment will be up in the double digits and services at a higher margin will be down in the double digit. So we are going to have a significant amount of mix pressure. And this is nothing new that we've talked about.

當我們現在展望第四季時，我們將看到與第三季的情況相反的情況，即模組、本地和大修的生產。因此，我們預計第四季度設備數量將出現兩位數成長，而利潤率較高的服務將出現兩位數下降。因此，我們將面臨很大的混合壓力。我們談論的這並不是什麼新鮮事。

The second half would be unfavorable in mix, and this is what's going to drive it as the fourth quarter. And with that, we would expect overall margins to be higher on a year-over-year basis, but slightly and -- but down sequentially by a fair amount as we move into the fourth quarter. Again, this has nothing to do with the underlying demand. It's really all about how we produce the year so that we could more level load our factories.

下半場的混合情況將是不利的，這將推動第四季度的發展。因此，我們預計整體利潤率將同比提高，但隨著進入第四季度，整體利潤率將略有下降，但將連續大幅下降。同樣，這與潛在需求無關。這實際上與我們今年的生產方式有關，以便我們能夠提高工廠的負載水準。

I appreciate the color. And then just one more. The Transit backlog grew in the quarter despite you focusing on some higher-margin products projects there. Can you just update us on the margins in transplant that are coming into the backlog versus the current margins that are in the P&L and how that translates to Transit margin expansion?

我很欣賞它的顏色。然後還有一個。儘管您專注於一些利潤率較高的產品項目，但本季的交通積壓仍有所成長。您能否向我們介紹即將積壓的移植利潤率與損益表中當前利潤率的最新情況，以及這如何轉化為運輸利潤率的擴張？

I'll take this one, and I'll start with -- we continue to be pleased with the overall progress in the business. Our teams are continuing to really drive significant simplification on the footprint. They're further improving and sustaining margins. I think you're going to see variation quarter-to-quarter, some will be driven by mix and timing of projects.

我將接受這一點，我將首先——我們仍然對業務的整體進展感到滿意。我們的團隊正在繼續真正推動足跡的顯著簡化。他們正在進一步提高和維持利潤率。我認為你會看到每個季度的變化，有些是由專案的組合和時間安排所驅動的。

But I expect Transit to continue to deliver on profit growth. You asked about selectivity on projects. I think the best way for us to look at it is when we look at the profitability of the backlog, and that's up. So that business is on track to continue to expand on margins. And their North Star is mid-teens and continue to improve from there. So we feel strong about the plan they have ahead.

但我預計 Transit 將繼續實現利潤成長。您詢問了專案的選擇性。我認為我們看待這個問題的最佳方法是查看積壓訂單的盈利能力，而這就是上升的。因此，該業務可望繼續擴大利潤率。他們的北極星是十幾歲左右，並在此基礎上繼續改進。所以我們對他們未來的計劃很有信心。

Thank you, congrats on the quarter.

謝謝，恭喜本季。

Ken Hoexter, Bank of America.

肯‧霍克斯特，美國銀行。

Hey, great. Good morning. And I'll echo that great job building the backlog back and intra-quarter contract announcements. Can you maybe talk about the kind of a lot of international announcements on some locomotives recently. Can you talk about the -- how we should think about gross margins on international versus North American margins? I know you don't break it out by contract, but maybe just in general to understand the splits. And then just to clarify, John, when you mentioned service revenue down double digit, is that balancing out the mods production? Is that why we're seeing that down so much?

嘿，太棒了。早安.我會贊同積壓訂單和季度內合約公告的出色工作。您能否談談最近在一些機車上發布的大量國際公告。您能談談我們應該如何考慮國際毛利率和北美毛利率嗎？我知道你不會透過合約來打破它，但也許只是一般性地理解分割。然後澄清一下，約翰，當你提到服務收入下降兩位數時，這是否平衡了模組的生產？這就是我們看到它下降這麼多的原因嗎？

Yes. Starting with the first question, Ken, is we get the question often is international margins, whether international versus North America, it is really specific to the country and the contracts that we're working off of. And we have some international that are higher than North America, some that are lower, some areas that we're investing in, others that were not.

是的。肯，從第一個問題開始，我們經常遇到的問題是國際利潤率，無論是國際利潤率還是北美利潤率，它確實取決於我們正在處理的國家和合約。我們有一些國際水準高於北美，有些低於北美，有些領域我們正在投資，有些領域則沒有。

So it's not as simple as saying that international is this when we get revenue, it's going to come at that margin. It really is with regards to the various contracts that we have. I think suffice to say that we couldn't be more pleased with the growth that we're having from our international business from a revenue perspective as well as a margin perspective. And our view across everything is how do we continue to deliver more value to our customers and get that built into our backlog as we go forward.

因此，當我們獲得收入時，這並不像說國際化那麼簡單，它會以這個利潤率出現。這確實與我們擁有的各種合約有關。我認為，從收入和利潤的角度來看，我們對國際業務的成長感到非常滿意。我們對所有事情的看法是，我們如何繼續為客戶提供更多價值，並在我們前進的過程中將其納入我們的待辦事項中。

The second question, Ken, is on the service revenue in the fourth quarter. Let's take the third and the fourth quarter together. We -- as and you've been down to the facility down there, we do mods and locals on the same production line. So we've level loaded those, but there's still -- because these fall into different groups, mods falls into the service group and new locos falls into the equipment group, we're going to have some variation as to how we run the product.

Ken的第二個問題是關於第四季的服務收入。我們一起來看看第三季和第四季。我們——就像你去過那裡的工廠一樣，我們在同一條生產線上生產改裝件和當地人。所以我們已經對它們進行了級別加載，但仍然存在 - 因為它們屬於不同的組，模組屬於服務組，新的機車屬於設備組，我們將在如何運行產品方面有一些變化。

We typically like to run a customer order as much as we can together or consistently for the productivity and quality aspect of it. And it just happened in the third quarter that given the orders that we had, we produced more mods on a year-over-year basis and less new locos, and that's simply going to reverse in the fourth quarter.

我們通常喜歡盡可能一起或一致地處理客戶訂單，以提高生產力和品質。就在第三季度，根據我們收到的訂單，我們比去年同期生產了更多的模組，而新機車的數量減少了，而這種情況在第四季度就會發生逆轉。

But with that, we're going to see that shift from more favorable mix in the third quarter to less favorable in the fourth quarter. But there's nothing more than just how we plan the production. There's nothing different with the demand for the products, just how we're fulfilling that demand.

但這樣一來，我們將看到這種組合從第三季更有利的組合轉變為第四季不太有利的組合。但無非是我們如何計劃生產。產品的需求沒有什麼不同，只是我們滿足這種需求的方式不同。

Okay. And just to understand the -- what's left the shutdown on the portfolio optimization?

好的。只是為了了解——投資組合優化的關閉還剩下什麼？

So we talked about this in February that we were going to do $110 million. A good portion of that is -- well, it's mostly all executed. We got a little bit more to execute in the fourth quarter and we'll see the lower revenues, both in this year, '24, and some lower revenues into '25 as a result of it, but that's all tracking very well.

因此，我們在 2 月談到了我們將投入 1.1 億美元的資金。其中很大一部分是——嗯，大部分都已經執行了。我們在第四季度執行了更多任務，我們將看到今年 24 年的收入下降，並且因此進入 25 年收入有所下降，但這一切都進展順利。

Wonderful. Thank you. Thanks for the time.

精彩的。謝謝。謝謝你的時間。

Daniel Imbro, Stephens Inc.

丹尼爾·因布羅，史蒂芬斯公司

Hey, good morning, everybody, and thanks for your questions. At the annual morning. Rafael, maybe want to dig into international markets more specifically. It does feel like these contract wins are becoming more and more frequent. And the backlog you mentioned is growing I'm curious how we should think about why this is accelerating. Is it something you guys are doing differently? Is it just a maturation of those markets?

嘿，大家早上好，感謝您的提問。每年的早晨。拉斐爾，也許想更具體地挖掘國際市場。確實感覺這些合約的贏得越來越頻繁。你提到的積壓正在增加，我很好奇我們應該如何思考為什麼這種情況正在加速。你們的做法有什麼不同嗎？這只是這些市場的成熟嗎？

And then understanding your answer to the last question that all countries are different, but is it fair to say that as you add density in these countries, incremental margins should improve as you add more scale and lever your cost there? Or how should we think about that as you keep accelerating this international growth?

然後理解您對最後一個問題的回答，即所有國家/地區都是不同的，但是可以公平地說，當您增加這些國家/地區的密度時，增量利潤率應該隨著您在那裡增加規模和槓桿成本而提高嗎？或者說，當你們不斷加速國際成長時，我們該如何思考這一點？

So we -- when we think about just the dynamics of the business, internationally growth really continues. So I think we're bullish on key international markets. We've got some elements of projects taking place in Africa. I think you're going to continue to see some wins from us there. So that's a positive.

因此，當我們考慮業務動態時，國際成長確實在持續。所以我認為我們看好主要的國際市場。我們有一些在非洲進行的計畫的內容。我想你會繼續看到我們在那裡取得一些勝利。所以這是積極的。

We're continuing to expand on the Trans-Caspian routes and demand continues there in Kazakhstan as well. And the good news on some of these projects, and I speak here to South America and Australia. I mean some of the discussions here go well into '26, '27. We're discussing locomotive deliveries into '28.

我們正在繼續擴大跨里海航線，哈薩克的需求也持續成長。關於其中一些項目的好消息，我在這裡向南美洲和澳大利亞發表講話。我的意思是，這裡的一些討論一直持續到 26 年、27 年。我們正在討論 28 年機車的交付情況。

So that's, I think, a positive in that regard, and it comes down to the experience customers are having with our fleets driving both productivity, availability and reliability. So we see that really continuing some of the investments we've done in technology, I think you're going to continue to see a significant opportunity here for us to actually accelerate some of the modernization, we'll talk more about this early next year, but there's certainly an element of innovation on how we continue to drive that.

因此，我認為，這在這方面是積極的，這取決於客戶在我們的車隊中獲得的體驗，提高了生產力、可用性和可靠性。因此，我們看到，確實繼續我們在技術方面所做的一些投資，我認為您將繼續在這裡看到一個重要的機會，讓我們真正加速一些現代化，我們將在接下來的早些時候詳細討論這一點今年，但我們如何繼續推動這一目標肯定存在創新元素。

We mentioned Kazakhstan. We talked about locomotive order. What we often sometimes don't give the same emphasis is on the opportunity we have with digital here, and we're expanding on not just the Trip Optimizer, some of our kinetics products are being brought as well into this mix. We often talk about PTC, and that's an area that we'll continue to expand.

我們提到了哈薩克。我們討論了機車訂單。有時，我們經常不會同樣重視數位化帶來的機會，我們不僅在行程優化器上進行擴展，我們的一些動力學產品也被納入這個組合。我們經常談論 PTC，這是我們將繼續擴展的領域。

So we see it as a positive. And I think we'll continue to see profitable growth there. Some of those markets I mentioned are markets were more mature. So we've got a lot of products that are really best in class to compete.

所以我們認為這是積極的。我認為我們將繼續看到那裡的獲利成長。我提到的一些市場更加成熟。因此，我們有很多真正同類最佳的產品可供競爭。

Helpful. And then maybe as a follow-up, just on the balance sheet side. So cash conversion this year has driven accelerated buybacks year-to-date in '24. But as we bounce low in the bottom of the freight market, has that brought any more sellers to market? And just curious how you're seeing the M&A markets evolve in terms of the targets that you're looking at and what you'd like to maybe spend some of that cash on the M&A side. Thanks.

有幫助。然後也許作為後續行動，就在資產負債表方面。因此，今年的現金轉換推動了 24 年迄今的加速回購。但隨著貨運市場觸底反彈，是否會吸引更多賣家進入市場？只是好奇您如何看待併購市場在您所關注的目標以及您希望在併購方面花費一些現金的演變。謝謝。

I think the best way to answer this is when we look at our capital allocation strategy, that hasn't changed, right? We continue to focus to be on making sure we're driving profitable organic growth for the business. We're certainly very much focused on M&A as well.

我認為回答這個問題的最佳方法是當我們審視我們的資本配置策略時，它沒有改變，對吧？我們將繼續致力於確保推動業務獲利有機成長。我們當然也非常關注併購。

When I think about the inorganic, this is the strongest pipeline we've had on M&A, and we'll continue to look at those. We'll be opportunistic here. And just a question of returns. The returns are there. We're going to invest on it. If they're not, we won't be shy about doing share buybacks.

當我想到無機業務時，這是我們在併購方面最強大的管道，我們將繼續關注這些管道。我們會在這裡機會主義。只是回報問題。回報就在那裡。我們將對此進行投資。如果他們不這樣做，我們將毫不猶豫地進行股票回購。

And then, Ken, within the quarter, the $600 million that we repurchased is really a function of that cash flow you mentioned. We have had year-to-date cash of $1.1 billion and that's up over 100% versus a year ago. So in the absence of M&A, which we would prefer, we returned the value to our shareholders in the form of share repurchases, and we couldn't be more pleased to do that.

然後，Ken，在本季度內，我們回購的 6 億美元實際上是您提到的現金流的函數。年初至今，我們擁有 11 億美元的現金，比一年前成長了 100% 以上。因此，在沒有我們所希望的併購的情況下，我們以股票回購的形式將價值返還給股東，我們非常樂意這樣做。

Thanks so much guys. That's lot.

非常感謝你們。就這麼多了。

Thank you.

謝謝。

Bascome Majors, Susquehanna.

巴斯科姆專業，薩斯奎哈納。

Good morning. Yesterday, one of your Class I modification customers suggested they were interested in either stretching out or reducing some of their locomotive CapEx near term. I wonder if you could comment maybe not specifically on that, but more broadly, are we at the point in the North American locomotive replacement cycle where that's kind of starting to plateau in the short term and international is going to drive the bulk of the growth over the next two years? Just any thoughts on that market? Thank you.

早安.昨天，您的一位 I 級改裝客戶表示，他們有興趣在近期延長或減少部分機車資本支出。我想知道您是否可以對此發表評論，但更廣泛地說，我們是否正處於北美機車更換週期的關鍵點，短期內這種情況開始趨於穩定，國際將推動大部分增長未來兩年？對這個市場有什麼想法嗎？謝謝。

North America, we continue to see mixed. I mean, you've got to be looking at specifics on customers here. But we continue to see demand. That's for both new locomotives and for mods. I think our customers overall are continuing to invest if you think about customers investing.

北美地區的情況持續好壞參半。我的意思是，你必須在這裡專注於客戶的具體情況。但我們仍然看到需求。這適用於新機車和改裝機車。如果你考慮客戶投資的話，我認為我們的客戶總體上會繼續投資。

It's most of the time for improved costs, it's for reliability, it's for efficiency. It's not for carload growth. It's not for necessarily revenue growth. So that's where I think we're excited about. And coming back to some earlier comments I made is the opportunity we have here to continue to innovate and make sure that they're investing for a return at the end of the day, getting more efficient product that will help improve their OR and improve the service levels in the railroad. That's how we look at it at the end of the day, but you've got to really look at customer specifics her.

大多時候是為了提高成本、可靠性、效率。這不是為了增加車輛裝載量。這不一定是為了收入成長。這就是我認為我們感到興奮的地方。回到我之前發表的一些評論，我們在這裡有機會繼續創新，並確保他們投資最終獲得回報，獲得更有效率的產品，這將有助於提高他們的 OR 並提高鐵路服務水準。這就是我們最終的看法，但你必須真正考慮她的客戶細節。

Jerry Revich, Goldman Sachs.

傑瑞·雷維奇，高盛。

Yes, hi. Good morning, everyone.I'm wondering if we just talk about your receivables for a moment. So really interesting, your total receivables, including securitizations are down mid-single digit year-over-year. Your top line on an LTM basis is up nearly 10%, that's a really significant improvement in DSOs. Can you just talk about what's driven that improvement? And how much more opportunity do you folks have to continue to drive DSOs lower?

是的，嗨。大家早安。非常有趣的是，您的應收帳款總額（包括證券化）比去年同期下降了中個位數。以 LTM 計算，您的收入成長了近 10%，這對於 DSO 來說是一個非常顯著的改進。您能談談是什麼推動了這種改進嗎？你們還有多少機會繼續降低 DSO？

Jerry, actually, receivables on a year-to-date basis are up about 6.5%. I don't think you're picking up all the receivables there, but they are up 6.5%. But to your point, we've got Overall, revenue on a year-to-date basis, up 9.1%. And if you adjust for some of that, the securitization, you would see the receivables more nearly matching the rate of the growth of the company.

傑瑞，事實上，今年迄今的應收帳款成長了約 6.5%。我不認為你會收回那裡的所有應收帳款，但它們增長了 6.5%。但就您而言，我們的整體營收年增了 9.1%。如果你對其中的一些因素（證券化）進行調整，你會發現應收帳款更接近公司的成長率。

Okay. I guess, John, maybe you securitize more than I thought in the quarter because a year ago, you were at $1.9 billion in receivables, including securitization, so you're saying you're up over that third quarter number because obviously, there's seasonality 4Q versus 3Q?

好的。我想，約翰，也許你在本季的證券化程度比我想像的要多，因為一年前，你的應收帳款（包括證券化）為19 億美元，所以你說你的數字高於第三季的數字，因為顯然存在季節性第四季與第三季？

Yes. So for the securitization, we ended the quarter at $95 million securitized. And the reason we do that, Jerry, is it's a lower cost of funds for us, and we would prefer to borrow with that, but we ended the quarter at $95 million. We started the quarter at zero. So that was a headwind -- I'm sorry, that was a benefit to our cash flow in the quarter of the $542 million.

是的。因此，就證券化而言，本季末我們的證券化金額為 9,500 萬美元。傑瑞，我們這樣做的原因是這對我們來說資金成本較低，而且我們更願意以此借款，但我們在本季結束時達到了 9500 萬美元。我們以零開始本季。所以這是一個逆風 - 對不起，這對我們 5.42 億美元的季度現金流來說是一個好處。

Now on a year-over-year basis, the receivables or the securitization borrowings are down quite a bit. They're down $140 million from where we were at the end of the third quarter last year. But within the quarter, it did provide some benefit to that cash flow number and the cash conversion ex the securitization would have been 106%.

現在與去年同期相比，應收帳款或證券化借款大幅下降。與去年第三季末相比，他們減少了 1.4 億美元。但在本季度內，它確實為現金流數字帶來了一些好處，並且證券化後的現金轉換率為 106%。

Okay. Yes. Let's follow up off-line because I'm looking at it on a year-over-year basis. And separately, as we look back at your long-term plans, Rafael, you folks are well ahead of plan in terms of the margin performance for the organization. And I think you had spoken about a steady 50, 60 basis points per year margin improvement.

好的。是的。讓我們在線下跟進，因為我正在逐年查看它。另外，拉斐爾，當我們回顧您的長期計劃時，你們在組織的利潤表現方面遠遠領先於計劃。我認為您曾談到每年利潤率穩定提高 50、60 個基點。

I'm wondering since we've already achieved the Analyst Day targets a couple of years early here. How are you thinking about the opportunity to continue to drive margin expansion at that same clip off of these levels as we think about the next 12 to 24 months?

我很想知道，因為我們已經提前幾年實現了分析師日的目標。當我們考慮未來 12 至 24 個月時，您如何看待繼續推動利潤率擴張的機會？

I think we have significant momentum here still. Our teams continue to simplify the business. They're driving continuous improvement actions across the business. And with that, I think we have the opportunity here to continue to drive margin expansion. So margin rates in our overall business.

我認為我們在這裡仍然擁有強勁的勢頭。我們的團隊繼續簡化業務。他們正在推動整個企業的持續改善行動。因此，我認為我們有機會繼續推動利潤率擴張。所以我們整體業務的保證金率。

I think we'll continue to benefit from not just as lean efforts with productivity, Integration 2.0. John mentioned portfolio optimization. So I think we have significant opportunities here to continue to drive momentum and we are committed here to drive profitable growth as we go into '25 and beyond.

我認為我們將繼續受益於整合 2.0，而不僅僅是精實工作和生產力。約翰提到了投資組合優化。因此，我認為我們在這裡擁有繼續推動發展勢頭的重大機會，並且我們致力於在進入 25 年及以後推動盈利增長。

Thank you.

謝謝。

Thank you.

謝謝。

Rob Wertheimer, Melius Research.

羅布‧韋特海默，Melius 研究中心。

Thanks and good morning, guys. So questions on backlog and pipeline. In the backlog, just to clarify, is the Kazakhstan order in the backlog number that you reported kind of on the slide for the quarter? And I don't know if you have the ability or willingness to say whether the big order you had in North American rail in July.

謝謝，大家早安。所以關於積壓和管道的問題。在積壓訂單中，我想澄清一下，您報告的積壓訂單數量中的哈薩克斯坦訂單是否在本季度的幻燈片上？而且我不知道你是否有能力或願意說一下你7月份在北美鐵路上的大訂單。

It came into backlog at all this quarter much. I think it's for '25 and '26 delivery setups in the 12 month backlog. And then Rafael, not to make you repeat your prepared remarks, but your thoughts on kind of pipeline preorders and where you stand after having had a bunch. I mean, is that activity still as good as ever? Or how would you characterize it? Thank you.

本季積壓的訂單很多。我認為這是針對 12 個月積壓中的 25 和 26 交付設定。然後拉斐爾，不是讓你重複你準備好的言論，而是你對管道預購類型的想法以及你在買了一堆之後的立場。我的意思是，這項活動還像以前一樣好嗎？或者你會如何描述它？謝謝。

Let me start with the backlog question. So the $405 million, which is the first order we've received against a $200 million-plus MOU that is in backlog for the third quarter. So all the backlog numbers that we read to you is inclusive of that $405 million. We will continue to work on the rest of those orders that will come over time.

讓我從積壓問題開始。4.05 億美元是我們針對第三季積壓的 2 億多美元諒解備忘錄收到的第一筆訂單。因此，我們向您讀到的所有積壓訂單數字都包含這 4.05 億美元。我們將繼續處理隨著時間的推移將出現的其餘訂單。

With regards to, I guess, the fundamentals of the business, I mean, we are finishing '24 with, again, every single one of our businesses are growing. Orders are up double digits. The pipeline is strong. We feel especially strong about the international growth, some of the markets I mentioned here, and that could all translates into momentum, not just -- it goes into '25 to '27. So that's really a positive there for us.

我想，就業務的基本面而言，我的意思是，我們即將結束 24 年，我們的每項業務都在成長。訂單量成長兩位數。管道很強大。我們對國際成長感到特別強勁，我在這裡提到的一些市場，這一切都可以轉化為動力，而不僅僅是——它進入'25年到'27年。所以這對我們來說確實是一個正面的因素。

So the pipeline is strong. And even in North America, as I said, the demand is there, but customers are investing for return. And what makes me really feel positive about the momentum is that innovation.

所以管道很強大。正如我所說，即使在北美，需求也存在，但客戶投資是為了回報。讓我對這種勢頭真正感到積極的是創新。

As we will talk to you in more detail at the start of the year is the ability to drive that next level of efficiency into the existing fleets and making sure that customers are accelerating and improving their operating ratios through that process, improving productivity, availability and reliability of the fleet. So all in all, as I said, we continue to expect to drive mid-single-digit organic growth while delivering double-digit EPS growth through the planning horizon.

正如我們將在今年年初與您更詳細地討論的那樣，能夠將現有機隊的效率提升到新的水平，並確保客戶通過該過程加速和提高其運營率，從而提高生產率、可用性和機隊的可靠性。因此，總而言之，正如我所說，我們繼續期望在規劃期內推動中個位數的有機成長，同時實現兩位數的每股盈餘成長。

Thank you.

謝謝。

Scott Group, Wolfe Research.

斯科特集團，沃爾夫研究。

Thanks. Good morning, guys. So I totally get there's quarterly volatility in mix, and it's helping Q3 and hurt in Q4. When we think about -- and again, I know it's early, so it may be hard to answer. But like do you think -- is there a reason to think 2025 in aggregate has either a mix tailwind or headwind? Or is it more, hey, there's going to be some quarters that help some quarters it hurts, but net-net, it's not a big swing next year.

謝謝。早安，夥計們。因此，我完全理解混合中存在季度波動，這對第三季度有幫助，但對第四季度不利。當我們再次思考時，我知道現在還為時過早，所以可能很難回答。但你是否認為——是否有理由認為 2025 年總體上要么是順風，要么是逆風？或者更多的是，嘿，會有一些季度幫助某些受到傷害的季度，但是淨淨，明年不會有很大的波動。

Yes, Scott, it is a little bit early to talk about the components of 2025. We probably had more shifting -- not probably, we've had more shifting in '24. We wouldn't expect as much activity from a production standpoint in 2025. I think the way to think about the overall margins are really where we're expecting or we were guiding to, and that's how we will take into 2025 and work to improve against.

是的，斯科特，現在談論 2025 年的組成部分還為時過早。我們可能有更多的轉變——不太可能，我們在 24 年有更多的轉變。從生產角度來看，我們預計 2025 年不會有那麼多活動。我認為考慮整體利潤率的方式確實符合我們的預期或指導，這就是我們進入 2025 年並努力改進的方式。

And then the $400 million with KTZ, the $300 million parts, any color on duration of those to contracts? And then just separately, I don't know if there's any update or anything you're hearing on car BPA worth highlighting.

然後是 KTZ 的 4 億美元，3 億美元的零件，這些合約的期限有什麼不同嗎？另外，我不知道是否有任何更新或您聽到的關於汽車 BPA 的任何值得強調的內容。

Okay. The backlog, the $405 million KTZ order will be largely delivered over '25 and '26 time frame. And the service agreement is a longer term. That will be over a longer term. I'm not sure exactly how many years but.

好的。積壓的 4.05 億美元 KTZ 訂單將大部分在 25 年和 26 年期間交付。而且服務協議的期限較長。這將是一個更長期的過程。我不確定具體有多少年，但是。

On the EPA, Scott, we haven't really had, I'm going to call substantial change since we last talked. But I guess what we're saying is if you look at the heavy truck fleet, which is now really expected to have to drive 25% reduction of greenhouse gas emissions, the EPA is also defined liquid hydrogen for internal combustion engines would be classified as a near zero or zero emissions.

關於環保局，斯科特，自從我們上次談話以來，我們還沒有真正發生過實質性的變化。但我想我們想說的是，如果你看看重型卡車車隊，現在確實預計它們必須減少 25% 的溫室氣體排放，EPA 也將內燃機用液態氫定義為接近零或零排放。

And we see that as a validation of the strategy we have pursued with really making sure our engines are ultimately agnostic, and we're able to run alternative gases like hydrogen, but biofuels, renewable fuels and we see that as a validation for really making sure we're the best-in-class product to help our customers achieve their goals on decarbonization in various parts of the world.

我們認為，這是對我們所追求的策略的驗證，真正確保我們的引擎最終是不可知的，我們能夠運行氫氣等替代氣體，但生物燃料、可再生燃料，我們認為這是對真正使我們確信我們是一流的產品，可以幫助我們的客戶在世界各地實現脫碳目標。

So the fuels that might be available in Brazil might be different than in California and other parts of North America. So we see that as really a validation and we feel very strong about having the best-in-class products here to play given any regulation changes and things like that. So that's a positive for us.

因此，巴西可用的燃料可能與加州和北美其他地區不同。因此，我們認為這確實是一種驗證，考慮到任何法規變更和類似的事情，我們非常有理由擁有一流的產品來發揮作用。所以這對我們來說是積極的。

Helpful, guys . Thank you.

有幫助，夥計們。謝謝。

Steve Barger, KeyBanc Capital Markets.

Steve Barger，KeyBanc 資本市場。

Hey, good morning. Thanks, John, you said M&A was a preferred use of capital. As you look at the portfolio today, are you primarily focused on Freight additions? Or do you want to build out the Transit portfolio? Just or is the overall strategy more opportunistic in returns based? Can you just talk about how you're approaching it?

嘿，早安。謝謝，約翰，你說併購是資本的首選用途。當您查看今天的產品組合時，您主要關注的是貨運增加嗎？或者您想建立 Transit 產品組合嗎？還是整體策略在回報上更有機會主義？你能談談你是如何接近它的嗎？

I think there's a couple of areas, Steve, that we're focused on. One is the digital area and others are near-in adjacencies. Of course, we're always interested in bolt-ons to our existing business. But other than that, it would be near-end adjacencies. And when I say near-end adjacencies, think about things such as mining, right? We've got a good foothold in that market.

史蒂夫，我認為我們專注於幾個領域。一是數字區域，其他區域則鄰近。當然，我們始終對現有業務的補充感興趣。但除此之外，這將是近端鄰接。當我說近端鄰接時，請考慮一下採礦之類的事情，對嗎？我們在那個市場上已經站穩了腳步。

L&M was a great example of a near-in adjacency that we did a year ago. And we had four key elements or vital organs to a mining truck, and now we added a fifth with the L&M acquisition. And then again, on digital, we've done a couple of digital acquisitions over the last couple of years. We'd expect to see more.

L&M 是我們一年前所做的近鄰鄰接的一個很好的例子。我們擁有礦用卡車的四個關鍵元件或重要器官，現在我們透過收購 L&M 增加了第五個元件。再說一次，在數位方面，我們在過去幾年中進行了幾次數位收購。我們期待看到更多。

Our focus here ultimately is maximizing returns, and we will be opportunistic, but just to add additional color here, right recurring, high recurring revenue streams, bolt-ons, digital service related, those are certainly, I'm going to call the bulk of the preference that we have. And with that, I think we have a strong pipeline. It's making sure that ultimately, the best returns reside on those. And if not, making sure we're not ultimately shy about returning to your share buybacks.

我們的重點最終是最大化回報，我們將投機取巧，但只是為了在這裡添加額外的色彩，正確的經常性、高經常性收入流、附加產品、數位服務相關，這些當然是，我將稱之為批量我們的偏好。因此，我認為我們擁有強大的管道。它確保最終最好的回報在於這些。如果沒有，請確保我們最終不會羞於重返您的股票回購。

Yes. And I think everyone would like to see more digital in the portfolio. And you had said that, that was stronger in international this quarter. Was that a one-off? Or do you see the beginnings of a more consistent trend in digital internationally?

是的。我認為每個人都希望在產品組合中看到更多的數位化內容。你說過，本季國際市場的表現更為強勁。那是一次性的嗎？或者您看到國際數位化趨勢更加一致的開始？

I think there's two elements there. I think we continue to see a softer North America market. Internationally, we continue to see gaining momentum there. PTC is certainly one of those products and the kinetics also portfolio is very strong there. But there's also an element within Digital of making sure we move from what I'll call onetime sales to more recurring revenues.

我認為那裡有兩個要素。我認為我們將繼續看到北美市場疲軟。在國際上，我們繼續看到那裡的勢頭正在增強。PTC 無疑是其中之一，而且其動力產品組合也非常強大。但數位化領域還有一個要素，就是確保我們從我所說的一次性銷售轉向更多的經常性收入。

So that's the element of transformation about the business. I think we're happy to see the business has moved into growth since second quarter, but it's an element of transforming that business and we're committed to it. We see it as a big element of driving efficiency, productivity.

這就是業務轉型的要素。我認為我們很高興看到該業務自第二季以來開始成長，但這是業務轉型的一個要素，我們致力於此。我們將其視為提高效率和生產力的重要因素。

And we're seeing, to some extent, North -- international markets as you think about the opportunity to automate and drive that, potentially gaining momentum ahead of North America given regulation and given some other things. So it's all in all, a positive, and we're highly committed to continue to grow that business.

在某種程度上，我們看到北方國際市場，當你考慮自動化和推動這個市場的機會時，考慮到監管和其他一些因素，有可能在北美之前獲得動力。總而言之，這是積極的，我們高度致力於繼續發展該業務。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

And this concludes the question-and-answer session. I would like to turn the floor back to Kyra Yates for any closing comments.

問答環節到此結束。我想請凱拉耶茨 (Kyra Yates) 徵求結束意見。

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

謝謝基思，也謝謝大家今天的參與。我們期待下個季度再次與您交談。謝謝你，再見。

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

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。