Astronics Corp (ATRO) 2025 Q2 法說會逐字稿

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

您好，歡迎參加 Astronics Corporation 2025 財年第二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。

I would now like to turn the conference over to your host, Debbie Pawlowski, Investor Relations for Astronics. Please go ahead.

現在，我想將會議交給主持人、Astronics 投資者關係部門的 Debbie Pawlowski。請繼續。

Thank you, and good afternoon. We appreciate your time today and your interest in Astronics. Joining me here are Pete Gundermann, our Chairman, President and CEO; and Nancy Hedges, our Chief Financial Officer. Our second quarter results crossed the wires after the market closed today, and you can find that release on our website at astronics.com.

謝謝，下午好。我們感謝您今天抽出時間並關注 Astronics。與我一起出席的還有我們的董事長、總裁兼執行長 Pete Gundermann 和我們的財務長 Nancy Hedges。我們的第二季業績在今天股市收盤後公佈，您可以在我們的網站 astronics.com 上找到新聞稿。

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 and 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。這些聲明適用於未來事件，並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的影響。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。

So with that, I will turn it over to Pete to begin. Peter?

因此，我將把時間交給 Pete 來開始。彼得？

Hello, everybody, and welcome to the call. I'll open the call with my comments on the second quarter, which had a number of puts and takes, but also showed consistent progress towards improved performance for the business, which has been our goal as we work our way through 2025. I'll then turn it to Nancy to cover the details. And later, I'll talk about our strengthened outlook for the remainder of the year.

大家好，歡迎來電。我首先將對第二季發表評論，該季度雖然有些得失，但也顯示出業務在不斷改善業績方面取得的持續進展，這也是我們 2025 年的目標。然後我會把話題轉給南西來介紹細節。稍後我將談論我們對今年剩餘時間的展望。

Sales for the quarter were just under $205 million, similar to the first quarter and up 3.3% from the second quarter of 2024. This was driven by record sales for our Aerospace segment, which compensated for lower Test segment sales. Test sales were low due to a $6.4 million adjustment driven by our ongoing program review process, which has caused us to reevaluate our financial position on a few programs. Year-to-date sales are $411 million, up 7.2% from $383 million last year. So our sales momentum remains solid. Our margins continue to make progress also driven by the success of our Aerospace segment.

本季銷售額略低於 2.05 億美元，與第一季持平，比 2024 年第二季成長 3.3%。這是由於我們航空航天部門創紀錄的銷售額所致，這彌補了測試部門銷售額的下降。測試銷售額較低是由於我們正在進行的計劃審查流程所驅動的 640 萬美元的調整，這導致我們重新評估一些計劃的財務狀況。今年迄今的銷售額為 4.11 億美元，比去年的 3.83 億美元成長 7.2%。因此我們的銷售動能依然強勁。由於航空航天部門的成功，我們的利潤率也持續成長。

We had adjusted EBITDA of $25.4 million or 12.4% of sales in the quarter. On a rolling 12-month basis, adjusted EBITDA as we calculate it, has been $114.7 million. This is up from $71 million for the previous 12-month period. So we have continued to make pretty good progress.

我們調整後的 EBITDA 為 2,540 萬美元，佔本季銷售額的 12.4%。以連續 12 個月計算，我們計算的調整後 EBITDA 為 1.147 億美元。這一數字高於前 12 個月的 7,100 萬美元。因此我們繼續取得了相當不錯的進展。

Second quarter bookings were on the light side at $177 million for a book-to-bill of 0.86, primarily as a result of timing following a record level of bookings in the first quarter. Market demand for our products remains strong. Our book-to-bill for the first half of 2025 is positive at 1.11 and for the last 12 months, also it's positive at 1.02. So while our revenues have been ramping over recent periods, our bookings have been keeping up just fine, which is a good indication of continued strength going forward.

第二季的訂單量較少，為 1.77 億美元，訂單出貨比為 0.86，主要是因為第一季的訂單量創下了歷史新高。市場對我們產品的需求依然強勁。我們2025年上半年的訂單出貨比為1.11，過去12個月的訂單出貨比也為1.02。因此，雖然我們的營收在近期持續成長，但我們的訂單量也保持良好，這預示著未來我們將繼續保持強勁成長勢頭。

Our quarter results were colored by some large and unusual adjustments resulting from the business review we described in our first quarter call. That review, as I mentioned a minute ago, led us to a $6.8 million EAC-related adjustment in our Test segment. The EAC charge is to level set certain long-term development contracts in our transit business specifically. Our review concluded that we are not as far along on the programs as we thought, leading to the reset.

我們在第一季電話會議上描述的業務回顧中做出了一些重大且不尋常的調整，這些調整對我們的季度業績產生了影響。正如我剛才提到的，那次審查導致我們在測試部門進行了 680 萬美元的 EAC 相關調整。EAC 收費是為了專門設定我們運輸業務中的某些長期開發合約。我們的審查結論是，我們在這些計劃上的進展並不像我們想像的那麼順利，因此需要重新開始。

Our work is being verified currently by an outside consultant firm hired to help us implement management systems to minimize any recurrences in the future. Our program review also led us to step away from a couple of Aerospace segment product lines that we have concluded are noncore to our future. This simplification initiative resulted in $6.2 million of restructuring charges in the Aerospace segment. These product lines have proven to be low growth and low margin and the charges relate to write-downs of inventory on certain facility assets. These two product lines, which include satellite antennas and contract engineering and manufacturing programs are expected to contribute sales of only $4 million to $8 million in all of 2025.

目前，我們正在接受一家外部顧問公司的驗證，該公司旨在幫助我們實施管理系統，以盡量減少將來再次發生此類事件。我們的專案審查也使我們放棄了幾條航空航太產品線，我們認為這些產品線對我們的未來而言不是核心。此項簡化措施導致航空航天部門產生 620 萬美元的重組費用。事實證明，這些產品線成長緩慢、利潤率低，而且費用與某些設施資產的庫存減記有關。這兩條產品線包括衛星天線和合約工程與製造項目，預計到 2025 年全年的銷售額僅為 400 萬至 800 萬美元。

We expect to exit a couple of facilities related to these actions over the next 12 to 18 months. As an aside, including these two facilities, we've closed eight facilities in recent years, significantly reducing our footprint and simplifying our organization. The contract engineering and manufacturing initiative is one that we entered into in the heat of the pandemic to leverage some manufacturing space and engineering resources that were underutilized at the time. Over time, we found the program risks were too high, and the resulting margins did not justify the effort.

我們預計將在未來 12 到 18 個月內退出與這些行動相關的幾個設施。順便說一句，包括這兩個工廠在內，我們近年來已經關閉了八個工廠，大大減少了我們的足跡並簡化了我們的組織。合約工程和製造計劃是我們在疫情最嚴重時期採取的一項舉措，旨在利用當時未充分利用的一些製造空間和工程資源。隨著時間的推移，我們發現該計劃的風險太高，而產生的利潤並不值得付出努力。

The discontinuation of any further development of our satellite antenna product line, which have been focused on large business jets and commercial transports operating with geosynchronous satellite constellations was the result of having a low market share and recognition that conditions have slowed as customers contemplate emerging low earth orbit constellations.

我們的衛星天線產品線一直專注於使用地球同步衛星星座運行的大型商務噴射機和商業運輸，由於市場份額較低，並且認識到隨著客戶考慮新興的低地球軌道星座，情況已經放緩，因此停止了進一步的開發。

We decided that the investment in developing new antennas specific to either the LEO and/or GEO market would be too risky to justify the required financial investment. But to be clear, the antenna decision does not mean we are walking away from LEO as a technology. To the contrary, the vast majority of our in-flight entertainment and connectivity capabilities are as relevant to LEO networks as they are to GEO and to air-to-ground, ATG, topologies. The market is in a state of flux currently as customers consider the merits of the competing technologies, but we are optimistic that we will be able to create value in the emerging LEO world as we have in the past with GEO and ATG.

我們認為，投資開發針對 LEO 和/或 GEO 市場的新天線風險太大，不值得進行所需的財務投資。但要先明確的是，天線的決定並不代表我們要放棄低地球軌道技術。相反，我們絕大多數的機上娛樂和連接功能與 LEO 網路、GEO 和空對地 (ATG) 拓撲同樣相關。由於客戶正在考慮競爭技術的優點，市場目前處於不斷變化的狀態，但我們樂觀地認為，我們將能夠在新興的 LEO 世界中創造價值，就像我們過去在 GEO 和 ATG 中所做的那樣。

We made a small acquisition in our Aerospace segment at the beginning of the third quarter. Envoy Aerospace is an ODA, which stands for Organizational Designation Authority. ODA is a program in which the FAA grants certification approval authority to outside organizations through which the FAA extends its capacity and reach.

我們在第三季初對航空航天部門進行了一次小規模收購。Envoy Aerospace 是一家 ODA，即組織指定機構。ODA 是 FAA 向外部組織授予認證批准權的一項計劃，透過該計劃 FAA 可以擴大其能力和影響力。

We believe that having an ODA will be a competitive differentiator as we are often involved in aircraft retrofit programs and FAA certification is becoming a more important capability in competitive situations. Having certification authority lessens program and schedule risk for both us and our customers. Envoy has sales of about $8 million and will report through our Astronics CSC operation.

我們相信，擁有 ODA 將成為我們的競爭優勢，因為我們經常參與飛機改裝項目，而 FAA 認證在競爭中正成為更重要的能力。擁有認證機構可以減少我們和客戶的計畫和進度風險。Envoy 的銷售額約為 800 萬美元，並將透過我們的 Astronics CSC 營運進行報告。

I'll turn it over to Nancy now to cover segment results and other details relating to our second quarter results. Nancy?

現在我將把話題交給南希，讓她來介紹分部業績以及與我們第二季業績相關的其他細節。南希？

Thanks, Pete. I'll review the key drivers and other impacts to our consolidated Q2 performance and then touch on segment level results. As Pete noted, revenue in the second quarter grew 3% over the prior year period and was in line with the trailing first quarter. This was despite the $6.4 million impact to revenue of the adjustment to the estimated cost of completion of certain Test systems projects. Growth was driven by record quarterly aerospace sales.

謝謝，皮特。我將回顧影響我們第二季度綜合業績的關鍵驅動因素和其他影響因素，然後再談到各個細分領域的業績。正如皮特所指出的，第二季的營收比去年同期成長了 3%，與第一季持平。儘管對某些測試系統項目的預計完成成本進行調整，對收入產生了 640 萬美元的影響，但情況仍然如此。成長主要得益於創紀錄的季度航空航太銷售額。

Operating profit and margins reflected the $6.9 million total P&L impact associated with the EAC adjustments and $6.2 million in costs for footprint rationalization and the portfolio reshaping that Pete discussed. Additionally, as part of a further follow-up hearing in the latter part of May with respect to the UK patent dispute, we were ordered to make a partial reimbursement of the plaintiff's legal fees associated with the damages phase amounting to $3.5 million. This was partially offset by a $1.7 million reduction in legal fees and a reduction of R&D expense in the amount of $2.6 million due to project timing.

營業利潤和利潤率反映了與 EAC 調整相關的 690 萬美元總損益影響以及 Pete 討論的足跡合理化和投資組合重塑的 620 萬美元成本。此外，作為 5 月下旬針對英國專利糾紛的進一步後續聽證會的一部分，我們被要求部分償還原告在損害賠償階段支付的 350 萬美元法律費用。由於專案時間安排原因，法律費用減少了 170 萬美元，研發費用減少了 260 萬美元，部分抵消了這一影響。

On an adjusted basis, gross margin expanded 120 basis points over the prior year to 29.2% and operating margin expanded 250 basis points to 8.9%. Adjusted EBITDA was $25.4 million or 12.4% of sales, up from 10.2% last year, primarily reflecting improved profitability from higher volume and increasing productivity in the Aerospace segment. As a reminder, we did not add back the EAC impact in our adjustments, and it had a 2.9 point negative impact to our adjusted EBITDA margin.

經調整後，毛利率較前一年擴大 120 個基點至 29.2%，營業利益率擴大 250 個基點至 8.9%。調整後的 EBITDA 為 2,540 萬美元，佔銷售額的 12.4%，高於去年的 10.2%，主要反映了航空航天部門產量增加和生產力提高帶來的獲利能力提高。提醒一下，我們沒有在調整中加入 EAC 的影響，它對我們的調整後 EBITDA 利潤率產生了 2.9 個百分點的負面影響。

Interest expense declined 47% year over year to $3.1 million in the quarter, reflecting our successful refinancing last November of the prior term loan and the ABL. The lower interest rate on our convertible debt provides meaningful savings in both interest and reduced cash payouts and provides a solid liquidity cushion. GAAP earnings per share was unchanged year over year at $0.04. Non-GAAP adjusted EPS for the quarter was $0.38, nearly double the $0.20 from the prior year period.

本季利息支出年減 47% 至 310 萬美元，反映了我們去年 11 月成功對前一筆定期貸款和 ABL 進行了再融資。我們的可轉換債務的較低利率在利息和減少現金支出方面提供了有意義的節省，並提供了堅實的流動性緩衝。每股盈餘（GAAP）與去年同期持平，為0.04美元。非GAAP調整後每股盈餘（Non-GAAP）為0.38美元，幾乎是去年同期0.20美元的兩倍。

Turning to our segment level results. Our Aerospace segment delivered another quarterly sales record of $193.6 million, a 9% increase year over year. Commercial Transport sales was the primary driver and was up 13%, driven by continued strength in cabin power and inflight entertainment and connectivity products. Military sales were also strong, increasing 11%, driven by increased demand for lighting and safety products.

轉向我們的細分級別結果。我們的航空航太部門再創季度銷售額紀錄，達到 1.936 億美元，年增 9%。商業運輸銷售額是主要推動力，成長 13%，這得益於客艙電源和機上娛樂及連接產品的持續強勁成長。受照明和安全產品需求增加的推動，軍用產品銷售也表現強勁，成長了 11%。

Operating profit in Aerospace was impacted by the portfolio realignment previously discussed. Adjusted Aerospace operating profit was $31.5 million in the quarter compared with $23.5 million a year ago. And on an adjusted basis, Aerospace achieved 48% operating leverage on the higher volume. Adjusted operating margin improved by 300 basis points year over year to 16.3%.

航空航太業務的營業利潤受到先前討論過的投資組合調整的影響。本季調整後的航空航太營業利潤為 3,150 萬美元，而去年同期為 2,350 萬美元。經調整後，航空航太公司憑藉更高的銷售量實現了 48% 的營運槓桿。調整後的營業利益率年增 300 個基點，達到 16.3%。

Turning to the Test segment. As we discussed on our last call, the Test business was expected to be weak in the quarter, but the EAC adjustment further deteriorated the results. Sales of $11.1 million reflect the most recent estimates for completion, which lowered the percentage of work completed, which reduced revenue by $6.4 million.

轉向測試部分。正如我們在上次電話會議上所討論的那樣，預計本季測試業務將會疲軟，但 EAC 調整進一步惡化了業績。1,110 萬美元的銷售額反映了最新的完工估計，這降低了已完成工作的百分比，從而減少了 640 萬美元的收入。

We reported an adjusted operating loss of $6.6 million in the Test business. Again, we did not adjust for the impact of the EAC change, which was $6.9 million on operating income, including about a $500,000 loss reserve that's reflected in cost of goods sold. These adjustments masked the positive impact of approximately $5 million in annualized cost savings that started to flow through in the quarter. We expect these benefits will be more visible in the second half of the year.

我們報告測試業務的調整後營業虧損為 660 萬美元。再次，我們沒有調整 EAC 變化的影響，該變化對營業收入的影響為 690 萬美元，其中包括反映在銷售成本中的約 50 萬美元的損失準備金。這些調整掩蓋了本季開始產生的約 500 萬美元年度成本節約的正面影響。我們預計這些好處將在今年下半年更加明顯。

Stronger Test bookings in the quarter included a follow-on order under the Radio Test Programs for the Marines. The US Army Radio Test program apparently requires another level of process within the Army that we have to wait for them to complete. We expect this process will push the program out six to eight weeks and still hope to see a production order before the end of the year.

本季度測試訂單增加，其中包括海軍陸戰隊無線電測試計畫下的後續訂單。美國陸軍無線電測試計畫顯然需要陸軍內部另一個層級的流程，我們必須等待他們完成。我們預計這一過程將使該計劃推遲六到八週，並且仍然希望在年底之前看到生產訂單。

We used $7.6 million in cash from operations. As expected, this reflected the $21.6 million in payments related to the UK patent dispute for damages, interest and the legal fee reimbursement and $12 million in income tax payments. This was a $9.5 million increase over last year's second quarter income tax payments and included the full year federal payment for 2024 as well as the resumption of quarterly estimated federal payments given our improved liquidity. With those large payments behind us, we expect to generate solid operating cash flow in the second half of the year.

我們使用了 760 萬美元的營運現金。正如預期的那樣，這反映了與英國專利糾紛相關的 2,160 萬美元的損害賠償金、利息和法律費用補償以及 1,200 萬美元的所得稅支付。這比去年第二季的所得稅支付額增加了 950 萬美元，其中包括 2024 年全年聯邦支付額以及鑑於我們流動性改善而恢復的季度預估聯邦支付額。有了這些大額付款，我們預計今年下半年將產生穩健的營運現金流。

We finished the quarter with $13.5 million in cash and factoring in the liquidity block, approximately $178 million of availability under our ABL facility. This resulted in about $191 million in total liquidity at quarter end. 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.

本季結束時，我們擁有 1,350 萬美元的現金，考慮到流動性障礙，我們的 ABL 工具下可用資金約為 1.78 億美元。這使得季度末的總流動資金達到約 1.91 億美元。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 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 current liquidity block. We may evaluate other options as well, especially given the positive progression of our operational performance, solid visibility into future demand and the related stock price improvement.

我們的融資結構也在不斷改進。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的過渡，這種循環信貸的限制較少，並能消除當前的流動性障礙。我們也可能會評估其他選擇，特別是考慮到我們的營運表現的積極進展、對未來需求的清晰可見性以及相關的股價上漲。

Capital expenditures in the quarter remained low at $4.7 million (sic - see Q2 2025 Earnings release, "$4.6 million") and are $6.7 million for the first half of 2025. We continue to expect a much higher level of CapEx for the full year and are now forecasting spend to be in the range of $40 million to $50 million. We have advanced on the project for the facility consolidation and capacity expansion for our electrical power and motion products in Redmond, Washington and expect that spend to measurably step up in the second half of 2025. I should note that even with the elevated CapEx spend in the second half, we are projecting positive free cash flow.

本季的資本支出仍維持在 470 萬美元的低點（原文如此 - 參見 2025 年第二季財報「460 萬美元」），2025 年上半年的資本支出為 670 萬美元。我們繼續預期全年資本支出水準將大幅提高，目前預測支出將在 4,000 萬美元至 5,000 萬美元之間。我們已經推進了位於華盛頓州雷德蒙德的電力和運動產品的設施整合和產能擴建項目，並預計該支出將在 2025 年下半年大幅增加。我應該指出，即使下半年資本支出增加，我們預期自由現金流仍為正。

On the tariff front, the changes enacted in recent weeks result in an impact to our cost of about $15 million to $20 million. We believe mitigation efforts can reduce these costs by at least half. While price adjustments are already being pursued, now that the situation has stabilized to some degree, we can consider other mitigation actions like free trade zones, duty drawbacks and bonded warehouses in addition to evaluating our supply chain options. Other actions we have taken with the business to drive profitability will help to offset the tariff impact as well.

在關稅方面，最近幾週實施的變更對我們的成本產生了約 1500 萬至 2000 萬美元的影響。我們相信緩解措施可以將這些成本減少至少一半。雖然價格調整已經在進行中，但既然情況已經在一定程度上穩定下來，除了評估我們的供應鏈選擇之外，我們還可以考慮其他緩解措施，例如自由貿易區、退稅和保稅倉庫。我們為提高獲利能力而採取的其他業務措施也將有助於抵消關稅的影響。

Overall, we're pleased with the strong first half. We expect with the resilient strengthening of underlying performance trends in our core aerospace business and expected improvements in Test Systems, we will have an even stronger second half of 2025. We remain focused on disciplined capital allocation, productivity to drive further margin expansion, accelerating our working capital turns, free cash flow generation and consistently executing on continuous improvement.

總體而言，我們對上半年的強勁表現感到滿意。我們預計，隨著核心航空航太業務基本業績趨勢的強勁增強以及測試系統的預期改善，我們將在 2025 年下半年取得更強勁的業績。我們將繼續注重嚴格的資本配置、生產力以推動利潤率的進一步擴大、加速營運資本週轉、自由現金流的產生以及持續改善的持續執行。

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

現在，讓我把話題轉回給皮特。

As Nancy said, we are expecting a strong second half to 2025. Our Aerospace business will continue to enjoy the strong tailwinds prevalent in the industry, including increasing passenger traffic, aircraft utilization, aircraft build rates and the increasing adoption of modern passenger entertainment and connectivity systems.

正如南希所說，我們預計 2025 年下半年將會表現強勁。我們的航空航太業務將繼續享受業界普遍存在的強勁順風，包括不斷增長的客運量、飛機利用率、飛機建造率以及現代乘客娛樂和連接系統的日益普及。

We also expect solid improvement in our Test business based on strong recent bookings and the EAC adjustments we have just taken. We expect sales in the second half to possibly double the total from the first half, even with the possibility that the production start of our US Army radio test program known as 4549/T may slide into 2026.

基於近期強勁的預訂量以及我們剛採取的 EAC 調整，我們也預計測試業務將穩步改善。儘管我們的美國陸軍無線電測試項目 4549/T 的生產開始時間可能推遲到 2026 年，但我們預計下半年的銷售額可能會比上半年翻倍。

Given all this, we are increasing our 2025 revenue guide to $840 million to $860 million, up from $820 million to $860 million, an increase of $10 million at the midpoint. The midpoint, $850 million would represent an increase of 6.9% sales year over year. We expect the third quarter to be up marginally from the pace of the first half with the fourth quarter up more substantially. We expect it will be a positive and exciting second half, setting up another positive year in 2026.

考慮到所有這些，我們將 2025 年的收入指南從 8.2 億美元至 8.6 億美元上調至 8.4 億美元至 8.6 億美元，中間值增加 1,000 萬美元。中間值 8.5 億美元代表銷售額年增 6.9%。我們預計第三季的成長速度將比上半年略有上升，而第四季的成長速度將更為大幅。我們預計下半年將會是積極而令人興奮的一年，為 2026 年的另一個積極年份奠定基礎。

And with that, Kate, we'll open it up for questions.

凱特，接下來我們將開始提問。

(Operator Instructions) Jon Tanwanteng, CJ -- I'm sorry, CJS Securities.

（操作員指示）Jon Tanwanteng，CJ——抱歉，CJS 證券。

Pete, if you could first talk about the magnitude and, I guess, the drivers overall of the aerospace momentum that you're seeing that's allowing you to raise your revenue guidance. Maybe the Test business as well, where is that coming from? With the backdrop that you're exiting some businesses, you've got the EAC impact as well as the push out of the radio business, help me frame the size of all those things that you have together.

皮特，你能不能先談談航空航太業發展的規模，以及我認為的整體驅動因素，這些因素使你能夠提高收入預期。也許還有測試業務，那是從哪裡來的？在您退出一些業務的背景下，您受到了 EAC 的影響以及廣播業務的推動，請幫我估算一下您所擁有的所有這些東西的規模。

Sure. It's a pretty comprehensive list of things actually. On the aerospace side, production rates, first of all, are a pretty big driver. We've got 737 rates going up, A320, there's upward pressure, all those supply chain problems. 787, A350, those are the four main ones that are -- have increased or are expected to increase in the near future.

當然。事實上，這是一份相當全面的清單。在航空航太方面，首先，生產率是一個相當大的驅動力。我們的 737 運價上漲，A320 也面臨上行壓力，所有這些都是供應鏈問題。787、A350 是四款主要機型，它們的數量已經增加或預計在不久的將來會增加。

737, to give you an idea, we've been shipping somewhere in the neighborhood of low 20, mid-20 shipsets per month and most recently stepping up to the low 30s, and we are on a glide path to step up again to like high 30s and even up to the low 40s potentially by the end of the year if Boeing gets permission to go there. So that's a big driver as we look forward. Beyond that, we have a program that we've announced with the Airbus A220 up in Montreal that should be a pretty big driver as we move through 2026. So that's a positive picture in general.

737，給你一個概念，我們每個月的出貨量大約在 20 到 20 艘左右，最近增加到了 30 艘出貨，而且我們的出貨量正在穩步上升，如果波音公司獲得許可，到今年年底，我們的出貨量可能會再次增加到 30 艘以上，甚至可能達到 40 艘。因此，這是我們展望未來的一大動力。除此之外，我們還在蒙特婁宣布了一項與空中巴士 A220 合作的計劃，該計劃將成為我們邁向 2026 年的一個相當大的推動力。總體而言，這是一幅正面的景象。

On the Military Aircraft side, you noticed some pretty big growth there. One of the drivers is our engineering and development work year over year with FLRAA, which shows signs of accelerating. It's a little early to talk about that, but there's demand from the US Army customer to move that in sooner rather than later.

在軍用飛機方面，你注意到那裡有相當大的成長。其中一個驅動因素是我們與 FLRAA 逐年進行的工程和開發工作，並且顯示出加速的跡象。現在談論這個還為時過早，但美國陸軍客戶要求盡快實現這一目標。

On our Test side, the big drivers are the programs we've talked about quite a bit here, including primarily the 4549/T program for the US Army. We're making a lot of progress on that program. We think it's a very healthy program going forward. The unfortunate situation there is that the -- our customer at the US Army has been delayed by a DoD requirement for a certain health and safety analysis that needs to be completed. This is something that the DoD completes. It's nothing that we do. And that, at this point, seems to be the long pole in the tent.

在我們的測試方面，最大的驅動力是我們在這裡討論過很多的項目，主要包括美國陸軍的 4549/T 項目。我們在該計劃上取得了很大進展。我們認為這是一個非常健康的計劃。不幸的是，我們的美國陸軍客戶因國防部要求完成某項健康和安全分析而被推遲。這是國防部完成的事。這不是我們所做的事情。此時，似乎就是帳篷裡的長桿。

I don't mean to imply it's the only thing going on in that program. There are a number of other under -- crosscurrent things going on under the covers, but that's the thing that may push us from starting a production phase out of the fourth quarter into the first quarter. But even with that, we think that our Test business is lined up for a pretty strong improvement in revenue in the second half of the year, including in the current quarter compared to what it did in the first half.

我並不是說這是該程式中唯一發生的事情。還有一些其他暗中發生的矛盾的事情，但這些事情可能會促使我們從第四季推遲到第一季開始生產階段。但即便如此，我們認為我們的測試業務在下半年的營收將出現相當強勁的成長，包括本季與上半年相比的營收也將出現相當強勁的成長。

So I don't know if that answers your question, Jon. It's kind of a -- it's a long list of tailwinds really that are pushing us in our activity level, perhaps even higher than what our financials show. I mean we're turning in a quarter of $204 million after the EAC reduction. As a matter of activity, you can imagine what it was like without the EAC reduction. And then we'd be within spinning distance of an all-time record high with revenue for the company in the quarter.

所以我不知道這是否回答了你的問題，喬恩。這有點像是——實際上是一系列的順風因素在推動我們的活動水平，甚至可能比我們的財務狀況所顯示的還要高。我的意思是，在 EAC 削減之後，我們的收入為 2.04 億美元。就活動而言，你可以想像如果沒有 EAC 減少的話會是什麼樣子。那麼，我們本季的營收就將接近創下歷史新高。

Got it. No, that's very helpful. Can you talk maybe about just what you expect on the margin for the year? You got the EAC. I don't know if you can make that up in the back half.

知道了。不，這非常有幫助。您能否談談您對今年的利潤預期是多少？您已獲得 EAC。我不知道你是否能在後半部分彌補這一點。

You've got tariffs -- additional tariffs coming in. Just help us think of the margin expectation you have exiting the year.

你們要繳關稅——額外的關稅。只需幫助我們考慮一下您今年年底的利潤預期即可。

The margin -- the tariff situation, I feel is still a little bit hard to predict. We've kind of got through the August deadlines of the Trump administration threw out there for everybody, but they're relatively new, and there's a lot of expectation that the rates may adjust a little bit.

我覺得利潤——關稅情況仍然有點難以預測。我們基本上已經度過了川普政府為所有人設定的 8 月最後期限，但這些期限相對較新，而且許多人預計利率可能會略有調整。

To give you some color on our tariff situation, almost half of the tariff burden comes from a single country, Malaysia. Malaysia got a 19% tariff, which is consistent with what a lot of other countries in the region got. But what we source from Malaysia is relatively resourceable, I guess, I don't know if that's a word, but you can source it from other places. It's nothing all that critical that were locked into Malaysia.

讓您了解我們的關稅情況，幾乎一半的關稅負擔來自一個國家，即馬來西亞。馬來西亞的關稅為19%，與該地區許多其他國家的關稅一致。但我猜我們從馬來西亞採購的資源相對豐富，我不知道這是否是一個詞，但你可以從其他地方購買。被困在馬來西亞並沒有什麼嚴重的事。

Another quarter of our total tariff load basically comes from China. That's harder to move. And there are -- China negotiations are ongoing. We don't really know where those are going to end up yet. So Nancy talked a little bit about some of the efforts or actions we could take. And while we may see a tariff hit in the short term on the Malaysia front anyway, I think we'll be able to bring those down if necessary by moving production or moving suppliers or resourcing pretty easily. The China part is too early to tell.

我們的關稅總額的另外四分之一基本上來自中國。這更難移動。與中國的談判仍在進行中。我們確實還不知道它們最終會流向何處。南希稍微談了一下我們可以採取的一些努力或行動。儘管我們可能會在短期內看到馬來西亞的關稅受到衝擊，但我認為，如果有必要，我們可以透過轉移生產、轉移供應商或資源來輕鬆降低關稅。關於中國部分，現在下結論還為時過早。

And then, of course, there are pricing opportunities and passing it on to customers. That's what everybody wants to do. The reality is nobody wants to pay tariffs. So how it all settles out, it's a little bit too early to tell. But looking back at the second quarter, I'm pretty happy with our continued improvement to our Aerospace margins. Our adjusted operating margin, excluding those two portfolio shaping actions that we took, we were up around 16% which we think shows pretty good progress.

當然，還有定價機會並將其傳遞給客戶。這是每個人都想做的事。現實情況是沒有人願意支付關稅。所以這一切將如何解決，現在說還為時過早。但回顧第二季度，我對我們的航空航天利潤率的持續提高感到非常高興。我們的調整後營業利潤率（不包括我們採取的兩項投資組合塑造行動）成長了約 16%，我們認為這顯示了相當不錯的進展。

And if we -- Nancy mentioned a 49% marginal contribution or contribution on marginal sales, I guess, I should say. And so if we can achieve a continued ramp on the aerospace side, I think we're going to be in pretty good shape by the end of the year on our margins on that side of the business.

如果我們——南希提到了 49% 的邊際貢獻或邊際銷售額貢獻，我想，我應該這麼說。因此，如果我們能夠在航空航太領域實現持續成長，我認為到今年年底，我們該業務的利潤率將會達到相當好的狀態。

The Test business is harder to predict. We certainly hope that the EAC adjustment we took here is enough to carry us and get us through the programs that we're working on for some period of time. I don't think our Test business is going to impress the world with margins in the second half of the year. But I'm hoping for an adjusted EBITDA level somewhere around breakeven, maybe small single-digit positive.

測試業務更難預測。我們當然希望，我們在此進行的 EAC 調整足以幫助我們完成我們正在進行的一段時間的專案。我認為我們的測試業務在下半年的利潤率不會給世界留下深刻印象。但我希望調整後的 EBITDA 水準能夠達到盈虧平衡左右，或許是一個小的個位數正值。

And we're, at this point, 85%, 90% aerospace. So the aerospace business will drive the day when it comes to margins, at least for the foreseeable future until we get the radio test program going, which, again, will most likely happen in 2026.

目前，我們的 85% 到 90% 業務集中在航空航太領域。因此，就利潤率而言，航空航太業務將佔據主導地位，至少在可預見的未來是如此，直到我們啟動無線電測試計劃，而這很可能在 2026 年發生。

Perfect. And just a quick clarification. Is that -- is the tariff impact that you guys outlined, is that for the remainder of the year? Or is that annualized.

完美的。我只是簡單澄清一下。這是你們概述的關稅影響嗎？這會影響今年剩餘的時間嗎？或者說這是按年計算的。

That's annualized based on historical purchasing patterns with little or no mitigation in place.

這是根據歷史購買模式計算出的年化數據，幾乎沒有或根本沒有採取緩解措施。

Michael Ciarmoli, Truist Securities.

Truist Securities 的 Michael Ciarmoli。

Just to put a finer point on the margin topic there. Within Aerospace, do you think you could hold this kind of 16% plus adjusted level? I mean I know you just -- the tariff impact was annualized that didn't include any mitigation efforts. But do you have pretty good line of sight into Aero margins, especially if you get some further volume in the fourth quarter?

只是為了更詳細地闡述邊際主題。在航空航太領域，您認為您能維持這種 16% 以上的調整水準嗎？我的意思是，我知道你只是——關稅影響是年度化的，不包括任何緩解措施。但是，您是否對 Aero 的利潤率有很好的了解，特別是如果您在第四季度獲得進一步的銷售？

Yes. I think we're pretty comfortable with it. Again, tariffs are a little bit of an unknown at this point. So I'm kind of ignoring that for the moment. But with marginal or marginal further sales growth -- the other thing I didn't mention earlier is pricing increases that we've negotiated into certain of our contracts are also helping us quite a bit on the margin front.

是的。我認為我們對此很滿意。再次，目前關稅還有點未知。所以我暫時忽略了這一點。但隨著銷售額的進一步邊際增長——我之前沒有提到的另一件事是，我們在某些​​合約中協商的價格上漲也在利潤方面給我們帶來了很大幫助。

They're coming through as we work our way through 2025. And I think we'll see more of that as we go through the third quarter and the fourth quarter. So I don't view that adjusted level of 16% as a blip at all, except for the possible impact of tariffs as we move forward.

隨著我們努力邁向 2025 年，這些目標正在實現。我認為，隨著第三季和第四季的到來，我們會看到更多這樣的情況。因此，我認為調整後的 16% 水平根本不是曇花一現，除非關稅在未來可能產生影響。

Okay. On that pricing, I wanted to ask on that, are you having success on both the supplier furnished and buyer furnished? I mean, I guess, are you having success pushing price to Boeing and Airbus as well as the airline customers?

好的。關於該定價，我想問一下，您在供應商提供和買方提供的定價方面都取得了成功嗎？我的意思是，我猜，您是否成功地向波音、空中巴士以及航空公司客戶推銷價格？

We have been successful there. I think the whole world has realized that inflation has changed people's price -- cost structures and reality needs to set in. And so we have been successful. We continue to be successful. And I think more and more, we're pretty happy with our price levels compared to where we were, say, a year ago or 1.5 years ago.

我們在那裡取得了成功。我認為全世界都已經意識到通貨膨脹已經改變了人們的價格——成本結構和現實需求。因此我們成功了。我們繼續取得成功。我認為，與一年前或一年半前相比，我們對我們的價格水平越來越滿意。

Okay. Okay. And I know you gave some color on the new build side of commercial aerospace. Any color you could provide on what's happening maybe with the aftermarket or kind of planned retrofits from some of the bigger carriers?

好的。好的。我知道您對商用航空航天的新建方面做了一些介紹。您能否介紹一下售後市場的情況或一些大型業者的改造計畫？

It continues to be a very good market for us. I mean the production rate side of it is pretty easy to see. There are a lot of sources of information out there, and we would concur that especially in the Boeing side of things, that improvement seems to be pretty evident and pretty persuasive. The retrofit side continues to be a very positive place for us also. I know you and I have discussed this before, but we sit in a nice spot where consumer electronic life cycles move on, whether there's a pandemic or not.

對我們來說，這仍然是一個非常好的市場。我的意思是它的生產率方面是很容易看出來的。有很多資訊來源，我們同意，特別是在波音方面，這種改進似乎非常明顯且非常有說服力。改造方面對我們來說仍然是一個非常積極的地方。我知道你和我之前討論過這個問題，但我們處於一個良好的位置，無論是否有疫情，消費性電子產品的生命週期都在繼續發展。

And in order to keep up with those shortened consumer electronic life cycles, certain updates are necessary and certain modification efforts are necessary. And when airlines do that, they generally do it across their fleet, both with new build aircraft and with their existing fleet. So we're continuing to see pretty strong opportunities there. It really hasn't slown down. Even with the shortage of capacity that's out there in the airline fleet around the world, we're pretty pleased with how that's all going.

為了跟上這些縮短的消費性電子產品的生命週期，某些更新是必要的，某些修改工作也是必要的。當航空公司這樣做時，他們通常會在整個機隊中這樣做，包括新飛機和現有機隊。因此，我們繼續看到那裡有相當強勁的機會。它確實沒有放慢速度。儘管全球各地的航空公司機隊都面臨運力不足的問題，但我們對目前的進展還是非常滿意的。

Okay. Good. Last question for me. You're taking a lot of strategic actions, which is great to see. I know Test has seemingly been a work in progress for, I don't know, 5, 10, 15 years. You've got the EACs, but you're also bringing in outside consultants. I mean, are you -- is there a thought process to maybe more broadly just evaluate strategic alternatives for the entire Test segment and move to be just a pure-play aerospace company?

好的。好的。我的最後一個問題。你們正在採取許多戰略行動，這令人高興。我知道測試似乎已經進行了 5 年、10 年、15 年了。你們有 EAC，但你們也引進了外部顧問。我的意思是，您是否有一個思考過程，可能更廣泛地評估整個測試領域的策略替代方案，並轉變為純粹的航空航太公司？

We don't have any immediate actions in place along those lines. Frankly, we've got our head down trying to get through this difficult patch that we're in. And we think we have line of sight towards improved performance. It's too early to talk about 2026. But I expect that when we get to the end of the third quarter and we start our budgeting process for the next year, the outlook for our Test business will be much better than it has been or is now.

我們尚未採取任何此類立即行動。坦白說，我們已經全力以赴，試圖度過目前面臨的困難時期。我們認為我們已經看到了提高績效的前景。現在談論 2026 年還為時過早。但我預計，當我們進入第三季末並開始製定下一年的預算流程時，我們的測試業務前景將比過去或現在好得多。

And at that point, we may sit back and take a few deep breaths and figure out where we go from there. But at this point, that is not an active discussion here.

到那時，我們可能會坐下來，深呼吸幾次，然後想想接下來要去哪裡。但目前，這並不是一個積極的討論。

This now concludes our question-and-answer session. I would like to turn the floor back over to management for closing comments.

我們的問答環節到此結束。我想將發言權交還給管理階層，請他們發表最後評論。

Well, thank you all for tuning into the call. We look forward to reporting again to the third quarter when we presume, we will have a much cleaner quarter to talk about. Thank you for your attention. Have a nice day.

好吧，謝謝大家收聽電話會議。我們期待著再次報告第三季的情況，我們預計屆時我們將有一個更乾淨的季度可以談論。感謝您的關注。祝你今天過得愉快。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

女士們、先生們，感謝你們的參與。今天的電話會議到此結束。您可以斷開線路並度過美好的一天。