ATI Inc (ATI) 2025 Q2 法說會逐字稿

Hello, and welcome, everyone, to the ATI second-quarter 2025 results conference call. My name is Becky, and I'll be your operator today. (Operator Instructions)

大家好，歡迎參加 ATI 2025 年第二季業績電話會議。我叫貝基，今天我將擔任您的接線生。（操作員指示）

I will now hand over to your host, David Weston, Vice President of Investor Relations, to begin. Please go ahead.

現在我將把主持人、投資者關係副總裁戴維·韋斯頓 (David Weston) 交給他開始。請繼續。

Thank you. Good morning, and welcome to ATI's second-quarter 2025 earnings call. Today's discussion is being webcast online at atimaterials.com. Participating in today's call to share key points from our second-quarter results are Kim Fields, President and CEO; and Don Newman, Executive Vice President and CFO.

謝謝。早上好，歡迎參加 ATI 2025 年第二季財報電話會議。今天的討論將在 atimaterials.com 進行網路直播。總裁兼執行長 Kim Fields 和執行副總裁兼財務長 Don Newman 將出席今天的電話會議，分享我們第二季業績的要點。

Before starting our prepared remarks, I would like to draw your attention to the supplemental presentation that accompanies this call. Those slides provide additional color and details on our results and outlook. It can also be found on our website at atimaterials.com. After our prepared remarks, we'll open the line for questions. As a reminder, all forward-looking statements are subject to various assumptions and caveats. These are noted in the earnings release and in the accompanying presentation.

在開始我們的準備好的演講之前，我想提請大家注意本次電話會議附帶的補充介紹。這些幻燈片為我們的業績和前景提供了更多細節。您也可以造訪我們的網站 atimaterials.com 取得。準備好發言後，我們將開放提問專線。提醒一下，所有前瞻性陳述都受各種假設和警告的影響。這些都在收益報告和隨附的簡報中有所提及。

Now I'll turn the call over to Kim.

現在我將把電話轉給金。

Thanks, Dave. Good morning, everyone, and thank you for joining us. Q2 was another strong quarter for ATI. We continue to exceed expectations driven by operational performance and the high-value products we deliver for commercial jet engines. As the aerospace recovery accelerates, ATI is exceptionally well positioned to grow and step with our customers and ahead of the market.

謝謝，戴夫。大家早安，感謝大家的收看。第二季度對 ATI 來說又是一個表現強勁的季度。我們繼續超越營運績效和為商用噴射發動機提供的高價值產品的期望。隨著航空航太業復甦的加速，ATI 已做好充分準備，與客戶一起成長並引領市場。

Let's walk through the key financial results. Revenue grew 4% year over year, again exceeding $1.1 billion. Adjusted EBITDA reached $208 million, surpassing the top end of our guidance. Adjusted earnings per share came in at $0.74, also above our projected range.

讓我們來看看主要的財務結果。營收年增4%，再次超過11億美元。調整後的 EBITDA 達到 2.08 億美元，超過了我們預期的最高水準。調整後的每股收益為 0.74 美元，也高於我們的預期範圍。

Our adjusted EBITDA margin reached 18.2%, a long-standing performance target. A key contributor was our High Performance Materials & Components segment, which delivered margins of 23.7%, a 350-basis-point improvement from Q2 2024. This expansion reflects favorable product mix, strong price, and operational execution. We expect margin strength to build as A&D continues to lead our growth.

我們的調整後 EBITDA 利潤率達到了 18.2%，這是一個長期以來的業績目標。我們的高性能材料和組件部門是其中一個主要貢獻者，其利潤率為 23.7%，比 2024 年第二季提高了 350 個基點。此次擴張反映了良好的產品組合、強勁的價格和營運執行。我們預計，隨著 A&D 繼續引領我們的成長，利潤率將會增強。

Adjusted free cash flow was $93 million, a 94% increase year over year. We remain disciplined in our capital deployment and focus on working capital efficiency, while making smart investments to support future growth and reliability.

調整後的自由現金流為 9,300 萬美元，年增 94%。我們在資本配置方面保持嚴謹，注重營運資本效率，同時進行明智的投資以支持未來的成長和可靠性。

We also returned capital to shareholders with conviction, executing $250 million in share repurchases during the quarter. That brings our total buyback since 2022 to over $800 million, and we still have $270 million remaining under our current authorized repurchase program. Based on our performance and the near-term commercial jet engine demand, we've raised the midpoint of our full-year guidance for adjusted EBITDA, EPS, and adjusted free cash flow. Our team is executing, our strategy is working, and our outlook is compelling.

我們也堅定地向股東返還資本，在本季執行了 2.5 億美元的股票回購。這使得我們自 2022 年以來的總回購額超過 8 億美元，並且根據我們目前的授權回購計劃，我們仍有 2.7 億美元剩餘。根據我們的業績和近期商用噴射發動機需求，我們提高了全年調整後 EBITDA、EPS 和調整後自由現金流預期的中點。我們的團隊正在執行，我們的策略正在發揮作用，我們的前景令人信服。

As we turn to the markets, let me begin with an exciting update. We signed a new long-term guaranteed volume agreement with Boeing for airframe products. This contract is both an extension and an expansion of our partnership, covering long and flat rolled products. It includes material from our new titanium alloy sheet operation in Pageland, South Carolina. It's a clear validation of ATI as a long-term strategic supplier and a critical part of the aerospace supply chain.

當我們轉向市場時，讓我先來了解一個令人興奮的最新消息。我們與波音公司簽署了新的機身產品長期保證產量協議。該合約是我們合作夥伴關係的延伸和擴展，涵蓋長軋和扁平軋製產品。其中包括來自我們位於南卡羅來納州佩奇蘭的新鈦合金板材工廠的材料。這明確證明了 ATI 是一家長期策略供應商，也是航空航太供應鏈的重要組成部分。

Earlier in the quarter, we announced a new significantly expanded agreement with Airbus. That agreement now positions ATI as Airbus' top of titanium flat rolled and long products. Both strategic contract wins signal that ATI is earning greater customer share. We're locking in long-term commitments and scaling in lockstep with the growing needs of the aerospace industry. These wins affirm the investments we've made in capacity, technology and customer alignment.

本季度早些時候，我們宣布與空中巴士公司達成了一項新的、大幅擴大的協議。該協議使 ATI 成為空中巴士鈦扁軋和長材產品的頂級供應商。兩場策略合約的勝利表明 ATI 正在贏得更大的客戶份額。我們正在鎖定長期承諾，並根據航空航天業日益增長的需求同步擴大規模。這些勝利肯定了我們在產能、技術和客戶協調方面所做的投資。

Some near-term volatility remains as the airframers balance inventory with supply chain realities; we anticipated this. What matters is how we're positioned as the ramp and build rate accelerates, our ability to deliver with reliability and scale.

由於飛機製造商需要平衡庫存和供應鏈現實，短期內仍會存在一些波動；我們預料到了這一點。重要的是，隨著產能提升和建造速度加快，我們如何定位，以及我們是否有能力可靠、大規模地交付產品。

Moving on to commercial jet engines, the core of ATI's growth in 2025. In Q2, we grew commercial jet engine sales 27%. Year to date, we're up 31% year over year through the first half of 2025. We expect full year jet engines growth to exceed 20%, and we believe there's more upside ahead. Customers continue to report expanding backlog and are raising production forecast to double-digit CAGRs through the end of the decade.

轉向商用噴射發動機，這是 ATI 2025 年成長的核心。第二季度，我們的商用噴射發動機銷量成長了 27%。截至目前，截至 2025 年上半年，我們的業績年增 31%。我們預計全年噴射引擎的成長率將超過 20%，我們相信未來將有更大的上漲空間。客戶繼續報告積壓訂單不斷增加，並將產量預測提高到本世紀末兩位數的複合年增長率。

MRO activity is climbing steadily, particularly for next-gen engines like LEAP, as GE shared on their earnings call earlier this month. ATI is heavily weighted towards those next-gen platforms with more than twice the opportunity of legacy programs. That shift in the installed base represents sustained profitable growth for ATI through the 2030s. These are long-term contracts with high-value content and they align perfectly with our differentiated capabilities.

正如通用電氣在本月初的收益電話會議上所分享的那樣，MRO 活動正在穩步攀升，特別是對於 LEAP 等下一代引擎而言。ATI 非常重視那些擁有比傳統課程多兩倍以上機會的下一代平台。安裝基數的轉變代表著 ATI 在整個 2030 年代將實現持續的獲利成長。這些都是具有高價值內容的長期合同，與我們的差異化能力完美契合。

Defense remains a reliable and sustainable growth driver for ATI in 2025, and we're on track to deliver our third straight year of double-digit growth. We're securing strong positions on several key international programs as the US has deprioritized ground vehicle programs, opportunities in Europe are leading to increase commitments for high-value materials like armor plate and aero grade titanium.

國防仍然是 2025 年 ATI 可靠且可持續的成長動力，我們預計將連續第三年實現兩位數成長。由於美國降低了地面車輛項目的優先級，我們在幾個關鍵的國際項目中佔據了強勢地位，歐洲的機會正在導致對裝甲板和航空級鈦等高價值材料的承諾增加。

We're proud to be part of the US Army's FLRAA program, the successor to the Black Hawk. ATI materials play a critical role on the MV-75, flying faster and farther, enabling the performance our soldiers need to address future conflicts. Our titanium, specialty steels and forgings are proven to perform in the most challenging environments.

我們很榮幸能夠成為美國陸軍 FLRAA 計劃的一部分，該計劃是黑鷹的繼任者。ATI 材料在 MV-75 上發揮著至關重要的作用，它能飛得更快、更遠，使我們的士兵具備應對未來衝突所需的性能。事實證明，我們的鈦、特殊鋼和鍛造件能夠在最具挑戰性的環境中發揮作用。

As we look to the second half of the year, we expect delivery timing in naval nuclear programs, titanium armor plate, and rotary wing forgings to contribute meaningfully to our continued defense growth. Outside of A&D, specialty energy remains an exciting growth opportunity with rising demand in commercial nuclear and land-based gas turbines. We are gaining share in these markets and making discrete investments to expand supporting capacity.

展望下半年，我們預計海軍核子計畫、鈦裝甲板和旋翼鍛件的交付時間將對我們持續的國防成長做出重大貢獻。除了航空航太和國防領域，隨著商用核能和陸基燃氣渦輪機需求的不斷增長，特種能源仍然是一個令人興奮的成長機會。我們正在這些市場中獲得份額，並進行獨立投資以擴大支援能力。

Our strategy has positioned us well, and it is delivering. The team is executing with consistency and we're scaling the purpose, investing where it matters most to serve our customers and deliver value to our shareholders.

我們的策略為我們做好了充分的準備，並且正在取得成效。團隊正在一致執行，我們正在擴大目標，在最重要的地方進行投資，以服務我們的客戶並為股東創造價值。

The first half of 2025 confirms we are on the right path. Long-term agreements and customer commitments give us visibility and confidence in the future. Our strategic focus is clear: to achieve consistent profitable growth through innovation, performance, and partnerships. We believe the best is yet to come for ATI, our customers, and our shareholders.

2025 年上半年證實我們正走在正確的道路上。長期協議和客戶承諾讓我們對未來充滿信心。我們的策略重點很明確：透過創新、績效和合作實現持續的獲利成長。我們相信，對 ATI、我們的客戶和股東來說，最好的未來還在後頭。

With that, I will turn it over to Don.

說完這些，我會把麥克風交給唐。

Thanks, Kim. I'll provide additional insights into our second-quarter and first-half performance and then look ahead to Q3 and the full-year outlook. In Q2, we delivered earnings, EBITDA margins and cash flow ahead of expectations. Revenue in the second quarter was approximately $1.14 billion, an increase of 4% year over year. In Q2, our adjusted EBITDA was nearly $208 million, delivering a 14% increase year over year and a 7% increase over a strong first quarter.

謝謝，金。我將對我們的第二季和上半年業績提供更多見解，然後展望第三季和全年前景。在第二季度，我們的獲利、EBITDA 利潤率和現金流均超出預期。第二季營收約11.4億美元，年增4%。第二季度，我們的調整後 EBITDA 接近 2.08 億美元，年增 14%，比強勁的第一季成長 7%。

Contribution margins in the second quarter were almost 50%. Overall, adjusted EBITDA margin for Q2 was above 18%. Through the first half of 2025, our revenue growth is 7% above 2024, and adjusted EBITDA growth is 21% above 2024. You can clearly see the benefits of price, volume, and mix in our sales even ahead of the full effects of the commercial aero production ramp.

第二季的貢獻利潤率接近50%。整體而言，第二季調整後的 EBITDA 利潤率超過 18%。到 2025 年上半年，我們的營收成長率將比 2024 年高出 7%，調整後的 EBITDA 成長率將比 2024 年高出 21%。即使在商用航空生產成長的全面影響顯現之前，您也可以清楚地看到我們的銷售在價格、數量和產品組合方面的優勢。

Our continued efforts to optimize costs and improve performance within our operations are also key drivers. As noted, HPMC margins were up 130 basis points sequentially and 350 basis points year over year. Our advanced alloys and unique forging capabilities are at the center of profitable growth within this segment. We expect this performance and momentum to continue building into the coming year.

我們持續努力優化成本並提高營運績效也是關鍵驅動因素。如上所述，HPMC 利潤率較上季上漲 130 個基點，較去年同期上漲 350 個基點。我們的先進合金和獨特的鍛造能力是該領域獲利成長的核心。我們預計這種表現和勢頭將在來年繼續保持。

Our sustained strong performance in A&D drives continuing margin expansion. With our contractually secured customer base come higher margins from increased volumes, pricing, and product mix.

我們在航空航太和國防領域持續強勁的表現推動了利潤率的持續擴大。透過合約保障的客戶群，我們可以透過增加銷售量、定價和產品組合來獲得更高的利潤。

As anticipated, AA&S took a sequential step back in Q2 after a strong Q1. This reflects timing impacts in airframe, defense and non-A&D markets. That said, AA&S Q2 performance was actually above our expectations, with 50 basis points of sequential decline. We anticipate reversing course in the second half based on the demand mix and volume we see in the segment's core markets.

正如預期的那樣，AA&S 在第一季表現強勁之後，在第二季度出現了連續下滑。這反映了機身、國防和非航空航太與國防 (A&D) 市場的時間影響。話雖如此，AA&S 第二季度的業績實際上超出了我們的預期，環比下降了 50 個基點。根據該領域核心市場的需求組合和數量，我們預計下半年將出現逆轉。

We're excited about the progress and results we delivered this quarter with $93 million of positive adjusted free cash flow. The favorable results reflect our focus on reducing seasonality in our quarterly cash generation. Our goal: to improve not just cash conversion efficiency, but also quarter-to-quarter cash generation and predictability.

我們對本季的進展和成果感到非常興奮，本季調整後的自由現金流為 9,300 萬美元。良好的業績反映了我們專注於減少季度現金產生的季節性。我們的目標：不僅要提高現金轉換效率，還要提高季度現金產生率和可預測性。

We continue to tighten execution around inventory and receivables and the results are notable compared to past cycles. We expect more favorability in the second half with managed working capital still at 36.5% of sales through Q2. That's compared to our target of less than 30%. The cash generation improvements in the first half strengthened our balance sheet and increased optionality looking forward.

我們持續加強庫存和應收帳款的執行，與過去的週期相比，結果顯著。我們預計下半年的情況會更加有利，到第二季度，管理營運資本仍將佔銷售額的 36.5%。相比之下，我們的目標是不到 30%。上半年現金產生的改善增強了我們的資產負債表，並增加了未來的選擇性。

Coming off of a strong first half, let's take a closer look at the rest of 2025, including our guidance for Q3. The core of A&D remains robust. with an even brighter outlook expected in 2026. At the same time, we are balancing our near-term expectations. Jet engine remains our largest end market and a key growth driver for the rest of the year. Timing and airframe, defense, and our non-A&D markets keep us on track to deliver second-half revenue growth in the upper single-digit percentage range.

在上半年表現強勁之後，讓我們仔細看看 2025 年剩餘時間的表現，包括我們對第三季的指導。A&D 的核心依然強勁，預計 2026 年的前景將更加光明。同時，我們正在平衡我們的近期預期。噴射發動機仍然是我們最大的終端市場，也是今年剩餘時間的主要成長動力。時間和機身、國防以及我們的非航空航太與國防市場使我們有望實現下半年較高的個位數百分比收入成長。

As a result, we favorably shifted our range estimates for adjusted EBITDA, EPS, and adjusted free cash flow, capturing our first-half performance. We believe upside beyond our current range is tied to an inflection point for airframe growth and delivery timing in defense. Looking ahead into 2026, we expect growth to continue in all A&D markets. With these dynamics in play, we expect Q3 performance to modestly increase from Q2 with more growth building in our fourth quarter.

因此，我們對調整後的 EBITDA、EPS 和調整後的自由現金流的範圍估計進行了有利的調整，以捕捉我們上半年的表現。我們相信，超出目前範圍的上行空間與機身成長的拐點和國防交付時間有關。展望 2026 年，我們預期所有 A&D 市場都將持續成長。在這些動態因素的影響下，我們預計第三季業績將較第二季略有成長，第四季將實現更大成長。

For the third quarter, we are setting our guidance range for adjusted EBITDA at $200 million to $210 million. That equates to an adjusted earnings per share of $0.69 to $0.75 per share. For the full year, we have narrowed our range to $810 million to $840 million of adjusted EBITDA, raising our midpoint by $5 million. With this balanced approach, the corresponding range for adjusted EPS is now $2.90 to $3.07 per share.

對於第三季度，我們將調整後 EBITDA 的預期範圍設定為 2 億美元至 2.1 億美元。這相當於調整後每股收益為 0.69 美元至 0.75 美元。就全年而言，我們已將調整後 EBITDA 範圍縮小至 8.1 億美元至 8.4 億美元，中間值提高了 500 萬美元。採用這種平衡方法，調整後的每股收益的相應範圍現在為每股 2.90 美元至 3.07 美元。

As you model your estimates, I would consider the following for our end markets. For the full year, we see greater than 20% growth in jet engines. We expect double-digit defense growth in the full year, reflecting the strength Kim shared.

當您對估算進行建模時，我會考慮我們的終端市場如下的情況。就全年而言，我們預計噴射引擎的成長率將超過 20%。我們預期全年國防開支將實現兩位數成長，反映金正恩所分享的實力。

We're holding our full-year airframe estimates flat from '24 levels, driven by inventory destocking by our customers. We still see offsets in our non-A&D markets expected to decline from 2024 levels in the range of 5% to 7%. Key factors for these markets are driven by customer behavior, including tariff concerns impacting order activities, inventory management, and conservatism around the macros in our industrial markets.

由於客戶減少庫存，我們將全年機身預期維持在與 24 年水準持平的狀態。我們仍然看到非 A&D 市場的抵銷量預計將從 2024 年的水準下降 5% 至 7%。這些市場的關鍵因素受客戶行為驅動，包括影響訂單活動的關稅問題、庫存管理以及工業市場宏觀的保守性。

I would expect our EBITDA margins to be at or above 18% for the second half and full year, delivering on the range that we've been targeting for several years. At the segment level, in the second half of the year, we anticipate HPMC margins to exceed 24% and AA&S margins to be in the range of 15% to 16%, consistent with previous expectations.

我預計下半年和全年的 EBITDA 利潤率將達到或超過 18%，達到我們多年來一直努力的目標範圍。在細分市場層面，我們預計下半年 HPMC 利潤率將超過 24%，AA&S 利潤率將在 15% 至 16% 之間，與先前的預期一致。

The cash flow strength we have delivered in the first half allows us to narrow and increase our range of full year adjusted free cash flow to $270 million to $350 million. This represents a $10 million increase to the midpoint of the range.

我們上半年實現的現金流強勁使我們能夠縮小並將全年調整後自由現金流的範圍增加到 2.7 億美元至 3.5 億美元。這意味著該範圍的中點增加了 1000 萬美元。

As you may recall, we generated $70 million of cash in late 2024 by selling noncore assets. Our 2025 CapEx and free cash flow includes reinvesting those sales proceeds as additional CapEx. That brings our free cash flow to net income ratio into the range of our 90% target net of the redeployed capital.

您可能還記得，我們在 2024 年底透過出售非核心資產獲得了 7,000 萬美元的現金。我們的 2025 年資本支出和自由現金流包括將這些銷售收益再投資作為額外的資本支出。這使得我們的自由現金流與淨收入之比達到了重新部署資本後的 90% 目標範圍。

We will continue to hold CapEx at $260 million to $280 million. I will note that with continuing customer investment and prudent management, I am biased to the lower end of the range at this time.

我們將繼續把資本支出維持在 2.6 億美元至 2.8 億美元之間。我要指出的是，隨著客戶投資的持續和審慎的管理，我目前偏向該範圍的低端。

To summarize, this has been an excellent first half for ATI. We're navigating the dynamics of our core markets and the shifting timing for growth with our customers. We remain fully on track to our expectations. This strong first half has reduced risk and solidified our path for profitable growth for 2025. It sets us up for a strong 2026 and beyond. With each new long-term agreement we signed, the path for consistent, predictable value creation becomes even more clear.

總而言之，對於 ATI 來說，這是一個出色的上半年。我們正在與客戶一起探索核心市場的動態以及不斷變化的成長時機。我們仍然完全按照我們的預期進行。上半年的強勁表現降低了風險，鞏固了我們 2025 年獲利成長的道路。它為我們 2026 年及以後的強勁發展奠定了基礎。隨著我們簽署的每一項新的長期協議，持續、可預測的價值創造之路變得更加清晰。

With that, I will turn the call back to Kim.

說完這些，我就把電話轉回給金。

Thanks, Don. Q2 built on our strong first-quarter momentum and further demonstrated the power of our strategy and action. We're delivering consistent results today, and we're positioned even better for tomorrow. Everything starts with executing for our customers and staying true to the commitments we make to our shareholders. Our strong first-half results reflect reliable performance, disciplined execution, and market leadership.

謝謝，唐。第二季延續了第一季的強勁勢頭，進一步證明了我們戰略和行動的力量。我們今天取得了一致的成果，並且為明天做好了更好的準備。一切始於為客戶服務並信守對股東的承諾。我們強勁的上半年業績反映了可靠的業績、嚴格的執行和市場領導地位。

Our customers are planning for accelerated growth and ATI is aligned and ready to scale with them. The depth of our customer partnerships and the strength of our aerospace and defense product portfolio continue to reinforce our long-term growth strategy.

我們的客戶正在計劃加速成長，ATI 也已準備好與他們一起擴大規模。我們與客戶的深度合作以及我們航空航太和國防產品組合的實力繼續強化我們的長期成長策略。

We remain mindful of near-term uncertainties, but the long-term fundamentals are clear and compelling. Our advanced capabilities, secured contracts and proven ability to perform are creating real momentum. ATI is built to lead, and we're excited about what the remainder of 2025 holds.

我們仍然關注短期的不確定性，但長期基本面是明確且令人信服的。我們先進的能力、穩固的合約和經過驗證的履約能力正在創造真正的動力。ATI 的成立旨在引領產業，我們對 2025 年剩餘時間的發展充滿期待。

And with that, let's open the line for your questions.

現在，讓我們開始回答你們的提問。

(Operator Instructions) Seth Seifman, JPMorgan.

（操作員指示）Seth Seifman，摩根大通。

Thanks very much, and good morning, everyone. I thought the airframe outlook for the year at flattish was, I guess, fairly consistent with what I had been looking for. But as we got the news this week that Boeing is now up at seven a month on 787, can you share with us what you know maybe about the level of inventory that's in the channel for widebodies? I assume that's kind of what we're waiting for here for 787 and for A350, in particular?

非常感謝，大家早安。我認為今年的機身前景比較平穩，與我一直期待的相當一致。但是，正如我們本週得到的消息，波音公司現在每月增加 7 架 787 飛機，您能否與我們分享您所了解的有關寬體飛機渠道庫存水平的情況？我猜這正是我們在這裡等待的 787 和 A350 吧？

So sure, let me talk about that. So yes, the first half of the year, you see our revenues have been pretty flat. And as you said, it's that customer destocking inventory rebalancing. As we are looking forward, we're expecting this dynamic to continue through the rest of the year as Boeing continues to ramp. They're doing really well. They're stable.

當然，讓我來談談這個。是的，今年上半年，我們的收入相當穩定。正如您所說，這是客戶去庫存再平衡。展望未來，隨著波音公司繼續加大產能，我們預計這種勢頭將持續到今年剩餘時間。他們做得很好。他們很穩定。

I think they're accelerating. But as we look at it, it's not consistent across all of the product categories. And so there are some categories that we're expecting to see signs of demand returning in the back half year, in billet, in landing gear alloys, where inventories are tighter, especially as you commented, for the wide-body ramp.

我認為他們正在加速。但從我們的角度來看，它並不是所有產品類別中都一致的。因此，我們預計下半年某些類別的需求將出現回升的跡象，例如鋼坯、起落架合金等，這些類別的庫存較為緊張，特別是正如您所說，寬體飛機的庫存。

And so as we look ahead, we're in a strong position. We secured that long-term agreement that we announced, and it sets us up for growth. We're anticipating the contract will expand. It's expanding our scope and volume of products that we're providing to them. So we do anticipate that we're going to see an uptick in demand just as we increase that product portfolio and as you saw, as the widebody starts to accelerate.

因此，展望未來，我們處於有利地位。我們達成了所宣布的長期協議，這為我們的成長奠定了基礎。我們預計合約將會延長。它擴大了我們向他們提供的產品的範圍和數量。因此，我們確實預計，隨著我們增加產品組合，以及如您所見，寬體飛機開始加速，我們會看到需求上升。

If I look forward and think about the ramp, if they continue to operate -- we've used conservative build rate numbers and assumptions. And I know Dave and Don has shared some of those with you. If that continues to be strong and accelerate, we would look at the end of the year, fourth quarter start seeing orders for that wide body.

如果我展望未來並考慮坡道，如果它們繼續運作——我們使用了保守的建造率數字和假設。我知道戴夫和唐已經與你們分享了其中的一些。如果這種勢頭持續強勁並加速，我們將在年底、第四季開始看到這種寬體飛機的訂單。

But as customers' inventories normalize, we're ready. We've got the new titanium capacity online. We've expanded our shares across both of the airframers. We've got broader product offerings. These new contracts bring with it some derisking and some pricing and margin appreciation. So we anticipate to start to see some gradual growth as we leave this year and go into next. But right now, our guide kind of anticipates that we arere flattish through the rest of the year.

但隨著客戶庫存恢復正常，我們已經準備好了。我們已將新的鈦產能上線。我們擴大了對這兩家飛機製造商的持股。我們提供的產品範圍更加廣泛。這些新合約帶來了一些風險降低以及一些定價和保證金升值。因此，我們預計今年和明年我們將開始看到一些逐步的成長。但目前，我們的指南預計今年剩餘時間的業績將保持穩定。

Excellent. That's very helpful. And then really strong performance again in jet engine and it looks like a continued strong performance in the back half. When we think about going into next year, I guess, kind of assume that the demand pull from there is going to remain really strong, how can we think about where you are now in terms of capacity utilization and kind of the ability to -- for ATI to increase volumes going into 2026?

出色的。這非常有幫助。噴射引擎再次表現出色，看起來後半部的表現仍將保持強勁。當我們考慮進入明年時，我想，假設那裡的需求拉動將保持強勁，我們如何看待您現在的產能利用率以及 ATI 在 2026 年增加產量的能力？

Yes. So I'll start, and then I'll hand it over to Don, he can share some more of the financials. But from a capacity standpoint, we're in good shape to meet our 2027 target. We've been making discrete investments across melting, forging and finishing that we shared with you around debottlenecking, improving flow productivity. And we have seen increased outputs in forging and melt over the year.

是的。所以我先開始，然後我會把它交給唐，他可以分享更多的財務資訊。但從產能角度來看，我們有能力達成 2027 年的目標。我們一直在熔煉、鍛造和精加工方面進行獨立投資，並與大家分享消除瓶頸、提高流程生產力的經驗。我們看到，過去一年鍛造和熔煉產量都有所增加。

We're also continuing to make discrete investments in our nickel melting, in particular. And that's going to be coming on next year. We anticipate another 8% to 10% from those investments, and that capital is included in the guide that we shared with you for our capital spend.

我們也將繼續對鎳熔煉進行獨立投資。而這一切將會在明年實現。我們預計這些投資將帶來另外 8% 到 10% 的收益，而這些資本已包含在我們與您分享的資本支出指南中。

So we do think that we're in good shape against those 2027 targets we gave you. But to your point, growth continues to accelerate, and it's -- as we're having conversations with our customers, we're continuing to evaluate that. It continues to be stronger, and we do believe the duration will continue longer in the years to come. So probably more upside and opportunity there.

因此，我們確實認為，我們在實現我們設定的 2027 年目標方面處於良好狀態。但正如您所說，成長仍在繼續加速，而且——在我們與客戶交談時，我們正在繼續評估這一點。它將繼續變得更加強勁，我們確實相信，未來幾年它的持續時間將會更長。因此那裡可能存在更多優勢和機會。

Don, I don't know if you want to add anything.

唐，我不知道您是否想補充一些內容。

Yeah, I would love to. So Kim mentioned several different sources that we're leveraging in order to make sure we have the capacity in hand in order to meet our customers' needs. And one great example that I would share is an investment that we started last year in melt, it's nickel related. It is a debottlenecking investment.

是的，我很樂意。因此，Kim 提到了我們正在利用的幾個不同來源，以確保我們有足夠的能力來滿足客戶的需求。我想分享的一個很好的例子是我們去年開始的一項熔煉投資，它與鎳有關。這是一項消除瓶頸的投資。

And we've talked about debottlenecking a lot. I think what's important is that if you take a step back and realize, we have a substantial production footprint for nickel and titanium that exists today. What we're doing is we are adding incremental investment to that incredibly strong platform. And what that does is it gives us a few benefits. This example is a great example of it.

我們已經多次討論過消除瓶頸的問題。我認為重要的是，如果你退一步思考就會發現，我們目前擁有大量的鎳和鈦生產足跡。我們正在做的是向這個極其強大的平台增加增量投資。這給我們帶來了一些好處。這個例子就是一個很好的例子。

So we began this project. Ultimately, it will take roughly two years and that project started, like I said, last year. So those assets will come into service in 2026.

因此我們開始了這個計畫。最終，這將需要大約兩年的時間，正如我所說，該計畫於去年啟動。這些資產將於 2026 年投入使用。

The investment magnitude -- first of all, the investment itself was included in our capital spend program and the magnitude, call it, $50 million. We expect that that one investment is going to increase the HPMC nickel volume capacity rather, by 8% to 10%. So think about the speed, think about the incremental increase in capacity that a pretty modest investment gives us. Those are the things that we're doing set that will set us up to truly take advantage of this incredible ramp that we can foresee around jet engine.

投資規模—首先，投資本身包含在我們的資本支出計畫中，規模為 5,000 萬美元。我們預計，這項投資將使 HPMC 鎳產量增加 8% 至 10%。所以想想速度，想想相當適度的投資帶給我們的容量增量。這些都是我們正在做的事情，它們將使我們真正利用我們可以預見的噴射引擎周圍這個令人難以置信的坡道。

David Strauss, Barclays.

巴克萊銀行的大衛‧施特勞斯。

Good morning. Wanted to see if you could touch on what you're seeing out of your industrial end markets and what you're anticipating or kind of baking into your guide for the second half of the year. It sounded like as it relates to AA&S that you're maybe expecting a bit of a step -- further step back in Q3, at least from a margin perspective? And then Q4 rebound, I wasn't exactly clear on that.

早安.想看看您是否可以談談您對工業終端市場的看法以及您對下半年的預期或指導。聽起來，就 AA&S 而言，您可能會預期第三季會出現一些進一步的倒退，至少從利潤率的角度來看是這樣？然後是第四季的反彈，我對此並不是很清楚。

Yeah, I'm happy to share some more color. First, in the quarter, our industrials were flattish overall. But there were certainly some variances within that overall. And for example, we've seen some positive growth in conventional oil and gas. That's tied to things like project-related sales that we benefited from in the first two quarters. There is some other deep sea projects that we think will be potential captures later in the year. So we've seen some reasonably good growth in conventional oil and gas.

是的，我很高興分享更多顏色。首先，本季我們的工業整體持平。但總體而言肯定存在一些差異。例如，我們看到常規石油和天然氣出現了一些積極的增長。這與我們在前兩個季度受益的項目相關銷售等因素有關。我們認為還有一些其他深海項目也有可能在今年稍後實現。因此，我們看到傳統石油和天然氣出現了相當不錯的成長。

But you look at other areas, and we've seen a meaningful drop. And those would be in areas like construction and mining or in food equipment and appliances. Food equipment and appliances, for example, it's a small dollar amount. But from a percentage standpoint, we saw that drop sequentially by double digits. So the -- we see a mix.

但看看其他地區，我們看到了明顯的下降。這些領域包括建築、採礦或食品設備和器具。例如，食品設備和器具，這是一個小數目。但從百分比的角度來看，我們看到這個數字連續下降了兩位數。所以——我們看到的是混合的。

Now I think when you take a step back and say, okay, well, why is that? Why are we experiencing a flatness around industrials? Well, there's a few drivers to that. One is we believe that the tariff impact on order activities is one of the drivers. And as we sell through, for example, distribution, those customers are looking at the option to wait and they will as they see all this dynamic raw tariffs unfold. We're also seeing where non-US customers are preferring to work with non-US suppliers so that they don't have to deal with the cost of tariffs with the US supplier side of things.

現在我想當你退一步並說，好吧，為什麼呢？為什麼我們的工業領域會出現平緩的勢頭？嗯，這有幾個驅動因素。一是我們認為關稅對訂單活動的影響是驅動因素之一。例如，當我們透過分銷進行銷售時，那些客戶正在考慮等待的選擇，當他們看到所有這些動態的原始關稅展開時，他們就會這麼做。我們也發現非美國客戶更願意與非美國供應商合作，這樣他們就不必處理美國供應商的關稅成本。

And so we've seen where order activity has been down related to those kinds of situations. So I think as a tariff situation unfolds, then we'll see stability. We're also seeing some good news in that area and that if you're a US producer and that you have a US customer, that US customer is certainly more interested in using a US-based supplier -- again, to eliminate the tariff impacts. So that's one impact.

因此，我們看到與此類情況相關的訂單活動有所下降。因此我認為隨著關稅情勢的展開，我們將看到穩定。我們也看到了該領域的一些好消息，如果你是美國生產商，並且有美國客戶，那麼美國客戶肯定更有興趣使用美國供應商——再次，為了消除關稅的影響。這就是一個影響。

The other impact that I would mention is the macros. The macros around industrial that we're seeing are still rather soft. And so I think as the economy picks up and then that improves and I think we'll see recovery here.

我要提到的另一個影響是宏。我們看到的工業宏觀面仍然相當疲軟。因此我認為，隨著經濟回暖和改善，我們將看到復甦。

Last thing I would say is remember that when it comes to these industrial end markets, they can sell quickly, but then they can accelerate quickly. And so we would expect that when these uncertainties fall away, we'll see that recovery rather quickly. Was there anything that you wanted to add, Kim?

最後我想說的是，請記住，當涉及到這些工業終端市場時，它們可以快速銷售，但隨後它們可以快速加速。因此，我們預計，當這些不確定性消失時，我們很快就會看到復甦。Kim，您還有什麼要補充的嗎？

No, I think you covered it. I was just -- as you think about our overall portfolio, it's about 20% of our overall revenue. So it's a much, much smaller portion than it was five or six years ago before we made some of those changes and moved really focused on A&D.

不，我想你已經涵蓋了。我只是——想想我們的整體投資組合，它約占我們總收入的 20%。因此，與五、六年前我們做出一些改變並真正將重點放在 A&D 上之前相比，這個比例要小得多。

So as Don said, we've got this rotation of demand that's happening. And we do, with some of the stability coming from the trade policy, we are seeing stability and order rates start to pick up, but it's probably early days before we say the back half of the year is going to continue to be stable and then rise.

正如唐所說，我們已經看到了這種需求的輪換。而且我們確實看到，由於貿易政策帶來的一些穩定性，我們看到穩定性和訂單率開始回升，但現在說下半年將繼續保持穩定然後上升可能還為時過早。

Okay. That's great. I wanted to ask about the HPMC margins. So margins -- the incrementals, Don, that we've seen in the first half of the year have been very strong, 55%, 60%, I think, I assume benefiting from jet engine versus airframe mix. You talked about the second half. It sounds like a bit of margin improvement -- further margin improvement in HPMC. But how do you think about kind of normalized or incremental margins at HPMC from here as we think out your targets for 2027? Thanks.

好的。那太棒了。我想詢問一下 HPMC 的利潤率。所以利潤率——唐，我們看到今年上半年的增量非常強勁，55%、60%，我想，這得益於噴射發動機與機身組合。您談到了下半場。這聽起來像是利潤率有所提高——HPMC 的利潤率進一步提高。但是，當我們思考 2027 年的目標時，您如何看待 HPMC 的正常化或增量利潤率？謝謝。

Okay, sure, happy to. So before I jump to what -- how to think about normalized, let me just give a little bit more color in terms of the HPMC incrementals this quarter. So they were very favorable, north of 60%. One help -- one tailwind in the high performance this quarter is last year, we had about $30 million of revenue from the business that later in 2024 was disposed of. And so that created a bit of a lift in the calculated incremental margin.

好的，當然，很樂意。因此，在我跳到如何思考標準化之前，讓我先就本季的 HPMC 增量給出更多說明。因此，他們的支持率非常高，達到 60% 以上。本季業績表現優異的一個助力是去年，我們從該業務中獲得了約 3000 萬美元的收入，該業務於 2024 年下半年被處置。因此，這在計算出的增量利潤率上產生了一些提升。

You strip that effect out, it's still a really good incremental. It's north of 40%. And so how should you think about HPMC incrementals going forward? We -- what I said in the past is expect that we would see HPMC incrementals north of 35% moving into the 40% neighborhood. Well, it feels like we're there. And so I think expecting something in the 40% range would be a rational thing to do for HPMC. And then as you're also modeling your margins to expect to see HPMC margins, EBITDA margins, to live north of that 24% mark.

如果你去掉那個影響，它仍然是一個非常好的增量。它在 40% 以上。那麼您應該如何看待 HPMC 增量的未來發展？我們——我過去說過，我們預計 HPMC 的增量將從 35% 上升至 40% 左右。嗯，感覺我們就在那裡。因此我認為，對於 HPMC 來說，預期其成長率在 40% 左右是合理的。然後，當您對利潤率進行建模時，預計 HPMC 利潤率、EBITDA 利潤率將保持在 24% 以上。

Richard Safran, Seaport Research Partners.

理查德·薩夫蘭（Richard Safran），海港研究合作夥伴。

Kim, Don, David. Kim, I think you made some aftermarket comments in your opening remarks. I wanted to know if you could give us maybe a bit some more specific comments about aftermarket trends. You think that might be moderating a bit given the production ramp we're seeing at Boeing and Airbus. But I thought you might talk a little bit more about what you're seeing there. Thanks.

金、唐、大衛。Kim，我認為你在開場白中發表了一些後續評論。我想知道您是否可以給我們一些關於售後市場趨勢的更具體的評論。考慮到波音和空中巴士的產量成長，您認為這種情況可能會有所緩和。但我想您可以再多談談您在那裡看到的情況。謝謝。

Sure. Thanks, Rich. Yeah, I do think what we're seeing on the OE side is going to drive growth. But I'll share -- yeah, I'll say MRO continues to be really strong, and we anticipate that's going to continue to be strong probably through the rest of this decade. I know we all heard GE's call earlier this week, LEAP is going to increase with their installed base by triple and shop visits doubling between '24 and '28.

當然。謝謝，里奇。是的，我確實認為我們在 OE 方面看到的情況將會推動成長。但我要分享——是的，我要說的是，MRO 繼續保持強勁，我們預計這種強勁勢頭可能會持續到本世紀餘下的時間。我知道我們都聽到了通用電氣本週早些時候的呼籲，LEAP 的安裝基數將在 24 年至 28 年間增加三倍，商店訪問量將增加一倍。

So what I'm hearing from all of the engine OEMs is that we're going to continue to see sustained high MRO and spares demand, something in the range of the 40% to 50% that we've been seeing, which to your point, it's going to really drive growth overall because I think the OE with the ramping that's happening is going to also start to bring more demand as well.

因此，我從所有引擎原始設備製造商那裡聽到的是，我們將繼續看到持續的高 MRO 和備件需求，大約在我們一直看到的 40% 到 50% 的範圍內，正如你所說，它將真正推動整體增長，因為我認為正在發生的 OE 也將開始帶來更多的需求。

I think the -- as we're looking at it, the thing that's important for us is we've got those exclusive alloy positions that I talked about last time, and many of these programs that -- and we've got more than twice the content on these next-generation engines. So in our conversations, we're anticipating this to continue the rest of this year and then through the rest of this decade, be it both shop visits, upgrade packages, some of the lifting issues that are getting addressed kind of across all three of them. So we're anticipating that that's going to continue to be a big value driver for us for the rest of the decade.

我認為——正如我們所看到的，對我們來說重要的是我們擁有我上次談到的那些獨家合金位置，以及許多這樣的程序——而且我們在這些下一代發動機上的內容是原來的兩倍多。因此，在我們的談話中，我們預計這種情況將持續到今年剩餘時間，並持續到本世紀剩餘時間，無論是店內訪問、升級包，還是三者之間都將解決的一些提升問題。因此，我們預計這將繼續成為我們未來十年的一大價值驅動力。

Okay, thanks for this. Next up, you may have talked to this, but I wanted to press you a bit more about the terms in those contract extensions that you just mentioned. Could you talk a bit more -- I think you said they include share gains. Do they include beneficial changes to mix, pricing or terms? And when you were thinking about your long-term targets, was all this contemplated and factored in?

好的，謝謝你。接下來，您可能已經談過這個問題，但我想向您進一步詢問您剛才提到的那些合約延期條款。您能否再多說一點——我想您說過它們包括股份收益。它們是否包括對產品組合、定價或條款的有益改變？當您考慮您的長期目標時，您是否考慮過並考慮了所有這些因素？

So the short answer is, yes, to all of those items. I won't share all the specifics. But we did talk about last time, just touching Airbus that more than doubles our revenue, and that will start in 2026, significant share gains. It does cover a broader range of titanium products as well.

所以簡短的回答是，是的，對於所有這些項目都是如此。我不會分享所有細節。但我們上次確實談到過，僅就空中巴士而言，我們的收入就增加了一倍多，而且從 2026 年開始，我們的份額將大幅增長。它還涵蓋了更廣泛的鈦產品。

For Boeing, it's an expansion of both volume and range of products probably most importantly, the titanium alloy sheet that's coming out of our new facility in Pageland, South Carolina. And that's a really major milestone for us. It's been a gap in our product portfolio. And so both contracts include that. As well as this contract, an agreement with Boeing includes an expansion of the alloys that we're providing, many that go into landing gear and other applications for the wide-body.

對於波音公司來說，這不僅擴大了產品產量，也擴大了產品範圍，其中最重要的可能是我們位於南卡羅來納州佩奇蘭的新工廠生產的鈦合金板材。這對我們來說是一個非常重要的里程碑。這是我們產品組合中的一個空白。所以兩份合約都包括這一點。除了這份合約之外，我們還與波音公司達成了一項協議，擴大我們提供的合金種類，其中許多合金用於起落架和寬體飛機的其他應用。

So I think the other thing is how the contract is structured, you asked. We've got volume-based minimums. So there's a solid baseline there. And then upside as demand increases, both volume and margin benefits come into play. Our pricing terms, over -- we've talked about our contracts. We've been working to derisk those. So they both allow for inflation and cost pass-through, so we're not exposed to future risks.

所以我認為另一件事就是合約的結構是如何的，正如你所問的。我們有基於數量的最低要求。因此，那裡有一個堅實的基礎。然後隨著需求的增加，銷售量和利潤率優勢都會發揮作用。我們的定價條款，我們已經討論過我們的合約了。我們一直在努力降低這些風險。因此，它們都允許通貨膨脹和成本轉嫁，這樣我們就不會面臨未來的風險。

So overall, both of these contracts that put us in a fairly even position, frankly, across both airframe OEMs, sets up meaningful growth in revenue and margin expansion as we move through the rest of the decade. Don, I don't know if you want to talk about how this compares to the 2027 guide?

因此，總體而言，坦白說，這兩份合約使我們在兩家機身原始設備製造商中處於相當均衡的地位，並為我們在未來十年的收入和利潤率擴張帶來了有意義的成長。唐，我不知道您是否想談談這與 2027 年指南相比如何？

Yeah, I'd be happy to do that. So when you think about the Airbus contract, the Airbus contract, of course, when we put our 27s out, the Airbus relationship was much smaller for us, Rich. And so a lot of this new contract tailwind is not baked into our expectations for 2027.

是的，我很樂意這麼做。因此，當您考慮空中巴士合約時，當然，當我們推出 27 架飛機時，我們與空中巴士的關係要小得多，里奇。因此，許多新合約的順風並沒有反映在我們對 2027 年的預期中。

The way to think about that is when we were looking at our targets, I'm estimating that for Airbus, we probably were assuming something in the $75 million annual sales kind of range. With this new contract, we're going to see that double and more.

思考這個問題的方式是，當我們審視我們的目標時，我估計對於空中巴士來說，我們可能假設年銷售額在 7500 萬美元左右。有了這個新合同，我們將看到這一數字翻倍甚至更多。

And so -- what I would do is I would assume that for 2027, it's incremental $75 million to $100 million, let's say, of revenue. But importantly, it's not just about those targets. It's -- it's also the derisked profile that Kim talked about, the breadth of offerings, which has a secondary beneficial effect to those 2027 targets because we would expect a richer mix of products than we would have assumed in the base amount of the Airbus relationship in those targets.

所以 — — 我假設到 2027 年，營收將增加 7,500 萬美元到 1 億美元。但重要的是，這不僅僅與這些目標有關。這也是 Kim 談到的去風險概況，即產品的廣度，這對 2027 年的目標有第二個有利影響，因為我們預期產品組合會比我們在這些目標中與空中巴士關係的基礎金額中所假設的更加豐富。

Now in terms of Boeing -- in terms of Boeing, what I would say is I would -- in our 2027s, we would have assumed similar share. So from that standpoint, I think we're in alignment. But what's improved is we have gotten some price. We have gotten, again, richer mix. We've broadened our product offerings. So I would expect an enhanced top line, not quite the step change that we would see with Airbus, but enhanced top line and richer drop-through. Does that help?

現在就波音而言——就波音而言，我想說的是——在 2027 年，我們會假設類似的份額。所以從這個角度來看，我認為我們是一致的。但值得慶幸的是，我們得到了一些回報。我們再次獲得了更豐富的組合。我們擴大了產品範圍。因此，我預期營收會有所提升，雖然不完全是空中巴士那樣的階梯式變化，但營收會有所提升，而且收入會更加豐厚。這樣有幫助嗎？

It surely does. Thanks very much to both of you.

確實如此。非常感謝你們兩位。

Gautam Khanna, TD Cowen.

高塔姆·卡納（Gautam Khanna），TD Cowen。

I was wondering if you could elaborate on the nickel melt capacity increase. Are these actual new furnaces? You mentioned it's debottlenecking. If you could just give us a little more color on that.

我想知道您是否可以詳細說明鎳熔化能力的增加。這些真的是新爐子嗎？您提到了消除瓶頸。如果您能為我們提供更多有關此方面的詳細資訊的話。

And then secondly, I wanted to ask about the titanium furnaces that you guys have added already and that are set to come online next year. And if you can update us on your estimated revenue contribution from the ones coming online next year. Thank you.

其次，我想問一下你們已經添加的鈦爐以及將於明年投入使用的鈦爐的情況。您是否可以向我們介紹一下明年上線的這些產品的預計收入貢獻？謝謝。

Sure, Gautam. So yeah, so the nickel investments we're making, there are going to be new melting equipment that's going to be put in. And as Don said, it's fair -- it's much -- it's discrete investments. So they're not monolithic, big investments that we're putting that will allow us to capture another 8% to 10%. It will go into our existing footprint, where we've got trained operators and qualified operations.

當然，高塔姆。是的，我們正在進行的鎳投資將會投入新的熔煉設備。正如唐所說，這是公平的——這是相當重要的——這是離散投資。因此，我們投入的並不是單一的大型投資，而是能夠讓我們獲得另外 8% 到 10% 的市佔率。它將進入我們現有的業務範圍，在那裡我們擁有訓練有素的操作員和合格的操作人員。

So those will be in next year. And so they'll be operating starting to ramp up as the demand that we've been talking about here with jet engine. And frankly, energy continues to ramp. It will give us that 8% to 10% capacity increase that we've been talking about that we see coming.

這些將在明年推出。因此，它們的運行將開始加速，以滿足我們在這裡討論的噴氣發動機的需求。坦白說，能源持續增加。正如我們一直在談論的那樣，它將使我們的產能增加 8% 到 10%。

The investments before that, there were some specific pieces of equipment that we put in, primarily downstream and finishing. We talked a lot about ultrasonic inspection. We've talked about heat treat. We had a brand-new facility come up as we came out of COVID. So those really helped us maximize the use of those upstream assets. And so this investment makes sense now at this point because now we're able to increase the melt and flow it through the operation.

在此之前的投資，我們投入了一些特定的設備，主要是下游和精加工。我們討論了很多有關超音波檢查的內容。我們已經討論過熱處理。在擺脫 COVID 之後，我們建立了一個全新的設施。所以這些確實幫助我們最大限度地利用了上游資產。因此，現在這項投資是有意義的，因為現在我們能夠增加熔化量並使其在整個操作過程中流動。

So that's that one. EV2 out in Richland, on titanium, as you mentioned, that's actually up and running now. So perfectly timed with the ramp that we anticipate seeing. We're in qualification. We expect to be -- we're running qualification heats right now for our customers.

就是這個。正如您所說，里奇蘭的 EV2 採用鈦金屬製成，目前已開始運行。與我們預期看到的坡道時間如此完美。我們已經獲得資格。我們期望—我們現在正在為我們的客戶舉辦資格賽。

We expect to be qualified standard quality, which would go into airframe and armor-type applications by the end of this year, probably as we go into the second half, third quarter, and then we -- this asset, if you remember, has the flexibility and capability to do premium quality, so rotating grade for engine. And we'll be starting that qualification as we get to the middle and back half of the year. So as we go into next year, it gives us additional capacity to support the engine demand and ramp that we've been talking about.

我們預計其品質將達到標準要求，並將在今年年底前應用於機身和裝甲型應用，可能在我們進入下半年或第三季度時，然後我們 - 如果您還記得的話，這項資產具有靈活性和能力來實現優質，因此可用於發動機的旋轉等級。我們將在年中和年下半年開始進行資格認證。因此，當我們進入明年時，它將為我們提供額外的產能來支持我們一直在談論的引擎需求和產量提升。

And the dollar value of that -- is it still like --

它的美元價值——它仍然像--

Yeah, that's right. Yeah.

是的，沒錯。是的。

So let me give some more color on that, if you don't mind. So just to go back and refresh folks memories a little bit. So we talked about the fact that we were going to increase our titanium melt capacity by 80%. We started having those conversations in '23. There were two pieces to it. The first piece was a restart of an existing plant.

如果您不介意的話，請允許我對此進行更詳細的說明。所以只是想回顧一下並稍微刷新一下大家的記憶。因此，我們討論了將鈦熔化能力提高 80% 的事實。我們從 23 年開始進行這些對話。它由兩個部分組成。第一件事是重新啟動現有工廠。

That got us to 45% and you're right. You remember that that plant at run rate would be expected to generate $150 million to $170 million of incremental revenue.

這樣我們就達到 45%，你是對的了。您記得，該工廠按運轉率預計可產生 1.5 億至 1.7 億美元的增量收入。

Then we have the brown field that Kim was talking about. That plant is up running. It was completed on time, on schedule. The qualification is right in line with what we expected. The metrics that we have shared on that is that's increasing our melt capacity by 35%. So the easy math is if you just take the same -- if 45% gets you $150 to $170 million do the math, 35% would get you proportionately $125 million, $135 million, something in that range.

然後我們就有了金正恩談到的棕地。該工廠已開始運作。它按時、按計劃完成。這個資格完全符合我們的預期。我們分享的指標是，這將使我們的熔化能力提高 35%。因此，簡單的計算就是，如果你只拿同樣的錢——如果 45% 能讓你獲得 1.5 億到 1.7 億美元，那麼 35% 就能按比例為你帶來 1.25 億美元、1.35 億美元或類似的金額。

The drop-through to assume, I've been consistently saying, hey, use 35% in your modeling, okay? Now the reality is we're going to do better than all of that and deliver more value to the shareholders. And so that's our objective. But for modeling, I encourage you to use the numbers that I just talked about.

假設，我一直在說，嘿，在你的建模中使用 35%，可以嗎？現在的現實是，我們將做得更好，為股東創造更多價值。這就是我們的目標。但對於建模，我鼓勵您使用我剛才談到的數字。

There's one editorial comment that I would make, though. Last call, I had shared that we have doubled the size of our titanium business between '22 and '24. It went from roughly $400 million to roughly $800 million. That, of course, is before the additional Airbus business before the Boeing contract that we just announced.

不過，我還是想發表一個編輯評論。上次我曾說過，在 22 年至 24 年間，我們的鈦業務規模擴大了一倍。從大約 4 億美元增加到約 8 億美元。當然，這是在我們剛剛宣布的波音合約之前的額外空中巴士業務之前。

And so as you think about the investment that we made around that 80% increase, in total, it was probably $100 million, $125 million, including that brownfield and those investments enabled us, number one, to get the contracts that we've talked about over the last two quarters; and number two, sets us up perfectly for the ramp of titanium demand that's going to be heading our way.

所以，想想我們為實現 80% 的成長所做的投資，總計大概有 1 億美元到 1.25 億美元，其中包括棕地投資，這些投資首先讓我們獲得了過去兩個季度談到的合約；其次，它們為我們即將迎來的鈦需求成長做好了充分的準備。

So this was the strategy, the plan that we were setting up when we made those investment decisions. And we see them unfolding now. So thank you.

這就是我們在做出投資決策時所製定的策略和計畫。我們現在看到它們正在展開。所以謝謝你。

Scott Deuschle, Deutsche Bank.

史考特‧德施勒，德意志銀行。

Don, I think you said jet engine revenue would grow more than 20% for the year. Should we be thinking 20% to 25% as being the new range? Or could it be more in the high 20s given the strong first half here?

唐，我想你說過今年噴射引擎的收入將成長 20% 以上。我們是否應該將 20% 到 25% 視為新的範圍？或者考慮到上半年的強勁表現，這個數字可能會達到 20 多歲嗎？

Yeah. I would -- I think you called it right. I would assume between 20% and 25%.

是的。我會——我認為你說得對。我估計在 20% 到 25% 之間。

Okay. And then, Kim, I believe you're making one of the alloys for the upgraded version of the Trent engine from Rolls-Royce. I think it's RR1073. Is that alloy already in production? And then if it is, is that handover additive to your growth? Or does it mainly just replace revenue you're generating on the prior generation Rolls-Royce alloy?

好的。然後，金，我相信你正在為勞斯萊斯的 Trent 引擎升級版製造一種合金。我認為是 RR1073。這種合金已經投入生產了嗎？如果是的話，這種交接是否有助於你們的發展？或者它主要只是取代上一代勞斯萊斯合金所產生的收入？

So yes, we are partnering with Rolls-Royce to make their new alloy. They are introducing it. I think in some cases, they are looking at that as an enhancement to their engines. So there is some trade over. But what they've shared with us is that early test results have been very promising, and they're looking at accelerating that and have expanded the scope much wider of what they're thinking about using that alloy for.

是的，我們正在與勞斯萊斯合作製造他們的新合金。他們正在介紹它。我認為在某些情況下，他們將其視為對其引擎的增強。因此存在一些交易。但他們與我們分享的是，早期測試結果非常有希望，他們正在考慮加速這一進程，並擴大了他們考慮使用該合金的範圍。

So we are ramping with them today. We're continuing -- they're continuing to go through regulatory review. And so that will be the pacing item as they get each of these parts qualified and change. So we do see growth in that space with them for those alloys.

因此我們今天將與他們一起努力。我們正在繼續——他們正在繼續接受監管審查。因此，這將是他們在使每個部件合格並進行更改時的節奏項目。因此，我們確實看到這些合金在該領域的成長。

Okay. And if I could just sneak one more in. Don, it looks like there was some COVID error deferred employee retention credits that got recognized this quarter. I had thought that was behind you. Can you just clarify how much of that is still out there that might be recognized in the future? And what, if any, is in the second-half guide for that?

好的。如果我能再偷偷溜進去一個就好了。唐，看起來本季確認了一些因 COVID 錯誤而延期的員工保留積分。我以為那是在你身後。您能否澄清一下其中有多少是未來可能被認識到的？那麼，下半年的指南中對此有何介紹（如果有的話）？

Sure. Nothing in the second half is the short answer. There's $5 million that's still on the books. And with the recent Big Beautiful Bill that was passed, the statute of limitations on those credits don't expire until 2028. So that's when I would expect that that would get released.

當然。簡而言之，下半場什麼都沒有。帳面上仍有 500 萬美元。根據最近通過的《大美麗法案》，這些抵免的訴訟時效要到 2028 年才到期。所以我預計它會在那時發布。

Myles Walton, Wolfe Research.

邁爾斯·沃爾頓，沃爾夫研究公司。

I was wondering if I could focus on the isothermal forging business and the share gains you've had there with GTF. And if you can give us a color on where you are relative to the targeted share levels and at what point we should expect you to start growing more with overall volume versus share gains?

我想知道我是否可以重點介紹等溫鍛造業務以及您在 GTF 上獲得的份額增長。您能否向我們介紹一下您目前相對於目標份額水平的狀況，以及在什麼時候我們可以預期您的整體銷售與份額收益會開始有更大的增長？

So yeah, I mean, that -- actually, that story is a real bright spot for our forging team, forge products team. So as I've shared in past calls, we anticipated doubling or more than doubling our share in output this year with Pratt. I'd say in the first half of the year, we've shipped almost as much as what we shipped all of last year in forgings to them. And I think they've shared some statistics on their forged parts increases and improvements. So I won't talk to that for them.

是的，我的意思是——實際上，這個故事對我們的鍛造團隊、鍛造產品團隊來說是一個真正的亮點。因此，正如我在過去電話會議中分享的那樣，我們預計今年我們與普惠的產量份額將增加一倍或兩倍以上。我想說，今年上半年我們向他們運送的鍛造件數量幾乎與去年全年一樣多。我認為他們已經分享了一些有關鍛造零件增加和改進的統計數據。所以我不會替他們談論這件事。

But we anticipate that continuing to grow. We'll probably -- we're looking at potentially another 50% over the next year or two. But more broadly, as we think about our Forged Products business, that business, especially given the MRO demand and the upgrade packages and other issues that the engine OEMs are addressing. We're seeing very, very strong demand across the board, where our lead times are out into 2027.

但我們預計這一數字還會持續成長。我們可能會—我們預計未來一兩年內可能會再增加 50%。但更廣泛地說，當我們考慮我們的鍛造產品業務時，該業務，特別是考慮到 MRO 需求和升級套件以及引擎 OEM 正在解決的其他問題。我們看到各方面的需求都非常強勁，我們的交貨期將持續到 2027 年。

We're continuing to work on debottlenecking. We've talked -- I talked a little bit about some of the downstream one. Sonic is a huge one for the industry, not just for us, and we've put capacity in to relieve that as well as be able to address some of the heightened quality requirements by the FAA for the powdered alloy parts.

我們正在繼續努力消除瓶頸。我們已經討論過了——我稍微談論了一些下游問題。Sonic 對整個行業來說都是一個巨大的進步，而不僅僅是對我們而言，我們已經投入了足夠的產能來緩解這一問題，並能夠滿足 FAA 對粉末合金零件提出的一些更高的品質要求。

So that is going really well. That partnership is going well. I think from our standpoint, we're continuing to talk to them about new parts and new share because clearly, they want to work through this backlog and get back on track. And so we're doing everything we can jointly. But that's a really good news story and a great partnership example of how we've pulled together and looked at the overall system.

一切進展順利。此次合作進展順利。我認為從我們的角度來看，我們會繼續與他們談論新的零件和新的份額，因為很明顯，他們希望解決這個積壓問題並回到正軌。因此，我們正在共同盡一切努力。但這確實是一個好消息，也是一個很好的合作範例，展示了我們如何齊心協力，審視整個系統。

Got it. And maybe, Don, on the titanium side, what is the target level for this year? You talked about the doubling to $800 million. I think it's flattish year to date. Is there a second half ramp that you're anticipating in titanium?

知道了。唐，就鈦金屬而言，今年的目標水準是多少？您談到了翻倍至 8 億美元。我認為今年迄今為止情況比較平穩。您是否期待鈦合金的下半部發展？

I wish I could say yes, but of course, the titanium area is where we -- that's the material that goes into the airframe. And I would assume flattish overall. We'll have some pockets of growth, but it -- I would expect that to be pretty modest growth from an HPMC standpoint. And when I say modest, I mean really modest.

我希望我能回答是的，但當然，鈦金屬區域是我們——那是構成機身的材料。我認為總體上是持平的。我們會有一些成長空間，但從 HPMC 的角度來看，我預計這將是相當溫和的成長。當我說謙虛時，我的意思是真的謙虛。

Phil Gibbs, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Phil Gibbs。

As it relates to the tariffs, you called out the somewhat indirect impact from sort of subdued non-aerospace and defense sales and some relative competitiveness there. But any direct tariff impacts as it relates to the cost structure this year? And any potential for any of those potential cost to change with all the recent backing and forth thing on the trade deals?

就關稅而言，您指出了非航空航天和國防銷售低迷以及相對競爭力下降帶來的某種間接影響。但是，今年的關稅對成本結構有任何直接影響嗎？最近貿易協定的反覆無常是否會改變這些潛在成本？

Yeah. So it's a dynamic situation, right? So based on what we know today, we feel like we're in a really good position because our contracts are structured such that we have a number of means to recover under our LTAs, whether it's in surcharges or transactional deals, we can typically adjust price things of that sort. So we feel like we're pretty insulated or pretty well positioned to be able to recover costs that are incurred.

是的。所以這是一個動態的情況，對嗎？因此，根據我們今天所了解的情況，我們覺得我們處於一個非常有利的地位，因為我們的合約結構使得我們可以根據長期協議採取多種手段來收回成本，無論是附加費還是交易協議，我們通常可以調整這類價格。因此，我們感覺自己能夠很好地抵禦損失，或者說，能夠很好地收回所產生的成本。

Of course, we start with how do we minimize these costs. And we've got a pretty diverse supply chain that enables us to reduce some of that exposure. But for what's left, we go after a full recovery. And to be frank, we've had good success in executing under that model. And nobody likes to pay more and our customers included, but it's -- we have what we believe are good contractual rights or other mechanisms. And what was the second part of your question?

當然，我們首先要考慮的是如何盡量減少這些成本。我們擁有相當多樣化的供應鏈，這使我們能夠減少部分風險。但對於剩下的，我們會追求完全康復。坦白說，我們在該模式下的執行取得了良好的成功。沒有人願意支付更多，包括我們的客戶，但我們認為我們有良好的合約權利或其他機制。你的問題的第二部分是什麼？

I basically was just asking if given the recent trade deals, if anything changes in your mind relative to how you thought about it a few months ago.

我基本上只是想問，鑑於最近的貿易協議，您的想法與幾個月前相比是否有所改變。

Yeah. That's fair. Thank you for reminding me. So I mean, it's dynamic and these situations change by the day. And so what we do is what every other good business does, you react to what you know and you try to prepare for the possibilities. And I think we've been successful in doing that. So same -- it will be the same answer for any new tariffs, and we'll be -- we'll try to reduce with our supply chain leverage and then we will seek to recover as appropriate.

是的。這很公平。謝謝你提醒我。所以我的意思是，它是動態的，這些情況每天都在變化。因此，我們所做的與其他所有優秀企業所做的一樣，對已知資訊做出反應，並嘗試為各種可能性做好準備。我認為我們已經成功地做到了這一點。所以，對於任何新的關稅，答案都是一樣的，我們會嘗試利用我們的供應鏈槓桿來減少關稅，然後尋求適當的恢復。

To be really clear, we are very, very defensive when it comes to our margins. We realize that margins are a key driver in the valuation of our stock. And it's our ambition to get our margins where we believe they should be, which is north of 20%. And seeing there consistently, you can't give up points if you're going to do that.

明確地說，當談到利潤時，我們是非常非常謹慎的。我們意識到利潤率是我們股票估值的關鍵驅動因素。我們的目標是將利潤率提高到我們認為應該達到的水平，即 20% 以上。並且始終看到這一點，如果你要這樣做的話，你就不能放棄積分。

Thanks, Don. And I just have a follow-up as it relates to the exotics business. It's not usually talked about on these calls all that often. But given a lot of the discussion around nuclear and critical resources as of late, just curious in terms of what you're hearing, you're seeing from your customers in terms of future readiness for some of the interesting and unique products that you provide there? Thank you.

謝謝，唐。我只是想跟進一下與異國情調業務有關的事情。通常這些電話中不會經常談論這個話題。但是考慮到最近圍繞核能和關鍵資源的大量討論，我只是好奇您所聽到的，您從客戶那裡看到未來對您在那裡提供的一些有趣和獨特的產品的準備情況？謝謝。

Yeah. Thanks for that question. You're right. We don't talk about that business often. But yes, with the executive order and this resurgence in nuclear and land-based gas turbines, we are seeing momentum in that business and in those segments. Our nuclear demand was up 24% year over year. We anticipate that's going to continue to go up. We make some very unique alloys and we're one of the few globally that kind of less than three that can do this at scale.

是的。謝謝你的提問。你說得對。我們不常談論那件事。但是，是的，隨著行政命令以及核能和陸基燃氣渦輪機的復甦，我們看到該業務和這些領域的發展勢頭。我們的核能需求年增了24%。我們預計這一數字還會繼續上升。我們生產一些非常獨特的合金，我們是全球少數能夠大規模生產這種合金的公司之一，全球只有不到三家公司能夠做到這一點。

And also on the gas turbine side, I'd say we're also seeing demand there, obviously, given the surge for the need for electricity. And we've got strong relationships in both areas, both with the nuclear OEMs and the gas turbine and our ability to deliver those advanced alloys, specialty steels position us well. And those sectors are going to continue to scale. We've seen, like I said, good growth and demand, and we're expecting to see that steady growth in the back half of this year and going forward.

另外，在燃氣渦輪機方面，我想說我們也看到了需求，顯然，這是因為電力需求激增。我們在這兩個領域都與核能原始設備製造商和燃氣渦輪機製造商建立了牢固的關係，我們有能力提供這些先進的合金和特殊鋼材，這使我們處於有利地位。這些行業也將繼續擴大規模。正如我所說，我們看到了良好的成長和需求，我們預計今年下半年及未來將穩定成長。

The one thing I will mention is some of those other markets that we've talked about that are outside A&D either have been impacted by some of the trade or we've seen some pivoting of demand. We've been able to repurpose that capacity into these high-margin opportunity markets and energy is one of those.

我要提到的一件事是，我們討論過的 A&D 以外的一些其他市場要么受到了部分貿易的影響，要么我們看到了需求的轉變。我們已經能夠將這些產能重新投入這些高利潤機會市場中，而能源就是其中之一。

And I will say on the nuclear side, I think we've talked about maybe last year, we made some very discrete investments to increase the output of that process around 15% to 20%. And we are -- that's in production. They've been getting that -- we've got very, like I said, strong demand globally for those products from that business. So yeah, they're doing well, and we anticipate that momentum to continue.

我想說的是，在核能方面，我想我們可能在去年討論過，我們進行了一些非常謹慎的投資，以將該過程的產量提高約 15％ 至 20％。我們正在生產中。他們已經意識到了這一點——正如我所說，全球對該業務的產品的需求非常強勁。是的，他們做得很好，我們預計這種勢頭將會持續下去。

Andre Madrid, BTIG.

安德烈·馬德里，BTIG。

I want to touch on -- in light of the Airbus and Boeing agreements, can you maybe just give us an update overall LTA mix -- sorry if I missed it, but I don't think you guys called out exactly where that stands right now. And I mean, given that you're committed to marine defensive around margins in that 20%-plus target, I mean, how does that factor in? Do you feel like a higher LTA mix might prevent you from capturing upside through transactional pricing? How are you guys thinking about that internally? Sorry if that's a little loaded, but --

我想談談——鑑於空中巴士和波音的協議，您能否向我們提供最新的 LTA 整體組合情況——如果我錯過了，我很抱歉，但我認為您還沒有確切地說明目前的情況。我的意思是，鑑於您致力於將海洋防禦的利潤率提高到 20% 以上的目標，那麼，這是如何影響的呢？您是否覺得較高的 LTA 組合可能會阻止您透過交易定價獲取收益？你們內部是怎麼考慮這個問題的？抱歉，如果有點過激，但是--

No. I appreciate you highlighting that because this gives us an opportunity. So our LTA mix with these new contracts is going to be around, call it, 60% to 65% and overall, for all of ATI. If you want to talk just about HPMC that's closer to 70%, 75% And what we're being -- what we're able to do is these capacity investments that we've been talking about, both the downstream debottlenecking, productivity improvement, we're seeing increased output.

不。我很感謝你強調這一點，因為這給了我們一個機會。因此，對於整個 ATI 來說，我們的 LTA 與這些新合約的比例總體上將達到 60% 到 65% 左右。如果您只想談論 HPMC，那麼它接近 70%、75%，而我們正在做的 — — 我們能夠做的就是我們一直在談論的這些產能投資，包括下游瓶頸消除、生產力提高，我們都看到了產量的增加。

I mean, you're seeing that in our revenues, you're seeing in the HPMC margins. So we're seeing that increase output, which is giving us some really nice opportunities to opportunistically participate in transactional business as it's coming along with short lead times and as you said, market pricing.

我的意思是，您可以從我們的收入中看到這一點，也可以從 HPMC 利潤中看到這一點。因此，我們看到產量正在增加，這給了我們一些非常好的機會來參與交易業務，因為它伴隨著較短的交貨時間和你所說的市場定價。

So I think as we're going forward, we've talked about some investments we're putting in. We talked about the new melter out in Richland that's going to come on. It's going to give us increased capacity, as well as capability. So it does give us the flexibility to move between standard grade and premium grade.

所以我認為，隨著我們不斷前進，我們已經討論了一些我們正在投入的投資。我們討論了即將在里奇蘭投入使用的新熔爐。它將提高我們的容量和能力。因此，它確實為我們提供了在標準級和高級級之間轉換的靈活性。

So we're continuing to keep pace to keep that -- keep a part -- a proportion of our mix available for transactional or emergent demand, which we didn't talk about. We've talked about the contract. We talked about the volumes. We do anticipate as the build rates start to accelerate, that we are going to see at first in pockets of products and then later in the decade, more generally, emergent demand coming from the airframe as well as the engine guys as they're continuing to keep up, which in these contracts, we -- because, again, we have to be very, very careful that we have the capacity available.

因此，我們將繼續保持步伐，以保持一部分——一部分組合可用於交易或緊急需求，這是我們沒有談論的。我們已經討論過合約了。我們討論了卷數。我們確實預計，隨著建造速度開始加快，我們將首先看到部分產品的需求，然後在十年後期，更普遍地看到來自機身和發動機製造商的新興需求，因為他們將繼續跟上這些合同，因為，再說一次，我們必須非常非常小心，以確保我們擁有可用的產能。

They all have volume maximums, which allow us to manage our capacity and make sure that we always have that increased volume that we can use either from a market standpoint or to service these contracts, but maybe more importantly, it allows us to flip to market pricing if that demand exceeds these contract limits. So again, smart contracting team did a really, really nice job. We're excited about all these contracts. But that's how we're thinking about maintaining that balance in the LTA versus transactional business.

它們都有產量上限，這使我們能夠管理我們的產能，並確保我們始終擁有可以從市場角度使用或為履行這些合約而增加的產量，但也許更重要的是，如果需求超過這些合約限制，它使我們能夠轉向市場定價。所以，智能合約團隊再次做得非常好。我們對所有這些合約都感到興奮。但這就是我們在長期協議和交易業務之間保持平衡的想法。

That's incredibly helpful. Thank you. And then I guess again, apologies if I missed this, but you talked a bit about industrials and puts and takes there. But medical also seemed weaker in the quarter. I know a peer of yours always called that out last quarter as well. Are we seeing a broader downturn there. I know it's different from a volume perspective, but what is -- could you provide any insight as to how things are trending in medical broadly?

這非常有幫助。謝謝。然後我想再次說聲抱歉，如果我錯過了這一點，但您確實談了一些關於工業和看跌期權的事情。但本季醫療業似乎也表現疲軟。我知道您的一位同事在上個季度也總是提到這一點。我們是否看到了更大範圍的經濟衰退？我知道從數量角度來看情況有所不同，但是—您能否提供一些關於醫療領域整體趨勢的見解？

Yeah, sure. So that's a tough story this year, and you mentioned that our revenue is flat sequentially, but down year over year. And that softness, we see that continuing. It's a little bit -- the story changes depending on what part of the medical market that you're thinking about. We see elevated inventories in certain pockets and destocking where people maybe got ahead of demand bought. We do see Don talked a little bit about these broader macro and trade-related headwinds, particularly as they tied to China. And both from a demand and also some competitive pricing, pricing pressures have intensified and frankly, that's made this market more competitive in the near term.

是的，當然。所以今年的情況很艱難，您提到我們的收入環比持平，但同比下降。我們看到這種疲軟態勢仍在持續。這有點——故事會根據你考慮的醫療市場部分而改變。我們看到某些地區的庫存增加，而人們可能在需求之前就已經購買了庫存。我們確實看到唐恩談到了這些更廣泛的宏觀和貿易相關的不利因素，特別是與中國相關的因素。無論從需求或競爭性定價來看，定價壓力都已加劇，坦白說，這使得這個市場在短期內更具競爭力。

And so as we've thought about this correction that we're navigating that we're continuing to keep that discipline, focused on maintaining our price and our product mix. At the same time, those assets are very (technical difficulty) rate to be used in this engine market where demand and MRO is accelerating so quickly. And so again, as that pricing pressure comes, we're able to shift from the medical market into the engine.

因此，當我們考慮進行這種調整時，我們會繼續保持這種紀律，並專注於維持我們的價格和產品組合。同時，這些資產在需求和MRO成長如此迅速的引擎市場中的使用率非常高（技術難度）。因此，隨著價格壓力的出現，我們能夠從醫療市場轉向引擎市場。

So I do see that softness though continuing. And again, for us, we're thinking about how do we deploy that for the engine and energy markets.

因此我確實看到這種疲軟態勢仍在持續。對我們來說，我們正在考慮如何將其部署到引擎和能源市場。

Thank you. We have no further questions.

謝謝。我們沒有其他問題了。

Thank you. Thanks, everyone, for your time today. We look forward to talking more about our results for the second quarter. Feel free to reach out to us and the IR team with follow-up questions. And again, thank you for your time. Have a great day.

謝謝。謝謝大家今天抽出時間。我們期待進一步談論第二季的業績。如有任何後續問題，請隨時與我們和 IR 團隊聯繫。再次感謝您抽出時間。祝你有美好的一天。