賽莱默 (XYL) 2022 Q3 法說會逐字稿

Welcome to Xylem's Third Quarter 2022 Earnings Conference Call. (Operator Instructions)

歡迎來到 Xylem 2022 年第三季度收益電話會議。 （操作員說明）

I would now like to turn the call over to Andrea van der Berg, Vice President of Investor Relations.

我現在想把電話轉給投資者關係副總裁 Andrea van der Berg。

Thank you, operator. Good morning, everyone, and welcome to Xylem's Third Quarter 2022 Earnings Conference Call. With me today are Chief Executive Officer, Patrick Decker; and Chief Financial Officer, Sandy Rowland. They will provide their perspective on Xylem's third quarter 2022 results and discuss the fourth quarter and full year outlook.

謝謝你，運營商。大家早上好，歡迎來到 Xylem 2022 年第三季度收益電話會議。今天和我在一起的是首席執行官 Patrick Decker；和首席財務官 Sandy Rowland。他們將提供他們對 Xylem 2022 年第三季度業績的看法，並討論第四季度和全年展望。

Following our prepared remarks, we will address questions related to the information covered on the call. I'll ask that you please keep to one question and a follow-up and then return to the queue.

在我們準備好的評論之後，我們將解決與電話中涵蓋的信息相關的問題。請繼續回答一個問題和一個後續問題，然後返回隊列。

As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website, www.xylem.com. A replay of today's call will be available until midnight on November 8. Please note the replay number is +1 (800) 839-9881 or +1-402-220-3100. Additionally, the call will be available for playback via the Investors section of our website under the heading Investor Events.

提醒一下，本次電話會議和我們的網絡廣播附有幻燈片演示，可在我們網站 www.xylem.com 的投資者部分獲取。今天電話會議的重播將持續到 11 月 8 日午夜。請注意重播號碼是 +1 (800) 839-9881 或 +1-402-220-3100。此外，該電話會議將可通過我們網站的“投資者活動”標題下的“投資者”部分進行回放。

Please turn to Slide 2. We will make some forward-looking statements on today's call, including references to future events or developments that we anticipate will or may occur in the future. These statements are subject to future risks and uncertainties, such as those factors described in Xylem's most recent annual report on Form 10-K and in subsequent reports filed with the SEC.

請轉到幻燈片 2。我們將在今天的電話會議上發表一些前瞻性陳述，包括對我們預計未來將要發生或可能發生的未來事件或發展的參考。這些陳述受未來風險和不確定因素的影響，例如 Xylem 最近的 10-K 表格年度報告和隨後向美國證券交易委員會提交的報告中描述的那些因素。

Please note that the company undertakes no obligation to update any forward-looking statements publicly to reflect subsequent events or circumstances, and actual events or results could differ materially from those anticipated.

請注意，公司沒有義務公開更新任何前瞻性陳述以反映後續事件或情況，實際事件或結果可能與預期存在重大差異。

Please turn to Slide 3. We have provided you with a summary of our key performance metrics, including both GAAP and non-GAAP metrics. For purposes of today's call, all references will be on an organic and adjusted basis, unless otherwise indicated. And non-GAAP financials have been reconciled for you and are included in the Appendix section of the presentation.

請轉到幻燈片 3。我們為您提供了關鍵績效指標的摘要，包括 GAAP 和非 GAAP 指標。就今天的電話會議而言，除非另有說明，否則所有參考資料都將在有機和調整的基礎上進行。非 GAAP 財務數據已經為您進行了核對，並包含在演示文稿的附錄部分中。

Now please turn to Slide 4, and I'll turn the call over to our CEO, Patrick Decker.

現在請轉到幻燈片 4，我將把電話轉給我們的首席執行官 Patrick Decker。

Thanks, Andrea, and good morning, everyone. We're pleased to announce a very strong third quarter performance, continuing our momentum from the first half of the year. Across the board, the team delivered above expectations with all our business segments and regions posting strong double-digit revenue growth. And we see quite resilient demand in our backlogs and bidding pipeline. Overall, revenues were up 16% for the quarter, beating the high end of our guidance by 4 percentage points. Applied Water grew fastest at 20%. Water Infrastructure exceeded expectations by the widest margin and M&CS came in right on target with healthy mid-teens growth. Regionally, Americas, Western Europe and Emerging Markets each grew mid-teens.

謝謝，安德里亞，大家早上好。我們很高興地宣布第三季度業績非常強勁，延續了今年上半年的勢頭。總體而言，該團隊的表現超出預期，我們所有的業務部門和地區都實現了強勁的兩位數收入增長。我們在積壓訂單和投標渠道中看到了相當有彈性的需求。總體而言，本季度收入增長了 16%，比我們指導的上限高出 4 個百分點。 Applied Water 增長最快，達到 20%。 Water Infrastructure 超出預期的幅度最大，而 M&CS 以健康的中等增長達到了目標。從地區來看，美洲、西歐和新興市場均增長了十幾歲。

Demand at all of our largest end markets continued to be strong driven by the essential nature of our solutions and services and by intensifying long-term trends in Water. The team, from our factories to our channel partners and distributors, also delivered a tremendous operational performance. Their actions entirely offset inflation with very strong price cost discipline and effectively manage through continuing chip supply constraints. That focus paid off in growth, but also with very strong EBITDA margin expansion.

我們所有最大的終端市場的需求繼續受到我們解決方案和服務的基本性質以及水資源長期趨勢強化的強勁推動。從我們的工廠到我們的渠道合作夥伴和分銷商的團隊也提供了巨大的運營績效。他們的行動通過非常嚴格的價格成本紀律完全抵消了通貨膨脹，並通過持續的芯片供應限制進行了有效管理。這種關注在增長方面得到了回報，但也帶來了非常強勁的 EBITDA 利潤率擴張。

Margins exceeded the high end of our guidance by 130 basis points. This delivered on our previous commitment to significantly improve our margins in the second half of this year. Strong organic revenue growth and accretive margins drove third quarter earnings well above expectations, with earnings per share of $0.79.

利潤率超出我們指導的上限 130 個基點。這兌現了我們先前的承諾，即在今年下半年顯著提高我們的利潤率。強勁的有機收入增長和不斷增加的利潤率推動第三季度收益遠高於預期，每股收益為 0.79 美元。

As you all know, our key end markets have consistently been resilient in the face of macroeconomic headwinds, and we expect that underlying demand pattern to continue. M&CS orders continue to be very strong. Water Infrastructure was up solidly. Backlogs continue to be up sharply year-over-year, and the digital solutions proportion of our backlogs continue to expand.

眾所周知，面對宏觀經濟逆風，我們的主要終端市場一直保持彈性，我們預計這種潛在需求模式將繼續下去。 M&CS 訂單繼續非常強勁。水利基建穩步提升。積壓訂單繼續同比大幅上升，我們積壓的數字解決方案比例繼續擴大。

That said, some of our smaller end markets are more cyclical, such as residential within our Applied Water segment. Orders in those markets were down in the quarter and are expected to remain soft.

也就是說，我們的一些較小的終端市場更具週期性，例如我們應用水部門的住宅市場。這些市場的訂單在本季度有所下降，預計將保持疲軟。

Looking forward, we anticipate the demand dynamics of the third quarter to continue into 2023. On supply, especially chip supply, the outlook remains consistent with what we said last quarter. As expected, we have not seen meaningful easing of chip supply constraints. But forecasting visibility has improved, as has the reliability of deliveries. We expect to exit the year as we've outlined before. Things are gradually improving.

展望未來，我們預計第三季度的需求動態將持續到 2023 年。在供應方面，尤其是芯片供應方面，前景與我們上一季度所說的一致。正如預期的那樣，我們沒有看到芯片供應限制明顯放鬆。但預測的可見性有所提高，交付的可靠性也有所提高。我們希望按照我們之前概述的那樣退出這一年。情況正在逐漸好轉。

Given the resilience of our demand profile, the vitality of our business and the team's strong operational track record in this environment, we are raising our full year guidance. We now expect full year adjusted earnings per share to be between $2.65 to $2.75 on organic revenue growth between 9% and 10%.

鑑於我們需求狀況的彈性、我們業務的活力以及團隊在這種環境下的良好運營記錄，我們正在提高全年指導。我們現在預計全年調整後每股收益將在 2.65 美元至 2.75 美元之間，有機收入增長在 9% 至 10% 之間。

In a few minutes, we'll discuss dynamics in our different end markets, along with some trends we're seeing through the current cycle. I'll also touch on how we're serving communities as they invest to become more resilient in the face of intensifying water challenges. But first, let me hand it over to Sandy to offer you some more detail on the third quarter.

幾分鐘後，我們將討論不同終端市場的動態，以及我們在當前週期中看到的一些趨勢。我還將談談我們如何為社區提供服務，因為他們投資於在面臨日益嚴峻的水資源挑戰時變得更有彈性。但首先，讓我把它交給桑迪，為您提供有關第三季度的更多細節。

Thanks, Patrick. Please turn to Slide 5. The team did a great job over delivering on commitments with disciplined commercial and operational execution on continuing strong demand. As a result, revenues grew globally, high teens in the U.S. and mid-teens in Emerging Markets in Western Europe on strong price and backlog execution as supply chains modestly improved.

謝謝，帕特里克。請轉到幻燈片 5。該團隊在履行承諾方面做得很好，在持續強勁的需求下，紀律嚴明的商業和運營執行。結果，隨著供應鏈的適度改善，由於強勁的價格和積壓的執行，全球收入增長，美國的高青少年和西歐新興市場的中青少年。

In a moment, I'll detail performance by segment. But in short, utilities was up 15%, led by strength in the U.S. and Western Europe. Industrial grew 16% with strength across all geographies, particularly in Emerging Markets in Western Europe. Commercial was up 17%, mainly due to strong backlog execution in the U.S.; and residential was up 19%, led by commercial execution and backlog conversion in the U.S. Global demand remains healthy on strong end market fundamentals, especially in Water Infrastructure and M&CS.

稍後，我將按細分詳細介紹性能。但簡而言之，在美國和西歐的強勁帶動下，公用事業上漲了 15%。工業增長 16%，所有地區都表現強勁，尤其是在西歐的新興市場。商業增長 17%，主要是由於美國的積壓訂單執行強勁；在美國的商業執行和積壓轉換的帶動下，住宅增長了 19%。由於終端市場基本面強勁，全球需求依然健康，尤其是在水利基礎設施和 M&CS 領域。

That said, organic orders were down 1% in the quarter versus up 20% in the same period last year. Water Infrastructure was up 3%, AWS down 4% and M&CS down 2%. Adjusted EBITDA margin was 18.3%, up 40 basis points from the prior year and up 170 basis points sequentially as price more than offset inflation. And as Patrick mentioned, our EPS in the quarter was $0.79, well above expectations.

也就是說，本季度有機訂單下降了 1%，而去年同期增長了 20%。 Water Infrastructure 上漲 3%，AWS 下跌 4%，M&CS 下跌 2%。調整後的 EBITDA 利潤率為 18.3%，比上年增長 40 個基點，環比增長 170 個基點，原因是價格抵消了通貨膨脹。正如帕特里克所說，我們本季度的每股收益為 0.79 美元，遠高於預期。

Please turn to Slide 6, and I'll review the quarter's performance by segment. Water Infrastructure revenue grew 13% organically in the quarter, exceeding expectations. Growth was broad-based, led by our wastewater utility business in the U.S. and Western Europe, both up high teens as supply chain constraints improved. Industrial growth remained robust, driven by continued dewatering demand in Emerging Markets and increased activity in Western Europe. Geographically, Western Europe grew mid-teens, driven by robust transport and treatment demand. The U.S. was up low teens, led by strong utilities OpEx demand. Emerging Markets was up low double digits, driven by strength across Latin America and Africa, a continued growth in dewatering.

請轉到幻燈片 6，我將按部門回顧本季度的表現。本季度水利基礎設施收入有機增長 13%，超出預期。增長基礎廣泛，由我們在美國和西歐的污水公用事業業務引領，隨著供應鏈限制的改善，這兩個業務都增長了十幾歲。在新興市場需求持續下降和西歐活動增加的推動下，工業增長依然強勁。從地理上看，在強勁的運輸和治療需求的推動下，西歐增長了 15% 左右。在強勁的公用事業 OpEx 需求的帶動下，美國處於低位。在拉丁美洲和非洲實力強勁以及脫水業務持續增長的推動下，新興市場實現了兩位數的低位增長。

Orders in the third quarter were up 3% organically with robust dewatering demand in Emerging Markets and continued utility strengths in the U.S. Segment EBITDA margin was largely in line with the prior year as favorable price realization offset inflation but was also impacted by unfavorable mix and strategic investments.

第三季度訂單有機增長 3%，原因是新興市場強勁的脫水需求和美國公用事業持續走強投資。

Please turn to Page 7. In the Applied Water segment, third quarter revenues grew 20% organically, exceeding expectations. Growth was robust across all end markets, with each up high teens or greater. Geographically, the U.S. was up high teens with strength across all 3 end markets due to price realization and modest improvements in supply chain. Western Europe was also up high teens, led by growth in industrial, on strong price and continued demand. Emerging Markets was up almost 30%, driven by strong industrial demand in China and commercial development in the Middle East and Africa. Orders were down 4% organically with continued growth in Emerging Markets, offset by some moderation in residential in the U.S.

請翻到第 7 頁。在 Applied Water 部門，第三季度收入有機增長 20%，超出預期。所有終端市場的增長都很強勁，每個市場都達到十幾歲或更高。從地域上看，由於價格實現和供應鏈的適度改善，美國在所有 3 個終端市場的實力都上升了十幾歲。在工業增長、強勁的價格和持續的需求的帶動下，西歐也上漲了十幾歲。在中國強勁的工業需求以及中東和非洲的商業發展的推動下，新興市場上漲了近 30%。隨著新興市場的持續增長，有機訂單下降了 4%，但被美國住宅訂單的放緩所抵消。

As a reminder, residential, our most cyclical end market, is only about 5% of our overall revenue. EBITDA margin for the segment was up 110 basis points compared to the prior year and 200 basis points sequentially. Margin expansion was driven by strong price realization, more than offsetting inflation, supplemented with productivity savings.

提醒一下，住宅是我們最具週期性的終端市場，僅占我們總收入的 5% 左右。該部門的 EBITDA 利潤率與上一年相比上升了 110 個基點，環比上升了 200 個基點。利潤率的增長是由強勁的價格實現推動的，不僅抵消了通貨膨脹，還輔以生產力節約。

And now let's turn to Slide 8, and I'll cover our Measurement & Control Solutions business. M&CS revenue was up 15% organically, in line with our prior guidance as chip supply played out as expected, with continued moderate improvement sequentially. We also saw strong growth in test applications and our pipeline assessment services business. Geographically, the U.S. was up more than 20% on improved chip availability versus the prior year and favorable price realization. Emerging Markets was up mid-teens, and Western Europe was up high single digits, driven by strength in our test and pipeline assessment services businesses.

現在讓我們轉到幻燈片 8，我將介紹我們的測量和控制解決方案業務。 M&CS 收入有機增長 15%，符合我們之前的指引，因為芯片供應如預期般發揮作用，並持續適度改善。我們還看到了測試應用程序和管道評估服務業務的強勁增長。從地域上看，美國的芯片可用性比上一年有所提高，並且價格實現有利，因此增長了 20% 以上。在我們的測試和管道評估服務業務實力的推動下，新興市場增長了十幾歲，西歐增長了高個位數。

M&CS orders declined 2% organically in the quarter, lapping a tough prior year compare of 42% orders growth. Underlying demand for our AMI offerings remains strong, and orders continue to outpace revenue, yielding backlog growth of 35% versus the prior year. Our M&CS backlog alone exceeds $2 billion. Segment EBITDA margin in the quarter expanded 400 basis points sequentially and is now approaching prior year levels. The team did a great job driving margin improvement, even though volumes continue to be constrained by chip supply.

M&CS 訂單在本季度有機下降 2%，與去年 42% 的訂單增長相比表現不佳。對我們的 AMI 產品的潛在需求依然強勁，訂單繼續超過收入，積壓訂單比上一年增長 35%。僅我們的 M&CS 積壓訂單就超過 20 億美元。本季度的部門 EBITDA 利潤率環比擴大 400 個基點，目前接近去年同期水平。儘管銷量繼續受到芯片供應的限制，但該團隊在推動利潤率提高方面做得很好。

And now let's turn to Slide 9 for an overview of cash flows and our balance sheet. In the third quarter, we generated free cash flow of $149 million, driven by income conversion, partially offset by higher working capital. You will note that our working capital levels are elevated as we've chosen to carry about 30 days of extra inventory. And while supply chains are gradually improving, delivery metrics are below historical levels, and we can best serve our customers and communities by making this short-term investment. Having said that, our financial position remains strong with $1.2 billion in cash and $2 billion of available liquidity, and our net debt-to-EBITDA leverage is 1.3x.

現在讓我們轉到幻燈片 9，了解現金流量和資產負債表的概況。第三季度，在收入轉換的推動下，我們產生了 1.49 億美元的自由現金流，部分被較高的營運資本所抵消。您會注意到我們的營運資金水平有所提高，因為我們選擇了大約 30 天的額外庫存。雖然供應鏈正在逐步改善，但交付指標低於歷史水平，我們可以通過進行這項短期投資來最好地為我們的客戶和社區服務。話雖如此，我們的財務狀況依然強勁，擁有 12 億美元現金和 20 億美元可用流動資金，我們的淨債務與 EBITDA 的槓桿率為 1.3 倍。

Please turn to Slide 10, and I'll hand it back to Patrick to give some color on underlying demand.

請轉到幻燈片 10，我會把它交還給帕特里克，讓他了解一下基本需求。

Thanks, Sandy. In our last quarter's earnings call, we impact how demand in different end markets respond to macroeconomic headwinds. What we described then is what we're seeing in the marketplace now with healthy underlying demand in our largest end markets. Those patterns have repeated over past economic cycles. So they inform how we manage our operations in an environment like this one. Since all water is local, we experienced those patterns and trends playing out at a community level. What we're seeing is more and more communities selling increasing impact from climate change. They're finding their aging infrastructure isn't up to the task and then confronting the economic anxiety of major upgrades.

謝謝，桑迪。在上一季度的財報電話會議上，我們影響了不同終端市場的需求如何應對宏觀經濟逆風。我們當時所描述的是我們現在在市場上看到的，我們最大的終端市場有著健康的潛在需求。這些模式在過去的經濟周期中重複出現。因此，它們告知我們如何在這樣的環境中管理我們的運營。由於所有水都來自本地，我們在社區層面體驗了這些模式和趨勢。我們看到的是越來越多的社區在出售氣候變化帶來的越來越大的影響。他們發現他們老化的基礎設施無法勝任這項任務，然後面臨重大升級帶來的經濟焦慮。

So communities are investing both in short-term response and in longer-term resilience. Infrastructure investment is the much bigger driver of underlying demand. But our customers have to know we will also be there in near-term crisis, which are happening all too frequently. For example, when Hurricane Ian hit Florida, our dewatering pumps were already in place ahead of the storm to prevent the worst and recover fast. And storms are the only immediate needs. One Southeastern U.S. city called us with sewer lines leaching waste into community groundwater and their aging pipes are on the brink of collapse. Within days of that call, we were building a boathouse that will help that city's wastewater treatment running without interruption, while they make long-term repairs. Helping communities respond to shocks is a fundamental part of our mission. But the more durable value is in helping communities build the strength to withstand future water challenges and economic stresses.

因此，社區正在投資於短期響應和長期復原力。基礎設施投資是潛在需求的更大驅動力。但我們的客戶必須知道，我們也會在近期危機中出現，這種情況發生得太頻繁了。例如，當颶風伊恩襲擊佛羅里達時，我們的排水泵已經在風暴來臨之前就位，以防止最壞的情況發生并快速恢復。風暴是唯一的直接需求。美國東南部的一個城市打電話給我們，因為下水道將廢物滲入社區地下水，而他們老化的管道正處於倒塌的邊緣。在那個電話發出後的幾天內，我們正在建造一個船庫，以幫助該市的污水處理不間斷地運行，同時他們進行長期維修。幫助社區應對沖擊是我們使命的基本組成部分。但更持久的價值在於幫助社區增強抵禦未來水資源挑戰和經濟壓力的力量。

Xylem Solutions like advanced metering infrastructure, wastewater network optimization and municipal water recycling, amongst so many others, provide much more than compelling economics. They deliver game-changing resilience. With AMI as an example, cities can cut off water in the event of storm damage, respond instantly to customer crisis and even promote conservation through periods of scarcity and drought. And all of that additional capability costs a city less than their conventional meter networks. That value equation isn't unique to AMI. It's a hallmark of digital solutions across our Xylem portfolio, greater resilience and capability delivered far more affordably than conventional approaches. Those benefits are so important to our customers that we have been steadily extending digital capability into every part of our portfolio.

Xylem 解決方案，如先進的計量基礎設施、廢水管網優化和市政水回收等，提供的不僅僅是令人信服的經濟效益。他們提供改變遊戲規則的彈性。以 AMI 為例，城市可以在風暴破壞時切斷水源，立即響應客戶危機，甚至在缺水和乾旱時期促進保護。所有這些額外的功能比傳統的電錶網絡對城市的成本要低。該價值方程式並非 AMI 獨有。這是我們 Xylem 產品組合中數字解決方案的標誌，比傳統方法更經濟實惠地提供更高的彈性和功能。這些好處對我們的客戶來說非常重要，因此我們一直在穩步地將數字功能擴展到我們產品組合的每個部分。

The mini water crisis making headlines in recent months make it clear that the effects of climate change are already driving rapid increases in cost at the community level. To attack the problem at its source, more and more cities are making net zero emissions commitments. Our opportunity is to help water utilities reduce their own carbon footprint.

最近幾個月成為頭條新聞的小型水危機清楚地表明，氣候變化的影響已經導致社區層面的成本迅速增加。為了從源頭上解決問題，越來越多的城市正在做出淨零排放承諾。我們的機會是幫助水務公司減少他們自己的碳足跡。

More than 80 leading utilities around the world have already set net zero targets. Last month at WEFTEC, which is one of the largest water trade events each year, we shared research showing how utilities can dramatically cut their emissions while boosting operational efficiency at the same time. The message is good for our customers, good for communities and good for our business. With existing technologies, you can reduce emissions quickly at low cost or even saving money. I am so proud of the team for leading the way on this topic with our customers and our communities.

全球 80 多家領先的公用事業公司已經設定了淨零排放目標。上個月，在每年最大的水貿易活動之一的 WEFTEC 上，我們分享了一項研究，展示了公用事業公司如何在大幅減少排放的同時提高運營效率。該信息對我們的客戶、社區和我們的業務都有好處。借助現有技術，您可以以低成本甚至省錢的方式快速減少排放。我為團隊在這個主題上與我們的客戶和社區一起引領道路而感到自豪。

Several of my Xylem colleagues will be speaking at the upcoming COP27 climate meetings in Egypt later this month, to promote the discussion of water, which we believe is the most important topic of our time.

我的幾位 Xylem 同事將在本月晚些時候在埃及舉行的 COP27 氣候會議上發言，以促進對水的討論，我們認為這是我們這個時代最重要的話題。

Now I'll turn it back over to Sandy to provide detail on our increased guidance and outlook for the year.

現在，我將把它轉回給桑迪，以提供有關我們今年增加的指導和展望的詳細信息。

Thanks, Patrick. Consistent with our previous presentations, we provided key facts for each end market in the appendix. The 2022 full year outlook across our end markets remains largely in line with our previous guidance, with an increase in commercial upon improved backlog execution. We expect healthy underlying demand will carry on through the remainder of the year with continued modest improvements in supply chain. The outlook for our utility business remains unchanged with mid-single-digit growth across both wastewater and clean water.

謝謝，帕特里克。與我們之前的介紹一致，我們在附錄中提供了每個終端市場的關鍵事實。我們終端市場的 2022 年全年展望在很大程度上與我們之前的指導一致，隨著積壓執行的改善，商業活動有所增加。我們預計隨著供應鏈的持續適度改善，健康的潛在需求將在今年剩餘時間持續。我們的公用事業業務前景保持不變，廢水和淨水業務均實現中個位數增長。

In wastewater, we see continued OpEx strength, and the CapEx outlook is supported by modernization of aging infrastructure and continued new development, particularly in Emerging Markets.

在廢水方面，我們看到運營支出持續強勁，資本支出前景得到老化基礎設施現代化和持續新開發的支持，尤其是在新興市場。

For clean water utilities, although chip supply remains constrained, we do expect a continued modest easing of chip supply sequentially. We also expect momentum in our test and pipeline assessment businesses to continue due to increasing focus on infrastructure and climate challenges.

對於清潔水務公用事業，儘管芯片供應仍然受到限制，但我們確實預計芯片供應將繼續適度放鬆。由於對基礎設施和氣候挑戰的日益關注，我們還預計我們的測試和管道評估業務的勢頭將繼續下去。

Looking at the industrial end market, we now expect low double-digit growth lifted from a previous range of high single-digit to low double-digit growth, driven by strong global demand for dewatering and continued underlying demand for our solutions in the U.S. and Western Europe. We now expect the commercial end market to deliver high single to low double-digit growth, up from mid-single to high single digits on strong demand and backlog execution.

看看工業終端市場，我們現在預計低兩位數的增長將從之前的高個位數增長到低兩位數增長，這是由於全球對脫水的強勁需求以及美國和美國對我們的解決方案的持續潛在需求的推動。西歐。我們現在預計，由於需求強勁和積壓執行，商業終端市場將實現高個位數到低兩位數的增長，從中個位數增長到高個位數。

In residential, our smallest end market, we expect strong price realization and continued backlog execution to drive growth in the high teens. As a reminder, our commercial and residential exposure is largely replacement-driven and is approximately 15% of our total revenue.

在住宅這個我們最小的終端市場，我們預計強勁的價格實現和持續的積壓執行將推動青少年的增長。提醒一下，我們的商業和住宅業務主要由更換驅動，約占我們總收入的 15%。

And now let's turn to Slide 12, and I'll walk you through our updated guidance. Our continued out-performance gives us confidence to raise our full year guidance for adjusted EPS to a range of $2.65 to $2.75, up from $2.50 to $2.70. Our raised guidance is driven by stronger price, backlog execution and continued underlying demand. We are also lifting the low end of our full year organic revenue growth, now 9% to 10%, up from 8% to 10%. Our revenue outlook on a reported basis is largely unchanged due to FX headwinds.

現在讓我們轉到幻燈片 12，我將向您介紹我們更新後的指南。我們持續的出色表現讓我們有信心將調整後每股收益的全年指導從 2.50 美元上調至 2.70 美元至 2.65 美元至 2.75 美元。我們上調的指引是由價格走強、積壓執行和持續的潛在需求推動的。我們還提高了全年有機收入增長的低端，現在是 9% 到 10%，從 8% 到 10%。由於外匯逆風，我們報告的收入前景基本沒有變化。

Looking by segment, we expect high single-digit growth in Water Infrastructure and low double-digit growth in Applied Water. We expect Measurement & Control Solutions to be up mid-single digits as chip supply continues to modestly improve.

按細分市場來看，我們預計水務基礎設施將實現高個位數增長，應用水務將實現低兩位數增長。隨著芯片供應繼續適度改善，我們預計測量和控制解決方案將增長中等個位數。

For 2022, we are raising our adjusted EBITDA margin outlook to approximately 17%. We now expect free cash flow conversion to be approximately 80% of net income. This is lower than our previous outlook, largely due to higher working capital levels as I referenced earlier. While we're carrying about an extra month of inventory, our position is fully aligned with the requirements needed to fulfill our backlog. As supply chain stabilize, we will bring inventory down, enabling us to return free cash flow conversion of at least 100% and as we have consistently done in prior years. We've provided you with a number of other full year assumptions on the slide to supplement your models as well as our latest assumptions on our basket of currency exposures, which can also be found in the appendix.

對於 2022 年，我們將調整後的 EBITDA 利潤率展望上調至約 17%。我們現在預計自由現金流轉換約為淨收入的 80%。這低於我們之前的預期，這主要是由於我之前提到的營運資本水平較高。雖然我們還有大約一個月的庫存，但我們的立場完全符合完成積壓訂單所需的要求。隨著供應鏈的穩定，我們將降低庫存，使我們能夠返回至少 100% 的自由現金流轉換，正如我們在前幾年一直所做的那樣。我們在幻燈片上為您提供了許多其他全年假設以補充您的模型，以及我們對一攬子貨幣敞口的最新假設，這些假設也可以在附錄中找到。

And now drilling down on the fourth quarter, we anticipate total company organic revenues will be up 12% to 14%. This includes mid-single-digit growth in Water Infrastructure, mid-teens growth in Applied Water and M&CS growth of mid-20%. We expect fourth quarter adjusted EBITDA margin to be in the range of 17.5% to 18.5%.

現在深入研究第四季度，我們預計公司有機總收入將增長 12% 至 14%。這包括 Water Infrastructure 的中等個位數增長、Applied Water 的中等個位數增長以及 M&CS 的 20% 中等增長。我們預計第四季度調整後的 EBITDA 利潤率將在 17.5% 至 18.5% 之間。

And with that, please turn to Slide 13, and I'll turn the call back over to Patrick for closing comments.

然後，請轉到幻燈片 13，我會將電話轉回給 Patrick 以徵求意見。

Thanks, Sandy. I'm very proud of the team's performance overall. We delivered strong results this past quarter by continuing to do what we said we would do. And indeed, the team overdelivered, thanks to our commercial momentum and operational discipline. Even in an environment of macro uncertainty, the durability of our business model, and the discipline of our team gives us great confidence in our continued growth and significant value creation over the long run.

謝謝，桑迪。我為球隊的整體表現感到非常自豪。上個季度，我們繼續按照我們的承諾行事，取得了強勁的業績。事實上，由於我們的商業勢頭和運營紀律，團隊超額完成了任務。即使在宏觀不確定的環境中，我們的商業模式的持久性和我們團隊的紀律讓我們對我們的長期持續增長和重大價值創造充滿信心。

Before we turn the call over to your questions, I'd like to share a couple of executive appointments we've just made, adding even further strength to Xylem's leadership bench. Earlier, I referred to our strategy of extending digital capabilities across Xylem's product, solutions and services portfolio. We've just taken an important step in accelerating that process, appointing Xylem's first Chief Digital Officer. Sai Allavarpu joined our senior leadership team last week, bringing extensive experience of growing digital businesses in the industrial sector. He'll be working with the team to further build out a simple powerful platform of digitized solutions for our customers and communities. He joins us in Danaher, and I look forward to introducing him to you in future conversations. Before sharing our second recent appointment, I first want to recognize a colleague many of you know.

在我們將電話轉到您的問題之前，我想分享一下我們剛剛做出的幾項行政任命，進一步增強了 Xylem 的領導層。早些時候，我提到了我們在 Xylem 的產品、解決方案和服務組合中擴展數字功能的戰略。我們剛剛在加速這一進程方面邁出了重要一步，任命了 Xylem 的首位首席數字官。 Sai Allavarpu 上週加入了我們的高級領導團隊，帶來了在工業領域發展數字業務方面的豐富經驗。他將與團隊合作，為我們的客戶和社區進一步構建一個簡單而強大的數字化解決方案平台。他加入了我們在丹納赫的行列，我期待著在以後的談話中向您介紹他。在分享我們最近的第二次約會之前，我首先想認識一位你們很多人都認識的同事。

Tony Milando, our Chief Supply Chain Officer, has been looking for the retirement for a while, but he graciously agreed to stay on while helping us guide the company through the challenges of the pandemic. He's built agility and durability into our supply chain, put safety and sustainability at the center of our operations and created a culture of continuous improvement that has made operational excellence a core part of Xylem's competitive advantage. We're finally letting Tony retire, but his contributions will continue to benefit our stakeholders for many years to come.

我們的首席供應鏈官托尼·米蘭多 (Tony Milando) 期待退休已經有一段時間了，但他慷慨地同意留下來，同時幫助我們引導公司應對大流行病的挑戰。他在我們的供應鏈中建立了敏捷性和耐久性，將安全性和可持續性置於我們運營的中心，並創造了一種持續改進的文化，使卓越運營成為 Xylem 競爭優勢的核心部分。我們終於讓托尼退休了，但他的貢獻將在未來許多年繼續造福於我們的利益相關者。

To build on the foundation of excellence that Tony has laid, we've appointed Thomas Pettit, Xylem's Chief Operations and Supply Chain Officer. Tom joins us next week coming from Generac Power Systems, and he brings 20-plus years of experience leading global supply chains and operations in the industrial and services sectors. We're very pleased to welcome Tom at a time when supply chain and operations continue to be a foundation of competitive advantage. His remit is to take our operational excellence to the next level. Tony is going to stay on for a brief time to give him a good start and ensure a smooth transition.

為了在 Tony 奠定的卓越基礎上再接再厲，我們任命 Thomas Pettit 為 Xylem 的首席運營和供應鏈官。 Tom 將於下週加入我們，他來自 Generac Power Systems，他帶來了 20 多年在工業和服務領域領導全球供應鍊和運營的經驗。我們很高興在供應鍊和運營繼續成為競爭優勢基礎的時候歡迎湯姆。他的職責是將我們的卓越運營提升到一個新的水平。托尼將留任一小段時間，為他提供一個良好的開端並確保平穩過渡。

So with that, operator, let's now open it up for Q&A.

因此，操作員，現在讓我們打開它進行問答。

(Operator Instructions) We'll take our first question from Deane Dray with RBC Capital Markets.

（操作員說明）我們將與 RBC 資本市場一起接受 Deane Dray 的第一個問題。

Can I start with I want to wish Tony all the best? He's been a tremendous help all along. So we'll miss him, but wish him well. And welcome to the 2 new leaders, Tom and Sai Allavarpu.

我可以先說我想祝托尼一切順利嗎？他一直是一個巨大的幫助。所以我們會想念他，但祝他一切順利。歡迎兩位新領導人 Tom 和 Sai Allavarpu。

Thank you, Deane. Happy to have them on board and with mixed emotions to see Tony move on. But yes, it's been a great run.

謝謝你，迪恩。很高興有他們加入，並懷著複雜的心情看到托尼繼續前進。但是，是的，這是一個偉大的運行。

For sure. All right. So first question, and look, really good numbers here, good growth. So that all kind of is a standout. What I'd like to talk about is the forward look. and for the fourth quarter, just talk about the backlog conversion, earnings visibility and how has -- how did October get off in terms of demand?

一定。好的。所以第一個問題，看，這裡的數字非常好，增長良好。因此，所有類型都是傑出的。我想談的是前瞻性。對於第四季度，只需談論積壓轉換、盈利可見度以及如何 - 10 月份在需求方面如何下車？

Yes. Deane, let me start there. I think we've built good momentum throughout the year. We've had -- throughout the year, we've had strong orders growth all along. I think we have good visibility into Q4. The way we're kind of envisioning it is that it looks very much like what we just printed in Q3. So we'll see strong top line growth, EBITDA margins that are very similar to the strong step-up that we saw from Q2 to Q3 this year and maybe a little bit of a difference in mix.

是的。迪恩，讓我從這裡開始。我認為我們全年都建立了良好的勢頭。我們已經 - 全年，我們一直都有強勁的訂單增長。我認為我們對第四季度有很好的了解。我們設想的方式是它看起來非常像我們剛剛在第三季度打印的內容。因此，我們將看到強勁的收入增長，EBITDA 利潤率與我們今年第二季度到第三季度看到的強勁增長非常相似，並且可能在組合上略有不同。

Water Infrastructure typically has a stronger Q4 when projects get completed towards the end of the year. A little bit of moderation in AWS. They were doing some catch-up orders to work through some of the supply chain and a slight ramp in M&CS. As we've talked about on prior calls, we're continuing to see a more modest step-up on the chip supply situation. And then sometimes in the -- towards the back half, second half of 2023 when the redesign work and some more supply comes online, you'll see a bigger ramp.

當項目在年底完成時，水利基礎設施通常會有更強勁的第四季度。 AWS 中的一點節制。他們正在執行一些追趕訂單，以通過一些供應鏈工作，並在 M&CS 中略有增加。正如我們在之前的電話會議上談到的那樣，我們將繼續看到芯片供應情況出現更溫和的增長。然後有時在 - 到 2023 年下半年，當重新設計工作和更多供應上線時，你會看到更大的斜坡。

So long story short, I think our Q3 and our Q4 look pretty similar. All along, we've called for a stronger back half compared to our first half. And we're really happy to report that that's playing out very much in line with our expectations.

長話短說，我認為我們的第三季度和第四季度看起來非常相似。一直以來，我們都要求後半場比上半場更強壯。我們真的很高興地報告，這非常符合我們的預期。

And specifically on backlog, what would be the typical 4Q backlog conversion on a percent basis versus what you're expecting this quarter?

特別是在積壓方面，典型的第四季度積壓轉換百分比與您本季度的預期相比是多少？

Yes. I'll give you some color around the backlog. When we look year-over-year, the backlogs are up about 30%. It's a little higher than that in M&CS and a little bit lower than that in the other 2 businesses. So all around, Deane, backlogs remain elevated. And so we're not able to convert as much of the backlog as we would have in other periods. And that's not because production levels are falling short. It's just because backlog still remain elevated.

是的。我會給你一些關於積壓的顏色。與去年同期相比，積壓訂單增加了約 30%。它比 M&CS 略高，比其他 2 個業務略低。因此，Deane，到處都是積壓的情況。因此，我們無法像其他時期那樣轉換盡可能多的積壓訂單。這並不是因為生產水平下降。這只是因為積壓仍然很高。

And Deane, I would just offer that coming into this quarter, like we did this past our Applied Water backlog is up almost at least a month or more normally than what we would have visibility to. That's because of supply chain constraints, we're going to -- and demand, we're going to see that begin to work off in Q4 going into Q1. And so Applied Water will normalize down to its historical levels, which is still going to be attractive at very attractive margins. But where you're really going to see the strength come through continued is in the Water Infrastructure resilience because of utility demand and again, the conversion of chip supply on M&CS and given the deals that we've gotten back on.

迪恩，我只想說進入本季度，就像我們過去所做的那樣，我們的 Applied Water 積壓至少增加了一個月或比我們能看到的更正常。那是因為供應鏈的限制，我們將 - 和需求，我們將看到它在第四季度開始進入第一季度。因此 Applied Water 將正常化至其歷史水平，這在非常有吸引力的利潤率下仍然具有吸引力。但是，你真正要看到的力量來自水基礎設施的彈性，因為公用事業需求，以及 M&CS 芯片供應的轉換，以及我們已經重新獲得的交易。

That's real helpful. And then just as a follow-up, on free cash flow, completely understand the tweak here, adding more inventory. We're seeing that elsewhere. But maybe share for us, Sandy, the precision, adding an extra 30 days, how does that square across the segments? And maybe weave in like how has lead times on -- how heavy lead times with your suppliers? How are those trending? Are they beginning anything close to normalization there?

這真的很有幫助。然後作為後續行動，關於自由現金流，完全理解這裡的調整，增加更多庫存。我們在其他地方也看到了這一點。但也許可以為我們分享，桑迪，精確度，增加額外的 30 天，這如何跨越細分市場？也許像交貨時間一樣編織 - 您的供應商的交貨時間有多長？這些趨勢如何？他們在那裡開始任何接近正常化的事情嗎？

Yes. Great question. I think, first of all, Deane, where our inventory is most elevated is within our AWS segment. And in that supply chain, we have more China dependency, more global dependency from a supply chain perspective than we do in our other businesses. And so as -- that's where we've seen more disruptions as well. So that's exactly where we put some higher inventory levels. I would say that we've done a lot of scrubbing to make sure that, that inventory aligns with what we're seeing from a backlog perspective, and we feel very, very good about that.

是的。很好的問題。我認為，首先，迪恩，我們的庫存最高的地方是我們的 AWS 部門。在該供應鏈中，我們比其他業務更依賴中國，從供應鏈的角度來看更依賴全球。因此——這也是我們看到更多中斷的地方。所以這正是我們放置更高庫存水平的地方。我想說的是，我們已經做了很多清理工作，以確保庫存與我們從積壓的角度看到的一致，我們對此感覺非常非常好。

We'll take our next question from Nathan Jones with Stifel.

我們將接受 Stifel 的 Nathan Jones 的下一個問題。

I'll start off on price and price cost. It was very good to see price more than offset inflation this quarter. Can you maybe talk about the pricing trends, the inflation trends? Should we continue to see price ramp up over the next couple of quarters as more price read through? Should we start to see the year-over-year inflation moderate? And so maybe price cost becomes an even bigger tailwind to margins over the next 2 or 3 quarters?

我將從價格和價格成本開始。很高興看到本季度價格抵消了通貨膨脹。你能談談定價趨勢，通貨膨脹趨勢嗎？隨著更多價格的解讀，我們是否應該在接下來的幾個季度繼續看到價格上漲？我們是否應該開始看到同比通脹溫和？因此，在接下來的 2 或 3 個季度中，價格成本可能會成為利潤率的更大推動因素嗎？

Yes. I think, Nate, obviously, this has been something that our teams have been really focused on all year long. And I really applaud the good work that our commercial teams have done securing these important price increases to get in line with inflation. So a couple of milestones. We -- on a year-to-date basis now, we're price cost neutral. In the quarter, we were ahead from a price cost perspective on both a dollar perspective and a percentage perspective. We still expect that price will be a tailwind in Q4, and that's part of the year-over-year margin expansion that we're calling for.

是的。我認為，內特，顯然，這是我們的團隊一整年都真正關注的事情。我真的很讚賞我們的商業團隊在確保這些重要的價格上漲以與通貨膨脹保持一致方面所做的出色工作。所以有幾個里程碑。我們——從年初至今，我們的價格成本是中性的。在本季度，我們從美元角度和百分比角度的價格成本角度來看都領先。我們仍然預計價格將成為第四季度的順風，這是我們呼籲的同比利潤率擴張的一部分。

Having said that, we start to anniversary some of the quarters where we secured price momentum. And so that starts to happen a little bit in Q4 and more as we move into Q3. But I think as we go into 2023, we'll be in a better spot from a price cost perspective than we certainly were going in this year.

話雖如此，我們開始紀念我們獲得價格勢頭的一些季度。因此，當我們進入第三季度時，這種情況會在第四季度開始發生一點點。但我認為，隨著我們進入 2023 年，從價格成本的角度來看，我們將處於比今年更好的位置。

And you probably start to anniversary the worst of the inflation comps at the same time, right?

你可能同時開始紀念最糟糕的通貨膨脹公司，對吧？

Yes. And so I think inflation, we've definitely seen an increase inflation compared to what we guided initially this year. We sort of came into the year thinking inflation would run around 10% or 11%. When we look all in for the year, inflation is running more in the mid-teens. I would say there is some slight moderation from a commodity perspective, but we're still seeing headwinds on inflation in both areas like energy, particularly in Europe. And labor inflation is still out there. And when we look at labor inflation, that's not transitory, that's probably more permanent. So our pricing strategies are dynamic and they need to be in line with what we're seeing and experiencing from a costing perspective.

是的。所以我認為通貨膨脹，與我們今年最初的指導相比，我們肯定看到通貨膨脹有所增加。我們進入這一年時認為通貨膨脹率將在 10% 或 11% 左右。當我們縱觀這一年時，通貨膨脹率在十幾歲左右。我想說，從大宗商品的角度來看，通脹略有放緩，但我們仍然看到能源等兩個領域的通脹都面臨阻力，尤其是在歐洲。勞動力通脹仍然存在。當我們觀察勞動力通脹時，它不是暫時的，而是可能更為持久。因此，我們的定價策略是動態的，它們需要與我們從成本核算角度所看到和經歷的一致。

And I would think we should probably see the pricing improve in M&CS as we go forward. It's the segment where it looks like pricing is coming through the lowest. Some of that backlog that doesn't get repriced. I would pick some of that, it's a bit hard to tell your customers you're raising prices when you have all that pass-through backlog. So should we see price read through more in 2023 in the M&CS segment as we start to clear some of that?

而且我認為，隨著我們的前進，我們可能應該看到 M&CS 的定價有所改善。這是價格看起來最低的部分。一些未重新定價的積壓訂單。我會選擇其中的一些，當您擁有所有傳遞積壓時，很難告訴您的客戶您正在提高價格。那麼，隨著我們開始清除其中的一部分，我們是否應該在 2023 年看到 M&CS 部分的價格被更多解讀？

Yes. Yes, I think our -- where we've seen price, we've seen -- it's sort of matched where we've seen the highest inflation levels. And so from an ordering perspective, that's been AWS, Water Infrastructure and M&CS. Having said that, if you look at the past couple of quarters, we're starting to see some of our price increases that we've implemented in M&CS drop through. And so we still have good momentum there from a pricing perspective. And I think you'll continue to see that in the next -- through the next couple of quarters. And I think that's also made a significant part of why we saw quarter sequential improvement in the M&CS EBITDA rate.

是的。是的，我認為我們——我們看到的價格，我們看到的——與我們看到的最高通脹水平有點匹配。因此，從訂購的角度來看，這是 AWS、Water Infrastructure 和 M&CS。話雖如此，如果你回顧過去幾個季度，我們開始看到我們在 M&CS 中實施的一些價格上漲有所下降。因此，從定價的角度來看，我們在那裡仍然有良好的勢頭。而且我認為您將在接下來的幾個季度中繼續看到這一點。我認為這也是我們看到 M&CS EBITDA 率季度環比改善的重要原因。

And I think, Nate, I would just offer on the M&CS side, specifically, AMI deals. Again, these are long lead time negotiated regulatory approval deals. They've got great economics associated with them. And I think our customers understand that we're operating in a fairly high inflationary environment, and they understand. And they understand that we're being very transparent with them, around what the inflation impact does in us and that we're being responsible and disciplined. And the economics of these deals are so important to them that right now, the most important thing we can do is just continue to get chips and get the meters installed. And the good news is we've not seen any cancellations of those deals and backlog. So we feel good. We wish we had more chips, of course. But again, these projects require multiyear planning and utilities don't tend to go backwards on these deals.

我想，內特，我只想在 M&CS 方面提供，特別是 AMI 交易。同樣，這些都是經過長時間協商的監管批准交易。他們擁有與他們相關的偉大經濟學。而且我認為我們的客戶明白我們在一個相當高的通貨膨脹環境中運營，他們也明白。他們明白我們對他們非常透明，關於通貨膨脹對我們的影響以及我們正在負責任和自律。這些交易的經濟效益對他們來說非常重要，以至於現在，我們能做的最重要的事情就是繼續獲取芯片並安裝電錶。好消息是我們沒有看到這些交易和積壓的任何取消。所以我們感覺很好。當然，我們希望我們有更多籌碼。但同樣，這些項目需要多年規劃，而公用事業公司往往不會在這些交易上倒退。

We'll take our next question from Michael Halloran with Baird.

我們將與 Baird 一起接受 Michael Halloran 的下一個問題。

So a couple here. First, just on the utility building cycle, which I suppose dovetails a little bit of the comments you just made there, Patrick. But what's the front log look at this point? And what's the -- and that's kind of part one of the question and what the kind of underlying thought process is at the utility level today? And then secondarily, any update on what the adoption looks like for the more technology-oriented pieces of that utility pie?

所以這裡有一對。首先，就公用事業建設週期而言，我想這與您剛剛在那裡發表的評論有一點吻合，帕特里克。但是此時前面的日誌是什麼？那是什麼——這是問題的一部分，以及今天實用程序級別的潛在思維過程是什麼？其次，關於該實用程序中更面向技術的部分的採用情況的任何更新？

Yes. So as you know, Mike, the -- so roughly 70% of our demand in utilities is OpEx. So it's repair replacement, very stable. If anything, right now, I would say it's probably overcharged because of just aging infrastructure and climate change. So we're seeing really strong growth there. CapEx, which is the 30% roughly, and this is a global number, not just the U.S. That's the one that we do keep close eye on throughout cycles. And as you know, what we've tended to see is the one driver that can lead to a reduction in CapEx spend historically if we were to see it, which we've not seen it yet. I mean our front log right now is very strong. The bidding pipeline is very strong right now. But if we were to see a slowdown in muni tax receipts, if we were to see a slowdown prolonged in residential expansion in the U.S., those things tend to be later cycle, so it'd be a couple of years down the road.

是的。所以，正如你所知，邁克，我們對公用事業的需求中大約 70% 是運營支出。所以是修換代換的，很穩定。如果有的話，現在，我會說它可能因為基礎設施老化和氣候變化而多收了錢。所以我們在那裡看到了非常強勁的增長。資本支出，大約是 30%，這是一個全球數字，而不僅僅是美國。這是我們在整個週期中密切關注的數字。正如你所知，我們傾向於看到的是一個驅動因素，如果我們看到它，它可以導致歷史上資本支出支出的減少，但我們還沒有看到它。我的意思是我們現在的前台日誌非常強大。招標管道現在非常強大。但是，如果我們看到市政稅收收入放緩，如果我們看到美國住宅擴張的放緩持續時間延長，那麼這些事情往往會出現在較晚的周期，所以這將是幾年後的事。

We're not seeing it right now, Mike, but that's what we would look for on, and that's on the wastewater side. Now historically, even during the past recessions around the world, if you set aside dewatering for a moment, which does tend to be more short cycle, and we diversified that part of the business away from kind of pure mining, oil and gas were much more in the muni space now and broader industrial space. But we would see it there. We haven't seen it. And we would ultimately see maybe a low single-digit kind of Water Infrastructure growth if we were to see a recession, but we've not seen that in our front logs at this point in time. So we're keeping a close eye on it, and we're trying to be responsible and prudent in our planning here.

邁克，我們現在還沒有看到它，但這就是我們要尋找的東西，而且是在廢水方面。現在從歷史上看，即使在過去世界各地的經濟衰退期間，如果你暫時擱置脫水，這確實往往會更短的周期，我們將這部分業務從純採礦、石油和天然氣中分離出來。現在更多在市政空間和更廣泛的工業空間。但我們會在那裡看到它。我們還沒有看到它。如果我們看到經濟衰退，我們最終可能會看到水利基礎設施的低個位數增長，但目前我們還沒有在我們的前沿日誌中看到這一點。所以我們正在密切關注它，我們正在努力在這裡的計劃中負責任和謹慎。

Great. Second one, just on the European side of things. It seems awfully resilient from you at this point. Just some thoughts on the trends you're seeing on that side.

偉大的。第二個，只是在歐洲方面。在這一點上，你似乎非常有彈性。只是對您在那邊看到的趨勢的一些想法。

Yes. We look at our results, Mike, in Europe, and they're very, very strong. We're also seeing good orders growth, especially on a year-to-date basis. And when we look historically and benchmark kind of one region to the other, Europe tends to be very steady. And I think you see very disciplined and resilient spend from the European, so I think -- the European market. So on the industrial side, we're not seeing a slowdown either. So we're staying close to it. We're talking very frequently with our commercial teams who are in constant contact with our customers. But so far, it's hanging in there.

是的。我們看看我們在歐洲的結果，邁克，它們非常非常強大。我們還看到良好的訂單增長，尤其是在年初至今的基礎上。當我們從歷史的角度看一個地區與另一個地區的基準時，歐洲往往非常穩定。而且我認為你看到歐洲人非常有紀律和有彈性的支出，所以我認為 - 歐洲市場。因此，在工業方面，我們也沒有看到放緩。所以我們離它很近。我們經常與我們的商業團隊交談，他們經常與我們的客戶保持聯繫。但到目前為止，它還懸在那裡。

Our next question comes from Scott Davis with Melius Research.

我們的下一個問題來自 Melius Research 的 Scott Davis。

Can we talk a little bit about M&A and your pipeline? And it seems your balance sheet is in just great shape and asset prices are coming down a bit. So just some color on that would be helpful.

我們能談談併購和你的管道嗎？而且您的資產負債表似乎狀況良好，資產價格略有下降。所以只是一些顏色會有所幫助。

Sure. Yes. So as you said, Scott, we've got a really strong balance sheet. I mean we've got $2 billion liquidity. We got probably firepower of north of $4 billion. We're not going to hesitate if the opportunity presents itself. Pipeline remains really robust. It's a combination of larger opportunities. But we've got a number of small, medium-sized opportunities that are out there, mainly in the utilities space, but also in the industrial services space. And so we're going to continue to be disciplined. As you well know, it always takes two to tango. But nothing's changed in our view on valuations and our discipline in that space.

當然。是的。正如你所說，斯科特，我們的資產負債表非常強勁。我的意思是我們有 20 億美元的流動資金。我們可能獲得了超過 40 億美元的火力。如果機會出現，我們不會猶豫。管道仍然非常強大。這是更大機會的組合。但我們有許多中小型機會，主要是在公用事業領域，但也在工業服務領域。因此，我們將繼續遵守紀律。眾所周知，探戈總是需要兩個人。但我們對估值的看法和我們在該領域的紀律沒有任何改變。

Okay. Helpful. And then can you guys just remind us, perhaps, Sandy, you can help with this on these big extreme moves we've had in FX, and you guys have a little bit different clearly situation than most of the companies we cover. But the net-net of all the different moves in FX, what that really means for you guys?

好的。有幫助。然後你們能不能提醒我們，也許，桑迪，你可以幫助解決我們在 FX 中採取的這些重大極端舉措，你們的情況與我們涵蓋的大多數公司略有不同。但是 FX 中所有不同移動的網絡，這對你們真正意味著什麼？

Yes. So I mean, I think when you look sort of year-over-year -- actually compared to our budget, we're seeing significant headwinds from a FX perspective. I would say from an EPS perspective, it's been a negative by about $0.15 to $0.20. We'll see where the things ultimately shake out in the fourth quarter because even over the past months, the FX rates have been volatile. But I think we're really proud of the team. That's one of the challenges we've been able to overcome when we look at sort of we started the year and where we stand today. Just as an example, we started the year planning for a euro assumption at 1.13, dipping down below a 1:1 ratio for the end of last quarter and into this quarter. So good work that we've been able to overcome, continue to stay disciplined and controlling what we can control.

是的。所以我的意思是，我認為當你看起來有點年復一年時——實際上與我們的預算相比，從外彙的角度來看，我們看到了巨大的阻力。我想說，從每股收益的角度來看，它的負收益約為 0.15 美元至 0.20 美元。我們將在第四季度看到事情最終會發生什麼變化，因為即使在過去幾個月裡，匯率也一直在波動。但我認為我們真的為團隊感到自豪。當我們審視今年的開端和今天所處的位置時，這是我們能夠克服的挑戰之一。舉個例子，我們年初計劃將歐元假設定為 1.13，在上個季度末和本季度跌破 1:1 的比率。如此出色的工作，我們已經能夠克服，繼續保持紀律並控制我們可以控制的事情。

We'll take our next question from Joe Giordano with Cowen.

我們將與 Cowen 一起接受 Joe Giordano 的下一個問題。

I thought it was interesting on the new role for a Chief Digital Officer. Can you talk about like the buy versus build proposition for a true digital platform kind of like on top of your AMI platform?

我認為首席數字官的新角色很有趣。你能談談像在你的 AMI 平台上建立一個真正的數字平台的購買與構建的建議嗎？

Sure. That's great question, Joe. So digital is certainly not new. So we've got a great foundation that we've already built, both organically as well as through a number of the acquisitions we've done. So Sai comes in really building on that solid foundation. We are continuing to look at the opportunity to both build internally which is really as much about talent capability, commercializing, selling those opportunities. But our pipeline from an M&A standpoint is still very much focused on adding other solutions and technologies to the mix. And I look forward to having Sai join us on one of our upcoming calls and share his perspective on what he sees and the opportunities in front of us. But it's a combination, Joe, between organic and M&A.

當然。這是個好問題，喬。所以數字化當然不是新事物。因此，我們已經建立了一個良好的基礎，無論是有機地還是通過我們已經完成的一些收購。所以 Sai 真正建立在這個堅實的基礎上。我們正在繼續尋找內部建設的機會，這實際上與人才能力、商業化和銷售這些機會一樣重要。但從併購的角度來看，我們的管道仍然非常專注於將其他解決方案和技術添加到組合中。我期待著 Sai 加入我們即將舉行的電話會議之一，並分享他對他所看到的事物和我們面前的機會的看法。但這是有機和併購之間的結合，喬。

Okay. Great. I know -- look, it's good to see the progress at M&CS, but I know that you're not happy with where margins are like big picture. So can you kind of walk us from where we're exiting this year to like what a 20% margin looks like at M&CS, like what on EBITDA, what things have to happen to get there?

好的。偉大的。我知道——看，很高興看到 M&CS 的進步，但我知道你對利潤率像大局一樣不滿意。那麼你能不能帶我們從今年我們退出的地方到像 M&CS 的 20% 利潤率的樣子，就像 EBITDA 一樣，要達到那裡必鬚髮生什麼事情？

Yes. I think great question, Joe. We've been working really hard to get our margins back up in the M&CS side. And obviously, volume plays a big role in that. we've talked historically that when we get revenue up into the $350 million level per quarter, you'll see revenues, you'll see EBITDA margins in the mid-teens.

是的。我認為這是個好問題，喬。我們一直在非常努力地工作，以恢復我們在 M&CS 方面的利潤率。顯然，音量在其中起著重要作用。從歷史上看，當我們的收入達到每季度 3.5 億美元的水平時，你會看到收入，你會看到 EBITDA 利潤率在十幾歲左右。

To get to the high teens, 20% benchmark, we need to be north of $400 million of revenue per quarter. And we are certainly focused on productivity initiatives, the disciplined steps we're taking around, pricing and looking at our backlog and incremental pricing opportunities there are an important catalyst as well. And then, of course, our backlog has a higher digital mix. And so that will naturally bring with it some higher margins. So it's a real combination of factors, and the good news is we've seen some uptick in the revenue, a little bit of a flattening from Q2 to Q3, and we'll expect that continued moderation and then another kind of step up more in the back half of next year.

要達到 20% 的高標準，我們需要每季度的收入超過 4 億美元。我們當然專注於生產力舉措，我們正在採取的紀律措施，定價和查看我們的積壓和增量定價機會也是一個重要的催化劑。然後，當然，我們的積壓工作具有更高的數字組合。因此，這自然會帶來更高的利潤。所以這是一個真正的因素組合，好消息是我們已經看到收入有所上升，從第二季度到第三季度有點持平，我們預計會繼續放緩，然後再出現另一種更進一步的增長明年下半年。

And Joe, I would just add that one of the things that we've not really punctuated in the past is as we were going through the redesign of our chips to be able to help support our customers through this challenging time to move these installations along, there were costs that we added in our P&L to support that. At the same time, we had to redirect some engineering resources away from classic productivity, continuous improvement. So we're working through that. But despite that, you see the margin expansion that we've laid out in the quarter and that we expect for the year and that we expect to win the next year. So I just want to make sure we're making strategic choices here to take care of our customers, not just for the future, for the long run, but like right now because that's the value they expect from us.

Joe，我想補充一點，我們過去沒有真正強調的一件事是，我們正在重新設計我們的芯片，以便能夠幫助支持我們的客戶度過這個充滿挑戰的時期來推動這些安裝，我們在損益表中增加了成本來支持這一點。與此同時，我們不得不將一些工程資源從傳統的生產力、持續改進中轉移出來。所以我們正在努力解決這個問題。但儘管如此，你會看到我們在本季度製定的利潤率擴張以及我們預計今年以及我們預計明年會贏得的利潤率擴張。所以我只想確保我們在這裡做出戰略選擇來照顧我們的客戶，不僅僅是為了未來，為了長期，而是為了現在，因為這是他們對我們的期望值。

That all makes sense. And just last quick for me. Just given how shorter cycle AWS is, I know backlog is extended there, but it's like the shortest backlog throughout the company. And just when I think about price in this quarter at 1,000 basis points, when price starts to normalize and orders are coming down and that business just starts to get to more like reasonable levels, what do we -- how do we think about like margin deleveraging in that kind of scenario? You made a lot of progress there. So how much of that do you expect to be able to hold on to as volumes kind of come down?

這一切都說得通。對我來說很快就結束了。考慮到 AWS 的周期有多短，我知道那裡的積壓情況很嚴重，但這就像是整個公司最短的積壓情況。就在我考慮本季度的價格在 1,000 個基點時，當價格開始正常化並且訂單減少並且該業務剛剛開始達到更合理的水平時，我們 - 我們如何考慮保證金在這種情況下去槓桿化？你在那裡取得了很大的進步。那麼，隨著銷量的下降，您希望能夠保留多少？

Yes. I think one thing that is important to remember is if you look back the past few quarters, our price increases were not in line with inflation. So we're now at a point where we're getting back to our more historical margins, and we can drive margin expansion through productivity levels and incremental growth. So I think we're getting back to a place that's good and healthy for that business and a lot of work to make that happen.

是的。我認為有一件重要的事情要記住，如果你回顧過去幾個季度，我們的價格上漲與通貨膨脹不符。因此，我們現在正處於回到歷史利潤率的地步，我們可以通過生產率水平和增量增長來推動利潤率的增長。因此，我認為我們正在回到一個對該業務有利且健康的地方，並且需要做大量工作才能實現這一目標。

And we continue, Joe, to make investments in innovation and R&D within that segment also within Water Infrastructure. I know M&CS has kind of gotten more the headline over the last few years. But we continue to make increases in R&D spend in those segments because that kind of refreshment of our offerings and portfolio, we see and our new products that we bring to market that they've got much higher margin and growth rates than what they're replacing. So it's important to note that there's a refresh that continues to go on in both of those segments.

Joe，我們繼續在水基礎設施的該領域內對創新和研發進行投資。我知道在過去幾年裡，M&CS 越來越成為頭條新聞。但我們繼續增加這些領域的研發支出，因為我們看到我們的產品和產品組合的更新，以及我們推向市場的新產品，它們的利潤率和增長率比現在高得多更換。因此，請務必注意，這兩個細分市場都在繼續進行更新。

We'll take our next question from Andrew Kaplowitz with Citigroup.

我們將從花旗集團的 Andrew Kaplowitz 那裡回答下一個問題。

Patrick, I know you've said that you have elevated backlog and a strong pipeline of opportunities, but just focusing on orders for a second, down a bit this quarter, they decelerated over the last couple of quarters. I know it's really just more difficult comps. But you did mention a little slower U.S. in Applied Water, for instance. So could you give us some more color into what you're seeing in orders? And whether you believe orders will continue to decelerate or how to think about orders going into '23?

帕特里克，我知道你說過你有大量的積壓和大量的機會，但只關注第二個訂單，本季度略有下降，他們在過去幾個季度減速。我知道這真的只是更難的比賽。但是，例如，您確實在 Applied Water 中提到了美國的發展速度稍慢。那麼你能給我們更多關於你在訂單中看到的顏色嗎？您是否相信訂單會繼續減速，或者如何考慮進入 23 世紀的訂單？

Sure. So we feel good about the trend lines on demand. And again, that goes back to the question around what our front logs look like in terms of bidding pipeline, whether that be AMI, whether that be treatment, which is a precursor for wastewater demand, and we see healthy demand within our channel partners, even on the Applied Water side. So it is really a year-over-year comp issue. If you look at our orders year-to-date, we're still up 7% year-to-date, and it really is a tough comp in the third quarter. I would say that, again, it varies by end market.

當然。因此，我們對按需趨勢線感覺良好。再一次，這又回到了圍繞我們的前端日誌在投標管道方面是什麼樣子的問題，無論是 AMI，還是處理，這是廢水需求的先兆，我們看到我們的渠道合作夥伴有健康的需求，即使在 Applied Water 方面。所以這真的是一個年復一年的補償問題。如果你看看我們年初至今的訂單，我們今年迄今仍然增長了 7%，這在第三季度確實是一個艱難的競爭。我要說的是，它因終端市場而異。

We've obviously -- we haven't talked China, for example. China is 7% of our revenue. China was up 10% in the third quarter on revenue. But I would say that the public utility funding there in China has been pushed to the right because of the lockdown restrictions there. But we still expect there to be a recovery in utilities, but it's probably not going to be until later next year. And there is no change in our long-term plan or outlook on China. But it's a meaningful part of our revenue, and we've overcome that with demand across the rest of the portfolio. So the fundamentals are there.

例如，我們顯然——我們還沒有談到中國。中國占我們收入的 7%。中國第三季度的收入增長了 10%。但我要說的是，由於那裡的封鎖限制，中國的公用事業資金已被推向右翼。但我們仍然預計公用事業會出現復甦，但可能要到明年晚些時候才會出現。我們對中國的長期計劃或展望沒有改變。但這是我們收入的重要組成部分，我們已經通過其餘投資組合的需求克服了這一點。所以基本面就在那裡。

We are watching all the signs. We've got our KPIs that we track, especially in our short-cycle businesses. We have seen some moderation, as Sandy said earlier, in residential, which is a very small part of our business. We've seen some slowdown in a couple of other small pieces of our business. So we'll keep a close eye on it. I mean we're not out of the woods yet. But even in commercial, the ABI, the Architectural Billing Index, is still strong at north of 50%. And when it's north of 50%, that indicates strength in that part of our segment, which we continued to see growth in. But again, we're keeping a close eye on all this, Andy.

我們正在觀察所有跡象。我們有我們跟踪的 KPI，尤其是在我們的短週期業務中。正如桑迪之前所說，我們在住宅領域看到了一些緩和，這只是我們業務的一小部分。我們已經看到我們其他幾項小業務出現了一些放緩。所以我們會密切關注它。我的意思是我們還沒有走出困境。但即使在商業領域，建築計費指數 ABI 仍然保持在 50% 以上的強勁勢頭。當它超過 50% 時，這表明我們細分市場的這一部分的實力，我們繼續看到增長。但是，我們再次密切關注這一切，安迪。

Very helpful, Patrick. And maybe if I could just follow up on your dewatering business. kind of a similar question. I know you raised your industrial growth to low teens, but what are your industrial customers telling you about the opportunities in dewatering? And do you see those orders staying positive and dewatering into '23?

很有幫助，帕特里克。也許我可以跟進您的脫水業務。類似的問題。我知道你把你的工業增長提高到十幾歲，但你的工業客戶告訴你脫水的機會是什麼？您是否看到這些訂單保持積極並在 23 年之前減少？

Yes, Andy, good question. We're seeing both strong revenue conversion in dewatering and we're seeing good orders momentum there. I think Patrick referenced a little bit earlier on the call. I think there are some important things to note if you look at our business today than what our business looked like a couple of years ago. Seeing good Emerging Markets growth, good growth, that includes Latin America as well where they're seeing good activity. We've made some investments on the rental fleet in really all of our markets on a global basis. And those projects are -- have good returns, fast paybacks. We're seeing a lot of that equipment out on order and converting to revenue. And we're still seeing resiliency on our equipment sales side of the business in dewatering. Put it right up there in one of those end markets that we need to really continue to focus on. It is absolutely one of the shorter cycle businesses and understanding the -- what our customers are seeing is important there. So -- but so far, that's been pretty resilient.

是的，安迪，問得好。我們在脫水領域看到了強勁的收入轉化，而且我們看到那裡的訂單勢頭良好。我認為帕特里克在電話會議上早些時候提到過。如果你看看我們今天的業務，而不是幾年前的情況，我認為有一些重要的事情需要注意。看到新興市場的良好增長，良好的增長，包括拉丁美洲以及他們看到良好活動的地方。我們已經在全球範圍內對我們所有市場的租賃車隊進行了一些投資。這些項目是——有良好的回報，快速的回報。我們看到很多設備已訂購併轉化為收入。而且我們仍然看到我們在脫水業務的設備銷售方面的彈性。把它放在我們真正需要繼續關注的終端市場之一。它絕對是周期較短的業務之一，並且了解 - 我們的客戶所看到的在那裡很重要。所以 - 但到目前為止，這是非常有彈性的。

I would just add, Andy, that the thing -- when we say customers and dewatering, there's the part that we handle direct, where we have our rental fleet and then there are our channel partners that we actually replenish their fleet and then they have their own rental fleet. And in the past, the part of that business that can turn very quickly is if our channel partners that are all local around the U.S. predominantly, if they get nervous and they see things, they then pull back on replenishing their fleet, and that can happen very short cycle. And so we are in regular calls with them to get a feel for how they're feeling about the general macro economy right now. Thus far, it's strong and resilient, but that's the area that we would keep a very close eye on.

安迪，我只想補充一點——當我們說客戶和脫水時，有我們直接處理的部分，我們有我們的租賃車隊，然後是我們的渠道合作夥伴，我們實際上補充他們的車隊，然後他們有他們自己的租賃車隊。過去，如果我們的渠道合作夥伴主要都在美國各地，如果他們感到緊張並且看到事情，他們就會撤回補充他們的車隊，而在過去，該業務可以很快轉變的部分，那可以發生週期很短。因此，我們定期與他們通電話，了解他們目前對總體宏觀經濟的看法。到目前為止，它是強大而有彈性的，但這是我們將密切關注的領域。

We'll take our next question from Brian Lee with Goldman Sachs.

我們將與高盛一起接受 Brian Lee 的下一個問題。

I guess first question I had, just following up on an earlier one. Price read out by almost 250 basis points more this quarter than in 2Q. It sounded like based on Sandy's comments that maybe you're starting to see a peaking sort of cadence in terms of price. So I just wanted to make sure that I heard that correctly. And as we start to lap some of the price increases over the past year and we head into '23, are we thinking more like a typical low single-digit price year starting early next year, just kind of get a sense of the cadence of price remain into next year?

我想我的第一個問題只是跟進一個較早的問題。本季度的價格比第二季度高出近 250 個基點。這聽起來像是基於桑迪的評論，也許你開始看到價格方面的峰值節奏。所以我只是想確保我沒聽錯。當我們開始迴避過去一年的部分價格上漲並進入 23 年時，我們是否認為從明年初開始更像是一個典型的低個位數價格年，只是了解一下節奏價格保持到明年？

Yes, Brian, I think I touched on it a little bit earlier. Last year, starting in Q4 is really where we started to see some of the impact of our price increases, hitting our revenue. So absolutely, the compares start to get tougher, a little bit tougher next quarter. I think you're going to still see strong pricing. It should be one of the key drivers for the margin expansion that we're calling for. And then we're obviously -- pricing has become very dynamic. It's not a decision we make at one point in time. We need to continue to take all the inputs from what we're seeing on all the different components of our bill of materials, everything from the commodities we buy to the freight costs to deliver the product. So I'm not going to share what our full price realization looks like for 2023 at this time. Certainly, we're in a much, much better position as we go into '23 from an equilibrium perspective around on price cost.

是的，布賴恩，我想我之前提到過它。去年，從第四季度開始，我們確實開始看到價格上漲的一些影響，影響了我們的收入。所以絕對地，比較開始變得更加艱難，下個季度更加艱難。我認為你仍然會看到強勁的定價。它應該是我們所要求的利潤率擴張的主要驅動力之一。然後我們顯然 - 定價變得非常動態。這不是我們在某個時間點做出的決定。我們需要繼續從我們在物料清單的所有不同組件上看到的內容中獲取所有輸入，從我們購買的商品到交付產品的運費。所以我現在不打算分享我們 2023 年的全價實現情況。當然，當我們從圍繞價格成本的均衡角度進入 23 世紀時，我們的處境要好得多。

Absolutely. Yes, makes sense. And I guess a follow-up here, just not to focus too much on the short term. But if I look at the guidance here for 4Q, I know nothing about the past couple of years has been sort of normal, but it does imply a pretty flattish performance across key metrics, revenue, EBITDA, operating margin. Seasonally, you typically have a pretty meaningful increase from 3Q to 4Q across a lot of those headline metrics. So kind of walk us through, is there anything impacting near-term seasonality in the model here? You just kind of working off more backlog in 3Q than you expected? Just any sense of why this year, maybe 3Q to 4Q is a little bit lighter than you typically see in past years?

絕對地。是的，有道理。我想這裡有一個後續行動，只是不要過分關注短期。但如果我看一下這裡的第四季度指引，我不知道過去幾年是正常的，但這確實意味著關鍵指標、收入、EBITDA、營業利潤率的表現相當平淡。季節性地，在許多標題指標中，從第三季度到第四季度，您通常會有非常有意義的增長。那麼請帶我們了解一下，這裡的模型中是否有任何影響近期季節性的因素？您只是在第三季度處理了比預期更多的積壓工作？只是為什麼今年，也許第三季度到第四季度比你過去幾年通常看到的要輕一點？

Yes. I think you touched on a bit of it, Brian. If you look at particularly our Water Infrastructure business, we typically see a bigger drop-off Q2 to Q3. We didn't see that as much this year. That was a big part of why our revenue came in higher. And so as a result of that, we see more of a flattening Q3 to -- we still see a little bit of a step-up going into Q4 on Water Infrastructure, but not as dramatic. And some of that is -- we did see a little bit of supply chain improvement, and we got some more projects across the finish line. So for the full year, yes, Q3 and Q4 look good. It's a big step-up from what we saw in the first half, and we're exiting the year right in line with what we were expecting.

是的。布賴恩，我想你略微提到了一點。如果您特別關注我們的水利基礎設施業務，我們通常會看到第二季度到第三季度的跌幅更大。今年我們沒有看到那麼多。這是我們收入增加的一個重要原因。因此，我們看到第三季度更多的是扁平化——我們仍然看到水基礎設施進入第四季度有一點提升，但沒有那麼顯著。其中一些是 - 我們確實看到了供應鏈的一些改進，並且我們在終點線完成了更多項目。所以對於全年，是的，第三季度和第四季度看起來不錯。與我們上半年看到的情況相比，這是一個很大的進步，我們將按照我們的預期結束這一年。

Yes. And I think, Brian, the other -- I mean, regionally, the 2 areas that I would say that we're just seeing things playing out a little bit differently this year than we have in the past. I mentioned earlier, things shifting to the right in China. And again, we have the uncertainties in Europe. And so we just think it's prudent to build that into our outlook for Q4.

是的。我認為，布賴恩，另一個——我的意思是，在區域上，我想說的是我們今年看到的事情與過去有所不同。我之前提到過，中國正在向右轉。再一次，我們在歐洲有不確定性。因此，我們只是認為將其納入我們對第四季度的展望是明智的。

We'll take our next question from Saree Boroditsky with Jefferies.

我們將與 Jefferies 一起接受 Saree Boroditsky 的下一個問題。

A lot has been covered on the call, but there is a big differential between the strong order growth -- between Applied Water growth and the decline in orders. So since you expect to work down the backlog through this year, how do you think about growth as we head into 2023?

電話會議涵蓋了很多內容，但在 Applied Water 增長與訂單下降之間，強勁的訂單增長之間存在很大差異。因此，由於您希望在今年完成積壓工作，您如何看待我們進入 2023 年時的增長？

Is that specifically for Applied Water?

是專門針對 Applied Water 的嗎？

Yes, yes, for Applied Water.

是的，是的，對於 Applied Water。

Yes, I'll take it. We obviously have a very elevated backlog in AWS. We have more than doubled the backlog than we typically have in any one quarter. And so I think if -- we actually are able to work some of that backlog down. I think it's a real positive sign that supply chains are improving, that customers are reverting back to more typical ordering patterns. And as we look at that business longer term, it's probably the lowest grower in our portfolio. It delivers a lot of cash. It's a good operating business for us. But over a longer-term basis, it's low to mid-single-digit grower in our portfolio. And when do we exactly revert to those levels, and it will take a little bit of time to work through the backlog. But that's sort of how we see that business longer term fitting into our portfolio.

是的，我會接受的。顯然，我們在 AWS 中的積壓量非常高。我們的積壓訂單比通常任何一個季度都多一倍多。所以我認為如果 - 我們真的能夠處理一些積壓的工作。我認為這是一個真正的積極信號，表明供應鏈正在改善，客戶正在恢復到更典型的訂購模式。當我們從長遠來看該業務時，它可能是我們投資組合中增長最低的業務。它提供了大量現金。這對我們來說是一項很好的經營業務。但從長期來看，它是我們投資組合中低到中個位數的增長者。我們什麼時候才能完全恢復到這些水平，並且需要一點時間來處理積壓的工作。但這就是我們如何看待該業務長期適合我們的投資組合。

Yes. I mean, we look at that part of our portfolio as market growth itself is GDP on a global basis. And we always look to and have historically beat that by some share gain. And that comes through investments in innovation through R&D. We continue to refresh the portfolio. But to Sandy's point, we're coming off of elevated backlogs due to one demand but also supply chain constraints. We'll see that normalize as we go into 2023. And in our upcoming call, we'll lay out by segment what our outlook is for '23.

是的。我的意思是，我們將投資組合的這一部分視為市場增長本身就是全球 GDP。我們一直期待並在歷史上以一定的份額收益擊敗它。這是通過研發創新投資實現的。我們繼續更新產品組合。但就 Sandy 的觀點而言，由於一種需求以及供應鏈的限制，我們正在擺脫積壓的局面。我們將在進入 2023 年時看到這種情況正常化。在我們即將舉行的電話會議中，我們將按細分市場列出我們對 23 年的展望。

Great. That's helpful. And then obviously, you put out the strong book to build in AMI. How long and advanced are you seeing customers place their orders? And then when does this show up in revenues?

偉大的。這很有幫助。然後很明顯，您推出了一本強大的書來構建 AMI。您看到客戶下訂單多長時間和提前多久？然後這什麼時候出現在收入中？

AMI is a -- it's a very long selling cycle. It's a big decision for the utilities to make -- we're working on RFPs that go out anywhere from 1 to 3 years. We have a big backlog in M&CS. If you look today, we still have about 1/4 of it that's past due. And so we're going to start working through that as chip supply recover. What we're most excited about is that the pipeline remains strong. We're winning a good percentage of those awards. And the value proposition is very, very sound. So...

AMI 是——這是一個非常長的銷售週期。這是公用事業公司做出的重大決定——我們正在研究 1 到 3 年的 RFP。我們在 M&CS 方面積壓了大量工作。如果您今天看一下，我們仍有大約 1/4 已逾期。因此，隨著芯片供應的恢復，我們將開始解決這個問題。最讓我們興奮的是管道依然強勁。我們贏得了這些獎項中的很大一部分。價值主張非常非常合理。所以...

We are still early in the conversion of large utilities across the U.S. to AMI, let alone the smaller- to medium-sized utilities. So that's why the front log, the bidding pipeline looks so attractive across the market, and that's why we remain confident. But these are long-term deals that take a while to negotiate, and we're pleased with our position.

我們仍處於美國大型公用事業向 AMI 轉換的早期階段，更不用說中小型公用事業了。這就是為什麼前端日誌、投標管道在整個市場上看起來如此有吸引力，這就是我們保持信心的原因。但這些都是需要一段時間談判的長期交易，我們對我們的立場感到滿意。

It appears that we have no further questions at this time. I will now turn the program back over to Patrick Decker for any additional or closing remarks.

看來我們現在沒有其他問題了。我現在將把程序轉回給帕特里克·德克爾，聽取任何補充或結束語。

Well, thanks, everyone, for joining us this morning and for your continued interest and support. Really appreciate it. I know between now and the next earnings call, we'll have a chance to meet with many of you in person. Between now and then, stay safe and safe travels. Look forward to seeing you. Thank you.

好吧，謝謝大家今天早上加入我們，感謝你們一直以來的關注和支持。真的很感激。我知道從現在到下一次財報電話會議，我們將有機會與你們中的許多人見面。從現在到那時，保持安全和安全的旅行。很期待見到你。謝謝你。

Thank you. This concludes today's Xylem Third Quarter 2022 Earnings Conference Call. Please disconnect your line at this time and have a wonderful day.

謝謝你。今天的 Xylem 2022 年第三季度收益電話會議到此結束。請此時斷開您的線路，祝您有美好的一天。