CAE Inc (CAE) 2025 Q3 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the CAE third-quarter financial results for fiscal year 2025 conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)

女士們、先生們，大家好。歡迎參加CAE 2025財年第三季財務業績電話會議。（操作員指示）會議正在錄音。（操作員指令）

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。請繼續，阿諾維茨先生。

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, February 14, 2025, and accordingly, are subject to change.

大家早安，感謝大家的收看。在我們開始之前，我想提醒大家，今天的發言，包括管理階層的展望和對問題的回答，都包含前瞻性的陳述。這些前瞻性陳述代表了我們截至 2025 年 2 月 14 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 these forward-looking statements.

此類聲明是基於可能不會實現的假設，且受風險和不確定性的影響。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 MD&A and MD&A for the three months ended December 31, 2024, 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.

有關可能影響未來結果的風險、因素和假設的描述包含在 CAE 的年度 MD&A 和截至 2024 年 12 月 31 日的三個月的 MD&A 中，可在我們公司網站上查閱，也可在我們向加拿大證券管理局提交的 SEDAR+ 文件和向美國證券交易委員會提交的 EDGAR 文件中找到。

On the call with me this morning are Marc Parent, CAE's 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.

今天早上與我一起通話的有 CAE 總裁兼執行長 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 將在場回答提問。

After remarks from Marc and Constantino, we'll open the call to questions from financial analysts. Before we begin, I'm sure you've all seen the news release we issued yesterday afternoon alongside our Q3 results. It announced the appointment of four new directors to CAE's Board with Calin Rovinescu as the new Chair. The other appointees are Peter Lee, Katherine A. Lehman and Louis Tetu.

在馬克和康斯坦丁諾發言之後，我們將開始回答財務分析師的問題。在我們開始之前，我相信大家都已經看到了我們昨天下午發布的新聞稿以及我們的第三季業績。該公司宣布任命四名新董事加入 CAE 董事會，其中 Calin Rovinescu 為新任主席。其他被任命者是 Peter Lee、Katherine A. Lehman 和 Louis Tetu。

These changes come after consultations with our stakeholders, focusing on the Board's ongoing review of its composition and a transition towards renewed Board leadership. The four appointments are being made in conjunction with the retirement of four directors, Alan N. MacGibbon, who has served as Chair of the Board since 2022 and as a Director since 2015; Margaret S. Billson; Francois Olivier; and David G. Perkins. We extend our gratitude for their exceptional service and valuable contributions during their tenure, and we look forward to welcoming our new Board members to CAE.

這些變化是經過與利害關係人協商後做出的，重點是董事會對其組成的持續審查以及向新董事會領導層的過渡。這四項任命是與四名董事退休同時進行的，其中包括 Alan N.麥吉本 (MacGibbon)，自 2022 年起擔任董事會主席，自 2015 年起擔任董事；瑪格麗特·S·比爾森弗朗索瓦·奧利維爾；和 David G. Perkins。我們對他們任職期間的卓越服務和寶貴貢獻表示感謝，並期待歡迎新董事會成員加入 CAE。

Let me now turn the call over to Marc.

現在讓我把電話轉給馬克。

Thank you, Andrew, and good morning to everyone joining us on the call. Let me first say that I certainly echo Andrew's comments, and in particular, I want to express my heartfelt gratitude to Alan for his steadfast leadership and commitment to our shared vision for CAE. I'm also grateful to the other departing board members, Francois, Peg and David, for their continued support and advice through the years.

謝謝你，安德魯，大家早安。首先我要說，我非常同意安德魯的評論，特別是我要對艾倫表示衷心的感謝，感謝他堅定的領導以及對 CAE 共同願景的承諾。我還要感謝其他離任董事會成員 Francois、Peg 和 David，感謝他們多年來的持續支持和建議。

As we embark on the next chapter, I'm looking forward to working with our new board members in the coming months and I'm confident that together, we will continue to build on our successes. Before I move on to our quarterly results, I also want to take a moment to share how proud I am that CAE has been recognized as one of Canada's top 100 Employers for the third consecutive year and has earned a spot on Forbes Canada's Best Employers list for 2025.

當我們踏上新的篇章時，我期待在未來幾個月與我們的新董事會成員合作，並相信我們將共同繼續取得成功。在介紹我們的季度業績之前，我還想花點時間分享我的自豪之情：CAE 連續第三年被評為加拿大 100 強雇主之一，並在 2025 年福布斯加拿大最佳雇主榜單上佔有一席之地。

These honors reflect the collaborative, innovative, and empowering culture that we've built at CAE made possible by the dedication of our 13,000 employees. This strong foundation of talent and commitment continues to drive our success, as reflected in our outstanding third-quarter performance. During this quarter, we generated a record $410 million in free cash flow while further securing CAE's future with $2.2 billion in new orders culminating in a record adjusted backlog of $20.3 billion.

這些榮譽體現了 CAE 我們所建立的協作、創新和授權文化，而這項文化的實現離不開我們 13,000 名員工的奉獻。人才和承諾的強大基礎繼續推動我們的成功，這在我們第三季度的出色表現中有所體現。本季度，我們創造了創紀錄的 4.1 億美元自由現金流，同時透過 22 億美元的新訂單進一步確保了 CAE 的未來，最終使調整後積壓訂單達到創紀錄的 203 億美元。

In civil, we finalized the purchase of an increased stake in our SIMCOM joint venture and extended our exclusive long-term training agreement with Flexjet and affiliates, initiatives that generated more than $500 million in additional order intake and backlog in our highly desirable business aviation training segment. In total for civil, we booked $1.5 billion in orders for a 2 times book-to-sales ratio.

在民用方面，我們最終完成了對 SIMCOM 合資企業增加股份的收購，並延長了與 Flexjet 及其附屬公司的獨家長期培訓協議，這些舉措為我們非常受歡迎的商務航空培訓領域帶來了超過 5 億美元的額外訂單量和積壓訂單。在民用領域，我們共獲得了價值 15 億美元的訂單，訂單銷售比率為 2 倍。

On revenue, that's 21% higher than Q3 of last year. We ended the quarter with a record $8.8 billion total civil adjusted backlog, which is up 44% year-over-year. In products, we received orders for 15 full-flight simulators, bringing the total of 42 as of the end of the third quarter.

就收入而言，這比去年第三季高出 21%。本季結束時，我們的民用工程調整後積壓訂單總額達到創紀錄的 88 億美元，年增 44%。在產品方面，我們收到15台全飛行模擬器的訂單，截至第三季末，總數已達42台。

We delivered 20 full-flight simulators this quarter, a notable increase from our first half cadence and from 13 in the same quarter last year. Combined commercial and business aviation training center utilization reached 76%, consistent with last year's performance, although some softness persisted longer that we expected in commercial aviation training in the Americas.

本季度我們交付了 20 台全飛行模擬器，與上半年的交付量和去年同期的 13 台相比有顯著成長。商業和公務航空培訓中心的綜合利用率達到了 76%，與去年的表現一致，儘管美洲商業航空培訓的疲軟狀態持續的時間比我們預期的要長。

Pilot hiring remained modest in that region and some of our airline customers deferred their trading bookings due to ongoing short-term aircraft supply chain challenges. Partly offsetting this headwind was the continued positive momentum in business aviation training driven by higher utilization and profitability that we ramped up of our newly deployed simulators and training centers.

該地區的飛行員招募仍然保持適度，並且由於持續的短期飛機供應鏈挑戰，我們的一些航空公司客戶推遲了交易預訂。部分抵消了這一不利因素的是商務航空培訓繼續保持積極勢頭，這得益於我們新部署的模擬器和培訓中心的利用率和盈利能力的提高。

We also continue to make excellent progress in a market for our flight services software solutions. We signed orders for more than $60 million major airlines in the Americas and Asia, and we just announced Turkish Airlines as another customer who will be adopting CAE's next-generation Unified Task Board and Crew Management Solutions.

我們的飛行服務軟體解決方案市場也持續取得了良好的進展。我們與美洲和亞洲的主要航空公司簽訂了價值超過 6,000 萬美元的訂單，我們剛剛宣布土耳其航空也將成為採用 CAE 下一代統一任務板和機組管理解決方案的客戶。

The market is responding very positively to the CAE innovation, which provides airline operations control centers with enhanced situational awareness and disruption management capabilities. We're also proudly inaugurated our first Air Traffic Services Training Center in collaboration with NAV CANADA, located in our main campus in Montreal.

市場對 CAE 創新的反應非常積極，它為航空公司營運控制中心提供了增強的態勢感知和中斷管理能力。我們也很自豪地與加拿大導航公司 (NAV CANADA) 合作，在位於蒙特婁的主校區開設了我們的第一個空中交通服務培訓中心。

This newly opened training center extends CAE's core mission of making the world safe. As a pilot, I can personally attest to the vital role that clear, effective communication between flight crews and aircraft to control personnel plays in ensuring the safety of every flight.

這個新開設的訓練中心延續了CAE讓世界安全的核心使命。作為一名飛行員，我可以親自證明機組人員和飛機控制人員之間清晰、有效的溝通對於確保每次飛行的安全起著至關重要的作用。

By leveraging CAE's expertise and competency-based train design, advanced and structural delivery and data-driven technologies for helping to prepare the next generation of air traffic professionals for this critical responsibility.

透過利用 CAE 的專業知識和基於能力的列車設計、先進的結構交付和數據驅動技術，幫助培養下一代空中交通專業人員承擔這一關鍵責任。

In defense, performance tracked ahead of our expectations as we made more progress towards becoming a low double-digit margin business. This was driven by strong execution, risk reduction, significant backlog growth, and improving backlog quality. During the quarter, we made excellent strides in advancing growth and expanding margins including successfully completing another legacy contract on our backlog, our second this year.

在國防方面，我們在成為低兩位數利潤率業務的道路上取得了更大進展，業績超出了我們的預期。這是由強勁的執行力、風險的降低、積壓訂單的大幅成長以及積壓訂單品質的提高所推動的。在本季度，我們在促進成長和擴大利潤率方面取得了長足的進步，包括成功完成了另一份積壓合同，這是我們今年的第二份合約。

Orders included a contract under the Canadian Future Aircrew Training Program, option awards to extend our support for US Army Fixed Wing training and the KC-135 program for the US Air Force, and ongoing modifications and updates for F-16 fighter training devices. These agreements reinforce our commitment to the long-term success of our defense customers.

訂單包括加拿大未來機組人員訓練計劃下的合約、擴大對美國陸軍固定翼訓練和美國空軍 KC-135 計劃的支持的期權獎勵，以及對 F-16 戰鬥機訓練設備的持續修改和更新。這些協議加強了我們對國防客戶長期成功的承諾。

For the quarter, we recorded a total $707 million in Defense orders, achieving a book-to-sales ratio of 1.50 times, contributing to a record $11.5 billion in Defense adjusted backlog up 104% year-over-year. Over the last 12 months, the Defense book-to-sales ratio stood at an impressive 2.19 times.

本季度，我們共錄得 7.07 億美元的國防訂單，訂單銷售比達到 1.50 倍，國防調整後積壓訂單達到創紀錄的 115 億美元，年增 104%。過去 12 個月，國防訂單與銷售額比高達 2.19 倍。

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

說完這些，我現在將電話轉給 Dino，他將提供有關我們財務業績的更多詳細資訊。迪諾？

Thank you, Marc. Good morning, everyone. Consolidated revenues of $1.22 billion was 12% higher compared to the third quarter last year, while adjusted segment operating income was $190.0 million, up 31% compared to $145.1 million in the last quarter. Our quarterly adjusted EPS was $0.29 compared to $0.24 in the third quarter of last year.

謝謝你，馬克。大家早安。綜合營收為 12.2 億美元，較去年第三季成長 12%，調整後分部營業收入為 1.9 億美元，較上一季的 1.451 億美元成長 31%。我們的季度調整後每股收益為 0.29 美元，而去年第三季為 0.24 美元。

Net finance expense this quarter amounted to $56.6 million which is up from $52.9 million in the preceding quarter and $52.4 million in the quarter last year. The higher level of finance expense is mainly the result of higher lease liabilities in support of our training network expansions and additional borrowings to finance the SIMCOM transaction this quarter.

本季淨財務支出為 5,660 萬美元，高於上一季的 5,290 萬美元和去年同期的 5,240 萬美元。財務費用水準較高主要是由於本季為支持培訓網絡擴張而增加的租賃負債和資助 SIMCOM 交易的額外借款。

This was partially offset by lower finance expense on long-term debt due to a decreased level of borrowings during the period, aligned with our ongoing deleveraging objectives. All things considered, we now expect that net finance expense for the year to be approximately $10 million higher than last year.

由於期內借款水準下降，長期債務的財務支出減少，部分抵消了這一增長，這與我們持續的去槓桿目標一致。綜合考慮所有因素，我們現在預計今年的淨財務支出將比去年高出約 1000 萬美元。

Income tax expense this quarter was $34.8 million or an effective tax rate of 17%. The adjusted effective income tax rate was 29%, which is the basis of the adjusted EPS. We continue to expect a run rate effective income tax rate of 25%.

本季所得稅費用為 3,480 萬美元，有效稅率為 17%。調整後的有效所得稅率為29%，這是調整後每股盈餘的基礎。我們繼續預期實際所得稅率為25%。

I'm especially pleased with our strong cash flow performance this quarter. Net cash from operating activities was a record $424.6 million compared to $220.8 million in the third quarter of fiscal 2024. Free cash flow was a record $409.8 million compared to $190 million third quarter last year. The increase was mainly due to a higher contribution of non-cash working capital and higher net income.

我對本季強勁的現金流表現特別滿意。經營活動淨現金達到創紀錄的 4.246 億美元，而 2024 財年第三季為 2.208 億美元。自由現金流達到創紀錄的 4.098 億美元，去年第三季為 1.9 億美元。成長的主要原因是非現金營運資本貢獻增加及淨收入增加。

All told, we expect to generate strong free cash flow for the year, with the conversion of adjusted net income of over 150%, which is an increase from our previous conversion target of approximately 100%. Capital expenditures totaled $97.6 million this quarter, with approximately 80% invested in growth, mainly to add capacity to our global training network to deliver on long-term training contracts in our backlog.

總而言之，我們預計今年將產生強勁的自由現金流，調整後淨收入轉換率將超過 150%，高於我們先前約 100% 的轉換目標。本季資本支出總計 9,760 萬美元，其中約 80% 用於成長，主要用於增強我們全球培訓網絡的能力，以履行我們積壓的長期培訓合約。

We expect total CapEx for fiscal 2025 to be approximately $30 million higher than fiscal 2024 CapEx of $330 million, which is lower than our previous expectations. Our net debt position at the end of the quarter was approximately $3.4 billion for a net debt to adjusted EBITDA of 3.36 times.

我們預計 2025 財年的總資本支出將比 2024 財年的 3.3 億美元資本支出高出約 3,000 萬美元，低於我們先前的預期。本季末，我們的淨債務狀況約為 34 億美元，淨債務與調整後 EBITDA 比率為 3.36 倍。

Before the impact of the legacy contracts, net debt to adjusted EBITDA was 3.08 times. We remain focused on further strengthening our financial position and we continue to expect to be below 3 times net debt to adjusted EBITDA by the end of the fiscal year. Now turning to our segmented performance.

在受到遺留合約的影響之前，淨債務與調整後 EBITDA 的比率為 3.08 倍。我們仍將專注於進一步加強我們的財務狀況，並繼續預計到本財年末，淨債務與調整後 EBITDA 比率將低於 3 倍。現在來談談我們的分段表現。

In civil, third quarter revenue grew 21% year-over-year to $752.6 million, while adjusted segment operating income rose 21% to $150.8 million resulting in a 20% margin. This excludes a net remeasurement gain of $72.6 million on our SIMCOM transaction, which effectively marked up our previously held equity interest in the joint venture to fair value.

在民用方面，第三季營收年增 21% 至 7.526 億美元，調整後分部營業收入成長 21% 至 1.508 億美元，利潤率為 20%。這不包括我們 SIMCOM 交易的 7,260 萬美元淨重估收益，該收益實際上將我們先前持有的合資企業股權標記為公允價值。

As Marc highlighted earlier, with 20 FFS deliveries this quarter, we saw a notable shift in revenue mix with a higher proportion for products compared to last year. Defense revenue remained stable at $470.8 million shares. While adjusted segment operating income increased 88% to $39.2 million, delivering an 8.3% margin. Thanks to strong execution from the team and lower net R&D expenses.

正如馬克之前所強調的那樣，本季有 20 輛 FFS 交付，我們看到收入結構發生了顯著變化，與去年相比，產品佔比更高。國防收入保持穩定，為 4.708 億美元。調整後分部營業收入成長 88% 至 3,920 萬美元，利潤率為 8.3%。這得歸功於團隊強大的執行力和較低的淨研發費用。

Legacy contracts remain on track. Costs and schedules well managed as planned, we concluded another one of our legacy contracts this quarter and our -- and we are on track to finalize the third one at the end of the fiscal year. This quarter, legacy contracts contributed around 7 basis points of margin dilution. Without this impact, the adjusted segment operating income margin for defense would have been 9%.

遺留合約仍在繼續履行。成本和進度按計劃得到很好的管理，我們在本季度簽訂了另一份遺留合同，並且我們預計在本財政年度末完成第三份合同。本季度，遺留合約導致利潤率稀釋約 7 個基點。若不考慮此影響，國防業務調整後的部門營業利潤率將達到 9%。

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

因此，我將請馬克討論未來的發展方向。

Thanks, Dino. The investment thesis for CAE remains as compelling as ever and our record-setting $20 billion backlog reinforces my confidence in the company's bright future. Our common driver across both our civil and defense segments is the sustained high demand for pilots and pilot training.

謝謝，迪諾。CAE 的投資理論仍然像以往一樣引人注目，我們創紀錄的 200 億美元積壓訂單增強了我對公司光明未來的信心。我們在民用和國防領域的共同驅動力是對飛行員和飛行員培訓的持續高需求。

Both to support industry grow and to replace retiring personnel. We're in an excellent position in strong markets, and these structural factors continue to fuel long-term demand for our training and operational support. In Civil, while commercial OEM aircraft supply disruption have persisted, recent optimism surrounding production rate recovery and a recurrent service of aircraft that been grounded by engineers issues is encouraging.

既支持產業發展，也補充退休人員。我們在強大的市場中處於有利地位，這些結構性因素繼續推動對我們的培訓和營運支援的長期需求。在民用方面，雖然商用 OEM 飛機供應中斷持續存在，但近期圍繞生產率恢復和因工程師問題停飛的飛機再次恢復服務的樂觀情緒令人鼓舞。

Although some airline customers in the Americas deferred initial training reservations this quarter, those same airlines are now actively engaging with us and the timing and scale of their pilot hiring ramp-up and associated training needs.

儘管美洲的一些航空公司客戶本季推遲了初始培訓預訂，但這些航空公司現在正積極與我們接洽，討論飛行員招募的時間和規模以及相關培訓需求。

This is not a question of if, but when. Looking ahead, the demand for air travel, ongoing pilot retirements, and the delivery of nearly 15,000 aircraft from Boeing's and Airbus's combined backlogs over the next decade position us as a key player in a long-term secular growth story.

這不是一個是否的問題，而是何時的問題。展望未來，航空旅行的需求、持續的飛行員退休以及未來十年波音和空中巴士合計約 15,000 架飛機的交付，使我們成為長期成長故事的關鍵參與者。

Similarly, the outlook for business aviation training remains highly positive, especially as we continue strengthening our presence in this critical segment. Building on our increased investment in SIMCOM, Flexjet one of the world's largest fractional jet operators announced last week a $7 billion aircraft order and projected fleet expansion to approximately 600 aircraft by 2031.

同樣，商務航空培訓的前景仍然非常樂觀，特別是當我們繼續加強在這一關鍵領域的存在時。在我們增加對 SIMCOM 的投資的基礎上，全球最大的部分噴射機營運商之一 Flexjet 上週宣布了一筆價值 70 億美元的飛機訂單，並預計到 2031 年機隊規模將擴大到約 600 架飛機。

This move underscores the accelerating shift toward fractional jet ownership, which has been growing much faster than the overall market. As Flexjet's exclusive training partner, CAE is well positioned to benefit from this industry growth. In Defense, demand for our training solutions remains robust, driven by a global shortage of uniformed personnel, prompting militaries to turn to CAE to support readiness.

此舉凸顯了飛機所有權部分化轉變的加速，其成長速度遠快於整體市場。作為 Flexjet 的獨家培訓合作夥伴，CAE 完全有能力從該行業的發展中獲益。在國防領域，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，促使軍隊轉向 CAE 來支持戰備。

We are well positioned in a strengthening market as the sector enters a prolonged growth cycle, with rising budgets across NATO and allied nations. Geopolitical tensions and evolving security threats are driving defense modernization efforts, increasing the need for the training and simulation solutions that we provide.

隨著該產業進入長期成長週期，北約和盟國的預算不斷增加，我們在不斷增強的市場中佔據了有利地位。地緣政治緊張局勢和不斷演變的安全威脅正在推動國防現代化努力，增加了我們提供的培訓和模擬解決方案的需求。

These factors are creating substantial growth opportunities for CAE as governments and defense forces seek innovative solutions to enhance mission readiness and operational effectiveness. A prime example is the strategic partnership we announced yesterday between CAE and the Government of Canada.

隨著政府和國防部隊尋求創新解決方案來提高任務準備和作戰效率，這些因素為 CAE 創造了巨大的成長機會。一個典型的例子就是我們昨天宣布的CAE與加拿大政府之間的戰略夥伴關係。

Through this partnership, CAE will leverage its deep expertise to work alongside the Royal Canadian Air Force in designing and co-developing the Future Fighter Lead-in Training program. This initiative will play a critical role in preparing pilots for the transition to Canada's next-generation fighter jets, ensuring the long-term success of the CF-35A program.

透過此次合作，CAE 將利用其深厚的專業知識與加拿大皇家空軍合作設計和共同開發未來戰鬥機引導訓練計畫。該計劃將在加拿大飛行員向下一代戰鬥機過渡的準備中發揮關鍵作用，確保CF-35A項目的長期成功。

By integrating cutting edge technology and advanced training methods, Future Fighter will equip fighter-pilot candidates with the skills required to operate the highly sophisticated CF-35A in an increasingly complex operational landscape.

透過整合尖端技術和先進的訓練方法，未來戰鬥機將為戰鬥機飛行員候選人提供在日益複雜的作戰環境中操作高度複雜的 CF-35A 所需的技能。

Looking ahead to the remainder of the fiscal year, in civil, the ramp-up of commercial aircraft deliveries is taking longer than expected and this is a key driver of initial training demand for newly hired pilots. With the short-term impact this is having on incremental training demand in the Americas, we now expect annual Civil adjusted segment operating income growth to be modestly below our previous outlook of approximately 10%.

展望本財年的剩餘時間，在民用領域，商用飛機交付量的成長時間比預期的要長，這是新聘飛行員初始訓練需求的主要驅動因素。由於該事件對美洲地區增量培訓需求的短期影響，我們目前預計土木工程部門年度調整後營業收入成長率將略低於我們先前預測的約 10%。

Also, since product deliveries are expected to account for a higher proportion of civil revenue than initially planned, we expect the annual civil adjusted segment operating income margin to be modestly below our previously expected range of 22% to 23%. Looking beyond this period, we continue to foresee ample room for margin expansion in future years on volume, efficiencies and mix.

此外，由於預計產品交付在民用收入中所佔的比例將高於最初的計劃，我們預計年度民用調整後部門營業收入利潤率將略低於我們先前預期的 22% 至 23% 的範圍。展望未來，我們仍預期未來幾年利潤率在產量、效率和產品組合方面仍將有足夠的成長空間。

In Defense, with the benefit of our re-baselining last fiscal year and the higher cadence and quality of execution, we now expect to achieve high-single-digit percentage revenue growth for the year, which is up from our previous expectations in the low-to-mid-single-digit percentage range. We're also expecting the annual Defense adjusted segment operating income margin to be modestly above the previously indicated range of 6% to 7%.

在國防方面，由於我們上財年的重新基準調整以及更高的執行節奏和質量，我們現在預計今年的收入將實現高個位數百分比增長，高於我們之前預期的低至中個位數百分比範圍。我們也預計，國防調整後部門年度營業收入利潤率將略高於先前預測的 6% 至 7% 的範圍。

This puts us solidly on the path to becoming a low double digit margin business. Taking our civil and defense outlook together, we remain on track to meet our previously stated three-year EPS target while achieving strong order intake, backlog, and free cash flow. With that, I thank you for your attention and we're now ready to answer your questions.

這使我們穩步走上成為低兩位數利潤率企業的道路。綜合考慮民用和國防前景，我們仍有望實現先前提出的三年每股收益目標，同時實現強勁的訂單量、積壓訂單和自由現金流。最後，我感謝您的關注，現在我們準備好回答您的問題。

Thanks, Mark. Operator, please open the line to questions from financial analysts.

謝謝，馬克。接線員，請打開電話線回答金融分析師的問題。

We'll now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指令）

Konark Gupta, Scotiabank.

加拿大豐業銀行的科納克‧古普塔 (Konark Gupta)。

Hi, This is [Eli] filling in for Konark. My first question is on the CapEx target reduction. Was that more a function of delays in demand in certain areas or just more prudence?

你好，我是 [Eli]，代替 Konark。我的第一個問題是關於資本支出目標的減少。這是否更多是由於某些領域的需求延遲，還是只是更加謹慎？

I think it's prudent, and we always align basically capacity with demand. So we always see launch that, and that's what you see reflected here.

我認為這是謹慎的，我們總是基本上將產能與需求保持一致。因此我們總是會看到這樣的發布，這就是您在這裡看到的。

And if I can add to that, I think we I just wanted to add effectively that this is lower than previous market expectations. So again, a continued example of disciplined approach to capital allocation and cash management. In this, along with the $410 million of free cash flow, I think is an evidence of our disciplined approach to capital allocation and our focus on driving free cash flow up.

如果我可以補充一點的話，我想我們只是想有效地補充一點，這低於先前的市場預期。因此，這再次體現了對資本配置和現金管理的嚴謹態度。我認為這與 4.​​1 億美元的自由現金流一起證明了我們對資本配置的嚴謹態度以及我們對提高自由現金流的重視。

Okay. That's helpful. And maybe just one more question. How is your training utilization trending in the Americas versus Europe and Asia?

好的。這很有幫助。也許還剩一個問題。你們在美洲、歐洲和亞洲的訓練利用趨勢如何？

Well, look, I think -- look, let me start with maybe the flight activity, which leads to that. But maybe look at year-over-year figures, I think what drives everything is the commercial flight activity, right, so airline passenger traffic.

嗯，看，我認為——看，讓我從可能導致這一問題的飛行活動開始。但也許看看同比數據，我認為推動一切的都是商業航班活動，對吧，也就是航空客運量。

So in the Americas, what we've seen is about 7% growth over year-over-year, and that's driving actually -- perversely, what you see in the Americas, as we've talked about, we've seen a utilization in our training centers was down slightly, and that's driven by the lower pilot hiring in the United States. If I look at in Europe, Middle East, passenger traffic is up 5%. And in that case, we're seeing corresponding utilization increase, and in India, were up about 7%.

因此，在美洲，我們看到的同比增長率約為 7%，而這實際上是在推動——反常的是，正如我們所討論的，在美洲，我們的培訓中心的利用率略有下降，這是由於美國飛行員招聘數量減少所致。如果我看一下歐洲和中東，客運量增加了 5%。在這種情況下，我們看到相應的利用率增加，在印度，利用率上升了約 7%。

No, I think the US utilization is down year-over-year. And it's really just a function of the hiring demand that is supposed to be happening right now.

不，我認為美國的利用率比去年同期有所下降。這其實只是當前招募需求的函數。

Okay, thanks guys. I appreciate the time. That's all my questions.

好的，謝謝大家。我很感激您抽出時間。這就是我全部的問題。

James McGarragle, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 James McGarragle。

Hey, good morning. Congrats on a good quarter and thanks for having me on.

嘿，早安。恭喜您本季取得了良好的業績，並感謝您的邀約。

Thank you.

謝謝。

On the impact from potential tariffs, can you just discuss a little bit how you're positioned to react in the event we have tariffs that are sustained? And have you seen any shift any of your customers did decision-making on tariffs, lagging orders looking for other options. I understand it's only been a few weeks. Any color you can provide would be very helpful. Thanks.

關於潛在關稅的影響，您能否稍微討論一下，如果關稅持續存在，您將如何應對？您是否看到您的客戶在關稅決策方面發生了任何轉變，滯後的訂單是否在尋求其他選擇？我知道這才過了幾個星期。您提供的任何顏色都將非常有用。謝謝。

Sure, thanks for the question. Look, it's obviously a situation that we like everybody else's hope reach is constructive and bilateral conclusion to negotiate. But look, I think as we said in the past, we don't -- we certainly don't expect to see a material impact in the short term, certainly, so the next few months or a year, from us on our business as a whole.

當然，謝謝你的提問。你看，顯然我們和其他人一樣都希望透過談判達成建設性的、雙邊的結論。但是，我想就像我們過去所說的那樣，我們當然不希望在短期內看到實質影響，當然，在接下來的幾個月或一年裡，我們的業務整體不會受到實質影響。

But it's definitely something that we're monitoring closely. And if any kind of tariffs become more lasting beyond that, beyond getting to more than one year or two. Obviously, we would adapt and then we have the capacity to adapt.

但這絕對是我們正在密切關注的事情。如果任何種類的關稅持續時間更長，將超過一年或兩年。顯然，我們會適應，然後我們就有適應的能力。

I mean, bear in mind, if you look -- if you think about our business, it's a business that's changed a lot over the last 20 years and more than two-third of our revenue is generated from services and we deliver that in country. So that's not an issue. And so the main product that we sell into the United States is the full flight simulator. There's a lot of -- there's already a big proportion of that, which is US or EU origin.

我的意思是，請記住，如果你看一下——如果你想想我們的業務，你會發現我們的業務在過去 20 年裡發生了很大的變化，我們三分之二以上的收入來自服務，而且我們在國內提供服務。所以這不是問題。我們銷往美國的主要產品是全飛行模擬器。其中有很多——已經有很大一部分來自美國或歐盟。

That's one factor. But again, I think there's a lot of ways for us to mitigate things if things again, should last beyond so I say, next two months to a year. And again, if I look at -- I think conversely, what we're seeing this year were particularly not affected because with the lower pilot activity hiring activity that we've seen this year, on the back of OEM delays, we've actually had relatively few sales to our US customers this year. So we've only got a few deliveries going there this year, although similar sales themselves remain strong.

這是一個因素。但是，我認為，如果事態再次持續下去，我們有很多方法可以緩解情況，也就是說，持續的時間更長，比如說接下來的兩個月到一年。再說一次，如果我看一下——我認為相反，我們今年看到的情況並沒有受到影響，因為今年我們看到的飛行員活動招募活動較低，由於 OEM 延遲，我們今年對美國客戶的銷售實際上相對較少。因此，儘管類似產品的銷售本身仍然強勁，但今年我們只向那裡交付了少量產品。

They're just coming from other parts of the world.

他們只是來自世界其他地方。

Hey, thanks for the color. And then on the defense results, the margins obviously came in really strong in the quarter guidance, it maybe implies a little bit of a step down next quarter. So anything to call out there in terms of onetime items in Q3, was there seasonality that might have helped the results in the quarter? Just trying to get -- see how things might evolve a little bit longer term. And then, Nick, you've been looking at this business for a few quarters now.

嘿，謝謝你的顏色。然後就防禦結果而言，利潤率顯然在本季指引中表現非常強勁，這可能意味著下個季度的利潤率會略有下降。那麼，就第三季的一次性專案而言，有什麼需要注意的嗎？只是想看看事情從長遠來看會如何發展。尼克，你已經關注這個業務幾個季度了。

The team highlighted in the release, margins are expected to continue to expand. So can you just talk about your level of confidence in that? And anything in particular that you see as an opportunity in fiscal 2026? And after that, I can turn the line over. Thanks.

團隊在新聞稿中強調，利潤率預計將繼續擴大。那麼您能談談您對此的信心程度嗎？您認為 2026 財年有哪些特別的機會？此後，我就可以把線轉過來。謝謝。

Okay, good. So tag team this. Okay. I'll take it. I'll turn it over to Dino and then finish off with Nick. Look, I think what you reflect here is we're feeling very good about the direction of the business. And certainly, the team in place, of which Nick is leading with very, very good job. And the momentum at the front end, you just look at the order intake I think it's nothing short of outstanding and the geopolitical environment for unfortunate reasons, is fueling demand for the parts of services that CAE are good at.

好的，很好。因此請標記此團隊。好的。我要買它。我會把它交給迪諾 (Dino)，然後再由尼克 (Nick) 來完成。看，我想您在這裡反映的是我們對業務的方向感到非常滿意。當然，在 Nick 的領導下，我們的團隊做得非常非常好。而前端的發展勢頭，只要看一下訂單量，我認為它簡直是出類拔萃，而且由於不幸的原因，地緣政治環境正在刺激對 CAE 擅長的部分服務的需求。

So the team is executing extremely well. There's nothing really extraordinary so that's what Dino is going to say. It really comes down here to execution, strong performance all around by the team. At the same time, there's risk reduction, risk reduction is rampant.

因此，團隊的執行力非常出色。沒有什麼特別的事情，這就是迪諾要說的。這一切其實都取決於執行力，以及整個團隊的出色表現。同時，風險降低現像也正在盛行。

We're taking a very, very disciplined approach. And when we look at the fourth quarter, I think you always got to remember that defense is always a, shall we say, a lumpy business quarter-to-quarter as a potential to be as we execute contracts. In any given time, you could generate plus or more revenue in a single quarter. So as we've talked about, we are raising the outlook. And I think we're still being prudent about defense business as a whole. But we remain very confident. So maybe just turn it over to you, Dino.

我們採取非常非常嚴謹的方法。當我們回顧第四季度時，我想你應該時刻記住，國防業務始終是一個季度環比波動較大的業務，因為我們在執行合約時可能會遇到這種波動。在任何給定時間，您都可以在一個季度內創造或更多的收入。正如我們所討論的，我們正在提高前景。我認為我們對整個國防業務仍持謹慎態度。但我們仍然非常有信心。所以也許就把它交給你吧，迪諾。

Thank you, Marc. And I would echo that. I'm really, really pleased with the 8.3% margin performance this quarter. It's an increase year-over-year quarter-over-quarter. Again, you're right. I think you see a lot of semi-direct results of the process changes and teams that we've changed the way the team showing through in the performance and execution. We also closed off another legacy contract. We expect another legacy contract to fall off by the end of next year. So we feel good about that as well.

謝謝你，馬克。我對此表示贊同。我對本季 8.3% 的利潤率表現非常非常滿意。與去年同期相比，這一數字有所增長。再說一次，你是對的。我認為您會看到流程變化和團隊的許多半直接結果，我們改變了團隊在績效和執行上的表現方式。我們也終止了另一份遺留合約。我們預計另一份遺留合約將在明年年底到期。因此我們對此也感到很高興。

There was a little bit of help higher-than-usual R&D tax credits in the quarter, nothing overly significant, contributed maybe 0.5 percentage point to the margin, and that's just usual timing that we see sometimes in quarter Q3. But overall, really strong performance on margin and really good work done by the team.

本季度，高於平常的研發稅收抵免提供了一點幫助，但並不十分重要，可能為利潤率貢獻了 0.5 個百分點，這只是我們在第三季度有時看到的正常情況。但整體而言，利潤表現非常強勁，團隊的工作也非常出色。

Yeah, just to echo the comments already. In terms of performance, I think the team's been -- certainly, we have a different attitude towards executing on the programs for the plan. I think also the mix is better. So legacy contracts, low-margin contracts.

是的，只是為了回應先前的評論。就表現而言，我認為團隊一直以來——當然，我們對執行計劃的方案有不同的態度。我也認為混合效果更好。因此，遺留合約、低利潤合約。

I mean there's always some of that but the pipeline also because you would have seen the order intake and the performance on new orders this year for defense has been quite strong. So that's also going to help us as we look out in the future. So I think we're -- certainly, I'm pretty confident that we can maintain or exceed this level of performance.

我的意思是總是有這樣一些的，但渠道也是一樣，因為你會看到訂單量，而且今年國防新訂單的表現相當強勁。這也將幫助我們展望未來。所以我認為我們——當然，我非常有信心我們能夠維持或超越這個績效水準。

Thank you very much.*******

非常感謝。

Fadi Chamoun, BMO Capital Markets.

Fadi Chamoun，BMO 資本市場。

Yes, good morning. Marc, I was wondering if you can kind of offer some perspective on the Board changes that were announced. Are there any specific kind of governance variable items that the Board is focused on to the extent that you can share with us, even from a high level, kind of what does this change going to mean for?

是的，早安。馬克，我想知道您是否可以對已宣布的董事會變動提供一些看法。董事會是否專注於某些特定類型的治理變數項目，您能否與我們分享一下，即使從高層次來看，這種變化意味著什麼？

And my second question, I apologize, I missed it at the beginning of the call a little bit. We had another call going on. But the puts and takes in terms of the organic growth in the civil aviation market like going forward, I'm guessing the US market is a bit of a drag right now.

關於我的第二個問題，很抱歉，我在通話開始時有點沒注意到。我們正在進行另一通通話。但就未來民航市場有機成長而言，我猜美國市場現在會受到一些拖累。

But how should we think about the relationship in that market recovering to the deliveries of Boeing starting to ramp up? Is there a lag effect between the two that we should about. And if you can offer kind of some maybe even high-level perspective, like what does the rate of organic growth look like when you put all things together between business aviation and what you're seeing on the commercial aviation side?

但是，我們應該如何看待該市場復甦與波音交付量開始增加之間的關係呢？我們是否應該注意兩者之間是否存在滯後效應。您能否提供一些或許是高層次的觀點，例如，當您將商務航空和商用航空方面的所有因素綜合起來時，有機成長率是多少？

Well, maybe let me start with that last question, not to deflect the first one, but just fiscal you got my head around that one. Look, I think civil notwithstanding the softness that we've seen in the quarter, again, in the US, as you said, and it's quite right.

好吧，也許讓我從最後一個問題開始，不是為了轉移第一個問題，而是為了財務問題讓我明白了這一點。看，我認為儘管我們在本季度看到了美國的疲軟表現，但國內情況仍然良好，正如你所說，這是非常正確的。

I mean civil had excellent results this quarter. And it reflects the diversification in our civil business in itself and you highlighted a lot of the components there. Look, in this quarter, what we saw is basically the continuation of what we saw in previous quarters and this year in pilot hiring in the US is basically a fraction of what it was just last year.

我的意思是本季民用工程取得了優異的成績。它本身反映了我們民用業務的多樣化，您也強調了其中的許多組成部分。你看，在這個季度，我們看到的基本上是前幾季的情況的延續，今年美國飛行員的招募數量基本上只是去年的一小部分。

And actually, third quarter was our worst quarter in that regard. And that's just basically because we saw continuation and perhaps more than we anticipated. I think we're not alone in that. And the amount of airplanes that were delivered by OEMs and the amount of disruption caused by grounding of aircraft across the world that really reflect the affected customers of Airbus aircraft primarily. So for us, in the -- how that reflects itself in the United States is that when you don't have strong pilot hiring -- sorry, you don't have a lot of new aircraft being delivered to airlines.

事實上，從這方面來看，第三季是我們最糟糕的一個季度。這基本上是因為我們看到了延續性，甚至可能超出了我們的預期。我想我們並不是唯一這麼做的人。原始設備製造商交付的飛機數量以及全球飛機停飛造成的干擾數量實際上主要反映了空中巴士飛機受影響的客戶。所以對我們來說，這在美國體現為當你沒有強大的飛行員招募時——抱歉，你不會向航空公司交付很多新飛機。

You see the airlines basically essentially, they increased pilot hiring substantially over the last couple of years. And now basically, they have, if you like, for a short amount of time, too many people, too many pilots hired for the needs that they have on the aircraft that they're flying.

你會看到航空公司在過去幾年大幅增加了飛行員的招募。而現在，基本上，如果你願意的話，在短時間內，他們為了滿足所駕駛飛機的需要而僱用了太多的人手和飛行員。

So typically, when they stop hiring pilots, what happens is that the effect of the large carriers are taking pilots when they hired to take them from the regionals and the regionals themselves they're basically hiring new pilots, and that creates a disproportionate amount of training in our training centers or regional aircraft in the United States.

因此，通常情況下，當他們停止僱用飛行員時，會發生的情況是，大型航空公司會從地區航空公司招募飛行員，而地區航空公司本身基本上是在僱用新飛行員，這導致我們的培訓中心或美國的地區飛機的培訓量不成比例。

So centers like, for example, we have a strong center for regional powertrain in Minneapolis, for example. And although that's not a very big impact in terms of revenue itself, it kind of has a disproportionate effect in margins because the training we do on the type of aircraft that the regional fly -- regional aircraft carriers fly aircraft like CRJs, like Dash 8, which -- those airplanes have been along -- around for a long time and so of our simulators, so they tend to be far down the depreciation curve. And therefore, we make a larger amount of profit on it.

例如，我們在明尼阿波利斯有一個強大的區域動力系統。雖然這對收入本身沒有太大影響，但對利潤率卻有不成比例的影響，因為我們對區域航空公司所駕駛的飛機類型進行培訓——區域航空公司駕駛的飛機是 CRJ、Dash 8 等，這些飛機已經存在很長時間了，我們的模擬器也是如此，所以它們往往處於折舊曲線的下方。因此，我們從中獲得了更大的利潤。

So that's what we see happening here. And it's the same factor we had before. What's changed in this particular quarter is that because of the sustained situation around OEMs, we've seen actually airlines actually canceling or deferring their training slots in the quarter.

這就是我們看到的正在發生的情況。這和我們以前遇到的因素是一樣的。本季的變化是，由於 OEM 的持續形勢，我們看到航空公司實際上取消或推遲了本季的培訓時段。

Now as I said in my remarks, you see those same airlines with the positive news that we're seeing now, you saw Boeing just recently announced that they had delivered 40 airplanes in the quarter. So that's resulting obviously, in people are saying, okay, well, there's renewed optimism happening here.

正如我在演講中所說，您會看到這些航空公司也傳出了積極的消息，波音公司最近宣布他們在本季度交付了 40 架飛機。所以這顯然會導致人們說，好吧，這裡又重新出現了樂觀。

So look, again, as I said, watching deliveries and as they recover, I mean, US -- the utilization in our US training center should follow, and they should follow relatively quickly behind.

所以，正如我所說的，再次觀察交付情況，隨著它們的恢復，我的意思是，我們美國培訓中心的利用率應該會隨之而來，而且它們應該會相對較快地跟上。

Of course, that's not the only story. We're talking about commercial aircraft. Sales of simulators are still very strong. And you see just testimony of the strong order intake, you see that certainly people -- to the airlines enthusiasm for the future is certainly not dampen that's testimony by the book-to-bill that we have. As well, of course, business aircraft.

當然，這並不是唯一的故事。我們正在討論商用飛機。模擬器的銷售仍然非常強勁。您可以從中看到訂單量強勁的證據，您可以看到人們對航空公司未來的熱情肯定不會減弱，這是我們的訂單出貨比證明的。當然還有商務飛機。

Well, business aircraft is doing extremely well. We continue to ramp up and more recently deployed training centers, for example, like our new training center with SIMCOM that now is wholly owned by us in Orlando or training center in Las Vegas and we're seeing higher utilization and growth in all of those cases.

嗯，商務飛機的表現非常好。我們將繼續擴大和部署最近部署的培訓中心，例如我們與SIMCOM合作在奧蘭多建立的新培訓中心（現在由我們全資擁有）和在拉斯維加斯建立的培訓中心，在所有這些案例中，我們都看到了更高的利用率和成長率。

And you just look at the order intake, and we just added $500 million to the order intake in business aircraft as a result of the SIMCOM acquisition and associated flagship orders or delivery is going to come out of that in terms of training slots.

只要看一下訂單量，就會發現由於收購 SIMCOM，我們剛剛增加了 5 億美元的商務飛機訂單量，相關旗艦訂單或交付將以培訓時段的形式出現。

So look, I think, as I said in my remarks, it's not a question of if there's a question of when, and we're going to see strong demand. Sorry, going back to your previous question. Look, I think what you're seeing here, and I'm not going to answer for the Board, but what you say is a function of ongoing Board renewal you have my succession. And at the same time, you have a new Chairman coming in, and Alan has done an outstanding job leading this company over the last few years. We've worked very well together.

所以，我認為，正如我在演講中所說，這不是一個是否會發生的問題，而是何時發生的問題，我們將看到強勁的需求。抱歉，回到您之前的問題。看，我認為您在這裡看到的是，我不會代表董事會回答，但您所說的是董事會持續更新的功能，你有我的繼任者。同時，公司迎來了新董事長，艾倫在過去幾年為領導公司做出了巨大貢獻。我們合作得非常好。

And I think there's a very, I think, smart timing in terms of transition -- my transition with bringing on a very strong entry, very strong determine (inaudible) with his background at Air Canada, Chairman of IATA in the past to be able to be someone that's going to be able to play a very, very strong role in terms of certainly hiring my successor and having a very effective transition with the current Board and leading the Board into the future. So I think we're very encouraged by it.

我認為，就過渡而言，這是一個非常明智的時機——我的過渡帶來了一位非常強大的人，他有在加拿大航空公司的背景，曾擔任國際航空運輸協會主席，能夠發揮非常非常強大的作用，肯定會聘請我的繼任者，與現任董事會進行非常有效的過渡，並帶領董事會走向未來。所以我認為我們對此感到非常鼓舞。

Appreciate it. Thank you, Marc.

非常感謝。謝謝你，馬克。

Kevin Chiang, CIBC.

加拿大帝國商業銀行 (CIBC) 的 Kevin Chiang。

Good morning. Thanks for taking my question. I apologize if you went through some of this in your prepared remarks. I was also (inaudible) call earlier. But just on the -- I guess, on the announced Flexjet order with Embraer obviously a pretty large order for them. I'm just wondering how you see that opportunity for CAE post the SIMCOM deal? And I know it's probably early days, but are there any investments you think you'll be required to make to support trading related to that large fleet order on the business aviation side?

早安.感謝您回答我的問題。如果您在準備好的發言中提到了這一點，我深感抱歉。我之前也 (聽不清楚) 打過電話。但就——我想，就 Flexjet 與 Embraer 宣布的訂單而言，顯然對他們來說這是一個相當大的訂單。我只是想知道您如何看待 SIMCOM 交易之後 CAE 的機會？我知道現在可能還為時過早，但您認為需要進行什麼投資來支持與商務航空方面大型機隊訂單相關的交易？

I'll start it off and maybe hand it over to Nick. It's extremely positive for us because again, we're exclusive to Flexjet. We do with it very, very well, because we've been training them for years. What's positive is not only the amount of aircraft that they're buying, but they're buying the mix of aircraft, which really basically grows the accessibility that we have a train on the whole fleet of Flexjet aircraft.

我會開始，然後可能將其交給尼克。這對我們來說是極其積極的消息，因為我們再次成為 Flexjet 的獨家合作夥伴。我們做得非常非常好，因為我們已經訓練他們多年了。積極的一面不僅在於他們購買的飛機數量，還在於他們購買的飛機組合，這實際上提高了我們掌握 Flexjet 整個機隊飛機的可及性。

So again, I couldn't be more happy to that order, but maybe Nick, you may want to add?

所以，我再說一遍，我對這個訂單感到非常高興，但是尼克，你可能想補充一點？

Yes. I mean the flagship fleets in order for 180-plus creators and phenoms, those are aircraft that we currently serve in the training center. I mean we don't have enough capacity to deal with 183 aircraft with what we've got right now.

是的。我的意思是旗艦機隊是為了容納 180 多名創造者和天才而設立的，這些都是我們目前在訓練中心服務的飛機。我的意思是，我們目前的實力不足以處理 183 架飛機。

So yes, there will be investment in more greater capacity and more pheno capacity. So -- but there's no need for anything beyond that, like none can take those -- that capacity in terms of space and deliver the training.

所以是的，我們會對更大的產能和更多的表型產能進行投資。所以 — — 但沒有必要做任何超出這個範圍的事情，就像沒有人能夠利用這些 — — 空間容量來進行訓練。

And this is sort of the part of the reason why you saw the order intake. And you also see the order intake as a function. Because one of the things we did was -- so this contract when we originally consummated the JV was a 15-year agreement. We were five years in. So the agreement was reset to 15 years. And so this justifies the investments for the next batch of aircraft.

這就是您看到訂單量的原因之一。您也可以將訂單量視為一項功能。因為我們所做的事情之一是——所以我們最初建立合資企業時的這份合約是一份為期 15 年的協議。我們已經五年了。因此協議期限重新設定為15年。這也證明了對下一批飛機的投資是合理的。

Definitely makes sense like a pretty nice tailwind for you especially post the SIMCOM transaction. Maybe just my second question. I generally think of CAE as broadly immunized from kind of the marginal change in US defense spending or broader US budgets just given the type of stuff you do.

這對你來說絕對是一個很大的利好，特別是在 SIMCOM 交易之後。也許這只是我的第二個問題。鑑於 CAE 所做的事情，我通常認為它基本上不受美國國防開支或美國總體預算的邊際變化的影響。

Just wondering if that's changed over the new administration, they're obviously looking at cost cutting maybe in a different way than previous administration. Just wondering if you see anything at risk or anything that might have been impacted within your backlog, given the change in administration.

只是想知道新政府是否會改變這種狀況，他們顯然正在考慮以不同於前政府的方式來削減成本。我只是想知道，考慮到管理層的變化，您是否認為您的積壓工作有任何風險或可能受到影響。

The first thing I'll say to that one is, as I've always said, is the day that CAE sponsors will be a proxy to the US defense budget, I will be very happy. But that's not the case. I think the reality is the -- what you see is a focus in the United States and all its allies, Canada and NATO, NORAD is a strive to increase readiness of forces and that readiness means training.

對此，我首先要說的是，正如我一直說的，如果有一天 CAE 贊助商能夠成為美國國防預算的代表，我將非常高興。但事實並非如此。我認為現實情況是——你所看到的是美國及其所有盟友、加拿大、北約和北美防空司令部都致力於提高部隊的戰備狀態，而戰備狀態意味著訓練。

When you think about what a military does when they're not in the situation conflict, they train. That is all that they do. And with increasing readiness, what that means is more demand for the kinds of services and products that we do.

當你想想軍隊在沒有處於衝突情況時會做什麼時，他們就會進行訓練。他們所做的就這些。隨著準備程度的提高，這意味著對我們所提供的服務和產品的需求將會增加。

And you see that as reflected in a very strong order backlog that we've already won and the opportunity that we have out there in terms of the bids that we have there for basically selection by customers. So I'm not -- I mean what you could see, I mean, is short-term variations like if we see some, for example, like a shutdown of the US government, well, that could have -- there will, I have no crystal ball into that. And so that we have continuous resolution that has been somehow the norm in the past year. That can cause short-term disruptions.

您可以看到，這反映在我們已經贏得的非常強勁的訂單積壓以及我們在投標方面的機會，這些投標基本上可供客戶選擇。所以我不是——我的意思是，你所看到的只是短期變化，比如說，如果我們看到一些變化，比如美國政府關門，嗯，那可能會——會發生，我沒有水晶球可以預測這方面的情況。因此，我們能夠持續解決問題，這在過去的一年裡已經成為常態。這可能會造成短期混亂。

It were basically -- let's say, we're on a -- we've won a new contract, which we have won a lot. And you get into a situation, for example, the continuous resolution or an effort to a case, what happens as the government is precluded to be able to start activity of our new contracts, but those are short-term issues are not reflective of long term trends.

基本上——可以這麼說，我們——我們贏得了一份新合同，我們已經贏得了很多。當你遇到這樣一種情況時，例如，持續解決或努力解決一個案件，當政府被禁止開始執行我們的新合約時會發生什麼，但這些都是短期問題，並不反映長期趨勢。

And finally, I think the big thing about this in defense as a civil, we enjoy the benefit of having very long term contracts, so the backlog that you see goes out many years.

最後，我認為在民事國防方面，最重要的是，我們享有長期合約的好處，因此，你所看到的積壓合約會持續很多年。

That's great. Thank you very much and have a great weekend.

那太棒了。非常感謝，祝您週末愉快。

Sheila Kahyaoglu, Jefferies.

傑富瑞 (Jefferies) 的 Sheila Kahyaoglu。

Good morning and thank you. Maybe if I could (multiple speakers) -- yeah, maybe if I could ask a two part question in terms of, simulator deliveries, how you're thinking about 20 -- about this year with 50 as your previous guidance being waited for Q4, but obviously there was a pull forward into Q3, and how we think about the exit margin rate for fiscal Q4 given potentially less simulator deliveries that are implied and what it means for fiscal '26?

早上好，謝謝你。也許我可以（多位發言者）——是的，也許我可以就模擬器交付量問一個分為兩部分的問題，您如何看待今年的 20 台——之前您預計第四季度的交付量為 50 台，但顯然第三季度有所提前，考慮到隱含的模擬器交付量可能較少，我們如何看待第四財季的退出利潤率，這對 26 財年意味著什麼？

You want to handle it, Nick?

你想處理它嗎，尼克？

Sure. I mean on the simulator deliveries, I mean, obviously, we're not changing any of our guidance. We have the same -- it's going to be, I think, as we said, more than 50 SIMs. And obviously, you'll see the actual number. Some of this just depends when we're on the edge of March 31, some may be delivered in next fiscal year.

當然。我的意思是，關於模擬器交付，顯然我們不會改變任何指導。我們有相同的 — — 我認為，正如我們所說，它將有超過 50 張 SIM 卡。顯然，你會看到實際數字。有些只是取決於我們何時到達 3 月 31 日，有些可能會在下一個財政年度交付。

But I don't see an issue with the guidance that we've given today. In terms of Q3, maybe I'll let the Constantino -- Q4, excuse me.

但我認為我們今天給的指導沒有問題。就 Q3 而言，也許我會讓康斯坦丁諾——Q4，對不起。

Yeah. No. So what I think we'll see as in products being a higher proportion of the revenue mix going forward. And that's why we've also adjusted the guidance to say that we are being modestly below the 22% to 23% of adjusted SOI margin range for the year.

是的。不。因此我認為我們會看到產品在未來的收入結構中佔據更高的比例。這就是為什麼我們也調整了指導方針，稱今年我們的利潤率略低於調整後的 SOI 利潤率範圍的 22% 至 23%。

Okay. That makes sense. And then maybe just another question on again we see -- we're seeing a growing divide among operators outlining expectations for GTF AOGs over the coming years. Some suggest AOG should be unwinding from peak level steadily in line with RTX's own commentary. Others like we are talking about beyond 2026. So just maybe if you could touch on the GTF and what you're seeing for 2026, how we should be thinking about framing that?

好的。這很有道理。然後也許我們再次看到另一個問題——我們發現營運商對未來幾年 GTF AOG 的期望之間的分歧越來越大。有些人認為，AOG 應該按照 RTX 自己的評論從峰值水平穩步回落。我們正在討論的其他事情則是 2026 年以後的事。所以，如果您可以談談 GTF 以及您對 2026 年的展望，我們應該如何思考如何建構它？

Might be I think -- yes, I think we can't talk about it because it's typically some of our large customers like Indigo Airlines or that is (inaudible)

可能是我認為——是的，我認為我們不能談論它，因為它通常是我們的一些大客戶，例如靛藍航空，或者（聽不清楚）

Yeah. I mean, the overall -- I mean, we do track the aircraft grounded, the 320neo. So the number is going down. I mean it's certainly coming down from where it was I mean we have Indigo, as an example, they're the largest Airbus operator of Neos and have the largest suite of grounded aircraft. And they are -- I mean, they are improving.

是的。我的意思是，總體而言——我的意思是，我們確實跟踪停飛的飛機，即 320neo。因此這個數字正在下降。我的意思是，它肯定是從以前的水平下降的，我的意思是，我們有靛藍航空，例如，他們是 Neos 最大的空中巴士運營商，擁有最大的停飛飛機套件。而且他們—我的意思是，他們正在進步。

So I think it's just a question of time as they catch up on some of the capacity issues they have to service all these engines in a timely manner. But definitely, I mean, they're a barometer to how this is going and their fleet is improving, and we can see it through obviously training. So this -- how long it's going to take. It's not really for me to say. But I think the -- we definitely see improvement.

因此我認為這只是時間問題，因為他們會及時解決一些容量問題，以便為所有這些引擎提供維修服務。但可以肯定的是，他們是情況進展的晴雨表，他們的艦隊正在不斷進步，我們顯然可以透過訓練看到這一點。所以這—需要多長時間。這確實不該由我來評論。但我認為——我們確實看到了進步。

Great, thank you.

太好了，謝謝。

Thanks, Sheila.

謝謝，希拉。

Matthew Lee, Canaccord Genuity.

Canaccord Genuity 的 Matthew Lee。

Hey, (inaudible) take my question. I noticed in the quarter you didn't really touch the NCIB, and I joined this call late. But just given the focus on deleveraging and maybe opportunity for tuck-ins as well as on the CapEx you mentioned, how much of a priority is buying back shares at this juncture?

嘿，（聽不清楚）回答我的問題。我注意到在本季度您並沒有真正接觸過 NCIB，而且我很晚才加入這次電話會議。但是，考慮到對去槓桿的關注，以及可能的加價機會以及您提到的資本支出，在這個關鍵時刻回購股票的優先順序有多高？

I think maybe I just kick it off. I mean, we've always had the prior -- same priorities that we've had that we prioritize accretive growth, but deleveraging is close behind. So we pick up on that one. I mean, at the end of the day, I think what we've said that NCIB we use it opportunistically that we did, but I think today, I think we reflect that -- where the stock is at, that we thought we had better opportunities to use our cash flow we'll -- pick up on it, Dino?

我想也許我只是把它踢掉了。我的意思是，我們始終有相同的優先事項，即優先考慮增值增長，但去槓桿化緊隨其後。因此我們就選擇這一點。我的意思是，歸根結底，我認為我們說過 NCIB 會投機取巧，但我認為今天，我認為我們反映了這一點 - 股票的現狀，我們認為我們有更好的機會利用我們的現金流 - 我們會接受它，迪諾？

Yeah, no thanks, Marc, and good morning, Matthew. So we do -- we continue to talk to take a real balanced capital allocation approach, guidance gives me where it makes sense and then all further bolstering our financial position coming delever. So we look at NCIB effectively like Marc said opportunistic's we've refined excess free cash flow. You saw in Q3, we did not purchase any additional shares because our focus is deleveraging.

是的，不用了，馬克，早安，馬修。所以我們這樣做——我們繼續談論採取真正平衡的資本配置方法，指導告訴我什麼是合理的，然後所有這些都將進一步增強我們的財務狀況，從而實現去槓桿。因此，我們有效地看待 NCIB，就像 Marc 所說的機會主義，我們已經提煉了過剩的自由現金流。您在第三季看到，我們沒有購買任何額外股份，因為我們的重點是去槓桿。

Do you guys have a target for the year in terms of NCIB usage or something we can point to in that regard or is it just more opportunistic?

你們今年在 NCIB 使用方面有目標嗎？

Absolutely more opportunistic and focus on capital allocation. We're looking at all opportunities depending on excess free cash flow, but that's when more of an opportunistic approach.

絕對更具機會主義並專注於資本配置。我們正在尋找所有依賴過剩自由現金流的機會，但這更多的是一種機會主義的方法。

Alright. Thanks, guys.

好吧。謝謝大家。

Cameron Doerksen, National Bank Financial. Please go ahead.

卡梅倫‧多爾克森 (Cameron Doerksen)，國家銀行金融公司。請繼續。

Yeah, thanks. Good morning. Just a quick question on working capital. Obviously, a significant positive working capital reversal in Q3. Just wondering if there's anything, I guess, that you are doing differently to manage your working capital flows to, I guess, improve over time? Just anything you can point to specifically that maybe is a change from past practices to improve cash flow from working capital?

是的，謝謝。早安.關於營運資金的一個簡單問題。顯然，第三季營運資本出現了顯著的正向逆轉。我只是想知道，您是否採取了不同的方式來管理您的營運資金流，以便隨著時間的推移而改善？您能否具體指出，也許可以改變過去的做法來改善營運資金的現金流？

Cameron, thank you for asking the question. I'm particularly pleased with our record free cash flow generation, $4 million to $10 million this quarter. I think what you're seeing here really is the direct benefit of strong execution that especially in defense, is allowing us to hit our building milestones, right?

卡梅倫，謝謝你提出這個問題。我對我們創紀錄的自由現金流尤其感到高興，本季達到了 400 萬至 1000 萬美元。我認為您在這裡看到的確實是強大執行力的直接好處，特別是在國防方面，它使我們能夠實現建設里程碑，對嗎？

And then we use our levers that we have at our disposal to unlock and reduce non-cash working capital to generate cash. And alongside continued strict inventory management, disciplined organic investments, obviously lockstep with the market. This is a disciplined approach to managing our cash, and it's giving us continued confidence that we will meet our deleveraging commitments.

然後，我們利用我們掌握的槓桿來解鎖和減少非現金營運資本來產生現金。同時繼續嚴格庫存管理，嚴格有機投資，顯然與市場保持同步。這是我們管理現金的嚴謹方法，它使我們始終有信心履行去槓桿的承諾。

So we -- I think you saw in the guidance, we expect to deliver a cash conversion rate exceeding 150% in FY25 compared to our previous stated conversion rate target of about [100%]. So this really is because of our focus on cash generations.

因此，我想您在指引中看到了，我們預計 2025 財年的現金轉換率將超過 150%，而我們先前提出的轉換率目標約為[100%]。這確實是因為我們注重現金創造。

Okay, no that, that's helpful. Maybe I just as a follow-up, I mean, on the defense side and maybe this a question for Marc, just on the future lead in fighter program in Canada. Obviously, CAE selected to, I guess, to manage that program in [Rosemont] you as the -- for that future program. Can you just talk a little bit about what exactly your role is here on this program and kind of what the time line might be for this to start actually contributing financially?

好的，不，那很有幫助。也許我只是作為一個後續問題，我的意思是，在防禦方面，也許這是給馬克的一個問題，只是關於加拿大未來戰鬥機計劃的領導。顯然，我猜，CAE 選擇您來管理 [Rosemont] 的該項目，作為該項目的未來負責人。您能否簡單談談您在這個專案中扮演的角色以及這個專案真正開始提供資金貢獻的時間安排？

Yeah, thanks for the question Cameron. I'm particularly, very pleased of that particular announcement. I mean this is just another really great example of just how well CAE is positioned in a growth market. So what you see here, and I can tell you this I've been having personally these in-depth discussions with the government and [institutioners] specifically in defense. Canada is looking -- stepping up government is stepping up significantly it's expenditures and defense to maintain the preparedness and readiness of Canadian troops.

是的，感謝卡梅倫的提問。我對這個特別聲明感到特別高興。我的意思是，這只是 CAE 在成長市場中佔據良好地位的另一個很好的例子。所以您在這裡看到的是，我可以告訴您，我一直在與政府和機構進行深入討論，特別是在國防方面。加拿大正在考慮——政府正在大幅增加支出和防禦，以保持加拿大軍隊的戰備狀態。

And basically, again, that's Canada joining the course of nations they're doing just that. So what you see here is a definitely a shift in previous practice. This is government putting a new mechanism in play to accelerate that the procurement of military programs.

基本上，加拿大也正在加入其他國家的行列。所以你在這裡看到的肯定是以前做法的轉變。這是政府為加速軍事項目採購所採取的新機制。

And I can tell you, I have had a very personal role in working with government to make that happen. And I think this is a -- I would tell you, I mean, I'm very excited about this because Canada is different CAE is good for the Canadian industry in a very, very big way.

我可以告訴你們，為了實現這個目標，我與政府合作發揮了非常個人化的作用。我認為這是一個——我想告訴你，我對此感到非常興奮，因為加拿大與眾不同，CAE 對加拿大工業非常非常有利。

And what you see here is we're becoming a key strategic partner and what we're going to be doing here is being recognized as a strategic partner on this program, future fleet is to essentially design and assist their project team in finalizing the requirements, accelerating the procurement process beyond anything that's done -- that's been done in the past on the future fighter leading program, which, of course, as I said is going to prepare and train pilots for the transition to the [CF-358]. So we had the announcement this week with (inaudible) and (inaudible) responsible for the acquisition.

你在這裡看到的是，我們正在成為一個重要的戰略合作夥伴，我們在這裡要做的就是被認可為這個項目的戰略合作夥伴，未來艦隊的主要任務是設計和協助他們的項目團隊完成需求，加速採購過程，超越過去在未來戰鬥機領先項目上所做的一切，當然，正如我所說的，這將為飛行員做好準備並進行培訓，以便他們過渡到[CF-358]。因此，我們本週與（聽不清楚）和（聽不清楚）一起宣布了這項收購。

So I mean, just follow what they said they've got budgeted a $5 billion program that covers the acquisition of aircraft, training, courseware, procurement, instructors and on-site support for train delivery, asset management, base support.

所以我的意思是，按照他們說的，他們已經預算了一項 50 億美元的計劃，涵蓋飛機的購買、培訓、課件、採購、教員和火車運送、資產管理、基地支援等現場支援。

By the way, all of the kind of stuff that we do, not only in Canada but around the world, I mean, if you look at huge contract in (inaudible) risks fleet the FAC contract in Canada, we're doing exactly that for like the phases of training that are before future fleet.

順便說一句，我們所做的所有事情，不僅在加拿大，而且在世界各地，我的意思是，如果你看看（聽不清）風險艦隊的巨額合同，加拿大的 FAC 合同，我們正是在未來艦隊之前的培訓階段這樣做的。

[It's too] early to state to basically get very precise with regards to the time line here, except that we're obviously starting like immediately on this program and the whole idea is to accelerate the procurement of this program, so that the basically capability will be there on the [CF-35] enter service.

現在就確切地確定時間表還為時過早，但我們顯然會立即啟動這個項目，整個想法是加速這個項目的採購，以便基本能力在[CF-35]投入使用時就具備。

Okay. That's great detail. I appreciate it. Thanks very much.

好的。細節很精彩。我很感激。非常感謝。

Thank you.

謝謝。

Noah Poponak, Goldman Sachs.

高盛的諾亞·波波納克（Noah Poponak）。

Hey, good morning everyone.

嘿，大家早安。

Morning.

早晨。

Just wanted to go further on the civil margin. Appreciate all the detail you've provided thus far. I know you've expanded business jet capacity pretty significantly.

只是想在民事邊界上走得更遠。感謝您迄今為止提供的所有詳細資訊。我知道你們已經大幅擴大了公務機的運力。

Is that full or are you in the process of filling that such that there's a utilization, temporary issue in the margin? And then, if we look at the aggregate acquired revenue in civil of the last five years, has that been accretive or dilutive to the margin?

它已經滿了嗎，或者你正在填充它，以至於在利潤率方面存在利用率、臨時問題？那麼，如果我們看一下過去五年民用方面獲得的總收入，這對利潤來說是增加了還是減少了呢？

Hey, I'll turn it over to Nick. The last question, I'll definitely say accretive, but go ahead, Nick.

嘿，我將把它交給尼克。最後一個問題，我肯定會說是累積性的，但請繼續，尼克。

So in the -- your first question. So yes, we do have couple of training centers that are ramping up at the moment, namely Las Vegas and Savannah. We are -- as you saw from the announcement the (inaudible) training center in -- also in, I would say, almost at capacity. So I think there is definitely some drag that is coming from the ramp-up of those two training centers and come next year coming in April, we will be also opening Vienna. So there will be some there as well.

所以——你的第一個問題。是的，我們目前確實有幾個訓練中心正在加緊建設，分別是拉斯維加斯和薩凡納。正如您從公告中看到的，我們的（聽不清楚）培訓中心也已滿員。因此，我認為這兩個培訓中心的擴張肯定會帶來一些阻力，明年 4 月我們還將開設維也納培訓中心。所以那裡也會有一些。

Although Vienna will be ramped up quickly because we're just in a lot of the assets that are going into Vienna initially are going to be assets that we already own and just moving around. So it shouldn't be too disruptive to the numbers themselves.

儘管維也納的業務將會迅速增加，因為我們最初進入維也納的許多資產都是我們已經擁有並且正在流動的資產。所以它不應該對數字本身造成太大的破壞。

Maybe just adding, Noah, just basically look at the market itself. The global business is yet fleet itself is expanding not the order from Flexjet but deliveries of aircraft out of the OEM expect to be 12% higher year over year 2025.

也許只是補充一下，諾亞，基本上只是看看市場本身。全球業務仍在擴大，但機隊本身並未擴大，而是由於 Flexjet 的訂單，預計到 2025 年 OEM 飛機的交付量將比去年同期增長 12%。

And consistent with basically previous forecast, the proportion of that, that's large jets. And I say large jets because that's what we're disproportionately. That's a disproportionate amount of training we lose on large jets like gold chains, (inaudible) they're expected to account about two-thirds of all expenditures on new business jets for the next five years.

與先前的預測基本一致，其中的比例是大型噴射機。我之所以說是大型噴射機，是因為我們的比例過高。我們在大型噴射機上損失的培訓費用就像金鍊子一樣不成比例，（聽不清楚）預計未來五年它們將佔新商務飛機所有支出的三分之二。

So if you look at the market, I mean, that's -- we do see about a four -- I mean, I think I'm just reading for me just with forecast 4.7% CAGR of large cabin business as forecasted between the next five years, versus about 2.9% CAGR or medium cabin.

所以如果你看一下市場，我的意思是 - 我們確實看到大約四個 - 我的意思是，我認為我只是預測未來五年大艙業務的複合年增長率為 4.7％，而中艙業務的複合年增長率約為 2.9％。

And I think even another factor that's particularly important for us and in concert of the SIMCON acquisition is the fractional and charter operators, the fractionals such as Flexjet, of course, continue to show extremely strong performance on a year-over-year basis, growing much faster than the market itself.

我認為對我們來說特別重要的另一個因素以及與 SIMCON 收購相關的因素是分時租賃和包機運營商，當然，像 Flexjet 這樣的分時租賃在同比基礎上繼續表現出極其強勁的表現，增長速度遠遠快於市場本身。

I mean just fractional owner flight activity. To give you an example, is up 65% from 2019 level prior COVID. So -- and year over year, just I mean it will take closer to now.

我所指的只是部分業主飛行活動。舉個例子，比新冠疫情之前的 2019 年水準增加了 65%。所以 — — 和去年同期相比，我的意思是它將更接近現在。

I mean year-over-year slight fractional operators are up 11%. Of course, all of that reflects in the amount of expense we've made expanding our business centers like the ones that you mentioned that Nick mentioned, Las Vegas and of course, the acquisition of SIMCON.

我的意思是與去年同期相比，小幅上漲了 11%。當然，所有這些都反映在我們擴建業務中心的費用上，例如你提到的尼克提到的拉斯維加斯，當然還有對 SIMCON 的收購。

So I guess, without putting a specific year on it, but if we just think about the period of time in the future when you have the full utilization of the business jet expansion you've done, and then you do not face, Boeing and Airbus are delivering somewhere near demand.

因此，我想，不用確定具體的年份，但如果我們只考慮未來的一段時間，當你充分利用你已經完成的商務噴射機擴張時，你就不會遇到波音和空中巴士的交付量接近需求的情況。

You don't have engines, grounding airplanes, so that market's normal. Again, not putting a year on it, but just in the period of time in the future when all of your inputs are relatively normalized, what do the civil margins look like?

你沒有發動機，沒有停飛飛機，所以這個市場很正常。再說一遍，不是以一年為單位，而是在未來一段時間內，當您的所有投入都相對正常化時，民用利潤率會是多少？

Higher. No, look, I think -- I mean, we're not going to get into the outlook today. But I think we -- I think I said in my notes, I think I used the words and I'll repeat them. I think we have ample room to grow beyond that for the factors that you mentioned.

更高。不，看，我認為——我的意思是，我們今天不會討論展望。但我認為我們 — — 我想我在筆記中說過，我想我用過這些詞，我會重複它們。我認為，考慮到您提到的因素，我們還有足夠的成長空間。

And of course, there are more absorption of overhead or the levered effect in our train centers. So I think all things being equal, I think the factors you mentioned will inevitably and quite deliberately make margins go higher.

當然，我們的火車中心可以吸收更多的間接費用或槓桿效應。因此，我認為，在其他條件相同的情況下，您提到的因素將不可避免地、相當有意地提高利潤率。

Okay. And then I just also wanted to ask a little bit more about the defense margin. Did I hear correctly you say that there's only one more legacy challenge contract that rolls off in your fiscal '26?

好的。然後我還想再問一些有關防禦裕度的問題。我是否聽錯了？

In fiscal '25, by the end of fiscal '25, there's one more that we expect to roll off.

在25財年，到25財年末，我們預計還會有一項業務完成。

Okay.

好的。

No, that will be five contracts going into next fiscal year.

不，那將是五份進入下一財政年度的合約。

We started with eight have taken out of the fiscal year end.

我們一開始就已在財政年度末扣除了八個。

Yeah, go ahead.

嗯，請說。

Yeah. No, I was just going to ask maybe Nick you want to add color on how you feel about those.

是的。不，我只是想問尼克，你想補充你對這些的感受嗎？

Yeah. I mean I think I don't see, at least for now, I mean, we're on track with the remainder. Some of them are out next year or the year after. But I mean they roll off as planned, and we feel pretty good about all the positions that we've taken to manage the remaining work and to manage the risk with the customer. So it's good that we have three out of the way, but we still have five, and we still need to pay close attention to execution on those programs.

是的。我的意思是，我認為我看不到，至少現在，我的意思是，我們正在按計劃完成剩下的工作。有些將於明年或後年推出。但我的意思是它們會按計劃進行，而且我們對管理剩餘工作和管理客戶風險所採取的所有措施感到非常滿意。因此，我們已經完成了三個，這很好，但我們仍然有五個，我們仍然需要密切關注這些計劃的執行。

But I don't see -- I think at the moment, I don't see any issues.

但我沒有看到——我認為目前，我沒有看到任何問題。

Okay. Understood. Thank you very much.

好的。明白了。非常感謝。

Thank you. Operator, we'll take just one more question as we come up on the hour.

謝謝。接線員，時間到啦，我們再回答一個問題。

Sounds good. Benoit Poirier, Desjardins Capital Markets.

聽起來不錯。Benoit Poirier，德斯雅爾丹資本市場。

Yeah, good morning, everyone. Just obviously on the free cash flow side, better than expected provide great color around the working capital for Q3 but when we look in terms of capital deployment, you intend to be below 3 time by year-end. So it's going to be a great achievement.

是的，大家早安。顯然，在自由現金流方面，好於預期為第三季的營運資本提供了良好的基礎，但當我們從資本配置的角度來看，你打算在年底前將其控制在 3 倍以下。所以這將是一個巨大的成就。

Could you remind us your targeted level in terms of leverage longer term and given the nice inflection on free cash flow discipline around CapEx, I'm just wondering how you see capital deployment once you're at a targeted level?

您能否提醒我們您在長期槓桿方面的目標水平，並考慮到圍繞資本支出的自由現金流紀律的良好轉變，我只是想知道一旦達到目標水平，您如何看待資本部署？

No, thanks for the question. So effectively, I understand I'm really proud of the free title conversion this year -- this quarter, approximately $10 million. So when we look at CapEx, again, it's a matter of working and talking to deploying FFFS on market based on what we see and from a situation we see with our customers. We don't want to be ahead of our customers. That's the approach we've been taking. We don't deploy FFFS in our marketing on spec.

不，謝謝你的提問。所以實際上，我知道我對今年的免費所有權轉換感到非常自豪——本季度，大約 1000 萬美元。因此，當我們再次審視資本支出時，這是一個根據我們所看到的情況以及從客戶的角度來看，開展工作並討論在市場上部署 FFFS 的問題。我們不想領先我們的客戶。這就是我們一直採取的方法。我們不會按照規格在行銷中部署 FFFS。

We invest organically to keep pace with the growth of our existing customer base. So that's why we constantly monitor the market situation. As you know, we're taking a focused approach pro forma leverage. We want to make sure we continue to focus on investor grade performance and we're looking to be below the 2.5 times net debt to adjusted EBITDA range in the next fiscal year. So continued focus on generating free cash flow, disciplined approach to CapEx, working lockstep with the market going forward.

我們進行有機投資以跟上現有客戶群的成長步伐。這就是我們不斷監測市場狀況的原因。如您所知，我們採取的是集中式槓桿方法。我們希望確保繼續關注投資者級表現，並希望在下一財年將淨債務與調整後 EBITDA 比率控制在 2.5 倍以下。因此，我們將繼續專注於產生自由現金流、嚴格控制資本支出、與市場同步發展。

Okay.

好的。

(multiple speakers)

（多位發言者）

Yes, really quick. Just in terms of defense margin, obviously, when we look at fiscal year '26, you're going to run down further legacy contract, but also at the same time, you'll be ramping up new business that I would assume will be accretive to margins. So can you point out to some direction we might see on defense for margins for fiscal year '26? That's it.

是的，非常快。僅就國防利潤率而言，顯然，當我們回顧 26 財年時，您將進一步減少遺留合同，但與此同時，您將加大新業務的力度，我認為這將會增加利潤率。那麼您能否指出我們可能看到的 26 財年防禦利潤率的一些方向？就是這樣。

Well, it does That sounds glib, but higher, obviously, I mean, from the factors that we've talked before, I mean, as you said, we're -- the fact that we're winning a lot of backlog here, and we've replaced -- the new backlog is very accretive to the margin target that we have below double digits.

嗯，確實如此。

And I've always said that 10% is a way point not a destination, but we're not going to get into outlook today. You saw the strong execution. We're being very prudent of how we achieve business for obvious reasons. So look, I think that will give you as usual outlook as we get into next quarter.

我一直說 10% 只是一個路徑點，而不是目的地，但今天我們不會討論展望。您看到了強而有力的執行。出於顯而易見的原因，我們對如何開展業務非常謹慎。所以，我認為，當我們進入下個季度時，這將為您提供像往常一樣的前景。

Thank you for the time.

感謝您抽出時間。

All right. Thanks very much to everyone joining us on the call today. I'll remind you that the transcript will be available later on our website, and we'll talk to you after the fact that should you have any additional questions. Thanks very much.

好的。非常感謝今天參加電話會議的每個人。我要提醒您，稍後我們將在我們的網站上發布會議記錄，如果您有任何其他問題，我們稍後會與您溝通。非常感謝。

That brings a close to today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開您的線路。感謝您的參與，祝您有個愉快的一天。