Oliver Jiang

Oliver Jiang, on behalf of Angel Castillo at Morgan Stanley, asked for details on international demand for freight and transit, the impact of geopolitics on the multi-year backlog, and the company's near-term capital allocation strategy.

Answer

CEO Rafael Santana described the current opportunity pipeline as the strongest since the GE merger, with significant activity in both international and domestic markets providing solid coverage into 2025. CFO John Olin added that while the capital allocation strategy remains focused on M&A, the near-term priority is to reduce the net debt leverage ratio in anticipation of funding upcoming acquisitions.

Oliver Jiang, on behalf of Angel Castillo at Morgan Stanley, asked for details on international demand trends in freight and transit, the impact of geopolitics, and whether this was affecting the multi-year backlog. He also inquired about near-term capital allocation priorities.

Answer

CEO Rafael Santana described the current international and domestic project pipeline as the strongest since the GE merger and expressed confidence in continued backlog growth. CFO John Olin added that while M&A remains a focus, the near-term capital allocation priority is to reduce the net debt leverage ratio in anticipation of closing the Frauzer and Delner acquisitions.