Astronics Corp (ATRO) 2025 Q3 法說會逐字稿

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

大家好，歡迎閱讀 Astronics 公司 2025 財年第三季財務業績報告。（操作說明）提醒各位，本次會議正在錄音。

It is now my pleasure to introduce Craig Mychajluk. Thank you. You may begin.

現在我很榮幸地向大家介紹克雷格·米哈伊盧克。謝謝。你可以開始了。

Yes. Thank you, and good afternoon, everyone. 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 third-quarter results crossed the wires after the market closed today, and you can find that release on our website at astronics.com.

是的。謝謝大家，大家下午好。感謝您今天抽出時間並關注天文領域。與我一同出席的有我們的董事長、總裁兼執行長皮特·岡德曼，以及我們的財務長南希·赫奇斯。我們的第三季業績報告在今天股市收盤後發布，您可以在我們的網站 astronics.com 上找到該報告。

As you are aware, we may make 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發表前瞻性聲明。這些聲明適用於未來事件，但未來事件存在風險和不確定性，以及其他可能導致實際結果與今天在此所述內容有重大差異的因素。這些風險、不確定性及其他因素均在獲利報告中以及提交給美國證券交易委員會的其他文件中說明。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 table that accompany today's release.

在今天的電話會議中，我們還將討論一些非GAAP指標，我們認為這些指標對於評估我們的表現是有用的。您不應孤立地看待這些補充資訊的呈現，也不應將其視為按照公認會計原則編制的結果的替代品。我們在今天發布的表格中提供了非GAAP指標與可比較GAAP指標的調節表。

So with that, I'll turn it over to Pete to begin.

那麼，接下來就交給皮特開始吧。

Thanks, Craig. Hello, everybody, and welcome to our third-quarter call. We feel it was a very positive quarter, and we are pleased to share the results. As is our practice, I'll start off with a summary of the headlines for the quarter, then Nancy will go through the financial fine points, then we will discuss expectations for the future for both the fourth quarter. And also, we'll take an early look at 2026. Finally, we'll open up the lines for questions.

謝謝你，克雷格。大家好，歡迎參加我們的第三季電話會議。我們認為這是一個非常正面的季度，我們很高興與大家分享結果。按照慣例，我將首先總結本季的主要新聞，然後南希將詳細介紹財務細節，之後我們將討論對第四季的預期。此外，我們也將提前展望2026年。最後，我們將開放提問環節。

The first headline for the quarter is that we had solid volume with revenue of $211.4 million. This is our second highest quarterly level ever and just marginally below our record. That sales level is a tick up from the first couple of quarters of 2025 and is the result of broad-based demand across our product lines, markets, and customers as well as improved performance in our supply chain and better efficiencies in our production system.

本季最引人注目的消息是，我們的銷售表現穩健，營收達 2.114 億美元。這是我們有史以來第二高的季度水平，僅略低於我們的歷史最高紀錄。這一銷售水準比 2025 年前幾季略有上升，這是由於我們的產品線、市場和客戶需求廣泛增長，以及供應鏈績效提高和生產系統效率提升所致。

Our Aerospace segment led the way with sales of $192.7 million, a level consistent with recent periods. Our Test business had sales of $18.7 million, which is down from the third quarter of 2024, but higher than the earlier two quarters of this year.

我們的航空航天業務板塊以 1.927 億美元的銷售額領跑，與近幾個時期的水平一致。我們的測試業務銷售額為 1870 萬美元，低於 2024 年第三季的水平，但高於今年前兩個季度的水平。

The second headline has to do with margins. As one would expect, higher revenue together with efficiency improvements have led to higher margins. Operating margin of 10.9% in the quarter was higher than last year's 4.1%. Adjusted operating margin, taking into account expenses related to restructuring, litigation, and acquisitions was 12.3% for the quarter.

第二個標題與利潤率有關。正如人們所預料的那樣，更高的收入加上效率的提高帶來了更高的利潤率。本季營業利益率為 10.9%，高於去年同期的 4.1%。經調整後的營業利潤率（已計入與重組、訴訟和收購相關的費用）為本季 12.3%。

Our Aerospace segment specifically had operating margin of 16.2%, generating all of our operating income for the quarter. Test operating margin was essentially breakeven at negative 0.1%. While no one is happy with 0% operating margin, this actually represents progress and is a testament to the cost reduction initiatives we have put in place in recent periods. To break even on a modest revenue level of $19 million in the quarter promises good things in the future since we expect Test sales to increase. Adjusted EBITDA was at 15.5% of sales, our highest since the pandemic struck in 2020.

我們的航空航太業務部門的營業利潤率為 16.2%，貢獻了本季所有的營業收入。測試營運利潤率基本為損益平衡點，為負 0.1%。雖然沒有人會對 0% 的營業利潤率感到滿意，但這實際上代表著進步，也證明了我們最近一段時間實施的成本削減措施是有效的。本季營收僅達到 1,900 萬美元，勉強實現收支平衡，這預示著未來前景光明，因為我們預計 Test 的銷售額將會成長。調整後 EBITDA 佔銷售額的 15.5%，是自 2020 年疫情爆發以來的最高水準。

Our third headline has to do with bookings. Even though third quarter shipments were on the strong side, bookings kept right up. Total bookings of $210 million yielded a book-to-bill of 1.0. We ended the quarter with backlog of $647 million, a very high level by historical norms, which sets us up well for the coming periods.

我們的第三則新聞與預訂有關。儘管第三季出貨量表現強勁，但預訂量仍維持高位。本季總預訂額達 2.1 億美元，訂單出貨比為 1.0。季度末積壓訂單金額為 6.47 億美元，以歷史標準來看，這是一個非常高的水平，這為我們接下來的幾季奠定了良好的基礎。

Our fourth headline has to do with acquisitions. We have made a couple of smaller acquisitions recently, one early in the third quarter and one just recently early in the fourth. The first one was Envoy Aerospace, which we previously discussed in our second-quarter call in August. 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 by which the FAA extends its capacity and reach.

我們的第四條新聞與收購有關。我們最近進行了幾筆規模較小的收購，一筆是在第三季初，另一筆是在第四季初。第一家是 Envoy Aerospace，我們曾在 8 月的第二季電話會議上討論過這家公司。Envoy Aerospace 是一家 ODA，即 Organizational Designational Authority（組織指定機構）的縮寫。ODA 是美國聯邦航空管理局 (FAA) 向外部組織授予認證批准權的一項計劃，透過該計劃，FAA 可以擴展其能力和影響範圍。

We believe having an ODA is a competitive differentiator as we are often involved in aircraft retrofit programs and FAA certification is becoming a more important capability in the eyes of our customers. Having certification authority lessens program and schedule risk, both for us and for our customers. Envoy has external sales of about $4 million annually. Prior to the acquisition, we were consistently one of their largest customers.

我們認為擁有 ODA 是一項競爭優勢，因為我們經常參與飛機改裝項目，而 FAA 認證在我們的客戶眼中變得越來越重要。擁有認證機構可以降低我們和客戶在專案和進度方面的風險。Envoy每年對外銷售額約400萬美元。在被收購之前，我們一直是他們最大的客戶之一。

The second acquisition is that of Bühler Motor Aviation or BMA. Located in Southern Germany, BMA is an established manufacturer of aircraft seat actuation systems with a broad product portfolio that includes actuators, control electronics, pneumatics, and lighting. BMA competed with our PGA operation in France in the seat actuation market, and now they will work cooperatively with each other to better serve the needs and opportunities of that market.

第二次收購對像是布勒汽車航空（Bühler Motor Aviation，簡稱 BMA）。BMA位於德國南部，是一家成熟的飛機座椅驅動系統製造商，擁有廣泛的產品組合，包括致動器、控制電子設備、氣動裝置和照明設備。BMA 曾與我們在法國的 PGA 業務在座椅驅動市場競爭，現在他們將相互合作，以更好地滿足該市場的需求和機會。

We expect BMA to have sales of $20 million to $25 million in 2026, and we paid less than one-time sales for the acquisition. Much of the costs related to the acquisition, legal and diligence and the like were included in our third quarter expenses. The acquisition's operating contributions will be captured in the fourth quarter and onward.

我們預計 BMA 在 2026 年的銷售額將達到 2,000 萬至 2,500 萬美元，而我們為此次收購支付的價格低於一次性銷售額。與收購、法律和盡職調查等相關的許多成本都計入了我們第三季的支出。此次收購的營運貢獻將在第四季及以後計入。

Finally, our last headline, we completed a couple of important refinancing actions in recent weeks, one in the third quarter and one just after its close. These financings lowered our cost of debt, improved our financial flexibility, and importantly, reduced future dilution potential. Nancy will cover the accounting treatment, which is a little bit complex.

最後，我們的最後一個頭條新聞是，我們在最近幾週完成了幾項重要的再融資行動，一項是在第三季度，另一項是在第三季結束後不久。這些融資降低了我們的債務成本，提高了我們的財務靈活性，更重要的是，降低了未來股權稀釋的可能性。南希將負責會計處理部分，這有點複雜。

But basically, in the third quarter, we issued a new $225 million 0% convertible bond to buy back a majority of an earlier convertible bond that was significantly in the money, meaning it was already fairly expensive to settle. And if our stock continued to rise as we expect it to do, it would get even more expensive. Using proceeds of the new convert plus some borrowings under our existing revolver and available cash, we successfully repurchased 80% of the previous 5.5% convertible note, effectively lowering our cost of debt while also eliminating 5.8 million shares of potential dilution.

但基本上，在第三季度，我們發行了 2.25 億美元的 0% 可轉換債券，以回購先前發行的大部分可轉換債券，當時已大幅獲利，這意味著結算成本已經相當高昂。如果我們的股票價格繼續像我們預期的那樣上漲，那麼它的價格還會更高。利用新可轉換債券的收益，加上我們現有循環信貸額度下的部分借款和可用現金，我們成功回購了先前 5.5% 可轉換債券的 80%，有效降低了我們的債務成本，同時也消除了 580 萬股潛在的稀釋風險。

As part of the transaction, we also bought a capped call on the new 0% notes that effectively raises the equity conversion price to $83, meaning that there will be no dilution on the new bond unless and until the market price of our stock exceeds $83. So this transaction significantly reduced the potential dilution we would otherwise be facing.

作為交易的一部分，我們還購買了新的 0% 債券的上限看漲期權，這實際上將股權轉換價格提高到 83 美元，這意味著除非我們的股票市場價格超過 83 美元，否則新債券不會稀釋。因此，這項交易大大降低了我們原本可能面臨的股權稀釋風險。

The earlier convert had a face value of $165 million. Since we bought in 80% of it, there is now 20% still outstanding or $33 million. We can pay the smaller bond off when it comes due in about four years in either cash or stock. We intend to use cash. But even if we use stock, the dilution will be a maximum of 1.4 million shares or about 4% based on our existing share count. This is a significant reduction in the potential dilution risk that existed before the buyback. We also benefit in terms of interest, obviously. The new bond has a 0% coupon, while the older bond is at 5.5%. So we replaced some more expensive debt with much cheaper debt.

早先那張可轉換債券的面額為 1.65 億美元。由於我們已經購入了其中 80% 的股份，目前還剩下 20% 的股份尚未出售，即 3,300 萬美元。我們可以用現金或股票在大約四年後償還到期的小額債券。我們打算使用現金。但即使我們使用股票，根據我們現有的股份數量，稀釋最多只會減少 140 萬股，約佔 4%。這大大降低了回購前存在的潛在稀釋風險。顯然，我們在利息方面也會受益。新債券的票面利率為 0%，而舊債券的票面利率為 5.5%。因此，我們用成本低得多的債務取代了一些成本高得多的債務。

Our second refinancing step completed just a couple of weeks ago was a transition from the ABL facility we had in place to a cash flow revolver. The size of the ABL was $220 million and the cash flow revolver is sized at $300 million. The interest expense is comparable, but the new facility offers less administrative burden and increased financial liquidity for the future. The financial implications of the new convertible bond and the repurchase of the majority of the previous bond is fully reflected in our third-quarter financials. The ABL-to-RCF transition will be reflected in our fourth quarter financials.

我們兩週前完成的第二步再融資，是將我們原有的資產抵押貸款（ABL）機制過渡到現金流循環信貸。ABL 的規模為 2.2 億美元，現金流循環貸款的規模為 3 億美元。利息支出相近，但新方案可減輕管理負擔，並提高未來的財務流動性。新發行的可轉換債券以及回購先前大部分債券的財務影響已完全反映在我們的第三季財務報表中。ABL 向 RCF 的轉換將反映在我們的第四季財務報表中。

Now I'll turn it over to Nancy.

現在我把麥克風交給南西。

Thanks, Pete. I'll review profitability and various accounting and other events related to our Q3 2025 financials. We had gross profit of $64.5 million, up nearly 17% compared with the prior-year period as the benefits of higher volume, pricing actions, and productivity improvements helped to offset the $4 million impact of tariffs in the quarter. Last year's third quarter also had a $3.5 million impact from an atypical warranty reserve.

謝謝你，皮特。我將審查獲利能力以及與我們 2025 年第三季財務相關的各種會計和其他事項。由於銷售成長、定價策略和生產效率提高帶來的收益抵消了本季關稅造成的 400 萬美元損失，我們的毛利為 6,450 萬美元，比去年同期成長了近 17%。去年第三季也因一筆非典型的保固準備金而受到 350 萬美元的影響。

Gross margin of 30.5% reflects the 31.4% gross margin realized by the Aerospace business, which was muted somewhat by the Test segment gross profit of 21.6%. R&D expense declined $2.3 million to $10.2 million or 4.8% of sales based on the timing of projects. We believe we're at a more normalized run rate currently at about 5% of sales. Of course, this can vary based on the timing and opportunity of new projects.

30.5% 的毛利率反映了航空航太業務實現的 31.4% 的毛利率，但由於測試部門的毛利率為 21.6%，因此整體毛利率有所下降。研發費用因專案時間安排而減少了 230 萬美元，降至 1,020 萬美元，佔銷售額的 4.8%。我們認為，目前我們的運作率已經更加正常化，約為銷售額的 5%。當然，這會根據新項目的時機和機會而有所不同。

The $3.1 million decline in SG&A expense was primarily the result of a $4.3 million decline in litigation expense. While it's been quite a while since we can claim any form of normalcy, historically, we've operated the business with SG&A at about 14% to 15% of sales. Operating income was up over 2.5 times to $23 million. We recorded a loss on debt settlement of $32.6 million. I'll cover the details of the accounting treatment for the new 0% convertible bond in the cap call here in a bit.

銷售、一般及行政費用減少 310 萬美元，主要是訴訟費用減少 430 萬美元。雖然我們已經很久沒有恢復正常狀態了，但從歷史上看，我們的銷售、一般及行政費用一直佔銷售額的 14% 到 15%。營業收入成長超過 2.5 倍，達到 2,300 萬美元。我們在債務結算中錄得 3,260 萬美元的損失。稍後我會詳細介紹此資本要求中新的 0% 可轉換債券的會計處理細節。

We had a $1.2 million tax benefit as we reversed the valuation allowance for R&D expenses that can now be deducted in the current year for tax purposes as a result of recent tax reform. Notably, we generated $34 million of cash in the quarter and had free cash flow of $21 million, driven by strong cash earnings combined with lower working capital requirements.

由於最近的稅收改革，我們衝回了研發費用的估值準備金，現在可以在本年度的稅收中扣除這些費用，因此我們獲得了 120 萬美元的稅收優惠。值得注意的是，本季我們產生了 3,400 萬美元的現金，自由現金流為 2,100 萬美元，這得益於強勁的現金收益和較低的營運資金需求。

I should point out that $3 million of the cash from operations was from a tenant improvement allowance reimbursement. This is offset by the CapEx investments in the buildout and consolidation for our new Redmond, Washington facility. We expect an additional approximately $5 million in reimbursement for the project in the fourth quarter. This project is what's driving our fourth-quarter CapEx to be around $20 million to $30 million.

需要指出的是，營運現金流中的 300 萬美元來自租戶裝修補貼的報銷。這可以透過我們在華盛頓州雷德蒙新工廠的建設和整合方面的資本支出投資來抵消。我們預計該項目將在第四季度獲得約 500 萬美元的額外補償。正是這個項目推動了我們第四季資本支出達到 2,000 萬至 3,000 萬美元左右。

Year to date, we've generated $47 million in cash from operations and have had $20 million in capital expenditures for free cash flow of $27 million. We would expect to be free cash flow positive for the year. Our fourth-quarter cash flows will reflect the purchase of BMA, both in terms of the purchase price and the operating activity from the acquisition date forward.

今年迄今為止，我們已從營運活動中產生 4,700 萬美元現金，並有 2,000 萬美元資本支出，自由現金流為 2,700 萬美元。我們預計今年的自由現金流為正。我們的第四季現金流將反映出對 BMA 的收購，包括收購價格和從收購日開始的營運活動。

Turning to our balance sheet and refinancing actions, let me talk a bit about the convoluted accounting treatment for the new 0% convertible notes that Pete discussed. First, I'll point the impact to the income statement. We recognized a non-cash loss on the settlement of debt of $32.6 million, which represents the inducement charge for bondholders to redeem the $132 million in principal of the 5.5% convertible notes.

接下來談談我們的資產負債表和再融資措施，讓我來談談皮特提到的新的 0% 可轉換債券的複雜會計處理方法。首先，我將指出其對損益表的影響。我們確認了債務結算的非現金損失 3,260 萬美元，這筆損失是為促使債券持有人贖回 1.32 億美元本金的 5.5% 可轉換債券而支付的誘導費用。

Second, let me talk to the source and use of funds related to the new convertible note as well as the implications to the balance sheet. Proceeds from the new convertible bond were $217 million after payment of $8 million in fees and expenses. That $217 million, coupled with an $85 million draw on our ABL revolver plus $11 million in cash on hand, were used to repurchase 80% of the old convertible note for approximately $286 million and to purchase the capped call for $27 million.

其次，我想談談與新可轉換票據相關的資金來源和用途，以及對資產負債表的影響。扣除 800 萬美元的費用和支出後，新發行的可轉換債券所得款項為 2.17 億美元。這 2.17 億美元，加上從我們的 ABL 循環信貸中提取的 8500 萬美元，以及手頭的 1100 萬美元現金，被用來以約 2.86 億美元的價格回購了 80% 的舊可轉換票據，並以 2700 萬美元的價格回購了上限期權。

Debt increased about $175 million from the end of the second quarter to $334 million. That's a function of three factors. First, we incurred new debt of that $217 million related to the new convertible bond, which is the $225 million netted down by $8 million in issuance fees and expenses, which are required under GAAP to be presented as an offset to the debt on the face of the balance sheet.

債務較第二季末增加了約 1.75 億美元，達到 3.34 億美元。這取決於三個因素。首先，我們因發行新的可轉換債券而新增了 2.17 億美元的債務，這筆債務是 2.25 億美元減去 800 萬美元的發行費用和支出後的淨額，根據公認會計原則，這些費用和支出需要在資產負債表上作為債務的抵銷項列示。

Second, as I mentioned, we borrowed $85 million on our ABL to fund part of the repurchase transaction. And third, debt was reduced by $128 million, representing the $132 million in principal paid off on the previous convertible, net of $4 million in associated issuance fees that also needed to be written off.

其次，正如我之前提到的，我們以資產抵押貸款的形式借入了 8,500 萬美元，為部分回購交易提供資金。第三，債務減少了 1.28 億美元，這相當於償還了先前可轉換債券的 1.32 億美元本金，扣除了需要註銷的 400 萬美元相關發行費用。

Shareholders' equity declined as a result of the transaction. The premium paid of $121 million plus the cost of the capped call of $27 million, plus $4 million write-off of the unamortized debt issuance costs related to the repurchased 5.5% notes resulted in a $152 million reduction in shareholders' equity.

交易導致股東權益下降。支付的溢價 1.21 億美元，加上上限贖回成本 2,700 萬美元，再加上與回購的 5.5% 票據相關的未攤銷債務發行成本的 400 萬美元註銷，導致股東權益減少了 1.52 億美元。

The net result is, as Pete discussed, lower cost debt, significantly reduced potential dilution, and combined with the refinancing of our revolver to being cash flow based, meaningfully greater financial flexibility. I should point out that we currently have $95 million outstanding on the $300 million cash flow revolver and liquidity of $169 million.

正如皮特所討論的，最終結果是降低了債務成本，大幅減少了潛在的股權稀釋，再加上將我們的循環信貸再融資為基於現金流的方式，顯著提高了財務靈活性。需要指出的是，我們目前在 3 億美元的現金流循環貸款中還有 9,500 萬美元未償還，流動資金為 1.69 億美元。

And let me hand it back to Pete.

讓我把東西交還給皮特。

Thank you, Nancy. I'll now turn the discussion to the future and what we expect for both the fourth quarter and our initial expectations for 2026. We expect the fourth quarter to be a step change for the company. We have generated average revenue of $207 million over the first three quarters of 2025. In the fourth quarter, however, we are expecting revenue to climb to a range of $225 million to $235 million, which is a significant step-up.

謝謝你，南希。現在我將把討論轉向未來，談談我們對第四季的預期以及我們對 2026 年的初步預期。我們預計第四季將是公司發展的轉捩點。我們在 2025 年前三個季度的平均收入為 2.07 億美元。不過，我們預計第四季度營收將攀升至 2.25 億美元至 2.35 億美元之間，這是一個顯著的成長。

The increase is due in part to our recent German acquisition, but mostly to the various market forces that are driving our business. The higher volume should mean good things for our income statement as we typically see 40% to 50% marginal contribution on incremental revenue dollars. Further, we think the higher volume expected in the fourth quarter will provide a baseline for 2026. We are not ready yet to issue formal revenue guidance for next year, but we are well along in our budgeting process, and it appears 2026 will be a year of solid growth.

成長部分歸功於我們最近對德國公司的收購，但主要還是由於推動我們業務發展的各種市場力量。銷售增加應該會對我們的損益表產生正面影響，因為我們通常會看到新增收入帶來 40% 到 50% 的邊際貢獻。此外，我們認為第四季預計較高的銷售量將為 2026 年提供一個基準。我們尚未準備好發布明年的正式收入預期，但我們的預算編制工作進展順利，2026 年看來將是穩健成長的一年。

Our belief at this point is that we will see 10% growth or better. We are working to refine the range and expect to release initial revenue guidance closer to year-end 2025. You may ask, what is driving the growth? Our company has been and continues to benefit from a wide range of industry trends. I'll cover the major ones briefly, and I'll try to be concise.

我們目前認為，我們將看到10%或更高的成長率。我們正在努力完善產品系列，預計在 2025 年底前發布初步營收預期。你可能會問，是什麼推動了這種成長？我們公司過去一直受益於各種行業趨勢，並將繼續受益於這些趨勢。我會簡要介紹幾個主要方面，並儘量言簡意賅。

First and most obviously, increasing OEM build rates are a big positive for us. Narrowbody and widebody production rates are trending up at both Airbus and Boeing and to a lesser extent, across private aviation OEMs also. Our typical content for major aircraft programs is spelled out on our investor presentation, which is available on our website. And quite simply, when OEMs make more planes, we ship more product.

首先，也是最顯而易見的，提高 OEM 生產力對我們來說是一個巨大的利好。空中巴士和波音的窄體和寬體飛機產量都在上升，私人航空OEM廠商的產量也有一定程度的上升趨勢。我們針對主要飛機專案的典型內容已在我們的投資者簡報中詳細說明，該簡報可在我們的網站上找到。簡而言之，當 OEM 廠商生產更多飛機時，我們就會交付更多產品。

Second, we are heavily involved, as you all surely know, in passenger connectivity and entertainment in aircraft, and it is a well-established secular trend in our world today that people want to be connected and entertained at all times, including when they are riding in airplanes. This reality, combined with the fact that the consumer electronics industry is characterized by high levels of innovation and short life cycles, means that adoption rates on new aircraft are increasing and retrofit and upgrade opportunities across the existing fleet are regularly present.

其次，正如大家所知，我們深入參與了飛機上的乘客互聯和娛樂，而如今，人們希望隨時隨地保持聯繫和享受娛樂，包括在飛機上，這已成為當今世界一個根深蒂固的長期趨勢。這個現實，再加上消費性電子產業具有創新性高、生命週期短的特點，意味著新飛機的採用率正在提高，現有機隊的改裝和升級機會也經常出現。

We work with more than 200 airlines around the world, along with the broad set of in-flight entertainment and connectivity providers to help ensure that the expectations of airline passengers around the world are met. These expectations are high and getting higher, which provides an excellent field of opportunity for us.

我們與全球 200 多家航空公司以及眾多機上娛樂和網路連接供應商合作，以確保滿足全球航空旅客的期望。這些期望很高，而且還在不斷提高，這為我們提供了一個絕佳的機會領域。

Third, we are specialists in developing technically advanced flight-critical electrical power distribution systems for smaller aircraft in particular. And our electrical power franchise is gaining acceptance on a wide range of new and innovative aircraft types that are in development today. We started with business jets and turboprops, but today, we are also involved with a wide range of emerging types, including eVTOLs, electric vertical takeoff and landing aircraft; unmanned drones; and smaller military aircraft, both rotary and fixed wing.

第三，我們尤其擅長為小型飛機開發技術先進的飛行關鍵電力分配系統。我們的電力特許經營權正被目前正在開發中的各種新型創新飛機所接受。我們最初涉足公務機和渦輪螺旋槳飛機領域，但如今，我們也參與了各種新興機型的研發，包括電動垂直起降飛機（eVTOL）、無人機以及小型軍用飛機（包括旋翼機和固定翼飛機）。

A high-profile example which is getting lots of attention these days is Bell's V-280 aircraft, now known as the MV-75, which is the US Army's replacement for the Sikorsky Black Hawk. This program is in development currently, and Bell has chosen Astronics to supply the electrical power distribution system. There's a lot I could say about this program, but suffice it now to say it has the potential one day soon to be a very significant aircraft production program for our company and to run for a very long time.

最近備受關注的一個引人注目的例子是貝爾公司的 V-280 飛機，現在被稱為 MV-75，它是美國陸軍用來替代西科斯基黑鷹直升機的機型。該專案目前正在開發中，貝爾公司已選擇 Astronics 公司提供電力分配系統。關於這個項目我有很多話要說，但現在只需說，它有潛力在不久的將來成為我們公司一個非常重要的飛機生產項目，並且能夠長期運作下去。

Finally, there are some other important new programs which we expect to come online in short order, particularly for our Test business. One of the most significant is the radio test program that we've talked about before on this call for the US Army called 4549/T. We have been in development on this one for some time and expect production turn on at year-end or shortly thereafter. It's a $215 million IDIQ contract to start that will run for the next four to five years.

最後，我們預計還有一些其他重要的新項目很快就會上線，特別是針對我們的測試業務。其中最重要的是我們之前在這次電話會議上討論過的美國陸軍的無線電測試計劃，名為 4549/T。我們已經研發這款產品一段時間了，預計在年底或之後不久投產。這是一份價值 2.15 億美元的無限期交付/無限期數量 (IDIQ) 合同，有效期為四到五年。

Our Test business with all the cost reductions that we've implemented is running at breakeven currently. But when the 4549/T program gets layered on top, the financial profile in that segment will be much improved. We believe these industry trends and opportunities have legs. We've been benefiting from some of them for a while, but others will only begin to positively impact our business in coming quarters.

經過我們實施的所有成本削減措施，我們的測試業務目前已達到收支平衡。但是，當 4549/T 計劃疊加到其上時，該領域的財務狀況將會大大改善。我們相信這些產業趨勢和機會具有持久性。我們已經從其中一些因素中受益一段時間了，但其他因素要到未來幾季才會開始對我們的業務產生積極影響。

Collectively, we feel they provide an excellent opportunity set as we move into 2026 and beyond. So again, the growth from these drivers should have a positive impact on our earnings as we ramp. And as such, we expect to turn in a strong finish to 2025 and believe 2026 will be a very good year for Astronics.

總的來說，我們認為它們為我們邁向 2026 年及以後提供了絕佳的機會。因此，隨著我們規模的擴大，這些驅動因素帶來的成長應該會對我們的收益產生正面影響。因此，我們預計 2025 年將取得強勁的收官成績，並相信 2026 年對 Astronics 來說將是非常好的一年。

That ends our prepared remarks, so we can open up the lines now for questions.

我們的發言稿到此結束，現在可以開始接受提問了。

(Operator Instructions) Greg Palm, Craig-Hallum.

（操作說明）Greg Palm，Craig-Hallum。

Yes, thanks. Congrats on the results, the execution, and probably most impressively, the profitability or operating leverage in the quarter.

好的，謝謝。恭喜你們取得的成績、執行情況，以及最令人印象深刻的本季獲利能力或營運槓桿作用。

Thanks.

謝謝。

I wanted to maybe first maybe bridge Q3 to Q4 in terms of the expectation. What is built in for Test relative to the revenue that you achieved in Q3?

我希望首先能夠銜接好第三季和第四季的預期。相對於第三季實現的收入，測試業務的內建成本是多少？

We expect Test to take a little step up. I don't have that in front of me. I guess it's in the $20 million, $21 million range. They were at $18 million in the third quarter. So that will be a little bit of a step-up, but it will be their strongest revenue quarter for 2025. So it hopefully lays a good foundation as we round the corner to 2026 also.

我們預計Test會小幅提升。我手邊沒有那個東西。我猜大概在 2000 萬美元到 2100 萬美元之間。第三季他們的收入為1800萬美元。所以這將是一次小小的進步，但也是他們 2025 年收入最高的一個季度。所以，希望這也能為我們邁向 2026 年奠定良好的基礎。

Okay, so that implies that aerospace should see a bigger step-up even excluding the impact of acquisitions. So I guess it begs the question, what are you seeing there, whether it's increased build rates, whether it's higher retrofit activity, anything in military with the FLRAA program? Just a little bit more color on maybe the step up there expected in Q4.

好的，這意味著即使不考慮收購的影響，航空航太業也應該會有更大的成長。所以我想問的是，你們在那裡看到了什麼？是建造速度加快，還是改裝活動增多，或是FLRAA計畫在軍事方面有什麼進展？再詳細說說預計第四季會出現的那次成長。

Yes. I'd say a couple of things. First of all, we are expecting a general ramp between where we were in Q3 and where we will be in the first quarter. I'm getting a little bit ahead of myself because we're still in the budgeting process, but the early look at 2026 is that we'll run a sustained rate that's above what we're forecasting for the fourth quarter.

是的。我想說幾點。首先，我們預期第一季的業績將比第三季整體水準有所提升。我有點操之過急了，因為我們仍在預算編制過程中，但對 2026 年的初步展望是，我們將保持高於第四季度預測水平的持續增長率。

So the fourth quarter we will see, to a large extent, a general ramp across the business, but there are a few kind of significant programs that are in play, hence the wide range of the revenue forecast for the fourth quarter. We're not sure if a lot of them are going to fall in the fourth quarter and therefore be 2025 revenue or you always run the risk at the end of the year that things can slip into the new year. So it's a little bit of a wider range than we prefer to have at this point. But basically, it's just scheduling of major point in time -- that's not true. They're revenue overtime programs for the most part.

因此，第四季度我們將看到業務整體上大幅成長，但也有一些重要的項目正在進行中，因此第四季的營收預測範圍較廣。我們不確定其中許多是否會在第四季度實現，從而計入 2025 年的收入，或者在年底總是存在一些風險，即某些項目可能會推遲到新年。所以，這個範圍比我們目前希望的範圍要寬一些。但實際上，這只是安排重要時間點——這種說法並不屬實。它們大多是增加收入的加班計劃。

Got it, okay. And then --

明白了，好的。進而--

It's a mix.

這是一種混合體。

It's a mix.

這是一種混合體。

Yes. Understood. Okay. Well, and then I was going to maybe dovetails into my question on fiscal '26, just in terms of the confidence level at this time to provide not guidance, but expectations of that low double-digit growth. And specifically, what is baked in, in terms of the Army test program at this point? And just given the shutdown, I mean, I wouldn't have expected your visibility levels to be all that good. But what -- it still sounds like you expect that ramp-up to begin sort of end of this year, maybe early next.

是的。明白了。好的。嗯，然後我本來想問一下關於 2026 財年的問題，就目前而言，我們有信心不給出具體指引，而是給出兩位數低增長的預期。具體來說，就目前陸軍的測試計畫而言，有哪些既定內容？考慮到疫情封鎖，我的意思是，我本來就沒指望你們的能見度能有多好。但是——聽起來你仍然預計這種加速推進會在今年年底，或許是明年年初開始。

Yes. It's a very good question, and we are guessing a little bit, and that's a little bit why we're hedging. But long story short, we were -- when the government shut down, hoping for production turn on towards the end of the year, it might be this year, it might slip into the next year, but basically either late fourth quarter or early first quarter. At this point, we don't have reason to think that, that's going to slide a whole lot. It's probably reasonable to think it's going to slide day per day with the shutdown.

是的。這是一個非常好的問題，我們只能做一些猜測，這也是我們採取觀望態度的原因之一。但長話短說，當時政府停擺，我們希望生產能在年底恢復，可能是今年，也可能推遲到明年，但基本上要么是第四季末，要么是第一季初。目前來看，我們沒有理由認為這種情況會大幅下滑。考慮到疫情封鎖的影響，它很可能每天都會下滑。

And obviously, the longer the shutdown goes on, the more at risk year-end turn on becomes. But we've had some unofficial contact with program managers and executives who have reiterated that the funding is secure. The user community really wants to have the product get going. And so it's just not obvious at this point if there's going to be a big delay there or not. So we will have to make a decision there as to what we include or what we don't include. But in general, we're still on a track where we think it's going to be a pretty significant contributor over the course of 2026.

顯然，停擺時間越長，年底重啟的風險就越大。但我們與一些專案經理和高階主管進行了非正式接觸，他們重申資金是有保障的。用戶群非常希望這款產品能夠盡快上線。所以目前還不清楚是否會出現嚴重的延誤。所以，我們需要在那裡決定哪些內容要包含，哪些內容要不包含。但總的來說，我們仍然認為它將在 2026 年成為一個相當重要的貢獻者。

And just to be clear, in terms of that full-year '26 expectation, there's some, I guess, presumably significant level of contribution that's baked in or not necessarily?

為了明確起見，就 2026 年全年預期而言，我想，其中是否包含一些，或許是相當可觀的貢獻？

No, there will be, absolutely. It's a -- we expect that program to be an important contributor, both top line and bottom.

不，一定會有的。我們預計該項目將對公司營收和利潤都做出重要貢獻。

Yes, okay, I will leave it there. Congrats again.

好的，我就說到這裡吧。再次恭喜。

All right, thank you.

好的，謝謝。

Thank you.

謝謝。

John Tanwanteng, CJS Securities.

約翰·譚萬騰，CJS 證券。

Hi, this is actually Jeremy on for John. Thanks for taking the time. Kind of working off of what we were just talking about, how should we think about the FLRAA program revenue and margin over the medium to longer term as it transitions out of development and into production?

大家好，我是 Jeremy，替 John 報到站。感謝您抽出時間。基於我們剛才討論的內容，當 FLRAA 專案從研發階段過渡到生產階段時，我們應該如何看待其中長期的營收和利潤率？

Well, into production is a little bit early to say because we don't know the ramp, and we don't have pricing ready to go on that one. We don't have pricing agreement with the customer, I should say. And also, I don't know if you're aware, but there is an active debate going on in the industry about when production is actually going to start. The Army is interested in trying to accelerate that program, which would mean production -- the production ramp would start a couple of years earlier than it otherwise would.

現在說投入生產還為時過早，因為我們不知道產能爬坡時間，我們還沒準備好定價。應該說，我們和客戶之間沒有價格協議。另外，我不知道你是否了解，業內目前正在積極討論何時才能真正開始生產。陸軍有意加快該計劃的實施，這意味著生產將比原計劃提前幾年開始——生產爬坡將提前啟動。

But closer to home and from what we can tell right now, we had revenue of about $28 million in 2025 we're planning. And we're thinking that 2026 will be closer to 38% to 40%, something in that range. From a margin standpoint, it's worth pointing out that we basically have been doing development work at zero margin thus far because we're still negotiating a development program. Once that program is developed, we will catch up on margin that we would otherwise have recognized earlier. And so it should be a pretty significant contributor as we turn the corner and go through 2026. Would you say anything?

但就我們目前所知，到 2025 年，我們的收入預計將達到約 2,800 萬美元。我們認為 2026 年的比例會接近 38% 到 40%，大概在這個範圍內。從利潤率的角度來看，值得指出的是，到目前為止，我們基本上是在零利潤的情況下進行開發工作，因為我們仍在協商開發計劃。一旦該計劃得以實施，我們將彌補先前未能實現的利潤成長。因此，隨著我們邁入 2026 年，它應該會成為一個相當重要的貢獻者。你有什麼要說的嗎？

Okay. That's right.

好的。這是正確的。

Very helpful. Thank you. And then switching gears a little, could you just talk more about the Bühler and the capability it brings to the table and the accretion you're expecting over the next year?

很有幫助。謝謝。接下來，我們稍微轉換一下主題，您能否更詳細地談談 Bühler 及其帶來的功能，以及您預計在未來一年內取得的進展？

Well, it's a smaller company. We expect revenue of $20 million to $25 million. At that level, we do expect it to be profitable. So I think it's a reasonable assumption that its margin profile will be consistent with the rest of our company. It's going to report through our PGA operations. So you're basically going to take two competitors and have them act as one. And there are certain efficiencies that you might expect there. There's market knowledge and reach that can be beneficial.

嗯，這是一家規模較小的公司。我們預計營收為2000萬美元至2500萬美元。以這個價位來看，我們預計會獲利。所以我認為，其利潤率狀況將與我們公司其他業務保持一致是一個合理的假設。它將透過我們的 PGA 營運部門進行匯報。所以你基本上是要把兩個競爭對手變成一個整體來運作。而且，那裡也存在一些可以預期的效率問題。擁有市場知識和人脈資源可能會帶來好處。

Their products basically do what a lot of our products do. We're talking about seat motion here, high-end aircraft seats, first-class seats, business class seats where you have a lot of moving surfaces. Think lie flat and things like that, reclining seats. So the product lines are complementary, but they are not really interchangeable. So their products are sold to seat companies that are designed around their type of system, and our products are designed into seats and seat customers that use our system.

他們的產品基本上和我們許多產品的功能一樣。我們這裡說的是座椅的運動，高階飛機座椅，頭等艙座椅，商務艙座椅，這些座椅有許多可移動的表面。想想那種可以平躺的座椅，還有那種可以傾斜的座椅。因此，這些產品線是互補的，但它們並不能真正互換。因此，他們的產品銷售給圍繞他們這類系統設計的座椅公司，而我們的產品則被設計到使用我們系統的座椅和座椅客戶中。

But we'll be able to get some efficiencies. We might have some -- the market concentration might yield some pricing efficiencies. Those are things that will play out over the next few years. It's a smaller market. We don't talk a whole lot about it. But combined, we should be somewhere in the $80 million a year range.

但我們可以提高一些效率。我們或許能獲得一些——市場集中度可能會帶來一些定價效率。這些事情將在未來幾年逐漸顯現。這是一個較小的市場。我們很少談論這件事。但加起來，我們的年收入應該在 8,000 萬美元左右。

Very helpful. Thank you again for taking the time. I'll hop back in the queue.

很有幫助。再次感謝您抽出時間。我重新排隊。

Sure, okay.

好的。

(Operator Instructions) Alexandra Mandery, Truist.

（操作說明）Alexandra Mandery，Truist。

Hey, this is Alexandra Mandery on for Michael Ciarmoli, Truist Securities. Great results, guys. Can you talk about the integration of these two recent acquisitions and any additional capabilities you may look for in the future?

大家好，我是 Alexandra Mandery，代表 Truist Securities 的 Michael Ciarmoli 為您報告。成績很棒，夥伴們。您能否談談最近這兩項收購的整合情況，以及未來您可能需要的任何其他能力？

Sure. Well, the integration of BMA or Bühler will be reporting through our PGA operation in France. So that will -- that's already underway, and we intend to maintain both operations. We think moving and consolidating, it's often easier, in my opinion, to calculate savings than it is to actually achieve them.

當然。嗯，BMA 或 Bühler 的整合將透過我們在法國的 PGA 營運部門進行報告。所以這項工作——這項工作已經在進行中，我們打算同時維持這兩項業務。在我看來，在搬遷和合併過程中，計算節省的費用往往比實際實現節省的費用要容易得多。

So that is not our objective. Our objective is to work efficiently from a two-operation setup, both in Germany and in France. We're early on in that. This thing just closed two weeks ago, three weeks ago. So we've got a long ways to go, but it's a smaller operation, and so we should be able to get our hands around it pretty quickly. We don't think it represents any systemic risk necessarily whatsoever.

所以那不是我們的目標。我們的目標是在德國和法國兩地高效開展業務。我們目前還處於早期階段。這件事兩週前，或是三週前就結束了。所以我們還有很長的路要走，但這畢竟是一個規模較小的項目，所以我們應該能夠很快地掌握它。我們認為這未必代表任何系統性風險。

Envoy, I think of Envoy as a consulting company. It's basically a bunch of engineers who are well versed in FAA rules and regulations. And we have it reporting through our CSC operation, which is where we do most of our connectivity and in-flight entertainment electronics out of Waukegan, Illinois. So Envoy is essentially part of CSC. The exercise that we're going to go through from an integration standpoint is figure out how we can take the Envoy expertise and apply it more broadly across our company to our other operations.

我認為 Envoy 是一家顧問公司。基本上，這是一群精通美國聯邦航空管理局規章制度的工程師。我們透過位於伊利諾伊州沃基根的 CSC 營運中心進行報告，該中心負責我們的大部分連接和機上娛樂電子設備。所以 Envoy 本質上是 CSC 的一部分。從整合的角度來看，我們將要進行的練習是，弄清楚如何利用 Envoy 的專業知識，並將其更廣泛地應用於我們公司的其他營運部門。

And again, the real advantage of Envoy is it gives us the ability -- basically, if we can maintain the ODA, which is our full intent to certify our own development programs, which is where we get into a competitive advantage with other companies because we can more realistically guarantee program and schedule success to our customers when they know that we can self-certify with the blessing of the FAA, that's the whole idea. And we'll report back on that as time goes by, but we do a fair amount of retrofit work. And to the extent that a company does retrofit work, having an ODA just makes it -- it's like reaching the wheels. It just makes everything go a little bit easier.

再次強調，Envoy 的真正優勢在於它賦予我們能力——基本上，如果我們能夠維持 ODA，而這正是我們認證自身研發項目的全部意圖，這將使我們與其他公司形成競爭優勢，因為當客戶知道我們可以在 FAA 的認可下進行自我認證時，我們就能更現實地向他們保證項目和進度的成功，這就是全部意義所在。隨著時間的推移，我們會對此進行匯報，但我們確實做了相當多的改造工作。對於一家公司來說，如果進行改造工作，擁有 ODA 就如同觸手可及車輪。它讓一切變得輕鬆一些。

Okay. Great. And then I just had one follow up. I might have missed it, but can you add more color on 4Q guide for interest expense, CapEx, and depreciation and amortization?

好的。偉大的。然後我還有一次後續跟進。我可能錯過了，但您能否在第四季度指南中詳細介紹利息支出、資本支出以及折舊和攤提？

So in terms of interest expense, like Pete said, the interest rate on the ABL is -- and the RCF are very similar. We are going to have a pretty heavy CapEx quarter in the fourth quarter. So a tick up in the debt is not unexpected under the revolver. We're still carrying $33 million of debt on the convertible -- on the 5.5% convertible bond. So that will contribute as well. But then the remainder of the debt, that $225 million is at 0%.

所以就利息支出而言，正如皮特所說，ABL 的利率是——RCF 的利率非常相似。第四季我們的資本支出將會非常大。因此，在循環信貸制度下，債務略有增加並不令人意外。我們目前仍有 3,300 萬美元的可轉換債券債務——即 5.5% 的可轉換債券債務。所以這也會產生影響。但剩餘的 2.25 億美元債務則為 0%。

And then in terms of depreciation and amortization, that's -- I don't have those numbers, unfortunately, in front of me. I would expect a slight tick up there as well as the -- we're working through the valuation of the two acquisitions, but it's fair to assume that some portion of that is going to be allocated to intangibles, and there will be a life assigned to those as well, and those will start to amortize during the quarter as well. I mean, I don't anticipate a material change from what our quarterly run rate has been.

至於折舊和攤提方面，很遺憾，我手邊沒有這些數字。我預計這方面也會略有上漲——我們正在對這兩項收購進行估值，但可以合理假設其中一部分將分配給無形資產，這些無形資產也會被賦予使用壽命，並且也會在本季度開始攤銷。我的意思是，我預計我們的季度運行率不會發生實質變化。

All right, thanks.

好的，謝謝。

Sure.

當然。

Thank you. This does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines at this time.

謝謝。今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路了。