Astronics Corp (ATRO) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Astronics Corporation first quarter fiscal year 2025 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Astronics Corporation 2025 財年第一季財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It's now my pleasure to turn the call over to your host, Deborah Pawlowski, Investor Relations for Astronics Corporation. Please go ahead, Deb.

現在我很高興將電話轉給主持人、Astronics Corporation 投資者關係部門的 Deborah Pawlowski。請繼續，Deb。

Thanks, Kevin, and good afternoon, everyone. We certainly appreciate your time today and your interest in Astronics. On the call with me here, I have Pete Gundermann, our Chairman, President and CEO; and Nancy Hedges, our Chief Financial Officer. You should have a copy of our first quarter results, which crossed the wires after the market closed today. And if you don't have that release, you can find it on our website at astronics.com.

謝謝，凱文，大家下午好。我們非常感謝您今天抽出時間以及對 Astronics 的興趣。與我一起通話的還有我們的董事長、總裁兼執行長 Pete Gundermann；以及我們的財務長 Nancy Hedges。您應該有一份我們的第一季業績報告，該報告是在今天市場收盤後發布的。如果您沒有該版本，您可以在我們的網站 astronics.com 上找到它。

As you are aware, we may make some forward-looking statements during the formal discussion and the Q&A session of this conference call. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release as well as with other documents filed with the Securities and Exchange Commission. You can find those documents on our website or at sec.gov.

如您所知，我們可能會在本次電話會議的正式討論和問答環節中做出一些前瞻性的陳述。這些聲明適用於受風險和不確定性以及可能導致實際結果與今天所述結果有重大差異的其他因素影響的未來事件。這些風險、不確定性和其他因素在收益報告以及提交給美國證券交易委員會的其他文件中均有說明。您可以在我們的網站或 sec.gov 上找到這些文件。

During today's call, we'll also discuss some non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release.

在今天的電話會議中，我們還將討論一些非公認會計準則指標，我們認為這些指標將有助於評估我們的表現。您不應孤立地看待這些附加資訊的呈現，也不應將其視為根據 GAAP 編制的結果的替代方案。我們在今天發布的報告中提供的表格中提供了非 GAAP 指標與可比較 GAAP 指標的對帳表。

With that, let me turn it over to Pete to begin. Peter?

現在，讓我把時間交給 Pete 來開始。彼得？

Thank you, Debbie. Hello, everybody, and welcome to the call. I'm going to open the presentation with my comments on the first quarter, which we feel was a very strong start to the year, and Nancy will follow up with some specifics on our financials. Then we'll turn our attention to expectations going forward for the remainder of the year.

謝謝你，黛比。大家好，歡迎參加電話會議。我將在演講開始時對第一季發表評論，我們認為第一季是今年的一個非常強勁的開端，然後南希將詳細介紹我們的財務狀況。然後，我們將把注意力轉向今年剩餘時間的預期。

As I said, the first quarter was a very strong start to 2025. Revenue of $206 million was at the high end of our range or just beyond and up 11% year over year. The revenue level drove solid improvement on margins with adjusted net income of $17 million, up from $2 million last year and adjusted EBITDA of $30.7 million, up from $17.6 million last year.

正如我所說，第一季是 2025 年的一個非常強勁的開端。 2.06 億美元的營收處於我們預期範圍的高端或略高於該範圍，年增 11%。營收水準推動利潤率穩定提升，調整後淨收入為 1,700 萬美元，高於去年的 200 萬美元，調整後 EBITDA 為 3,070 萬美元，高於去年的 1,760 萬美元。

Adjusted EBITDA was about 15% of sales and similar to the fourth quarter from last year. On a rolling 12-month basis, adjusted EBITDA as we calculate it, has been $110 million. This is up from $67 million for the previous 12-month period and $16 million for the 12-month period before that. So we've made some pretty solid progress.

調整後的 EBITDA 約為銷售額的 15%，與去年第四季相似。以連續 12 個月計算，我們計算的調整後 EBITDA 為 1.1 億美元。這一數字高於前 12 個月的 6,700 萬美元和再前 12 個月的 1,600 萬美元。因此，我們取得了相當紮實的進展。

In addition, first quarter bookings were really strong at $280 million, which yields a book-to-bill of 1.36. That bookings total was a new record for the company, which left us with a backlog at quarter end of $673 million, also a new all-time record. The bookings included a significant order of $57 million for the next phase of our FLRAA development effort. We remain very engaged in that program and are doing whatever we can to help ensure its success.

此外，第一季的訂單量非常強勁，達到 2.8 億美元，訂單出貨比為 1.36。這項訂單總額創下了公司的新紀錄，使得我們在本季末的積壓訂單量達到 6.73 億美元，也創下了歷史新高。這些訂單包括一份價值 5,700 萬美元的大訂單，用於我們 FLRAA 開發工作的下一階段。我們仍然積極參與該計劃，並竭盡所能確保其成功。

We expect total development billings of approximately $90 million by the time it is all done, and we continue to believe that the program will be a significant driver for our company's long-term future. It's worth noting that even if one backs out the FLRAA order from Q1 bookings, we still would have had a book-to-bill of 1.08, a strong result no matter how one looks at it.

我們預計，當所有項目全部完成後，總開發費用將達到約 9000 萬美元，我們仍然相信，該項目將成為我們公司長期未來發展的重要推動力。值得注意的是，即使從第一季的訂單中剔除 FLRAA 訂單，我們的訂單出貨比仍然會達到 1.08，無論從哪個角度來看，這都是一個強勁的結果。

Apart from the FLRAA order, our first quarter was fairly routine operationally, much like the fourth quarter of last year was. The improvement in our performance has not been driven by onetime events or significant adjustments, but rather the steady operational improvement across the business, including our supply chain primarily, and also the increased efficiency of our workforce, together with certain operational improvements we have implemented in recent periods. The rather routine nature of this acceleration gives us confidence in the quality of our results and our expectations for the future.

除了 FLRAA 訂單外，我們第一季的營運相當正常，與去年第四季非常相似。我們業績的提升並非由一次性事件或重大調整推動，而是整個業務的穩定營運改進，主要包括我們的供應鏈，以及我們員工效率的提高，以及我們最近一段時間實施的某些營運改進。這種加速的常規性讓我們對結果的品質和對未來的期望充滿信心。

As for segments, our first-quarter results were clearly driven by our Aerospace segment, which is performing at a very high level. New records were set in the quarter for revenue, bookings and backlog. Revenue of $191 million was up 17% year over year. Bookings of $268 million were the first time ever above $200 million and backlog of $614 million was up $66 million over our previous high. Margins are encouraging also with adjusted operating profit in the Aerospace segment of 16.2%.

就各部門而言，我們第一季的業績顯然是由航空航天部門推動的，該部門的表現非常出色。本季的營收、預訂量和積壓訂單均創下新高。營收 1.91 億美元，年增 17%。訂單金額達到 2.68 億美元，首次超過 2 億美元，積壓訂單金額達到 6.14 億美元，比我們之前的高點高出 6,600 萬美元。利潤率也令人鼓舞，航空航天部門的調整後營業利潤為 16.2%。

Our Test business, on the other hand, had a lackluster quarter in sales of only $14.6 million and an adjusted operating loss of $2.2 million. Results were hurt by an EAC adjustment on a long-term development contract of $1.9 million. Bookings were thin at $12 million, leaving backlog at $59 million.

另一方面，我們的測試業務本季表現平平，銷售額僅 1,460 萬美元，調整後的營業虧損為 220 萬美元。由於 EAC 對 190 萬美元的長期開發合約進行調整，業績受到影響。訂單量很少，只有 1,200 萬美元，積壓訂單量達 5,900 萬美元。

There is some good news in the Test segment and that the cost changes we have recently implemented in the business are showing results even at the reduced volume and our long-awaited radio test program for the US Army remains on track for a volume start in the fourth quarter.

測試部門有一些好消息，我們最近在業務中實施的成本變化正在產生效果，即使在減少音量的情況下，以及我們期待已久的美國無線電測試計劃陸軍仍有望在第四季開始大批量生產。

But the good news at Test is undermined by the operational challenges we have seen and the resulting EAC growth, and we're doing a deep dive currently to understand the challenges and strive for some improvements.

但是，我們所看到的營運挑戰以及由此產生的 EAC 成長削弱了測試方面的好消息，我們目前正在深入研究以了解挑戰並努力做出一些改進。

On a related note, we have a few areas in our Aero business that are also challenged, and we are taking a close look at these situations also. There are always weak spots in the company our size and we are optimistic that the margin improvement we have seen overall has plenty more room to run if we can get some improvement out of the challenged parts of our business. We'll talk more on this topic generally in future calls.

與此相關的是，我們的航空業務中的一些領域也面臨挑戰，我們也密切關注這些情況。我們這種規模的公司總是存在弱點，我們樂觀地認為，如果我們能夠從業務中面臨挑戰的部分取得一些改進，我們所看到的整體利潤率改善將有很大的發展空間。我們將在以後的電話會議中更多地討論這個主題。

Now I'll turn it over to Nancy for some details on our financials in the first quarter.

現在，我將把第一季財務狀況的一些細節交給南希。

Thanks, Pete. I'll now walk through the key drivers behind our consolidated Q1 performance and then touch on segment level results. As Pete noted, we had a strong start to fiscal '25 with continued momentum in our Aerospace segment and solid execution across the organization.

謝謝，皮特。現在，我將介紹我們第一季綜合業績背後的關鍵驅動因素，然後談到細分層面的結果。正如皮特所指出的，我們在 25 財年有一個強勁的開局，航空航天部門繼續保持強勁發展勢頭，整個組織的執行力也十分穩健。

Gross margin expansion, improved EBITDA, and strong operating cash flow are clear signs that the operational and financial initiatives we implemented over the past year are delivering results. Beginning in Q1 of fiscal '25, we implemented a change in how research and development expenses are presented in our financial statements.

毛利率擴大、EBITDA 提高以及強勁的經營現金流清楚地表明，我們在過去一年實施的營運和財務舉措正在取得成果。從 25 財年第一季開始，我們對財務報表中研發費用的呈現方式進行了更改。

R&D is now shown as a separate line item below gross profit on the income statement, whereas previously, it was included within cost of goods sold. The prior period was recasted for comparability. This change enhances transparency and better aligns with common industry practices.

研發發現在損益表中以毛利下的單獨項目顯示，而以前則包含在銷售成本中。為了便於比較，前期進行了重新計算。這項變更提高了透明度，並更好地符合該行業的常見做法。

That said, gross profit increased 28% year over year to $60.8 million, and gross margin expanded almost 390 basis points to 29.5%, up from 25.7% in the prior year quarter. This improvement reflects continued volume growth and favorable operating leverage in Aerospace.

儘管如此，毛利年增 28% 至 6,080 萬美元，毛利率擴大近 390 個基點至 29.5%，高於去年同期的 25.7%。這項改善反映了航空航太業務的持續銷售成長和良好的經營槓桿。

The quarter also included a $1.9 million adjustment, as Pete mentioned, in our Test segment related to the long-term contract. Operating income was $13.1 million for the quarter and includes a $6.2 million true-up to the reserve for the UK litigation matter, comprised of $0.5 million in additional damages and $5.7 million in interest-related accruals. We also incurred $3 million in legal expenses tied to the ongoing litigation. Excluding these items, adjusted operating income was $22.6 million or 11% of sales compared with $5.5 million and 3% in the prior year.

正如 Pete 所提到的，本季還包括與長期合約相關的測試部分的 190 萬美元調整。本季營業收入為 1,310 萬美元，其中包括 620 萬美元的英國訴訟事宜準備金，其中包括 50 萬美元的額外損害賠償金和 570 萬美元的利息相關應計費用。我們還因正在進行的訴訟而花費了 300 萬美元的法律費用。不包括這些項目，調整後的營業收入為 2,260 萬美元，佔銷售額的 11%，而去年同期為 550 萬美元，佔銷售額的 3%。

Adjusted EBITDA was $30.7 million or 14.9% of sales, up from 9.5% last year, primarily reflecting improved profitability from the higher volume. Interest expense declined $2.6 million year over year due to our successful refinancing of the prior term loan and the ABL late last year.

調整後的 EBITDA 為 3,070 萬美元，佔銷售額的 14.9%，高於去年的 9.5%，主要反映了銷售增加帶來的獲利能力的提高。由於我們在去年年底成功對前期定期貸款和 ABL 進行了再融資，利息支出比去年同期下降了 260 萬美元。

As we've discussed previously, the convertible bond financing was precautionary given the situation at the time with the potential outcome we could have realized with the UK damages award. Given the damages landing at just $12.5 million and interest expense of $5.7 million, we're comfortable with our available liquidity.

正如我們之前所討論的，考慮到當時的情況以及我們可能透過英國損害賠償裁決實現的潛在結果，可轉換債券融資是預防性的。鑑於損失僅為 1250 萬美元且利息支出為 570 萬美元，我們對可用的流動資金感到滿意。

There's still the issue of legal fee reimbursement that has not yet been settled on. The plaintiff is estimating $7.2 million. And given we believe we have valid grounds to dispute the position, we have not reserved for this amount. The lower interest rate on our convertible debt provides meaningful savings in addition to the liquidity cushion and will significantly reduce full year interest expense. GAAP earnings per share was $0.26. Non-GAAP adjusted EPS for the quarter was $0.44, a substantial increase from $0.05 in the prior year period.

法律費用報銷問題仍未解決。原告估計損失為 720 萬美元。鑑於我們認為我們有充分的理由對該立場提出異議，因此我們沒有預留這筆金額。我們的可轉換債務的較低利率除了流動性緩衝之外還提供了有意義的節省，並將大幅降低全年利息支出。每股 GAAP 收益為 0.26 美元。本季非公認會計準則調整後每股收益為 0.44 美元，較去年同期的 0.05 美元大幅成長。

Turning to our segment level results. Our Aerospace segment delivered record first quarter sales of $191.4 million, a 17% increase year over year. Commercial transport sales rose 13%, driven by continued strength in cabin power and in-flight entertainment and connectivity products. Military sales nearly doubled, up 95%, primarily due to our work on the FLRAA program and increased demand for lighting and safety products.

轉向我們的細分級別結果。我們的航空航天部門第一季的銷售額創下了 1.914 億美元的紀錄，年增 17%。受客艙電源和機上娛樂及連接產品持續強勁成長的推動，商業運輸銷售額成長了 13%。軍用銷售額幾乎翻了一番，成長了 95%，這主要歸功於我們在 FLRAA 計劃上的工作以及對照明和安全產品的需求增加。

Operating profit in Aerospace improved $10.2 million over the prior year. Adjusted segment operating profit was $31 million in the quarter compared with $15.6 million a year ago. And on an adjusted basis, Aerospace achieved 56% operating leverage on the higher volume. Adjusted operating margin improved by 660 basis points year over year to 16.2%.

航空航太業務的營業利潤比前一年增加了 1,020 萬美元。本季調整後部門營業利潤為 3,100 萬美元，去年同期為 1,560 萬美元。經調整後，航空航太業憑藉更高的銷售量實現了 56% 的營運槓桿。調整後營業利益率年增 660 個基點，達到 16.2%。

Turning to the Test segment. Sales were $14.6 million, down $6.9 million from Q1 of last year. We recorded an adjusted operating loss of $1.5 million, which reflects a $1.9 million adjustment stemming from those revised cost estimates to the long-term mass transit contract. The updated estimates lowered the percentage of work completed, which in turn reduced revenue recognized for the period. This project is now anticipated to be completed later in 2026.

轉向測試部分。銷售額為 1,460 萬美元，比去年第一季下降 690 萬美元。我們記錄了 150 萬美元的調整後營業虧損，這反映了對長期公共交通合約修改成本估算所產生的 190 萬美元的調整。更新後的估算降低了已完成工作的百分比，從而減少了該期間確認的收入。該項目預計將於 2026 年下半年完工。

The Test segment remains on track to achieve the $4 million to $5 million in annual cost savings with benefits expected to be more visible in the second half of the year. Bookings totaled $12 million in the quarter, driven by contributions across multiple product categories.

測試部門仍有望實現每年 400 萬至 500 萬美元的成本節約，預計效益將在今年下半年更加明顯。本季預訂總額達 1,200 萬美元，這得益於多個產品類別的貢獻。

While the second quarter will continue to be weak for this business, we continue to expect improvement in segment performance as the year progresses, underpinned by the next planned order under the radio test program for the Marines as well as the start of production for the US Army radio test program, which we still anticipate in Q4.

雖然該業務第二季度的表現仍將疲軟，但我們預計，隨著時間的推移，該部門的業績將有所改善，這得益於海軍陸戰隊無線電測試計劃的下一個計劃訂單以及美國陸軍無線電測試計劃的生產開始（我們仍預計該計劃將在第四季度開始）。

Now turning to cash flow and the balance sheet. We generated $20.6 million in operating cash flow, up sharply from $2 million in Q1 of last year. This improvement was driven by stronger cash earnings and more efficient working capital management. This also marks our second consecutive quarter with operating cash flow in excess of $20 million.

現在轉向現金流和資產負債表。我們產生了 2,060 萬美元的營運現金流，較去年第一季的 200 萬美元大幅成長。這項改善得益於更強勁的現金收益和更有效率的營運資本管理。這也標誌著我們連續第二季的營運現金流超過 2,000 萬美元。

I should point out that we have a number of items that will impact cash from operations in the second quarter, including the damages award and the interest payment on the UK case. There's also the potential that the legal fee reimbursement issue associated with that case could get determined and if not in our favor, paid in the second quarter.

我應該指出，有許多事項會影響第二季度的營運現金流，包括損害賠償和英國案件的利息支付。與該案件相關的法律費用報銷問題也有可能得到解決，如果對我們不利，則在第二季度支付。

The second quarter cash from operations will also be impacted by significant income tax payments on the order of approximately $10 million related to '24 and '25. As our liquidity has improved, we have returned to making quarterly estimated payments.

第二季的營運現金流量也將受到與 24 年和 25 年相關的約 1,000 萬美元的巨額所得稅的影響。隨著流動性的改善，我們已恢復按季度進行預估付款。

Long-term debt net of cash at the quarter end was $134.2 million, a $16 million reduction from the prior quarter. We finished the quarter with $25.9 million in cash and approximately $168 million of availability under our ABL facility. The ABL availability was reduced by the reserve for the damages and interest amounts due under the UK litigation. All said we ended the quarter with about $194 million in total liquidity.

季末長期債務淨現金為 1.342 億美元，較上一季減少 1,600 萬美元。本季結束時，我們的現金為 2,590 萬美元，ABL 信貸額度下可用資金約為 1.68 億美元。ABL 可用性因英國訴訟中應付的損害賠償金和利息金額的儲備而減少。總體而言，本季結束時我們的總流動資金約為 1.94 億美元。

We're currently undrawn on our revolver and expect that cash from operations can fund the business in the near-term. Our healthy balance sheet provides flexibility to consider value-creating initiatives, including acquisitions and share repurchases.

我們目前尚未動用循環信貸，預計營運現金可以在短期內為業務提供資金。我們健康的資產負債表為我們考慮創造價值的措施提供了靈活性，包括收購和股票回購。

We can continue to advance on our financing structure as well. As profitability continues to improve, we will evaluate a transition to a cash flow-based revolver, which is less restrictive and eliminates the liquidity block, all of which positions us well to settle the bonds in cash when the time comes.

我們還可以繼續推進我們的融資結構。隨著獲利能力的不斷提高，我們將評估向基於現金流的循環信貸額度的過渡，這種循環信貸額度限制較少，並消除了流動性障礙，所有這些都使我們能夠在時機成熟時以現金結算債券。

Capital expenditures in the quarter were $2.1 million. For the full year, we now expect CapEx to be in the range of $35 million to $50 million. This elevated level reflects both a catch-up on previously deferred investments and new spending tied to facility consolidation, capacity expansion and automation and efficiency efforts to support our long-term growth.

本季資本支出為 210 萬美元。就全年而言，我們預計資本支出將在 3500 萬美元至 5000 萬美元之間。這一成長水準既反映了對先前推遲的投資的追趕，也反映了與設施整合、產能擴張以及自動化和效率努力相關的新支出，以支持我們的長期成長。

The estimates on the facility build-out have come in higher than originally anticipated based on more detailed design specifications and current material costs. The team continues to get that amount down as much as possible.

根據更詳細的設計規範和當前材料成本，設施建設的估算值高於最初的預期。該團隊正在繼續盡可能地降低這一數量。

Overall, we're pleased with the strong start to the year and encouraged by the underlying performance trends in our core Aerospace business. We remain focused on margin expansion, free cash flow generation, and consistently executing on continuous improvement.

總體而言，我們對今年的強勁開局感到滿意，並對我們核心航空航天業務的潛在業績趨勢感到鼓舞。我們將繼續專注於擴大利潤率、創造自由現金流以及持續改善。

And with that, let me turn it back to Pete.

現在，讓我把話題轉回給皮特。

Now for a look at the future, which is usually a straightforward discussion, but not so much these days. Long story short, we are for now holding to our original top line forecast for 2025 of $820 million to $860 million in revenue, representing a 6% increase on 2024 at the midpoint. However, at the same time, we feel there is both upside potential and downside risk to this forecast.

現在來展望未來，這通常是一個直截了當的討論，但現在卻不那麼簡單了。長話短說，我們目前維持對 2025 年收入的最初預測，即 8.2 億美元至 8.6 億美元的收入，比 2024 年的中點增長 6%。然而，同時，我們認為這項預測既有上行潛力，也有下行風險。

On the positive side, our strong first quarter results and recent booking success suggest there should be upside potential and there very well may be. As we have discussed, there are many positive trends surrounding our industry and our business, and there are scenarios in which those positive trends could continue for the indefinite future.

從積極的一面來看，我們第一季的強勁業績和近期的預訂成功表明，應該存在上行潛力，而且很有可能存在上行潛力。正如我們所討論的，我們的行業和業務存在許多積極的趨勢，而這些積極的趨勢可能會在未來無限期地持續下去。

At the same time, there is reason to be cautious given the macroeconomic concerns that exist today due largely to the tariff regime that the administration in Washington is rolling out. The implications of the on again, off again nature of the rollout has caused major uncertainty and many significant companies in a wide range of industries are pulling guidance altogether until the situation is clarified.

同時，鑑於目前存在的宏觀經濟擔憂，我們有理由保持謹慎，而這種擔憂主要源自於華盛頓政府正在推行的關稅制度。這項政策的推出時斷時續，其影響已經造成了巨大的不確定性，各行各業的許多重要公司都在撤回指導意見，直到情況明朗為止。

As for us, we feel we are reasonably well-positioned to deal with whatever tariffs become part of the final plan. We estimate our tariff obligation based on the structure currently in place and before mitigations is in the range of $10 million to $20 million. This estimate could change, obviously, if when the tariff rates change and is also dependent on confirming indirect tariffs from our domestic suppliers who may import subcomponents on our behalf.

至於我們，我們認為我們有足夠的能力應對最終計劃中涉及的任何關稅。根據目前的結構，在採取緩解措施之前，我們估計我們的關稅義務在 1000 萬美元到 2000 萬美元之間。顯然，如果關稅稅率發生變化，這項估計可能會發生變化，同時也取決於我們國內供應商（可能代表我們進口零件）確認的間接關稅。

In any event, we feel we have a full toolkit to deal with final tariffs, whatever they turn out to be. These include modifying our supply chain, first and foremost, to favor lower tariff countries, which we did plenty of the first time Trump was in office.

無論如何，我們認為我們擁有一套完整的工具包來應對最終關稅，無論最終關稅結果如何。這些措施包括先修改我們的供應鏈，以支持低關稅國家，川普上任之初我們做了許多這樣的事。

Secondly, implementing pass-through pricing changes, which we expect will be very achievable in a number of our product lines and the development of other tariff-reducing structures and practices, including duty drawback systems, free trade zones and/or local-for-local manufacturing arrangements in certain situations.

其次，實施轉嫁定價變化，我們預計這將在我們的許多產品線中非常容易實現，並發展其他關稅削減結構和做法，包括退稅制度、自由貿易區和/或在某些情況下的本地化製造安排。

We hope and expect the tariff situation will stabilize in the coming months. And as it does, we will implement a set of actions to minimize the effects for our company and for our customers, preserving value for them and margin for us. This will take some time, but we will maintain a disciplined and determined mindset to make sure we get the best answer. We'll certainly plan to be talking about this subject regularly on future calls with you all.

我們希望並期待未來幾個月關稅情況能夠穩定下來。同時，我們將採取一系列措施，盡量減少對我們公司和客戶的影響，為他們保留價值並為我們保留利潤。這需要一些時間，但我們將保持嚴謹和堅定的心態，以確保得到最好的答案。我們當然計劃在未來的電話會議中定期與大家討論這個主題。

And that concludes our prepared remarks. So I think we're ready for questions now.

我們的準備好的演講到此結束。我想我們現在可以回答問題了。

(Operator Instructions) Jon Tanwanteng, CJS Securities.

（操作員指示）Jon Tanwanteng，CJS Securities。

This is Jeremy on for Jon. And I want to start by saying congrats on a strong start to the year. How much mitigation can you do this year to offset the $10 million to $20 million tariff impact? And are you able to quantify what is direct and indirect?

這是傑里米 (Jeremy) 代替喬恩 (Jon)。首先，我要對今年的好開局表示祝賀。今年你們能採取多少減排措施來抵銷 1,000 萬至 2,000 萬美元的關稅影響？您能量化直接和間接嗎？

Sure. Well, first of all, it's really hard to quantify timing when we don't yet know exactly what the tariffs are going to be. It's a little frustrating. You want to have a plan to solve the situation, but we don't know what the situation is yet. So it's a little hard to act.

當然。首先，當我們還不知道具體的關稅是多少時，很難量化時間。這有點令人沮喪。你想要一個計劃來解決這種情況，但我們還不知道情況到底是什麼。所以演起來有點困難。

Let me give you a little bit of a flavor. Last time Trump was in office, he implemented some tariffs. We were, at that point, very heavily involved with subcontract manufacturing in China, in particular. And we moved a ton of that out, something like $40 million. We moved it to other countries, which at the time had lower tariff rates.

讓我稍微介紹一下給你聽。川普上次執政時實施了一些關稅。當時，我們深度參與了中國的分包製造業務。我們轉移了其中的一大部分，大約 4000 萬美元。我們將其轉移到當時關稅稅率較低的其他國家。

And before you can consider doing something similar now, you kind of have to take a guess as to what those tariffs are going to be in various countries around the world or you have to kind of wait and see. So we don't have a timing plan at this point, and we need more surety as to what the tariff structure is going to be before we really pull the trigger on anything significant. But we're considering all kinds of alternatives and playing scenarios back and forth to try to be up to speed and ready to go when the time comes.

在你考慮採取類似行動之前，你必須猜測世界各國的關稅是多少，或者你必須拭目以待。因此，我們目前還沒有時間計劃，在真正採取任何重大行動之前，我們需要對關稅結構有更明確的把握。但我們正在考慮各種替代方案，並反覆推演各種方案，以期在時機成熟時能夠快速做好準備。

Your second part of your question about how much was direct and how much was indirect, it's roughly three quarters direct and one quarter indirect, I would say. I would also add, though, that we're relatively confident on what our direct tariff charges were -- are given the current tariff rates. We're still doing quite a bit of digging to confirm what our indirect tariff obligations might be.

您問題的第二部分是關於直接投資和間接投資的比例，我想說，大約四分之三是直接投資，四分之一是間接投資。不過，我還要補充一點，考慮到目前的關稅稅率，我們對我們的直接關稅費用相對有信心。我們仍在進行大量調查，以確認我們的間接關稅義務是什麼。

Nancy, you want to add anything to that?

南希，你還有什麼要補充的嗎？

No, I think you summarized it well. I mean we -- our exposure to China is significantly less than it previously was. So we think we've -- there's still obviously a heavy tariff rate. So that will be impactful depending on where that lands. Yeah, I don't think I have anything else to add.

不，我認為你總結得很好。我的意思是，我們對中國的依賴比以前明顯減少了。所以我們認為——顯然關稅稅率仍然很高。因此，其影響將取決於其落地的位置。是的，我想我沒有什麼好補充的了。

Understood. And then you mentioned conducting reviews of each business. So does that mean more restructuring or is it maybe a product and portfolio management type review or perhaps a prelude to something more strategic?

明白了。然後您提到對每個企業進行審查。那麼，這是否意味著更多的重組，或者可能是產品和投資組合管理類型的審查，或者是更具策略性的前奏？

It could be any of those things. We're not really limiting it, and it's a little premature to talk about it until we get done with the reviews. But one of the challenges in running a company like ours from my perspective, we take a number of initiatives to develop new products and develop new businesses. Sometimes those are quickly successful. Sometimes they're quickly not successful.

這可能是其中任何一種。我們實際上並沒有限制它，在我們完成審查之前談論它還為時過早。但從我的角度來看，經營我們這樣的公司面臨的挑戰之一是，我們採取了許多措施來開發新產品和開展新業務。有時這些很快就能成功。有時他們很快就沒有成功。

And in those cases, you have to ask yourself, is it worth investing in? Is it worth maintaining the effort or at some point, do you get impatient with it and try to change? And I've got examples in my head right now where we are probably more patient than we should have been and other examples where our patience has paid off very handsomely. So it's not a science. It's a little bit of an art, and we're kind of going into these reviews in that -- with that mindset.

在這種情況下，你必須問自己，這值得投資嗎？這是否值得繼續努力，或者在某個時候，你會不耐煩並嘗試改變？現在我腦子裡有一些例子，表明我們可能比我們應該的更有耐心，還有一些例子表明我們的耐心得到了豐厚的回報。所以它不是一門科學。這有點像一門藝術，我們就是帶著這種心態來進行這些評論的。

But these are not big chunks of our business. The Test business is the biggest. The others are relatively small at this point in terms of product lines or initiatives. So should be less consequential. But the Test business, in particular, because it is its own segment, it kind of sticks out like a sore thumb. So it gets a corresponding amount of attention.

但這些並不是我們業務的主要部分。測試業務是最大的。目前，其他公司在產品線或計劃方面規模相對較小。因此影響應該較小。但測試業務，特別是因為它是一個獨立的部分，它有點像一個拇指疼痛。因此它得到了相應的關注。

Awesome. And then if I could just squeeze one more in here. Can you talk about your 737 expectations today versus last quarter? And if there's any change in how Boeing has communicated its production needs with you, especially given Spirit announcing furloughs and China refusing some deliveries?

驚人的。然後如果我能再擠一點在這裡。您能談談您對目前 737 的預期與上一季相比有何變化嗎？波音公司與您溝通生產需求的方式是否有任何變化，特別是在 Spirit 航空宣布休假和中國拒絕部分交付的情況下？

Yeah. Sure. We have not heard of major changes from Boeing. I would remind listeners that we intend to build at a rate somewhat reduced from what they are building. We are, however, actually, if anything pleased at the progress they seem to be making, which is perhaps a little bit more than what industry in general expected in terms of rate progression as we move through 2025.

是的。當然。我們還沒聽說波音公司做出重大改變。我想提醒聽眾，我們打算以比他們現在的建造速度略低的速度進行建造。然而，我們實際上對他們所取得的進展感到高興，這可能比整個產業對 2025 年利率進展的預期要多一些。

So we don't think that the wheels are coming off by any means. I don't -- from what I understand, the China situation is not consequential at least for 2025. There are plenty of other people who will take their planes if they don't want them. So I think if anything, we're encouraged. I mean the sooner they get up to 38 or anything similar to that, the sooner we will get an uptick also as they burn through our inventory.

因此，我們並不認為車輪會脫落。我不這麼認為——據我所知，中國的情況至少對 2025 年來說並不重要。如果他們不想要飛機，還有很多其他人會搭乘他們的飛機。所以我認為，如果有的話，我們會受到鼓舞。我的意思是，他們越早達到 38 或類似的水平，我們就能越早獲得成長，因為他們會消耗我們的庫存。

Awesome. And congrats again on a great quarter.

驚人的。再次恭喜本季取得如此出色的成績。

Sam Struhsaker, Truist Securities.

Truist Securities 的 Sam Struhsaker。

On for Mike Ciarmoli. And yeah, congrats on a nice quarter here. Just to start off kind of building on the last question there. Is there any way you guys could provide any more detail kind of on, with the demand within the quarter, how much of that was in Aero you were sort of seeing from -- for the products that you sell to both? How much of the demand growth was kind of coming from airlines directly versus from the OEMs themselves? Any additional color there by chance?

替補上場的是麥克·恰莫利。是的，恭喜您本季取得了良好的業績。只是想開始回答最後一個問題。你們能否提供更多細節，關於本季的需求，你們從 Aero 中看到的需求量有多少——你們向兩家公司銷售的產品有多少？需求成長中有多少是直接來自航空公司，有多少是來自原始設備製造商本身？那裡偶然有其他顏色嗎？

Well, it's been pretty strong demand from both sides. We typically say that our commercial transport sales are roughly 50% line fit and 50% aftermarket with the caveat that there are some major customers of ours where it's kind of hard to know actually whether the product is ultimately going to end up line fit or end up aftermarket. But I guess I would tell you that we feel demand has been pretty consistently strong in both sides, and we're pretty comfortable with how it sits.

嗯，雙方的需求都很強烈。我們通常說，我們的商業運輸銷售額大約有 50% 來自生產線，50% 來自售後市場，但需要注意的是，我們的一些主要客戶實際上很難知道產品最終是屬於生產線還是售後市場。但我想告訴你，我們感覺雙方的需求一直相當強勁，我們對目前的狀況感到很滿意。

Again, absent tariff wars, we think it's the table set for a pretty good trend here with Boeing ramping up production and Airbus also. And a reminder, though you didn't ask this specifically, Airbus is just as important to us in terms of line-fit content as Boeing is. We don't put quite as much content on a typical Airbus airplane, but they build more of them at this point.

再一次，在沒有關稅戰的情況下，我們認為這是一個相當好的趨勢，波音和空中巴士公司都在提高產量。需要提醒的是，雖然您沒有具體問到這個問題，但就生產線適配內容而言，空中巴士對我們來說和波音一樣重要。我們在典型的空中巴士飛機上放置的內容並不多，但他們目前製造的飛機更多。

So the two of them together are very important and all the trends are going in the right direction, both for narrow-body and wide-body. And generally, up until the tariff war erupted demand from the airlines has remained strong also. It hasn't cut off at this point. Our projects tend to be pretty long-term projects or at least longer term than one month.

因此，兩者結合起來非常重要，無論是窄體飛機還是寬體飛機，所有的趨勢都朝著正確的方向發展。整體而言，直到關稅戰爆發之前，航空公司的需求也一直保持強勁。此時它還沒有停止。我們的項目往往是相當長期的項目，或至少比一個月更長。

So we haven't seen a significant change there. And I don't expect we will given all the wheels that are in motion for various modification programs. Obviously, if macroeconomic issues result in a depressed economy here in the North America or around the world, that will change them sooner or later. But we're not seeing evidence of that at this point. We're certainly not modeling it in.

所以我們還沒有看到顯著的變化。而我並不期望我們能夠全力以赴地完成各種修改計劃。顯然，如果宏觀經濟問題導致北美或全球經濟衰退，那麼這些情況遲早會改變。但目前我們還沒有看到這方面的證據。我們當然不會對其進行建模。

No, that makes great sense. And glad to hear as well. I guess kind of shifting here a little bit over to the Test segment. That $1.9 million charge, do you guys feel like that's pretty contained at this point? Or I know you mentioned you're kind of still looking into that. I mean what's -- is there potential incremental risk there or do you feel pretty good about where that is after that?

不，這很有道理。我也很高興聽到這個消息。我想這裡稍微轉移到測試部分。190 萬美元的費用，你們覺得現在這個數字還可以接受嗎？或者我知道您提到您仍在研究這個問題。我的意思是——那裡是否存在潛在的增量風險，或者您對之後的情況感覺良好嗎？

We would have to say that there is potential risk there, and that's why we're doing this review. The programs in question have suffered from consistently -- consistent misses, I would say, over the two years that we've been involved. Actually, it's longer than that, three or four years.

我們不得不說，那裡存在潛在風險，這就是我們進行這次審查的原因。我想說，在我們參與的兩年裡，這些計畫一直遭遇持續的失敗。事實上，時間比這更長，有三到四年。

So we have to kind of draw a conclusion to these things sooner than later for the company to get on its right foot. And one of the things we're going to look at is how comfortable are we with those estimates that have come out of that business on those programs.

因此，我們必須盡快對這些事情得出結論，以便公司能夠走上正軌。我們要研究的事情之一是，我們對該業務針對這些項目得出的估計有多滿意。

Got it. Makes sense. And then just maybe one last one for me, if I could. The -- it seems like the UK settlement is, for the most part, kind of coming out as a relatively best case scenario for you guys.

知道了。有道理。如果可以的話，也許這是我的最後一個。看起來，英國的解決方案在很大程度上對你們來說是一個相對最好的情況。

At this point, are you kind of thinking the worst case risk ceiling would be that $7.2 million? And that's worst case scenario, but that's probably the worst it could get. And after that, whichever way that settlement goes, that would sort of be the conclusion to that part of the whole case in the UK?

此時，您是否認為最壞情況的風險上限是 720 萬美元？這是最糟糕的情況，但這可能是最糟糕的情況了。那麼此後，無論和解結果如何，這是否等於結束了英國這部分案件？

Yes, yes and yes. The $7.2 million, we think is worst case on legal fees. We think it will probably end up or could end up lighter than that. We're not going to know probably until we have another hearing, which is later in the second quarter here.

是的，是的，是的。我們認為 720 萬美元是法律費用中最糟糕的情況。我們認為最終重量可能會比這更輕。我們可能要等到第二季稍後再舉行一次聽證會才能知道結果。

And then, that should be it for UK, with the big asterisk that there's likely to be an appeal. We don't know that for sure. We expect that it will be an appeal. We're not really that nervous about an appeal at this point. Our lawyers seem to be pretty comfortable with the judgment that we received.

那麼，對於英國來說，這應該就結束了，但有一個大星號，表示可能會提出上訴。我們對此並不確定。我們預計這將是一次上訴。目前，我們對上訴並不是那麼緊張。我們的律師似乎對我們收到的判決非常滿意。

So hopefully, that's the end of it. But if there is an appeal, that will likely draw or stretch into the middle of 2026, I would guess, at this point. So it will be a while before it gets resolved. But to qualify the judgments in the UK to-date, we're thrilled with the damages ruling.

希望事情到此結束。但如果有上訴的話，我猜，這可能會持續到 2026 年中期。因此，解決這個問題還需要一段時間。但就迄今為止英國的判決而言，我們對損害賠償裁決感到非常高興。

That could have been a whole lot worse based on what the plaintiffs were asking for. We're not so pleased with the interest charges, but given the damages ruling, we'll live with it. And the legal situation is a little bit frustrating, but that's how the rules work there. I mean the legal expense situation. It's not something we're familiar with in the UK or in the US, but in the UK legal fees are debatable. So we'll see how that works out. But I think in a worst case, we're going to end up somewhere around that $20 million, $22 million, $23 million total.

根據原告的要求，情況可能會更糟。我們對利息費用不太滿意，但考慮到損害賠償裁決，我們會接受的。雖然法律狀況有點令人沮喪，但那裡的規則就是這樣的。我指的是法律費用的情況。這不是我們在英國或美國所熟悉的事情，但在英國，律師費是有爭議的。我們將看看結果如何。但我認為，在最壞的情況下，我們的總損失也會在 2,000 萬美元、2,200 萬美元或 2,300 萬美元左右。

Got it. Makes sense. Yeah. And as you said, I mean, even with those factored in, it's still definitely better than what the worst case scenario could have been. And then the Germany side of that, I know it was like a way far out, that's nothing on the horizon, right? Any potential reappeal over there? You mentioned that in the past.

知道了。有道理。是的。正如你所說，我的意思是，即使考慮到這些因素，它仍然比最壞的情況要好。然後從德國方面來說，我知道那就像一條遙遠的路，沒有什麼前景，對吧？那裡有重新上訴的可能性嗎？您之前提到過這一點。

Yeah, that's something that is pretty much on hold, waiting to see how the UK situation worked out, we suspect. And now that there's some clarity there, Germany may pick up. But again, we don't expect that to happen until 2026 either. So apart from this May hearing on legal fees, it should be a pretty quiet year for the rest of the year in 2025 on the legal front, we're hoping until 2026 gets here and then we'll start to fire it all up again.

是的，我們懷疑這件事情基本上處於擱置狀態，等待英國局勢如何發展。現在情況已經明朗，德國可能會復甦。但同樣，我們也不認為這種情況要到 2026 年才會發生。因此，除了今年 5 月關於法律費用的聽證會之外，2025 年剩餘時間的法律事務應該會相當平靜，我們希望 2026 年能夠到來，然後我們才能再次開始一切。

Got it. Makes good sense. And congrats again on the nice results.

知道了。很有道理。再次恭喜您取得如此好的成績。

We reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

我們的問答環節已經結束。我想再次請大家發表進一步的評論或結束語。

No real closing comments. Thank you for your time, and attention and keep your fingers crossed for successful tariff clarity for all of us sometime soon. Talk to you next quarter. Bye.

沒有真正的結束語。感謝您的時間和關注，並祝福我們所有人的關稅能盡快明確。下個季度再聊。再見。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路直播到此結束。此時您可以斷開線路，祝您有美好的一天。我們感謝您今天的參與。