CAE Inc (CAE) 2025 Q2 法說會逐字稿

Good day. Ladies and gentlemen, welcome to the CAE second quarter financial results for fiscal year 2025 conference call. (Operator Instructions)

再會。女士們、先生們，歡迎參加 CAE 2025 財年第二季財務業績電話會議。（操作員說明）

I would now like to turn the conference over to Mr. Andrew Arnovitz. Please go ahead Mr. Arnovitz.

現在我想將會議交給安德魯·阿諾維茨先生。阿諾維茨先生，請繼續。

Good morning, everyone and thank you for joining us. Before we begin, I'd like to remind you that today's remarks including management's outlook and answers to questions contain forward-looking statements. These forward-looking statements represent our expectations as of today, November 13, 2024 and accordingly are subject to change.

大家早安，感謝您加入我們。在開始之前，我想提醒您，今天的言論，包括管理階層的展望和問題的回答，都包含前瞻性陳述。這些前瞻性陳述代表了我們截至今天（2024 年 11 月 13 日）的預期，因此可能會發生變化。

Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially and listeners are cautioned not to place undue reliance on those forward-looking statements.

此類陳述基於可能無法實現的假設，並且存在風險和不確定性。實際結果可能存在重大差異，請聽眾不要過度依賴這些前瞻性陳述。

A description of the risks factors and assumptions that may affect future results is contained in CAE's annual M&A available on our corporate website and in our filings with the Canadian Securities Administrators on SEDAR+ and the US Securities and Exchange Commission on EDGAR.

可能影響未來結果的風險因素和假設的描述包含在我們公司網站上的 CAE 年度併購報告中，以及我們向加拿大證券管理局提交的 SEDAR+ 備案文件和美國證券交易委員會的 EDGAR 備案文件中。

With the divestiture of CEA healthcare business in fiscal 2024 comparative figures discussed here and our financial results have been reclassified to reflect discontinued operations. On the call with me this morning are Marc Parent, President and Chief Executive Officer; and Constantino Malatesta, our Interim Chief Financial Officer; Nick Leontidis, CAE's Chief Operating Officer is on hand for the question period with financial analysts.

隨著 CEA 醫療保健業務在 2024 財年的剝離，此處討論了比較數據，我們的財務表現已重新分類，以反映已終止的業務。今天早上與我通話的是總裁兼執行長馬克‧帕倫特 (Marc Parent)；以及我們的臨時財務長康斯坦丁諾·馬拉泰斯塔 (Constantino Malatesta)； CAE 營運長 Nick Leontidis 出席了金融分析師的提問環節。

I'm sure you've all seen by now the news release we issued yesterday afternoon that accompanied our Q2 results that after 20 years at CAE, including the last 15 as President and Chief Executive Officer. And after spearheading the making of CAE as a global leader in training for simulation for civil aviation and defense and security forces.

我相信你們現在都已經看到了我們昨天下午發布的新聞稿，其中附有我們在 CAE 工作 20 年（包括過去 15 年擔任總裁兼首席執行官）後的第二季度業績。並帶領 CAE 成為民航及國防和安全部隊模擬訓練的全球領導者。

Marc Parent will be leaving the company at next year's Annual General Meeting in August 2025 as part of an ongoing succession plan. Until this time, Marc will continue to lead CAE in his role as CEO.

作為正在進行的繼任計劃的一部分，馬克·帕倫特 (Marc Parent) 將於 2025 年 8 月舉行的明年年度股東大會上離開公司。在此之前，Marc 將繼續擔任首席執行官，領導 CAE。

The Board of Directors has retained a leading executive search firm to conduct a comprehensive global search, which will include evaluating internal and external candidates to identify a new CEO to lead the company into the future.

董事會聘請了一家領先的獵人頭公司來進行全面的全球搜索，其中包括評估內部和外部候選人，以確定新的執行長來領導公司走向未來。

The Human Resources Committee of the Board will oversee the search process with support and assistance from Marc. On behalf of all of us at CAE, I'd like to say that we're incredibly grateful for Marc's exemplary leadership. His lasting impact on CAE and on the aerospace industry are unanimously recognized and we look forward to continuing to benefit from his leadership until next year's AGM.

董事會人力資源委員會將在 Marc 的支持和協助下監督搜尋過程。我謹代表 CAE 的所有人表示，我們非常感謝 Marc 的模範領導。他對 CAE 和航空航天業的持久影響得到了一致認可，我們期待在明年的年度股東大會之前繼續從他的領導中受益。

With that, I will turn the call over to Marc.

這樣，我會將電話轉給馬克。

Thank you, Andrew, for those kind words, and good morning to everyone joining us on the call. As Andrew said, today is business as usual. And I do want to stay focused on the quarterly results, but this is a big moment from CAE and for me personally.

謝謝安德魯的善意之言，並向參加我們電話會議的每個人早安。正如安德魯所說，今天一切如常。我確實想繼續關注季度業績，但這對 CAE 和我個人來說都是一個重要時刻。

So I'll just take a moment to say that it's been really the privilege of a lifetime to lead this company. I can't tell you how proud I am of what our team has accomplished, and I'm very thankful for all the support that I've received throughout the years.

因此，我想花一點時間說，領導這家公司確實是我一生的榮幸。我無法告訴你我對我們團隊所取得的成就感到多麼自豪，我非常感謝多年來我收到的所有支持。

Thanks to our extraordinary people at CAE. We can proudly say that over the last couple of decades, we've absolutely reshaped the aerospace industry by creating something that's truly unique. CAE trains more pilots than anyone else in the world by far. And by leveraging technology, we prepare countless people for the moments that matter and fulfilled our mission to make the world safer. This is the right time for a transition process.

感謝 CAE 傑出的員工。我們可以自豪地說，在過去的幾十年裡，我們透過創造真正獨特的東西徹底重塑了航空航天業。迄今為止，CAE 培訓的飛行員數量比世界上任何其他國家都多。透過利用技術，我們幫助無數人為重要時刻做好準備，並履行了我們讓世界更安全的使命。現在是過渡過程的正確時機。

And as our financial performance shows, which we'll get to in just a moment, we're in a solid financial position. Our markets are on a long term growth trajectory and our competitive position in each of those markets is strong.

正如我們的財務表現所顯示的（我們稍後會介紹），我們的財務狀況穩健。我們的市場正處於長期成長軌道，我們在每個市場的競爭地位都很強大。

Our innovative technology and our outstanding people now set the standard for safety and training worldwide, and I'm confident that CAE has a very bright future ahead. Now turning to the business at hand in the second quarter.

我們的創新技術和優秀人才現在為全球安全和培訓樹立了標準，我相信 CAE 的未來非常光明。現在轉向第二季手頭上的業務。

Our performance in the second quarter reflects strong demand for civil and defense market solutions and despite some of the challenges we faced in commercial aviation from OEM aircraft supply disruptions, we've achieved solid results.

我們第二季的表現反映了對民用和國防市場解決方案的強勁需求，儘管我們在商用航空領域面臨 OEM 飛機供應中斷帶來的一些挑戰，但我們仍然取得了堅實的成果。

Additionally, we extended our positive trend in defense this quarter with growth and margin enhancements that are largely attributable to our dedication to focus, customer centricity and operational excellence across all of CAE's P&L, highlighting our strong position in growth markets, we secured nearly $3 billion in total orders this quarter, bringing our adjusted backlog to a record $18 billion, which is up over 50% compared to just over a year ago.

此外，本季度我們在國防領域延續了積極的趨勢，成長和利潤率提高，這在很大程度上歸功於我們在所有CAE 損益表中專注於專注、以客戶為中心和卓越運營，突顯了我們在成長市場中的強勢地位，我們獲得了近30 億美元的資金本季訂單總額使我們調整後的積壓訂單達到創紀錄的 180 億美元，與一年多前相比增長了 50% 以上。

In civil, we delivered 18 full flight simulators to customers during the quarter and our average training centre utilization was 70%, a decrease of 1 percentage point compared to the previous year. This quarter, we experienced year over year growth in business aviation training, commercial training in Asia Pacific and similar products.

民用方面，本季我們向客戶交付了18台全動飛行模擬器，訓練中心平均利用率為70%，較前一年下降1個百分點。本季度，我們在公務航空培訓、亞太地區商業培訓和類似產品方面經歷了同比增長。

However, mainly due to OEM aircraft supply disruptions, US pilot hiring remained low during the quarter, impacting the incremental pilot train demand, we would have expected under more normal conditions.

然而，主要由於原始設備製造商飛機供應中斷，本季度美國飛行員招募仍然較低，影響了我們在更正常情況下預期的飛行員培訓需求增量。

Overall, commercial aviation training utilization was approximately 3 percentage points lower than last year on average, which is still very good. It would have been even stronger, if not for the temporary pressures on initial training and pilot churn in the Americas.

整體來看，商業航空訓練利用率比去年平均下降了約3個百分點，仍然非常好。如果不是美洲地區初期訓練和飛行員流失的暫時壓力，這種情況可能會更嚴重。

We continue to deliver strong order flow in the quarter in a large secular growth market, which sees highly differentiated training and flight operations software solutions. We booked $693 million in orders with civil customers worldwide for a 1.08 times book to sales ratio. On revenue that's 12% higher than Q2 of last year.

本季我們繼續在長期成長的大型市場中提供強勁的訂單流，該市場擁有高度差異化的培訓和飛行營運軟體解決方案。我們向全球民用客戶預訂了價值 6.93 億美元的訂單，預訂與銷售額比率為 1.08 倍。營收比去年第二季高出 12%。

We ended the quarter with a record $6.7 billion total civil adjusted backlog, which is up 13% year over year. We received orders for 16 full flight simulators in the quarter, including four based on the COMAC C919 airliner, and we signed long term training services and flight operation solution contracts with commercial and business jet operators worldwide.

本季末，我們的民事調整積壓總額達到創紀錄的 67 億美元，年增 13%。本季度我們收到了 16 台全動飛行模擬器訂單，其中 4 台基於中國商飛 C919 客機，並與全球商用和公務機營運商簽署了長期培訓服務和飛行營運解決方案合約。

In defense, performance continued to track our expectations driven by strong execution, risk retirement, significant backlog growth and improving backlog quality. We made excellent progress during the quarter to renew growth and increase margins including successfully concluding one of the legacy contracts from the backlog and securing a $1.7 billion transformative award under Canada's future aircrew training program.

在國防方面，由於強大的執行力、風險消除、積壓訂單顯著成長和積壓品質不斷提高，業績持續符合我們的預期。本季度我們在恢復成長和提高利潤方面取得了出色進展，包括成功完成積壓訂單中的一份遺留合同，並根據加拿大未來機組人員培訓計劃獲得了 17 億加元的變革性獎項。

For the quarter, we recorded orders worth $2.3 billion, resulting in a 4.6 times book-to-sales ratio, leading to a record $11.4 billion in defense adjusted backlog. This is up approximately 94% year over year. Over the past 12 months, the defense book-to-sales ratio was 2.04 times.

本季度，我們記錄了價值 23 億美元的訂單，導致訂單與銷售比率達到 4.6 倍，導致國防調整後的積壓訂單達到創紀錄的 114 億美元。這一數字年增約 94%。過去12個月，國防訂單銷售比率為2.04倍。

With that, I will now turn the call over to Dino, who will provide additional details about our financial performance. Dino?

現在，我將把電話轉給迪諾，他將提供有關我們財務業績的更多詳細資訊。迪諾？

Thank you, Marc, and good morning, everyone. Consolidated revenue was [$1.14 billion], 8% higher compared to the second quarter last year. While adjusted segmented operating income was $149.0 million compared to $135.6 million in the second quarter last year.

謝謝你，馬克，大家早安。綜合營收為 [11.4 億美元]，比去年第二季成長 8%。調整後的分部營業收入為 1.490 億美元，而去年第二季為 1.356 億美元。

Our quarterly adjusted EPS was $0.24 that compares to $0.26 in the second quarter last year. We incurred restructuring, integration and acquisition costs of $30.9 million during the quarter, which is comprised of $5.1 million for the now completed integration of AirCentre and $25.8 million in connection with the restructuring program to streamline CAE's operating model and portfolio optimize our cost structure and create efficiencies.

我們的季度調整後每股收益為 0.24 美元，去年第二季為 0.26 美元。本季我們發生了3,090 萬美元的重組、整合和收購成本，其中包括現已完成的AirCentre 整合的510 萬美元和與重組計劃相關的2,580 萬美元，該重組計劃旨在簡化CAE 的營運模式和產品組合，優化我們的成本結構並創建效率。

This restructuring program was also completed in the second quarter, and no further restructuring expenses are expected. The conclusion of these programs is beneficial to the company's free cash flow profile going forward.

此次重組計劃也在第二季完成，預計不會有進一步的重組費用。這些計劃的完成有利於公司未來的自由現金流狀況。

Also, we continue to expect to fully achieve annual run rate cost savings of approximately $20 million by the end of next fiscal year. Net finance expense this quarter amounted to $52.9 million, which is up from $49.5 million in the preceding quarter and $47.1 million in the second quarter last year.

此外，我們仍然預計到下一財年末將實現每年運行成本節省約 2,000 萬美元。本季淨財務費用為 5,290 萬美元，高於上一季的 4,950 萬美元和去年第二季的 4,710 萬美元。

This is mainly the result of higher finance expense on lease liabilities in support of training network expansions, partially offset by lower finance expense on long term debt due to a decreased level of borrowings during the period.

這主要是由於支持培訓網絡擴張的租賃負債財務費用增加，部分被期內借款水準下降導致的長期債務財務費用減少所抵消。

Income tax expense this quarter was $10.4 million, for an effective tax rate of 16%. The adjusted effective income tax rate was 18%, which is the basis for the adjusted EPS calculation.

本季所得稅費用為 1,040 萬美元，有效稅率為 16%。調整後的有效所得稅率為18%，這是調整後每股盈餘的計算基礎。

Net cash from operating activities this quarter was $162.1 million compared to $180.2 million in the second quarter of fiscal 2024. Free cash flow was $140 million compared to $147.4 million in the second quarter last year. The decrease was mainly due to a lower contribution in noncash working capital.

本季經營活動產生的現金淨額為 1.621 億美元，而 2024 財年第二季為 1.802 億美元。自由現金流為 1.4 億美元，而去年第二季為 1.474 億美元。減少的主要原因是非現金營運資金貢獻減少。

As in previous years, we usually expect the portion of our noncash working capital in the first half to reverse in the second half. We also continue to target an average 100% conversion of adjusted net income to free cash flow for the year.

與往年一樣，我們通常預期上半年非現金營運資金的比例將在下半年逆轉。我們也繼續目標是今年調整後淨利潤平均 100% 轉換為自由現金流。

Capital expenditures totaled $57.0 million this quarter, with approximately 65% invested in growth, mainly to add capacity to our global training network to deliver on the long term training contracts in our backlog. We are now expecting total CapEx for fiscal 2025 to be slightly below our previous estimated range, which is indicated that $50 million to $100 million higher than the $330 million we invested in fiscal 2024. This change reflects the agility of our investment process and our ability to move in lockstep with the market.

本季資本支出總計 5,700 萬美元，其中約 65% 投資於成長，主要是為了增加我們的全球培訓網絡的能力，以交付積壓的長期培訓合約。我們現在預計 2025 財年的總資本支出將略低於我們先前的估計範圍，這表明我們比 2024 財年投資的 3.3 億美元高出 5,000 萬至 1 億美元。這項變更反映了我們投資流程的靈活性以及我們與市場同步發展的能力。

Our net debt position at the end of the quarter was approximately $3.1 billion for a net debt to adjusted EBITDA of 3.25 times at the end of the quarter. Before the impact of our legacy contracts, net debt to adjusted EBITDA was 2.97 times.

本季末我們的淨負債部位約為 31 億美元，本季末淨債務與調整後 EBITDA 的比值為 3.25 倍。在我們的遺留合約影響之前，淨債務與調整後 EBITDA 的比率為 2.97 倍。

Our increased investment in [SIMCOM] does not change our leverage expectations. We continue to expect to be below 3 times net debt to adjusted EBITDA by the end of the fiscal year, and our deleveraging focus remains the same.

我們增加對[SIMCOM]的投資不會改變我們的槓桿預期。我們仍預期到本財年末淨負債與調整後 EBITDA 的比率將低於 3 倍，且我們的去槓桿化重點保持不變。

During the quarter, CAE repurchased and canceled a total of 392,730 common shares under its normal course issuer bid NCIB, which began on May 30, 2024, and at weighted average price of $24.43 per common share for a total consideration of $9.6 million.

本季度，CAE 根據自 2024 年 5 月 30 日開始的正常發行人投標 NCIB，回購並註銷了總計 392,730 股普通股，加權平均價格為每股普通股 24.43 美元，總代價為 960 萬美元。

Now turning to our segmented performance. In civil, second quarter revenue grew 12% year over year to $640.7 million, while adjusted segmented operating income rose 100% to $115.9 million resulting in an 18.1% margin.

現在轉向我們的分段表現。在民用領域，第二季營收年增 12% 至 6.407 億美元，而調整後的分部營業收入成長 100% 至 1.159 億美元，利潤率為 18.1%。

With 18 full flight simulators delivered this quarter, we saw a notable shift in revenue mix with a higher proportion from products compared to last year when we delivered 11. Defense revenue rose 4% to $495.9 million while adjusted segment and operating income rose 55% to $33.1 million, delivering a 6.7% margin right on target, thanks to strong execution from the team. Legacy contracts remain on track with cost and schedules well managed.

本季度交付了 18 台全飛行模擬器，我們看到收入結構發生了顯著變化，與去年交付的 11 台相比，來自產品的比例更高。國防收入成長 4%，達到 4.959 億美元，而調整後的部門和營業收入成長 55%，達到 3,310 萬美元，由於團隊的強大執行力，利潤率達到了 6.7% 的目標。遺留合約仍處於正軌，成本和進度管理良好。

As planned, we concluded one legacy contract this quarter and on track to finalize another one next quarter with yet another following in the quarter after. This quarter, legacy contracts contributed around 30 basis points of margin dilution. Without this impact, the adjusted segment operating income for margin for defense would have been 7%.

按計劃，我們在本季度簽訂了一份遺留合同，並預計在下個季度敲定另一份合同，並在下個季度再簽訂另一份合同。本季度，遺留合約導致利潤率稀釋約 30 個基點。如果沒有這種影響，調整後的國防利潤分部營業收入將為 7%。

With that, I will ask Marc to discuss the way forward.

接下來，我將請馬克討論前進的方向。

Thanks, Dino. We're seeing overall, a key factor driving long term demand in both our civil and defense segments is the high level of demand for pilot training demands growth and replace those that are retiring. The outlook for aviation training solutions in civil is as strong as ever, driven by growth in air travel, the need for more pilots and a requirement for continuous training to keep up with evolving aviation technologies as well as regulations.

謝謝，迪諾。總體而言，我們看到，推動民用和國防領域長期需求的關鍵因素是對飛行員培訓需求的高需求成長和取代即將退休的飛行員。在航空旅行成長、對更多飛行員的需求以及持續培訓以跟上不斷發展的航空技術和法規的要求的推動下，民用航空培訓解決方案的前景一如既往地強勁。

Our business is largely supported by the regulator train pilots and cruise needs to maintain certification for the global fleet of commercial and business aircraft. And this will only compound as the in-service commercial jet fleet roughly doubles within the next two decades. Factors like the aging pilot workforce, mandatory retirements and sustained growth for air travel solidify our long term confidence in CAE's future.

我們的業務主要受到監管機構培訓飛行員和郵輪需求的支持，以維持全球商用和公務飛機機隊的認證。隨著現役商用噴射機機隊在未來二十年內增加一倍，這種情況只會更加複雜。飛行員團隊老化、強制退休和航空旅行的持續成長等因素鞏固了我們對 CAE 未來的長期信心。

OEM aircraft supply disruptions at testified with recent labor disputes. But with that now positively resolved, we believe that the airline industry can now begin to gradually recover from the narrow body supply challenges with some relief expected in the coming period as grounded aircraft return service and new aircraft delivery rates eventually rise.

最近的勞資糾紛證明了原始設備製造商飛機供應中斷。但隨著這個問題現已積極解決，我們相信航空業現在可以開始逐漸從窄體飛機供應挑戰中恢復過來，隨著停飛的飛機返航服務和新飛機交付率最終上升，預計未來一段時間會有所緩解。

Underscoring the temporary nature of these supply Boeing and Airbus have a combined order backlog of nearly 15,000 aircraft amounting to about a decade's worth of deliveries. With regards to business aviation specifically, I'm thrilled about the agreement announced lastly to purchase a majority stake in our SIMCOM joint venture.

波音和空中巴士公司總共有近 15,000 架飛機的積壓訂單，相當於大約十年的交付量，這突顯了這些供應的臨時性。特別是在公務航空方面，我對最後宣布的購買我們 SIMCOM 合資企業多數股權的協議感到非常興奮。

This strategic organic investment strengthens our position in the core business aviation training market, boost recurring revenue and deepens our commitment to deliver top tier training solutions or a vital customer segment.

這項策略性有機投資鞏固了我們在核心公務航空培訓市場的地位，增加了經常性收入，並加深了我們對提供頂級培訓解決方案或重要客戶群的承諾。

Under this agreement, both CAE and SIMCOM have also extended our exclusive business aviation training partnerships with Flexjet and its affiliates by an additional five years during a 50 year exclusivity period. This long term agreement functions like an outsourcing agreement with one of the world's premier luxury private jet companies, giving CAE increased exposure to the rapidly growing fractional jet and charter aviation markets.

根據該協議，CAE 和 SIMCOM 也將我們與 Flexjet 及其附屬公司的獨家公務航空培訓合作夥伴關係在 50 年獨家經營期內再延長五年。這項長期協議的作用類似於與世界頂級豪華私人飛機公司之一簽訂的外包協議，使 CAE 能夠更多地接觸快速增長的共享飛機和包機航空市場。

We anticipate that this investment will be accretive to both earnings and free cash flow in our first full year going forward. Regarding our civil outlook, disruptions in aircraft supply have indeed impacted an incremental portion of the band that we normally see in our commercial aviation's trading division.

我們預計這項投資將增加我們未來第一個全年的收益和自由現金流。就我們的民用前景而言，飛機供應中斷確實影響了我們通常在商業航空貿易部門看到的增量部分。

Consequently, we implemented measures to enhance operational efficiency and mitigate the decrease in training demand. Despite a persistently low pilot hiring levels in the United States. Training bookings for our third and fourth quarters are higher, reinforcing our expectation for a stronger performance in the latter half of the fiscal year.

因此，我們採取了提高營運效率並緩解培訓需求下降的措施。儘管美國的飛行員招募水準持續較低。我們第三季和第四季的培訓預訂量有所增加，增強了我們對本財年下半年業績更強勁的預期。

Additional factors that underlying our expectations for a stronger second half includes the seasonal improvements in commercial and business aviation. Accretion for our increased investment in SIMCOM and an uptick in volume and profitability from full flight simulator deliveries.

我們對下半年表現更強勁的預期的其他因素包括商業和公務航空的季節性改善。我們增加對 SIMCOM 的投資以及全飛行模擬器交付量和獲利能力的增加。

On balance, we're maintaining our target of approximately 10% annual growth in civil adjusted segment operating income for fiscal 2025 and we continue to expect an annual civil adjusted segment operating income margin between -- to be between 22% and 23%, with ample room to grow beyond that on volume efficiencies and mix.

總的來說，我們維持 2025 財年民用調整部門營業收入每年增長約 10% 的目標，並且我們繼續預計民用調整部門營業利潤率將在 22% 至 23% 之間，在容量效率和混合方面有足夠的成長空間。

In defense, we're well positioned in a growth market as the sector moves into a prolonged up cycle with increased budgets across NATO and allied nations. Rising geopolitical tensions are driving a focus on near peer threats, defense modernization and readiness, fueling demand for the training and simulation solutions that we offer.

在國防領域，隨著北約和盟國預算的增加，該產業進入了長期的上升週期，我們在成長市場中處於有利地位。地緣政治緊張局勢的加劇正在推動人們對近鄰威脅、國防現代化和戰備情況的關注，從而刺激了對我們提供的培訓和模擬解決方案的需求。

Our expertise spanning civil aviation and defense uniquely equips us to meet these needs. Demand for our training solutions remains strong, driven by a global shortage of uniform personnel, prompting militaries to partner with CAE to support readiness.

我們在民用航空和國防領域的專業知識使我們能夠滿足這些需求。由於全球製服人員短缺，對我們的訓練解決方案的需求仍然強勁，促使軍隊與 CAE 合作以支持戰備。

By leveraging our position on programs like the Canadian back, we aim to advance multi-domain training and secure synthetic environments across our global network. The foundation is solidly set for renewed growth and margin expansion in our defense business in the coming periods.

透過利用我們在加拿大背部等項目中的地位，我們的目標是推進多領域培訓並確保我們全球網路中的合成環境的安全。我們的國防業務在未來一段時間內的新成長和利潤率擴張已經奠定了堅實的基礎。

We've strengthened our processes, sharpened our strategy and enhanced our talent to improve efficiency and execution. Meanwhile, we've achieved transformative growth in our backlog of high-quality programs. Our fiscal 2025 defense outlook reflects the business rebase line, risk baselining and improved visibility that it provides.

我們加強了流程、完善了策略並增強了人才，以提高效率和執行力。同時，我們在積壓的高品質專案方面實現了變革性成長。我們的 2025 財年國防展望反映了其提供的業務重新基準、風險基準和改進的可見度。

We anticipate annual revenue growth in the low to mid-single digits and expect defense adjusted segment operating income margin to increase to the 6% to 7% range with performance like civil weighted more towards the second half of the year.

我們預計年收入成長將在低至中個位數的水平，並預計國防調整後的部門營業利潤率將增至 6% 至 7% 的範圍，而民用部門的業績在下半年的比重將更大。

With that, I thank you for your attention and we're now ready to answer your question.

在此，我感謝您的關注，我們現在準備回答您的問題。

Thank you, Marc. Operator, we'd now like to open the line to members of the financial community.

謝謝你，馬克。接線員，我們現在想向金融界成員開放這條線路。

(Operator instructions)

（操作員說明）

Kevin Chiang, CIBC.

凱文·蔣，CIBC。

Thanks for taking my question. And congrats, Marc, on your pending retirement here. Maybe just on defense, you called out 7% SOI margins excluding the legacy contracts you have a target of eventually getting to double digits here over time.

感謝您提出我的問題。馬克，恭喜你即將退休。也許只是出於防守，您提出了 7% 的 SOI 利潤率，不包括遺留合同，您的目標是隨著時間的推移最終達到兩位數。

Just how you think about bridging that gap? Is that 10% of the backlog today? Or does this require continued restructuring and how you're bidding and what you're winning in order to ultimately get to that double digit EBIT margin.

您如何看待縮小這一差距？這是今天積壓的 10% 嗎？或者這是否需要持續重組以及您如何出價以及您贏得什麼才能最終達到兩位數的息稅前利潤率。

Look, I think the factors that's going to drive the growth of the same ones that we've talked before. It's really -- and thanks for your comment, Kevin, by the way, about me, I appreciate it. It really comes back to the retirement of the legacy contract risk and we're right on track on that one and really replacing contracts in our backlog that are -- that we've won over the last few years and that are lesser margin than the 10% or so that we target and replacing them with a contract at higher margin.

看，我認為推動我們之前討論過的相同因素成長的因素。這真的是——謝謝你的評論，凱文，順便說一句，關於我，我很感激。這確實回到了遺留合同風險的消除，我們在這方面正走在正軌上，並真正替換了我們積壓訂單中的合同，這些合同是我們在過去幾年中贏得的，而且利潤率低於10%左右，我們的目標是用利潤率較高的合約取代它們。

And that's really what's happening here. And I think you can see with the growth in the backlog that we're having quite amount of good success on that front. I don't know Dino, you want to have anything to that.

這確實是這裡發生的事情。我認為，隨著積壓訂單的成長，您可以看到我們在這方面取得了相當大的成功。我不知道迪諾，你想要什麼。

There are no things Marc Parent on. So absolutely, I think what Marc said is absolutely bang on there. We -- it's really based on continuing strong execution, right? And the team has planned and securing growth with those more transformative backlog as an example of that [$1.7 billion subcontracted rewarded in Q2. The defense pipeline is still strong $2 billion].

馬克·帕倫特沒有上任何東西。所以絕對，我認為馬克所說的絕對是正確的。我們——這確實是基於持續強大的執行力，對嗎？作為一個例子，團隊已經計劃並透過那些更具變革性的積壓工作來確保成長[第二季獎勵 17 億美元的分包合約。國防管道仍然強勁，價值 20 億美元]。

We'll see the gradual increase over time in the next second half year. Q2 probably be very similar to -- sorry, Q3 probably similar to Q2 with some improvement and then a higher improvement in the fourth quarter.

我們將在下半年看到隨著時間的推移逐漸增加。第二季可能非常相似——抱歉，第三季可能與第二季相似，但有一些改進，然後在第四季有更高的改進。

Okay. That's helpful. And maybe just my second one here, you're holding the margin guide for civil. I'm sure SIMCOM helps here in the back half of your fiscal year, but you also (multiple speakers)

好的。這很有幫助。也許這只是我的第二個，你拿著民事保證金指南。我確信 SIMCOM 在您的財政年度後半段會有所幫助，但您也（多個發言者）

Operator, are you still there?

接線員，你還在嗎？

Can you hear me?

你聽得到我嗎？

Yes, the operator is here and I can hear Mr. Chang. (multiple speakers) Certainly, apologies Mr. Chan.

是的，接線生來了，我聽到張先生的聲音。（多名發言者） 當然，向陳先生道歉。

Sheila Kahyaoglu, Jefferies.

希拉·卡哈奧格魯，杰弗里斯。

Thank you very much And congratulations, Marc, on an accomplishment over the last two decades or so. I'm going to steal the last question. So maybe let's if we could talk about the civil inflection that's underwritten for the second half, how do we think about that?

非常感謝你，恭喜馬克在過去二十年左右所取得的成就。我要偷走最後一個問題。那麼，如果我們可以談談下半年承保的民事變化，我們對此有何看法？

What's driving some of that SIMCOM white operations, software profitability and cost out -- maybe if you could comment on some of the drivers into the second half? And then my follow up would be on just the GTF grounding, has that shifted over the last three months?

是什麼推動了SIMCOM白色業務、軟體獲利能力和成本支出——也許您可以評論一下下半年的一些驅動因素？然後我的後續行動將只是 GTF 接地，過去三個月這種情況有改變嗎？

Thanks, Sheila. And again, thanks for your comments as well. Look, when we look at things -- let's think about all the factors that are affecting us here I think in commercial aviation, right. You highlighted the issues that are affecting us is still affecting us. The lower deliveries at a being exacerbated by the strike of course, that's resolved now.

謝謝，希拉。再次感謝您的評論。聽著，當我們審視事物時，讓我們考慮一下影響我們的所有因素，我認為是在商業航空領域，對吧。您強調了影響我們的問題仍然影響著我們。當然，罷工加劇了交付量的下降，現在已經解決了。

The impacts from all the grounded aircraft at the Airbus aircraft because of the GTF and that's come off the peak itself. We are cooling off this last summer, really was very hot pilot hiring trend in the United States. So look, I mean, as we look at the period ahead and what underlies our forecast is that as I mentioned, the impact from Airbus -- impact of the GTF on Airbus grounding is improving (inaudible) AOGs are behind us.

由於 GTF，所有停飛飛機對空中巴士飛機的影響已經達到頂峰。去年夏天，美國的飛行員招募趨勢確實非常火熱，我們正在冷靜下來。所以，我的意思是，當我們展望未來一段時間時，我們預測的基礎是，正如我所提到的，空中巴士的影響——GTF 對空中巴士停飛的影響正在改善（聽不清楚）AOG已經過去了。

We see some modest, I'd say, modest but definitely uptick towards more normal pilot hiring by US airlines. We do expect an improvement at some point in Boeing deliveries. Although I would say like anybody else, that remains probably our biggest question mark, something that we're watching.

我想說，我們看到美國航空公司在聘用更正常的飛行員方面出現了一些適度但肯定的增長。我們確實預計波音的交付量在某個時候會有所改善。儘管我會像其他人一樣說，但這可能仍然是我們最大的問號，我們正在關注的事情。

So -- but we see taking all of that into account specifically for airlines, what we see is improvements in the (inaudible) booking in Q3, Q4. So there's clearly some pluses and minus in the outlook, and we've taken control of our own destiny with that in basically managing our costs.

所以，但我們看到，特別是針對航空公司而言，考慮到所有這些因素，我們看到的是第三季、第四季（聽不清楚）的預訂量有所改善。因此，前景顯然有一些優點和缺點，我們已經透過基本管理成本來控制自己的命運。

And of course, we see the strong position, we have in business aviation training. The contribution of SIMCOM with that. The fact that coming back to airlines as well, I think we tend to look at the US a lot, but I can tell you activity in Asia Pacific is very strong. So I think all of that is what's contributing to optimism or maybe just Nick, would you like to add anything to do that --

當然，我們看到了我們在公務航空培訓方面的強勢地位。SIMCOM的貢獻就在於此。事實上，回到航空公司方面，我認為我們傾向於更多地關注美國，但我可以告訴你亞太地區的活動非常強勁。所以我認為所有這些都是有助於樂觀的因素，或者也許只是尼克，你想添加一些東西來做到這一點--

Yeah. I mean, I guess from a utilization we expect training business, meaning commercial and business to be to be much higher in the second half and historically, Q4 is our biggest quarter and looks like it's going to be the same this quarter.

是的。我的意思是，我想從我們預計培訓業務的利用率來看，這意味著下半年的商業和業務將會更高，從歷史上看，第四季度是我們最大的季度，看起來本季度也會如此。

We are going to get contribution from SIMCOM that we didn't -- that comes with the acquisition, and we're also going to see better contribution by flight services. So you put all that together, and these are kind of higher margin components you put all this together. Gives us some confidence that the -- whatever outlook we've given you 22%, 20%, we're going to be able to hold it.

我們將從 SIMCOM 獲得我們在收購中沒有得到的貢獻，而且我們還將看到航班服務做出更好的貢獻。所以你把所有這些放在一起，這些都是你把所有這些放在一起的更高利潤的組成部分。讓我們有信心——無論我們給你 22%、20% 的前景如何，我們都能夠堅持下去。

Fadi Chamoun, BMO Capital Markets.

Fadi Chamoun，BMO 資本市場。

Yeah, good morning and congratulations, Marc on your retirement. Is the full flight simulator delivery target still in the 50% range this year? Or has that changed? And I wanted to ask also like if you can give us some perspective on kind of the supply chain issues in the aviation, like if the aircraft deliveries from Boeing in particular, but generally Airbus and Boeing, kind of struggle to get off the ground in the next 6 to 12 months because of the supply initiatives.

是的，早安，恭喜馬克退休。今年全機飛行模擬器交付目標還在50%範圍內嗎？或者情況已經改變了？我還想問您是否可以給我們一些關於航空業供應鏈問題的看法，例如飛機是否特別是從波音公司交付的，但一般來說空中巴士和波音公司在起步階段會遇到困難由於供應計劃，未來6 至12 個月內。

Can we potentially start seeing some of these issues that you're experiencing in the US now spread over to other regions. Is there potential risk for some delivery deferrals. I'm just trying to kind of understand from your conversation with customers.

我們是否有可能開始看到您在美國遇到的一些問題現在蔓延到其他地區。某些交貨延期是否有潛在風險？我只是想從您與客戶的談話中了解一些情況。

What does this look like? Are they kind of starting to get nervous about potentially aircraft deferrals driving some deferrals on the FFS delivery side or just looking over the next kind of two to four quarters, if you can provide some perspective on that, that would be great.

這看起來像什麼？他們是否開始對潛在的飛機延期感到緊張，從而導致 FFS 交付方面的一些延期，或者只是考慮接下來的兩到四個季度，如果您能對此提供一些看法，那就太好了。

Okay. Thanks again, Fadi, for your comments with regard myself and a pleasure working with two couple years, and I look forward to the next two or three quarters to do that. I think going back to some of your questions. I start with the first one. Yes, we're still aiming for over 50 delivery this year, hasn't changed then we don't expect that to change either.

好的。再次感謝 Fadi，您對我自己的評價，並且很高興與您合作兩年，我期待在接下來的兩三個季度做到這一點。我想回到你的一些問題。我從第一個開始。是的，我們今年的目標仍然是超過 50 個交付，沒有改變，那麼我們預計也不會改變。

Look, I think the factors you talked about, look, we're obviously not immune to what may happen in the market, clearly, in terms of delivery of aircraft. But when I look at the situation, I talked about with the groundings we are off the feet because you should -- with regard to engines, the strike at Boeing is resolved.

看，我認為你談到的因素，看，我們顯然不能免受市場上可能發生的事情的影響，顯然，在飛機交付方面。但當我看到這種情況時，我談到我們已經停飛了，因為你應該——就發動機而言，波音公司的罷工已經解決了。

And I'm sure they're doing their utmost to get deliveries restarted safely and then Boeing is a great company that's going to happen. So -- and we've taken I think, you're pretty saying with you of how that all would play out.

我確信他們正在盡最大努力安全地重新開始交付，然後波音公司將成為一家偉大的公司。所以——我想，我們已經接受了，你很好地談論了這一切將如何進行。

And in the meantime, what you see is on our side is managing our cost banking, our CapEx to stay in lockstep of demand. With regards to sentiment out there look, again, we're a global company. So when I looked at the situation and utilization in Asia Pacific very hot.

同時，您看到我們這邊正在管理我們的成本銀行和資本支出，以保持與需求同步。就市場情緒而言，我們是一家全球性公司。所以當我看到亞太地區的情況和利用率非常熱門時。

And that's still with a situation that specifically, if I look at geographies like China, there really hasn't been a recovery into international travel, very big on dimension, but not international still a play there. But again, I don't know maybe, Nick, you want to provide more color based on what you see out there?

具體來說，如果我看看中國這樣的地區，國際旅遊業確實還沒有復甦，規模很大，但國際旅遊業仍然沒有復甦。但同樣，我不知道尼克，您是否想根據您所看到的情況提供更多顏色？

Well, yeah. I mean I think the opportunities for us right now are especially in full flight simulator Marc, said the deliveries, we don't see any softness we don't see -- like we don't see people backing off from what they've ordered.

嗯，是的。我的意思是，我認為我們現在的機會尤其是在全飛行模擬器中，馬克說，交付時，我們沒有看到任何我們看不到的軟弱——就像我們沒有看到人們從他們已經完成的事情中退縮一樣。

I think in terms of the numbers, we'll see by the end of the year. But we are winning business from places like Asia right these days more than we did in the last couple of years where they were kind of coming out of it. So China, Marc mentioned that we did see some orders out of China.

我認為就數字而言，我們將在今年年底看到。但現在我們從亞洲等地贏得的業務比過去幾年要多，他們在過去幾年中從中獲得了更多的業務。那麼中國，馬克提到我們確實看到了一些來自中國的訂單。

And I think the overall, I don't -- I mean, at least for now, we don't see any change. Now the deliveries that you mentioned, I mean they're low, but they're not that -- they're actually not that different to last year. So it's on both sides, Airbus and Boeing.

我認為總體而言，我不認為——我的意思是，至少目前，我們沒有看到任何變化。現在你提到的交付量，我的意思是它們很低，但事實並非如此——實際上與去年沒有什麼不同。所以雙方都有空客和波音。

So they are lower for sure, but they're actually very similar to what was delivered last year. So there are still opportunities for us, new simulator drive capacity needs and that drives either the training business or the products business to demand. And so we're capturing it wherever it is geographically.

所以它們肯定會較低，但實際上與去年交付的非常相似。因此，我們仍然有機會，新的模擬器驅動容量需求，並推動培訓業務或產品業務的需求。因此，無論它在什麼地理位置，我們都會捕捉到它。

Maybe just to add the last point to (inaudible) these factors, they're clearly temporary. A I was saying in my remarks, there's a backlog of 15,000 airplanes that Airbus and Boeing have to live over the next year. That's a lot of pilot demand across the world. That's -- and compound that with pilot hiring anything we want to think about where that growth is going to come from.

也許只是為了（聽不清楚）這些因素添加最後一點，它們顯然是暫時的。答：我在演講中說過，空中巴士和波音明年必須維持 15,000 架飛機的積壓。世界各地對飛行員的需求量很大。這就是——再加上飛行員僱用任何我們想要考慮的增長將來自哪裡。

I'm just looking at it just one factor. If you think about India, we do a lot of business in India, where we're very strong there. And there's about in terms of just wide-body aircraft, for a population of what is about 1.3 billion people, there's about 60 wide body aircraft in India.

我只看其中一個因素。如果你想想印度，我們在印度做了很多業務，我們在那裡非常強大。僅就寬體飛機而言，印度約有 13 億人口，約有 60 架寬體飛機。

In Singapore alone is about, I think, about [260], think about that. I mean, clearly, the ratios won't be perfect, but to actually tell you how much growth is remaining in just one country or with one that doesn't have a lot of competing infrastructure that basically competes with airlines.

我想，光在新加坡就大約是[260]，想想這一點。我的意思是，很明顯，這些比率不會是完美的，但實際上可以告訴你一個國家或一個沒有大量基本上與航空公司競爭的基礎設施的國家還剩下多少增長。

So I'm just -- that gives you an idea where all those airplanes have go to and they've been spoken for. They're going to be delivered. So make no mistake, this is a temporary situation we see here, we're quite convinced of that.

所以我只是——這讓你知道所有這些飛機都去了哪裡並且他們已經被告知了。他們將被交付。因此，毫無疑問，這是我們在這裡看到的暫時情況，我們對此深信不疑。

Appreciate it. Thank you.

欣賞它。謝謝。

James McGarragle, RBC Capital Markets.

James McGarragle，加拿大皇家銀行資本市場部。

Hey, good morning and congrats on a really good quarter. I just had a question on the book-to-bill. It came in above [one] this quarter, but below what we've been seeing from your team in the past few quarters and then we saw the CapEx guide come down. So anything to read into there?

嘿，早上好，祝賀這個季度非常好。我剛剛有一個關於訂單到賬單的問題。本季的數據高於[一個]，但低於我們在過去幾季從您的團隊中看到的數據，然後我們看到資本支出指南下降了。那麼有什麼值得讀的嗎？

And anything changed about how you're looking at the longer term growth opportunity in civil? Or is it just more of the impact of near-term headwinds from OEM delays and pilot hiring in the American.

您對民用領域長期成長機會的看法有何變化？或者這更多是由於原始設備製造商延誤和美國飛行員招聘帶來的近期阻力的影響。

Actually, the way we look at it, the civil book-to-bill ratio is still comfortably above one strong growth. And of course, you got to look at it that growth is on top of quite a rise in revenue. So that tells you the market is still pretty hot. But Nick, do you want to comment on that?

事實上，從我們的角度來看，民用訂單出貨比仍然輕鬆地高於強勁成長。當然，你必須看到成長是在收入大幅成長的基礎上實現的。這顯示市場仍然相當火熱。但是尼克，你想對此發表評論嗎？

Yeah. I don't think there's a need to read into it, it's about one.

是的。我認為沒有必要去讀它，它只是一個。

As Marc said, revenue is $640 million, so it's a high number compared to last year, which is about $68 million lower. So I think we get the opportunities book-to-bill above one.

正如 Marc 所說，收入為 6.4 億美元，因此與去年相比，這是一個很高的數字，去年減少了約 6,800 萬美元。因此，我認為我們獲得了以上從訂單到帳單的機會。

So you should take that as growth -- maybe on the CapEx side. Effectively, we have changed the guidance to specify that. We expect CapEx 2025 to be slightly below the previous guided range of $50 million to $100 million more than FY24, FY24 number was $330 million. But again, this is an example of our agility in our investment process and to move lockstep with the market as we don't deploy simulators on speculation.

所以你應該將其視為成長——也許是在資本支出方面。實際上，我們已經更改了指南來具體說明這一點。我們預計 2025 財年的資本支出將略低於先前 5,000 萬至 1 億美元的指導範圍，比 2024 財年多 5,000 萬美元至 1 億美元，2024 財年的數字為 3.3 億美元。但這再次證明了我們在投資過程中的敏捷性，以及與市場保持同步的一個例子，因為我們不會根據投機部署模擬器。

Our highest returns we get are from our organic investments track record is delivering 20% to 30% range incremental pre-tax roachy on organic growth. So we continue to monitor the market situation, but we never want to be ahead of our customers. So discipline is key.

我們獲得的最高回報來自我們的有機投資記錄，即有機成長帶來 20% 至 30% 的稅前增量。因此，我們會繼續監控市場狀況，但我們永遠不想領先客戶。所以紀律是關鍵。

Appreciate the color. And then on the defense margin guide, it implies continued improvement, as you mentioned, in Q3 and then into Q4. So can you just provide some more color on what's driving that? Is there a seasonality in the defense business at all?

欣賞顏色。然後，在防禦裕度指南上，正如您所提到的，這意味著在第三季和第四季持續改進。那麼您能否提供更多關於推動這一趨勢的因素？國防業務有季節性嗎？

I'm just trying to get a better understanding of the margin exit rate and whether or not that represents a good run rate to use for fiscal 2026. I'll turn the line over after that. Thank you.

我只是想更了解保證金退出率，以及這是否代表 2026 財年的良好運行率。之後我會把線路轉過來。謝謝。

Well, it's, I mean, we're not going to go ahead and get into, you know, fiscal '26 right at this point, except to say it's going to be right in line in the guidance that we've previously given that we were definitely iterating, feel very confident about the guidance we gave in regards to margins and growth for defense this year. And I mean, where that's coming from, where that's going.

嗯，我的意思是，我們現在不會繼續進入 26 財年，除非說這將符合我們之前給出的指導我們確實在迭代，對我們今年在國防領域的利潤和增長方面給出的指導非常有信心。我的意思是，它從哪裡來，到哪裡去。

Well, it's -- I mean we're not going to get into fiscal '26 right, at this point, except to say that it's going to be right in line in the guidance that we've previously given that we were definitely reiterating and feel very confident about the guidance we gave in regards to margins and growth for defense this year. And I mean, where that's coming from, where that's going maybe.

嗯，我的意思是，目前我們不會進入 26 財年，只是說這將符合我們之前給出的指導方針，我們肯定會重申，對我們今年在國防領域的利潤和增長方面給出的指導非常有信心。我的意思是，它來自哪裡，可能要去哪裡。

Well, it's coming from both sides, as I think we described at the beginning of the year, the cost savings are definitely running through the earning through the P&L now. And obviously, we expect that to continue to some of these cost savings will only be realized by the end of the year. So it's good so far and also, of course, the execution and the order.

嗯，它來自雙方，正如我認為我們在年初所描述的那樣，成本節省肯定會反映在損益表的收益中。顯然，我們預計只有到今年年底才能繼續實現部分成本節約。所以到目前為止一切都很好，當然，執行和順序也很好。

So there is new business like fat, for example, which is only getting started now. And this new business is going to drive growth in the -- well, not just the backlog, but obviously on the P&L. So fact is a big program. It's going to -- as an example, we've announced a number of other programs recently in Canada, in particular, and we've also announced some programs wins in the US.

因此，有像脂肪這樣的新業務，現在才剛開始。這項新業務將推動——嗯，不僅僅是積壓訂單的成長，而且顯然是損益表的成長。所以事實上是一個大程式。舉個例子，我們最近特別宣布了在加拿大的一些其他項目，我們也宣布了一些在美國獲勝的項目。

In terms of -- it's just better execution, I think, is the way you should read it. And that comes with cost savings, but also comes with winning good orders. So I would say, obviously, we don't have -- we've given you this guidance. We have the visibility to get us there and you should take it to the bank.

就——我認為，這只是更好的執行，這就是你應該閱讀它的方式。這不僅可以節省成本，還可以贏得良好的訂單。所以我想說，顯然，我們沒有──我們已經給了你們這個指導。我們有能力到達那裡，您應該將其帶到銀行。

Matthew Lee, Canaccord.

馬修李，Canaccord。

Hey, good morning guys. Thanks for taking my questions and I call the sentiment, Marc. On the SIMCOM stick acquisition, you kind of mentioned in the past that consolidating JV Partners is an important avenue of organic investment for you.

嘿，早上好，夥計們。感謝您提出我的問題，我稱之為情緒，馬克。關於SIMCOM棒的收購，您過去曾提到，整合合資夥伴是您有機投資的重要途徑。

Do you see other opportunities or stable of partners to make further transactions of that nature in the medium term? Or is this one a bit more attractive right now just given how well bidets performing?

您是否認為有其他機會或穩定的合作夥伴可以在中期進行進一步的此類交易？或者考慮到坐浴盆的表現，現在這個產品是否更具吸引力？

Well, look I'll reiterate what I've said about this transaction. I'm very excited about it. I was very excited about getting into a joint venture with our partner in that business in the first place. But to me, when you look at things like this, acquisitions happen when they happen, right?

好吧，我將重申我對這筆交易所說的話。我對此感到非常興奮。首先，我對與該業務的合作夥伴建立合資企業感到非常興奮。但對我來說，當你看到這樣的事情時，收購就會在發生時發生，對嗎？

And this one is kind of not really an acquisition or organic investments because we're just consolidating the remaining -- the large part of the remaining ownership of that business.

這並不是真正的收購或有機投資，因為我們只是整合剩餘的業務——該業務剩餘所有權的很大一部分。

So look, if there's more -- I've always said it, there's more opportunities to consolidate our joint ventures. I mean those are kinds of transactions. It's like that are most attractive because we know the business, obviously, and we're in a very strong position to be able to execute on them because we know them.

所以看，如果有更多的話——我總是這麼說，那就有更多的機會來鞏固我們的合資企業。我的意思是這些都是交易。這似乎是最具吸引力的，因為我們顯然了解業務，而且我們處於非常有利的位置，能夠執行它們，因為我們了解它們。

And then obviously, they're the wheelhouse. This particular one is a really, really great example of basically getting a partner that is an extremely strong player fractional and charter market. It really doesn't getting better in the most profitable part of our several business to business (inaudible)

顯然，他們是駕駛室。這個特別的例子是一個非常非常好的例子，基本上得到了一個非常強大的參與者分數和特許市場的合作夥伴。在我們幾個企業對企業中最賺錢的部分，情況確實沒有變得更好（聽不清楚）

And then maybe if I can add to that, effectively, I think this is considering normal course capital deployment evaluation, right, like we do when we consider deployments of the network, investments in JVs, consolidation opportunities for the network. So again, very excited about the opportunity with SIMCOM, it is our highest margin subsegment.

然後，也許我可以補充一點，實際上，我認為這是在考慮正常的資本部署評估，對吧，就像我們在考慮網路部署、合資企業投資、網路整合機會時所做的那樣。再次強調，我們對 SIMCOM 的機會感到非常興奮，這是我們利潤率最高的細分市場。

And it does secure upside the key customer, it's an extension of 15 years exclusivity for the period with Flexjet, so really excited. After the first year, I think we can expect maybe low single digit EPS accretion and mid-digit EBITDA and free cash flow accretion. That strikes now.

它確實確保了主要客戶的利益，這是 Flexjet 15 年獨家經營權的延長，所以非常興奮。第一年後，我認為我們可以預期每股盈餘可能會出現低個位數的成長，而 EBITDA 和自由現金流則會出現中位數的成長。現在就這樣了。

Okay. That's helpful. And then maybe one on the cost side. The restructuring program seems to expect to take about $20 million of the cost base, and that's great. Are there any other low hanging through on the OpEx side where costs come out one of the areas that could perhaps be a little bit more efficient.

好的。這很有幫助。然後也許是成本方面的一個。重組計劃似乎預計將佔用約 2000 萬美元的成本基礎，這非常棒。營運支出方面是否還有其他懸而未決的問題，其中成本可能是效率更高的領域之一。

So again, that's our disciplined approach to managing capital and costs. Basically, we're looking at various opportunities. One of the examples is managing CapEx right, where we reduced the guidance this year is to be in lockstep with the market.

再說一次，這就是我們管理資本和成本的嚴格方法。基本上，我們正​​在尋找各種機會。其中一個例子是正確管理資本支出，我們今年減少了指導，以便與市場保持同步。

We'll do that as well with all the other types of investment opportunities in research and development and in our overall SG&A, you see SG&A actually being a little bit lower this quarter compared to last year and in previous quarters, and that is again a reflection of our cost savings kicking in, always looking for efficiencies and it's a part of our disciplined approach in how we spend our money.

我們也會這樣做，以及所有其他類型的研發投資機會以及我們的整體 SG&A，您會發現本季度的 SG&A 實際上比去年和前幾季要低一些，這又是一個這反映了我們開始節省成本，始終追求效率，這是我們花錢的嚴格方法的一部分。

Cameron Doerksen, National Bank Financial.

卡梅倫‧多爾克森 (Cameron Doerksen)，國家銀行金融部門。

Yeah, thank you. Good morning and let me echo congratulations to Marc on your retirement. I guess a question around the new US incoming administration. Just wondering if you can maybe discuss some of the risks that you might see and potentially even opportunities with the change in government in the US. I guess one of the things that is top of mind with a lot of investors is around the impact from tariffs.

是的，謝謝。早安，讓我也祝賀馬克你的退休。我想這是關於美國新政府的問題。只是想知道您是否可以討論一下您可能會看到的一些風險，甚至可能是美國政府更迭帶來的機會。我想許多投資者最關心的事情之一就是關稅的影響。

And obviously, aerospace products has historically been for most of those tariffs, but now we've got a incoming President talking about a 10% blanket tariff on anything important into the US. I'm just wondering about how you see that risk for CAE and potentially if there's other risks or opportunities that you see?

顯然，歷史上大部分關稅都是針對航空航天產品的，但現在我們即將上任的總統正在談論對進入美國的任何重要產品徵收 10% 的一攬子關稅。我只是想知道您如何看待 CAE 的風險，以及您是否認為還有其他風險或機會？

Well, I'm sure you'll -- pardon me, if I don't speculate on the situation. But obviously, we're going to monitor it. We're certainly not forecasting any kind of significant impact foresee. Remember, we have a very strong presence in the United States. Just to give you an idea of that of a statistic I've talked about in the past, as you look at just pilot training, notary pilot training. We train all 43,000 air crew in the US military.

好吧，我相信你會——請原諒我，如果我不對情況進行推測的話。但顯然，我們將對其進行監控。我們當然不會預測任何重大影響。請記住，我們在美國擁有非常強大的影響力。只是為了讓您了解我過去談到的統計數據，當您查看飛行員培訓、公證飛行員培訓時。我們訓練美國軍隊的全部 43,000 名機組人員。

At some point in your career all branches, army, air force, marines, navy. So -- and 50% of our employees are there, it's our largest market. So look, we play -- just going back to the what I'm saying about the mills we play a vital role in supporting national security.

在你職業生涯的某個階段，所有軍種，陸軍、空軍、海軍陸戰隊、海軍。因此，我們 50% 的員工都在那裡，這是我們最大的市場。所以看，我們玩——回到我所說的關於工廠，我們在支持國家安全方面發揮著至關重要的作用。

I mean just from that standpoint. In terms of the overall market, I think you've seen a reaction through the market, I think overall market, I think it's good. In some segments that we have, like in business aircraft, I think it's a positive, definitely. So look, I think we're going to continue monitor situation, but I don't really see any changes near or longer term at the moment. Of course, we'll keep monitoring the situation.

我的意思是僅從這個角度來看。就整體市場而言，我認為你已經看到了市場的反應，我認為整體市場是好的。在我們擁有的某些領域，例如公務機，我認為這絕對是正面的。因此，我認為我們將繼續監控情況，但目前我並沒有看到任何近期或長期的變化。當然，我們會持續關注事態發展。

Okay. No, that's fair enough. And just very quickly, just on the defense side, I just wanted to ask if you had any I guess, incremental success in accelerating the retirement of some of the legacy contracts. I know that was something that was a goal to maybe get these completed earlier than what's currently scheduled.

好的。不，這很公平。很快，在國防方面，我只是想問你們在加速某些遺留合約的退役方面是否取得了任何我猜的漸進成功。我知道這是一個可能比目前計劃更早完成這些任務的目標。

Well, look, I'm going to ask the question, and I'm very happy about the progress that we're making there. We retired one progress. Well, there's another one that's a big one that we're requiring literally any day now, literally, and we're on pace. Exactly we want to be in fact, maybe slightly ahead, and Nick you want to add in more detail.

好吧，聽著，我要問這個問題，我對我們在這方面取得的進展感到非常高興。我們退了一步。嗯，還有另一個是我們現在每天都需要的一個大任務，從字面上看，我們正在加快步伐。事實上，我們確實希望做到這一點，也許稍微領先一些，尼克你想補充更多細節。

Yeah. I was going to say, overall, I think we're on track to where we want to be with these programs. I think we're over the hump in terms of trying to ringfence them to a scope that is manageable. And we will -- obviously, if there's any change, we'll let everybody know.

是的。我想說的是，總的來說，我認為我們正在透過這些計劃實現我們想要的目標。我認為我們已經克服了困難，試圖將它們限制在可管理的範圍內。顯然，如果有任何變化，我們會讓所有人知道。

But right now, the guidance we've given on when these programs are going to retire are good and the budgets that we have to retire them were also good. So I think we just kind of run through, obviously, if we can retire them early, we will -- but I mean, that's not the plan at the moment.

但現在，我們就這些計劃何時停用所給予的指導是好的，我們必須停用它們的預算也很好。所以我認為我們只是簡單地進行一下，顯然，如果我們能讓他們提前退休，我們就會——但我的意思是，這不是目前的計劃。

Yeah. I think the key takeaway there is good progress to retire their legacy contracts as planned as anticipated on this quarter. One expected next quarter and one in Q4. We're aiming to outperform on that if we can retire more risks, but it's not planned as track.

是的。我認為關鍵的一點是，在本季度按計劃退役遺留合約方面取得了良好進展。一項預計在下個季度，一項預計在第四季度。如果我們能夠消除更多風險，我們的目標是超越大盤，但這並不是計劃中的軌道。

Tim James, TD Cowen.

提姆詹姆斯，TD·考恩。

Thanks very much and good morning Marc, congratulations on the retirement, certainly well deserved. My first question, just in terms of growth in the network SEU growth. Is it -- would it be correct to assume that it really focused in the kind of short to medium term on business jet platforms, just given the dynamics in the commercial market currently.

非常感謝，早安，馬克，恭喜你退休，當然是當之無愧的。我的第一個問題，就網路 SEU 的成長而言。考慮到目前商業市場的動態，假設它真正專注於公務機平台的中短期目標是否正確？

Maybe turn over to Nick.

也許交給尼克吧。

Yeah. No, actually, it's both. I mean, we are -- we have demand to deploy capacity on the commercial side and on the business side as well. When you take the CapEx number that we've given you guidance, the number of simulators that we're deploying is roughly the same as what you would have seen last year.

是的。不，實際上，兩者都是。我的意思是，我們需要在商業方面和業務方面部署容量。當您獲取我們為您提供的指導的資本支出數字時，我們正在部署的模擬器數量與您去年看到的大致相同。

And we have customers that continue to grow, and we have new customers. And so between the two, we are still deploying [SIMs] on the commercial side.

我們的客戶不斷成長，我們也有新客戶。因此，在兩者之間，我們仍在商業方面部署[SIM]。

Okay, thank you. And my follow-up question, have the challenges facing commercial training just really been creating a volume impact, a throughput impact? Or has there been a pricing impact there as well in that business?

好的，謝謝。我的後續問題是，商業培訓面臨的挑戰是否真的會產生數量影響、吞吐量影響？或者該業務也受到定價影響？

No, it's just volume. I mean most of the customers that we have in terms of pricing, I mean these things are set in the contract. So it's really just some lower volume in some places that drives the pressure.

不，這只是音量。我的意思是我們在定價方面擁有的大多數客戶，我的意思是這些東西都是在合約中規定的。因此，實際上只是某些地方的成交量較低導致了壓力。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Ron Epstein, Bank of America.

羅恩愛潑斯坦，美國銀行。

Hey, good morning. This is Jordan Lyonnais on for Ron. Thanks for taking the questions. For the back half of the year for the civil margins, how much of that should we be expecting to come through from just software sales similar to 4Q of last year?

嘿，早安。這是喬丹里昂 (Jordan Lyonnais) 替補羅恩 (Ron)。感謝您提出問題。對於今年下半年的民用利潤率，我們預計其中有多少可以透過與去年第四季類似的軟體銷售來實現？

You're hard to comment, but I think we got the question.

你很難發表評論，但我想我們已經明白了這個問題。

Yeah, I think we are (multiple speakers)

是的，我想我們是（多個發言者）

Again, we've completed the integration of the software business, and that's important on a go forward basis, we won't be expecting any additional costs there. We are still converting and going through the process to converting those contracts onto our platforms. It's a small percentage going forward in the second half.

同樣，我們已經完成了軟體業務的整合，這對未來很重要，我們預計不會有任何額外成本。我們仍在轉換並完成將這些合約轉換到我們平台上的過程。下半場的這個比例很小。

Got it. Thank you.

知道了。謝謝。

Noah Poponak, Goldman Sachs.

諾亞·波波納克，高盛。

Hey, good morning, everyone.

嘿，大家早安。

Hi, Noah.

嗨，諾亞。

And Marc, I echo the sentiment of others on the call, and thanks for the time that you spent with us over the years.

馬克，我在電話中表達了其他人的觀點，並感謝您多年來與我們一起度過的時間。

Thank you.

謝謝。

Can you guys talk about this defense backlog growth you've had and how we should think about that flowing through your top line. I mean it's huge growth in the backlog. Are the things going in so long duration that you stay in this low to mid-single digit organic revenue growth range? Or could we see over the medium term, a pretty significant acceleration in your growth rate that you'd often see with a doubling of a backlog.

你們能談談你們的國防積壓成長情況以及我們應該如何考慮它流經你們的收入嗎？我的意思是積壓數量大幅增加。這些事情的持續時間是否如此之長，以至於您的有機收入成長幅度是否處於低至中個位數的水平？或者我們可以看到，從中期來看，您的成長率會顯著加快，而您經常會看到積壓訂單翻倍。

Too early to provide longer term growth that we've given and I wouldn't want to change it at this point, except all it really depends a lot on mix. And I think you -- your question, I think underline that, Noah, because -- if you look at some of the contracts we've won in and I'll invite Nick provide a little bit more detail here.

現在提供我們所給出的長期增長還為時過早，我現在不想改變它，除非它在很大程度上取決於組合。我認為你——你的問題，我想強調了這一點，諾亞，因為——如果你看看我們贏得的一些合同，我會邀請尼克在這裡提供更多細節。

But for example, some of the big backlog growth, not all of it, but some of the big backlog growth you see is, for example, from the fat contract in Canada. So what that is really reiterating a bit of what I said before is us winning pilot training for Canadian military for the next 25 years.

但例如，一些大的積壓增長，不是全部，但你看到的一些大的積壓增長是來自加拿大的脂肪合約。因此，這實際上重申了我之前說過的話，那就是我們贏得了加拿大軍隊未來 25 年的飛行員訓練。

So a lot of that backlog is us deliver training for the Canadian Air Force, to train our pilots and Canadian not just plants, but electronic warfare officers, that kind of thing, complete outsourcing of that segment for the next two to five years.

因此，大量積壓工作是我們為加拿大空軍提供培訓，不僅培訓我們的飛行員和加拿大人，還培訓電子戰官員，諸如此類的事情，在未來兩到五年內將該部分完全外包。

And we already do some of that today, by the way. So some of that is income replacement, but it's just a part of it and I would say a relatively small part of it because the contract itself, it's much larger. So instead of doing is just a part of the trend today, we do like the complete power training and its scope has expanded.

順便說一句，我們今天已經做了一些這樣的事情。所以其中一些是收入替代，但這只是其中的一部分，我想說其中相對較小的一部分，因為合約本身要大得多。因此，我們不只是做今天趨勢的一部分，而是喜歡完整的力量訓練，而且它的範圍已經擴大了。

So that's the training part. But again, to your question, over the next three to four years on that contract alone, we're going to the government's recapitalizing all of its assets, so which means we will be building a lot of simulators and similar trainees in our factories and that has a different profitability mix. We're going to be building new hangers, runway all kinds of things of bases, which had different (inaudible)

這就是訓練部分。但同樣，對於你的問題，在接下來的三到四年內，僅憑這份合同，我們就將讓政府對其所有資產進行資本重組，這意味著我們將在我們的工廠和工廠建造大量模擬器和類似的實習生。我們將建造新的機庫、跑道和基地的各種東西，這些東西有不同的（聽不清楚）

So again, I've said a lot here, but too early to provide a different guidance. It's going to be -- but it does give us the confidence in the steady role for this business. But I know I've said to like to, Nick, you want to add anything to it?

再說一次，我在這裡說了很多，但提供不同的指導還為時過早。它將會是——但它確實讓我們對這項業務的穩定作用充滿信心。但我知道我已經說過喜歡，尼克，你想添加什麼嗎？

No, that's it. The way to look at that contract the first five years is product delivery and then the next 20 years of service delivery unless the government does more. So I think Marc said it well it's -- that's going to ramp up -- it's going to ramp up the revenue on that contract over the next few years.

不，就是這樣。看待合約的方式是，前五年是產品交付，然後是接下來的 20 年服務交付，除非政府採取更多措施。所以我認為馬克說得很好，這將會增加，未來幾年該合約的收入將會增加。

Yeah. And I think we concentrate a lot on that contract. But there's -- I mean, just we don't stall out in so much detail. But like just in the backlog this quarter, we have some C-130, F-16 contracts in the Asia Pacific, MH-60R helicopter training contract in India. We're starting our (inaudible) program for the US army will express. So look, I'm not going to overpromise anything and we know better in our defense. Okay, but when they (inaudible) the bank, like I'm saying that.

是的。我認為我們非常關注這份合約。但我的意思是，我們不會在太多細節上拖延。但就像本季的積壓訂單一樣，我們在亞太地區有一些 C-130、F-16 合同，在印度有 MH-60R 直升機訓練合約。我們正在為美國陸軍啟動我們的（聽不清楚）計劃。所以看，我不會過度承諾任何事情，我們在防守方面更了解。好的，但是當他們（聽不清楚）銀行時，就像我說的那樣。

Okay. And just on the civil margin for the rest of the year, is there any finer point you'd be willing to or could put on the split between the third and fourth quarter? Just if 3Q looks like last year than 4Q would need to be around 30%. Is the split similar to last year? Or is it more like fiscal '23 when 3Q, 4Q were fairly even?

好的。就今年剩餘時間的民事邊際而言，您是否願意或可以對第三季和第四季之間的劃分提出任何更好的觀點？如果第三季與去年一樣，那麼第四季就需要在 30% 左右。分裂與去年相似嗎？還是更像 23 財年，第三季和第四季相當持平？

Usually, our Q4 is strongest. Our second half is always stronger than the first, absolutely. But this year, Q4 is stronger with more deliveries coming in, in that back half. Cost savings kicking in as the year progresses, we're expecting the $20 million annual savings at the end of next year and trading performance as well. We see the bookings as well. Variability in every quarter, but we expect the Q4 to be stronger, a bit higher than 20% in Q3 and then the rest in Q4 higher.

通常我們的Q4是最強的。我們的下半場總是比上半場強，絕對的。但今年第四季的表現更加強勁，後半段的交付量增加。隨著時間的推移，成本節約將開始顯現，我們預計到明年底每年可節省 2,000 萬美元，交易業績也將同樣出色。我們也看到了預訂。每個季度都有變化，但我們預計第四季度會更強，略高於第三季的 20%，然後第四季的其餘部分會更高。

Michael Kypreos, Desjardin Capital Markets.

凱普雷奧斯 (Michael Kypreos)，加鼎資本市場。

Good morning and congratulations, Marc on the pending retirement. Maybe just a question on the CEO search. The press release states that you will be supporting the process, Marc. Can you maybe provide some details on what type of characteristics attributes experience you're looking for in a potential candidate? And also, maybe clarify if this process will be combined with the ongoing CFO search process or on a separate basis?

早上好，恭喜馬克即將退休。也許只是關於執行長搜尋的問題。新聞稿指出，馬克，您將支持這一過程。您能否提供一些詳細信息，說明您正在尋找潛在候選人的哪些類型的特徵屬性經驗？另外，也許可以澄清一下這個流程是與正在進行的財務長搜尋流程結合還是單獨進行？

Well, just on that was two separate issues that altogether. And for that one, we're concerning internal and external candidates as one (inaudible) here in Indian, which in regards to [CAE] yes, I have participated with the Board most supportive.

好吧，這完全是兩個不同的問題。對於這一點，我們在印度將內部和外部候選人視為一個（聽不清楚），就 [CAE] 而言，是的，我參加了董事會的支持。

And my focus and the Board is to make sure that we select the right person, men or women that's going to just propelled a great company to the next level. And I might want to get into the characteristics of what kind of person that is.

我和董事會的重點是確保我們選擇合適的人，無論是男性還是女性，這將推動一家偉大的公司更上一層樓。我可能想了解那是什麼樣的人的特徵。

The cash is what -- the net is cast wide cross the globe and we will get the best person. And I think shortly provide any more guidance relative to that, except that the process is well underway and I've been part of quite a few meetings on that subject.

現金就是－我們在全球廣泛撒網，我們將找到最好的人選。我認為很快就會提供與此相關的更多指導，只是該過程正在順利進行，並且我參加了有關該主題的多次會議。

Appreciate it, Marc.

欣賞它，馬克。

Thank you, operator. I think that's all the time we have for the call and we landed just shy at 9:00 AM. I want to thank all participants for joining us this morning and remind you that a transcript of the call will shortly be available on CAE's website. Thank you and have a good day.

謝謝你，接線生。我想這就是我們打電話的全部時間了，我們在上午 9:00 才落地。我要感謝所有與會者今天早上加入我們，並提醒您，電話會議記錄很快就會在 CAE 網站上發布。謝謝您，祝您有美好的一天。