Curtiss-Wright Corp (CW) 2024 Q3 法說會逐字稿

Welcome to the Curtiss-Wright third quarter, 2024 earnings conference call. (Operator Instructions)

歡迎參加 Curtiss-Wright 2024 年第三季財報電話會議。（操作員說明）

I would now like to turn the call over to Jim Ryan, Vice President of Investor Relations.

我現在想將電話轉給投資者關係副總裁 Jim Ryan。

Thank you, Todd and good morning, everyone. Welcome to Curtiss-Wright's third quarter, 2024 earnings conference call. Joining me on the call today, our Chair and Chief Executive Officer, Lynn Bamford; and Vice President and Chief Financial Officer, Chris Farkas.

謝謝托德，大家早安。歡迎參加 Curtiss-Wright 2024 年第三季財報電話會議。今天與我一起參加電話會議的是我們的董事長兼執行長 Lynn Bamford；副總裁兼財務長 Chris Farkas。

Our call today is being webcast and the press release as well as a copy of today's financial presentation is available for download through the investor relations section of our company website at curtisswright.com. A replay of this webcast also can be found on the website.

我們今天的電話會議正在進行網路直播，新聞稿以及今天的財務簡報副本可透過我們公司網站 curtisswright.com 的投資者關係部分下載。這個網路廣播的重播也可以在網站上找到。

Please note today's discussion will include certain projections and statements that are forward looking as defined in the Private Security Litigation Reform Act of 1995. These statements are based on management's current expectations and are not guaranteed of future performance. These certain risks and uncertainties associated with our forward-looking statements in our public filings with the SEC.

請注意，今天的討論將包括 1995 年《私人安全訴訟改革法案》中定義的某些前瞻性預測和聲明。這些陳述是基於管理層目前的預期，並不能保證未來的業績。這些特定風險和不確定性與我們向美國證券交易委員會提交的公開文件中的前瞻性聲明有關。

As a reminder, the company's results include an adjusted non-GAAP view that excludes certain costs in order to provide greater transparency and to occur with ongoing operating and financial performance. Also note that our updated full year guidance does not include the acquisition of Ultra Energy, which we anticipate closing in the fourth quarter.

需要提醒的是，該公司的業績包括調整後的非公認會計原則觀點，其中排除了某些成本，以便提供更大的透明度並與持續的營運和財務業績一起發生。另請注意，我們更新的全年指引不包括對 Ultra Energy 的收購，我們預計該收購將在第四季度完成。

Any references to organic growth are on an adjusted basis and exclude foreign currency translation, acquisitions, divestitures, and restructuring unless otherwise noted. GAAP to non-GAAP reconciliations for current and prior year theories are available in the earnings release and on our website.

除非另有說明，任何提及有機成長的內容均經過調整，不包括外幣換算、收購、剝離和重組。目前和前一年理論的 GAAP 與非 GAAP 調節可在收益報告和我們的網站上找到。

And I'd like to turn the call over to Lynn to get things started.

我想把電話轉給林恩，讓事情開始。

Thank you, Jim and good morning, everyone. As you saw in our results released last night, we delivered a strong third quarter performance and continue to build momentum across our businesses. We continue to invest in the future of Curtiss-Wright, including our technology, systems and infrastructure and of course our talent. As a result of these investments, Curtiss-Wright remains deeply aligned with the major growth vectors within our end markets and well positioned to generate meaningful and long term returns for our shareholders.

謝謝吉姆，大家早安。正如您在昨晚發布的業績中看到的那樣，我們第三季業績強勁，並繼續在我們的業務中建立動力。我們繼續投資柯蒂斯萊特的未來，包括我們的技術、系統和基礎設施，當然還有我們的人才。由於這些投資，柯蒂斯萊特仍然與我們終端市場的主要成長向量保持密切一致，並處於有利地位，可以為我們的股東創造有意義的長期回報。

In addition, there have been a number of exciting industry developments and announcements over the past few months, particularly in commercial nuclear, which have the potential to create tremendous value for Curtiss-Wright over the course of this decade and beyond. I'll speak to some of those opportunities in more detail later in our remarks. Overall, we remain confident in our ability to accelerate the pace of long term profitable growth and have demonstrated considerable progress towards our 2026 Investor Day objectives.

此外，過去幾個月出現了許多令人興奮的行業發展和公告，特別是在商業核領域，這有可能在這十年及以後的過程中為柯蒂斯萊特創造巨大的價值。我將在稍後的發言中更詳細地討論其中一些機會。總體而言，我們對加快長期獲利成長步伐的能力仍然充滿信心，並在實現 2026 年投資者日目標方面取得了顯著進展。

With that, I'll turn to today's presentation. I'll begin by covering the highlights of our third quarter performance and we'll provide a few comments regarding our updated 2024 financial outlook. Then I'll turn the call over to Chris to provide a more in depth review of our financials. Finally, I'll wrap up with some closing remarks before we move to Q&A.

接下來，我將轉向今天的演講。我將首先介紹我們第三季業績的亮點，然後我們將提供一些有關更新的 2024 年財務展望的評論。然後我會把電話轉給克里斯，讓他對我們的財務狀況進行更深入的審查。最後，在進行問答之前，我將做一些結束語。

Starting with the highlights of our third quarter 2024 performance. Sales increased 10% year-over-year to nearly $800 million driven by a better than expected performance in both our defense electronics and naval and power segments. Underscoring these results, we achieved a strong 15% growth in our aerospace and defense markets as well as low double digit growth in our commercial nuclear market.

首先是我們 2024 年第三季業績的亮點。由於我們的國防電子、海軍和電力領域的表現優於預期，銷售額年增 10%，達到近 8 億美元。基於這些成果，我們在航空航太和國防市場實現了 15% 的強勁成長，在商業核市場實現了兩位數的低成長。

Operating income increased 11% year-over-year, once again, exceeding our sales growth and resulted in the 20 basis points of overall operating margin expansion to 18.7%. This performance reflected the strong growth in sales, our team's commitment to operational excellence and the initial benefits of our corporatewide restructuring actions. Diluted earnings per share increased 17% year-over-year, which also exceeded our expectations and was primarily driven by our higher A&D sales.

營業收入較去年同期成長 11%，再次超過銷售成長，導致整體營業利潤率擴大 20 個基點，達到 18.7%。這項業績反映了銷售的強勁成長、我們團隊對卓越營運的承諾以及我們全公司重組行動的初步效益。稀釋每股盈餘年增 17%，這也超出了我們的預期，這主要是由我們較高的 A&D 銷售額推動的。

Free cash flow was $163 million up 19% year-over-year, reflecting more than 140% conversion due to the improved operational performance and lower working capital.

自由現金流為 1.63 億美元，年增 19%，由於營運績效改善和營運資本減少，轉換率超過 140%。

Turning to our order book and starting in our A&D markets. We continue to experience strong demand for our defense electronics products within our ground and arrow defense markets with the third quarter results reflecting higher orders for tactical communications and flight test equipment.

轉向我們的訂單簿，從我們的 A&D 市場開始。我們的地面和箭防禦市場對國防電子產品的需求持續強勁，第三季的業績反映出戰術通訊和飛行測試設備的訂單增加。

As a result, our defense electronics segment achieved its highest booking quarter on record, elsewhere orders within our naval defense and commercial aerospace markets were relatively flat compared with the prior year, but both have demonstrated very strong growth through the first nine months of 2024.

因此，我們的國防電子部門實現了有史以來最高的預訂季度，我們的海軍國防和商業航空航天市場的其他訂單與上一年相比相對持平，但在2024 年前9 個月都表現出了非常強勁的成長。

Within our commercial markets, we benefited from improved demand in our commercial nuclear aftermarket businesses primarily driven by the fall outage season which as expected was more pronounced than 2023.

在我們的商業市場中，我們受益於商業核售後市場業務需求的改善，這主要是由秋季停電季節推動的，正如預期的那樣，秋季停電季節比 2023 年更加明顯。

Elsewhere, we continue to see stabilization and order trends for our industrial businesses, most notably in industrial vehicles despite some of the challenging dynamics impacting the global off highway market.

在其他地方，我們繼續看到我們的工業業務穩定和訂單趨勢，尤其是工業車輛，儘管一些具有挑戰性的動態影響了全球非公路市場。

Overall total new orders increased 2% year-over-year in the third quarter, reflecting a solid 1.1 times book to bill, furthermore, new orders for the year continue to outpace our very strong overall sales growth. As a result, our year-to-date backlog is up 16% and reached a new record of $3.3 billion. This strong demand provides us with continued confidence to support Curtiss-Wright long term growth outlook.

第三季新訂單總量年增 2%，訂單出貨比達到 1.1 倍，此外，今年的新訂單持續超過我們非常強勁的整體銷售成長。因此，我們今年迄今的積壓訂單增加了 16%，達到 33 億美元的新紀錄。這種強勁的需求為我們提供了持續的信心來支持柯蒂斯萊特的長期成長前景。

Turning to the topic of capital allocation, I would like to highlight the ramp up in our share repurchase activity during the third quarter. Curtiss-Wright typically plans for at least $50 million of annual repurchases to cover share dilution. In May, the Board approved an increase in the total available authorization to $400 million reflecting their confidence in the company's ability to deliver profitable growth and in our strong free cash flow position.

談到資本配置的話題，我想強調一下第三季我們的股票回購活動的增加。Curtiss-Wright 通常計劃每年至少進行 5000 萬美元的回購，以彌補股權稀釋。5 月份，董事會批准將可用授權總額增加至 4 億美元，反映了他們對公司實現盈利增長的能力以及對我們強勁的自由現金流狀況的信心。

Subsequently, in September, the board approved our request for a $100 million expansion of our 2024 share buyback program. I'm pleased to report that we immediately began to repurchase our stock and completed the $100 million program on September 30. We are now on track to complete at least $150 million of share repurchases in 2024 and we've remained well positioned to deliver a constant return to capital and our shareholders going forward.

隨後，9 月份，董事會批准了我們將 2024 年股票回購計畫擴大 1 億美元的請求。我很高興地報告，我們立即開始回購股票，並於 9 月 30 日完成了 1 億美元的計畫。我們現在預計在 2024 年完成至少 1.5 億美元的股票回購，並且我們仍然處於有利地位，能夠為資本和股東帶來持續的回報。

Next. I'll provide some highlights of our updated full year 2024 outlook as shown on the right hand side of the slide. Our growing backlog and strong operational performance have provided confidence to once again raise our overall guidance for the majority of our key metrics. We now expect sales to increase 7% to 9%, principally reflecting the improved outlook in our A&D and commercial nuclear markets, driving a 7% to 10% increase in operating income.

下一個。我將提供更新後的 2024 年全年展望的一些要點，如幻燈片右側所示。我們不斷增加的積壓和強勁的營運表現為我們再次提高大多數關鍵指標的整體指導提供了信心。我們現在預計銷售額將成長 7% 至 9%，主要反映了我們的 A&D 和商業核能市場前景的改善，推動營業收入成長 7% 至 10%。

We continue to target our operating margin expansion while making significant investments across the business to improve our competitive positioning and strengthen Curtiss-Wright for the future. Diluted EPS is now expected to grow 12% to 15%. In addition, for the second consecutive quarter, we raised our free cash flow guide to reflect the strong year-to-date performance and higher confidence in the full year outlook.

我們繼續以擴大營業利潤為目標，同時在整個業務領域進行重大投資，以提高我們的競爭地位並增強柯蒂斯萊特的未來實力。目前預計稀釋後每股收益將成長 12% 至 15%。此外，我們連續第二季上調了自由現金流指引，以反映年初至今的強勁業績以及對全年前景的更高信心。

In summary, Curtiss-Wright demonstrated strong operational performance in the third quarter and the business remains primed to deliver exceptional results for the full year.

總之，柯蒂斯賴特在第三季展現了強勁的營運業績，並且該業務仍有望在全年取得優異的業績。

Now, I would like to turn the call over to Chris to continue with our prepared for marks.

現在，我想把電話轉給克里斯，讓他繼續我們的分數準備。

Thank you, Lynn. On slide 4, I'll review the key drivers of our third quarter, 2024 performance by segment. I'll begin in aerospace and industrial where overall sales increased 4%. Within the segment's commercial aerospace market, our results reflected strong OEM sale growth, supporting increased production on the A320 and various widebody platforms.

謝謝你，林恩。在投影片 4 上，我將按細分市場回顧 2024 年第三季業績的主要驅動因素。我將從航空航太和工業領域開始，這兩個領域的整體銷售額成長了 4%。在該細分市場的商業航空航太市場中，我們的業績反映出 OEM 銷售的強勁成長，支持了 A320 和各種寬體平台產量的增加。

Within the segment's defense markets, solid increases in actuation equipment sales in both aerospace and naval defense markets reflected the timing of production on various programs. Partially offsetting those increases was lower sales in the general industrial market principally due to the timing of off highway industrial vehicle sales despite the modest growth in orders that Lynn mentioned earlier.

在該細分市場的國防市場中，航空航太和海軍國防市場驅動設備銷售的穩定成長反映了各種項目的生產時機。部分抵消了這些增長的是一般工業市場的銷售下降，這主要是由於非公路工業車輛銷售的時機，儘管林恩之前提到的訂單略有增長。

And turning to this segment's profitability. Our results reflect -- mainly reflected favorable absorption on higher sales and a smaller structuring benefit which were largely offset by unfavorable mix including a lower volume of higher margin industrial vehicle products.

並轉向該部門的獲利能力。我們的業績反映－主要反映了對較高銷售量的有利吸收和較小的結構性效益，這在很大程度上被不利的組合所抵消，包括較高利潤的工業車輛產品銷售較低。

Next in the defense electronics segment, sales growth of 12% exceeded our expectations based upon the strong demand that continues to fuel these businesses and partly due to the timing of production revenues. Within the segment's ground defense markets, we continue to benefit from an increase in demand for our tactical communications equipment from both domestic and direct foreign military customers.

其次，在國防電子領域，由於持續推動這些業務的強勁需求以及生產收入的時機，銷售額成長了 12%，超出了我們的預期。在該細分市場的地面防禦市場中，我們繼續受益於國內和直接外國軍事客戶對戰術通訊設備需求的成長。

With an aerospace defense, we once again experienced strong growth in embedded computing sales across a number of C5ISR programs.

在航空航太國防領域，我們再次經歷了多個 C5ISR 專案的嵌入式運算銷售的強勁成長。

In addition, across defense electronics timing was once again a factor as we accelerated some revenues and deliveries into the third quarter. This is largely due to the planned restructuring activities announced last quarter that are now underway to support our future growth. And as a result as we look ahead to the fourth quarter, we now expect a sequential decline in revenues within the defense electronics segment.

此外，隨著我們將一些收入和交付速度加快到第三季度，整個國防電子產品的時機再次成為一個因素。這主要是由於上季宣布的計劃重組活動正在進行，以支持我們未來的成長。因此，當我們展望第四季時，我們現在預計國防電子領域的收入將連續下降。

Regarding the segment's third quarter operating performance, we delivered a strong 26.5% operating margin of 50 basis points a year-over-year to a five year high as this business continues to benefit from the conversion of its backlog and favorable absorption on higher revenues.

關於該部門第三季度的營運業績，我們實現了26.5% 的強勁營運利潤率，同比增長50 個基點，達到五年來的最高水平，因為該業務繼續受益於積壓訂單的轉換和對更高收入的有利吸收。

Turning to the naval and power segment, sales growth of 14% was ahead of our expectations and partly due to the timing of increased development revenues which consequently weighed on our profitability during the quarter.

談到海軍和電力領域，14% 的銷售成長超出了我們的預期，部分原因是開發收入增加，這影響了我們本季的獲利能力。

Starting in naval defense, revenues increased more than 20% driven by higher production revenue across several key platforms including the Columbia class and Virginia class submarines and CVN81 aircraft carrier programs due in part to the timing of material receipts.

從海軍防禦開始，收入增長了 20% 以上，原因是包括哥倫比亞級和弗吉尼亞級潛艇以及 CVN81 航空母艦項目在內的幾個關鍵平台的生產收入增加，部分原因是材料收貨的時間安排。

The results also reflected increased development revenues on the next generation SSN(X) submarine program in addition to increased demand for aftermarket fleet services and aircraft handling systems to international customers. In the power and process market, our results reflected continued strong demand in commercial nuclear supporting the ongoing maintenance of operating reactors in North America, while sales in the process market were essentially flat year over year.

這項結果也反映出，除了國際客戶對售後艦隊服務和飛機處理系統的需求增加之外，下一代 SSN(X) 潛艦計畫的開發收入也有所增加。在電力和加工市場，我們的業績反映出對商業核電的持續強勁需求，支持北美運行反應器的持續維護，而加工市場的銷售額同比基本持平。

Turning to the segment's operating performance, favorable absorption on higher revenues was partially offset by unfavorable mix from an increased concentration of customer funded development programs to support our future growth. To sum up Curtiss-Wright's third quarter overall, we generated solid absorption on stronger than expected top line performance resulting in 20 basis points in year-over-year operating margin expansion.

談到該部門的經營業績，對較高收入的有利吸收被客戶資助的開發計劃日益集中以支持我們未來增長的不利組合所部分抵消。總結 Curtiss-Wright 第三季的整體情況，我們對強於預期的營收表現產生了紮實的吸收，導致營業利潤率同比增長 20 個基點。

Next turning to our full year 2024 guidance, I'll begin on slide 5 with our end market sales outlook where we now expect total sales to grow 7% to 9% driven by upward revisions across several of our end markets.

接下來轉向我們的2024 年全年指導，我將從幻燈片5 開始介紹我們的終端市場銷售前景，在我們幾個終端市場向上修正的推動下，我們現在預計總銷售額將增長7% 至9 %。

Starting in aerospace defense, we raised our outlook to now reflect full year sales growth of 9% to 11% driven by increased customer funded development on various C5ISR programs. Within ground defense, despite some timing between the third and fourth quarters, our outlook for 10% to 12% sales growth remains unchanged and continues to reflect overall strong demand for our tactical communications equipment.

從航空航太國防領域開始，我們提高了預期，目前反映了由於客戶資助的各種 C5ISR 項目開發的增加，全年銷售額增長了 9% 至 11%。在地面防禦領域，儘管第三季和第四季之間存在一些時間安排，但我們對 10% 至 12% 銷售成長的預期保持不變，並繼續反映出對我們戰術通訊設備的整體強勁需求。

Enable defense, we now expect sales to grow 9% to 11% driven by the strong growth of order volume thus far in 2024. Of note, we now expect a sequential decline in naval defense revenues in the fourth quarter based upon an acceleration of submarine development revenues into the third quarter, as well as the timing of material seats across several platforms.

啟用防禦後，我們目前預計，在 2024 年迄今訂單量強勁成長的推動下，銷售額將成長 9% 至 11%。值得注意的是，基於潛艇開發收入進入第三季度的加速以及多個平台材料席位的時間安排，我們現在預計第四季度海軍防禦收入將連續下降。

Turning to commercial aerospace, we raised our full year outlook to a new range of 16% to 18% growth based upon our solid order book and the strength of our year-to-date performance particularly for surface treatment services. Overall, we expect to benefit from higher OEM production sales on the A320 and more broadly widebody aircraft this year despite the impact of the Boeing strike.

談到商業航空航天，我們根據穩定的訂單和今年迄今為止的業績表現（尤其是表面處理服務）的實力，將全年成長預期上調至 16% 至 18% 的新區間。總體而言，儘管受到波音罷工的影響，但我們預計今年 A320 和更廣泛的寬體飛機的 OEM 產量銷售將會增加。

Wrapping up our airspace and defense markets, we now expect total sales in these markets to increase 10% to 12% in 2024.

總結我們的空域和國防市場，我們現在預計這些市場的總銷售額到 2024 年將成長 10% 至 12%。

Moving to our commercial markets in the power and process market, we raised our outlook to reflect full year sales growth of 5% to 7%.

轉向電力和加工市場的商業市場，我們上調了預期，反映全年銷售額成長 5% 至 7%。

We now anticipate a low double digit full year growth rate in the commercial nuclear market, principally driven by higher us aftermarket revenues and we anticipate a strong finish to 2024 in the process market, we reduced our outlook slightly due to the timing of development on subsea pumps. And we now anticipate full year sales to be flat in this market including our previously communicated expectations for lower capital project revenues.

我們現在預計商用核電市場的全年增長率將達到兩位數，這主要是由於美國售後市場收入的增加，並且我們預計到2024 年加工市場將強勁結束，由於海底開發的時機，我們略微降低了我們的前景幫浦。我們現在預計該市場的全年銷售額將持平，包括我們先前傳達的對較低資本項目收入的預期。

However, it's worth noting to remain on track to our customers' expectations for subsea pump development and this reduction in the full year growth represents a temporary shift in resources towards naval programs.

然而，值得注意的是，要繼續滿足客戶對海底泵開發的期望，全年成長的下降代表著資源暫時轉向海軍專案。

Lastly, in the general industrial market based on the year-to-date performance, we have reduced our full year outlook due to lower global off highway vehicle sales and now anticipate a decline of 2% to 4%. However, we expect fourth quarter sales to improve sequentially based on the stability in the order trends and to be relatively in line with the prior year quarter. Wrapping up our total commercial markets, we continue to target full year sales growth of 1% to 3%.

最後，在一般工業市場，根據今年迄今的表現，由於全球非公路車輛銷售下降，我們下調了全年預期，目前預計將下降 2% 至 4%。然而，我們預計第四季度銷售額將基於訂單趨勢的穩定性而較上季改善，並與去年同期相對一致。總結我們的整個商業市場，我們繼續設定全年銷售額成長 1% 至 3% 的目標。

Moving on to our full year outlook by segment on slide 6. I'll begin in aerospace and industrial where despite the challenges within our general industrial market, we continue to expect sales to grow 4% to 6% based upon the strength of our A&D markets.

接下來是幻燈片 6 中按細分市場劃分的全年展望。我將從航空航太和工業領域開始，儘管我們的一般工業市場面臨挑戰，但基於我們的 A&D 市場的實力，我們仍然預計銷售額將成長 4% 至 6%。

Regarding the segment's profitability, we continue to project operating income growth of 8% to 11% and operating margin to increase 50 basis points to 70 basis points in the range from 16.9% to 17.1%.

關於該部門的獲利能力，我們繼續預期營業收入成長8%至11%，營業利潤率將提高50個基點至70個基點，範圍為16.9%至17.1%。

Next, in defense electronics, we are increasing our revenue guidance to 9% to 11%. This year-over-year growth is principally driven by the continued strength of our order book as well as improved expectations within the aerospace defense market where the team has been successful in securing contract funding for several R&D programs.

接下來，在國防電子領域，我們將收入指導提高至 9% 至 11%。這一同比增長主要是由於我們的訂單持續強勁以及航空航天國防市場預期的改善推動的，該團隊已成功為多個研發項目獲得合約資金。

Regarding the segment's profitability, we now expect operating income growth of 13% to 15% and operating margin expansion of 70 basis points to 90 basis points to a new range of 24.2% to 24.4% which is 20 basis points above our prior expectations. And naval and power based upon a strong year-to-date performance within both our naval defense and our commercial nuclear markets, we've raised our expectations for revenue growth to a new range of 8% to 9%.

關於該部門的獲利能力，我們目前預計營業收入將成長13% 至15%，營業利潤率擴大70 個基點至90 個基點，達到24.2% 至24.4% 的新區間，比我們之前的預期高出20 個基點。海軍和電力方面，基於今年迄今為止我們在海軍防禦和商業核市場上的強勁表現，我們已將收入成長預期提高到 8% 至 9% 的新範圍。

Regarding the segment's profitability, we raised our operating income guidance to a new range of flat up to 2% based on the higher revenue growth. However, we maintained our prior margin outlook as we continue to expect unfavorable mix including margin pressures associated with the accelerated ramp up installment programs, particularly for next generation naval defense platforms.

關於該部門的獲利能力，基於較高的收入成長，我們將營業收入指引上調至新的範圍，最高為 2%。然而，我們維持先前的利潤率預期，因為我們繼續預期不利的組合，包括與加速增加分期付款計劃相關的利潤率壓力，特別是對於下一代海軍防禦平台。

So to summarize our outlook overall, we now expect total Curtiss-Wright operating income to grow 7% to 10%. We continue to expect operating margin to range from 17.4% to 17.6% which includes a year-over-year increase of more than $20 million in total engineering spending.

因此，總結我們的整體前景，我們現在預計 Curtiss-Wright 總營業收入將成長 7% 至 10%。我們繼續預期營業利潤率將在 17.4% 至 17.6% 之間，其中工程總支出年增超過 2,000 萬美元。

Continuing with our financial outlook on slide 7, I'll begin with our updated EPS guidance where we now expect full year 2024 diluted EPS to range from $10.55 to $10.75 up 12% to 15% reflecting the increased confidence in our outlook and a slight reduction in our share count following the completion of the $100 million share repurchase program in September.

繼續投影片7 的財務展望，我將從更新後的每股盈餘指引開始，我們現在預計2024 年全年稀釋後每股盈餘將在10.55 美元至10.75 美元之間，成長12% 至15%，反映出我們對前景的信心增強，並略有下降9 月完成 1 億美元的股票回購計畫後，我們的股票數量增加了。

And lastly turning to free cash flow based on our strong year-to-date performance and our updated projections for improved earnings, we've raised our outlook again to a new range of $430 million to $450 million. This outlook reflects solid growth of 4% to 9% and a free cash flow conversion rate in excess of 105% which remains in line with our long term targets.

最後，基於我們今年迄今的強勁業績和對獲利改善的最新預測，轉向自由現金流，我們再次將前景展望上調至 4.3 億美元至 4.5 億美元的新範圍。這一前景反映出 4% 至 9% 的穩健成長以及超過 105% 的自由現金流轉換率，這仍然符合我們的長期目標。

Now, I'd like to turn the call back over to Lynn.

現在，我想把電話轉回給林恩。

Thank you, Chris and turning to slide 8, we've positioned Curtiss-Wright for a strong finish to 2024 and remain confident in our ability to generate the 7% to 9% total sales growth supported by strength in the majority of our end markets. While we've had to navigate some challenging market conditions, this year, it's the strength of Curtiss-Wright's consolidated portfolio, our ability to bring critical technologies to new markets and our well established leadership positions that enable us to continue to capture new opportunities for growth.

謝謝克里斯，請轉到幻燈片8，我們已為Curtiss-Wright 做好了2024 年強勁業績的準備，並對我們在大多數終端市場的實力支持下實現7% 至9% 的總銷售額增長的能力充滿信心。雖然我們必須應對一些具有挑戰性的市場條件，但今年，柯蒂斯萊特綜合產品組合的優勢、我們將關鍵技術引入新市場的能力以及我們穩固的領導地位使我們能夠繼續抓住新的機會生長。

This top line momentum along with our continued focus on both commercial and operational excellence while making targeted investments across the business are all contributing to the strong increases in EPS and free cash flow again this year.

這種營收勢頭，加上我們對商業和卓越營運的持續關注，同時在整個業務範圍內進行有針對性的投資，都有助於今年每股收益和自由現金流的強勁增長。

We also intend to put the strength of our balance sheet to work through disciplined capital deployment, whether that's acquisitions or returns to shareholders. Under our pivot to growth strategy, we remain focused on supplementing our organic growth with high quality strategic acquisitions that meet our stringent financial criteria and long term profitable growth.

我們也打算透過嚴格的資本部署來發揮資產負債表的優勢，無論是收購還是股東回報。根據我們的成長策略，我們仍然專注於透過滿足我們嚴格的財務標準和長期獲利成長的高品質策略收購來補充我們的有機成長。

Earlier this year, we announced the acquisition of Ultra Energy which we anticipate closing in the fourth quarter. As a reminder, Ultra provides safety critical products and services to commercial nuclear and power generation plants globally and also to the naval defense market including the UK nuclear submarine fleet. We look forward to this business, strengthening our core positions within our naval defense and power generation markets and opening up new doors to a wider more global customer base.

今年早些時候，我們宣布收購 Ultra Energy，預計將於第四季完成。需要提醒的是，Ultra 為全球商業核電廠和發電廠以及包括英國核潛艦艦隊在內的海軍國防市場提供安全關鍵產品和服務。我們期待這項業務，加強我們在海軍防禦和發電市場的核心地位，並為更廣泛的全球客戶群打開新的大門。

Aside from acquisitions, we anticipate completing the $150 million in total share repurchases in 2024 and we remain committed to driving consistent returns to our shareholders. Looking beyond 2024 and is communicated at a recent May Investor Day, we are dedicated to being a leader in the markets we serve and capturing new opportunities for growth across the portfolio.

除了收購之外，我們預計在 2024 年完成總額為 1.5 億美元的股票回購，並且我們仍然致力於為股東帶來持續的回報。展望 2024 年之後，我們在最近的五月投資者日上傳達了這一信息：我們致力於成為我們所服務的市場的領導者，並抓住整個投資組合的新增長機會。

We continue to execute our strategy to align Curtiss-Wright to a range of key secular trends in our end markets from the growing demand for power to support AI and data centers to the rise in global defense spending. This focus along with ongoing industry accelerators further supports our Investor Day outlook to grow organic revenue at a greater than 5% CAGR through 2026.

我們繼續執行我們的策略，使柯蒂斯萊特適應我們終端市場的一系列關鍵長期趨勢，從支援人工智慧和資料中心的電力需求不斷增長到全球國防支出的增長。這種關注以及持續的行業加速器進一步支持了我們的投資者日展望，即到 2026 年，有機收入的複合年增長率將超過 5%。

One of those key accelerators is the exciting momentum in commercial nuclear, highlighted by the recent news that Microsoft, Google and Amazon are investing in commercial nuclear to power their data centers with carbon free energy. As an example, last month Constellation Energy announced a 20 year power purchase agreement with Microsoft to restart unit one reactor at the Three Mile Island nuclear power plant to provide electricity to power Microsoft data centers.

其中關鍵的加速器之一是商業核能的令人興奮的勢頭，最近有消息稱微軟、谷歌和亞馬遜正在投資商業核能，用無碳能源為其數據中心供電，這凸顯了這一點。例如，上個月，Constellation Energy 宣布與微軟簽訂為期 20 年的購電協議，重啟三哩島核電廠一號反應堆，為微軟資料中心供電。

The reopening of this plant should provide an opportunity for Curtiss-Wright to once again supply our critical plant equipment and services to support the long term operation of this reactor. We were also excited to see X Energy's recent announcement of partnership with Amazon to accelerate the development of the Xe-100 advanced SMR. With Amazon's goal to bring more than 5 gigawatts worth of power online in the United States by 2039, this represents the largest commercial deployment target of SMRs to date.

該工廠的重新開放將為柯蒂斯萊特提供一個機會，再次提供我們的關鍵工廠設備和服務，以支援該反應器的長期運作。我們也很高興看到 X Energy 最近宣布與亞馬遜建立合作夥伴關係，以加速 Xe-100 先進 SMR 的開發。亞馬遜的目標是到 2039 年在美國提供超過 5 吉瓦的電力，這是迄今為止 SMR 最大的商業部署目標。

As a reminder, we are a strategic supplier to X Energy and are actively engaged in design and development of this reactor. We remained aligned with X Energy and all major SMR designers and are working to secure content that has the potential to range from $20 million to more than $120 million of revenue per site.

提醒一下，我們是 X Energy 的策略供應商，並積極參與該反應器的設計和開發。我們與 X Energy 和所有主要的 SMR 設計者保持一致，並正在努力確保每個網站的收入可能達到 2000 萬美元到超過 1.2 億美元。

In addition, we recently issued a press release to highlight the signing of a memorandum of understanding with Westinghouse to support future new build plants in Canada including both the AP1000 large light water reactors and AP300 small modular reactors.

此外，我們最近發布了一份新聞稿，重點介紹了與西屋電氣簽署的諒解備忘錄，以支持加拿大未來新建核電站，包括 AP1000 大型輕水反應器和 AP300 小型模組化反應器。

Overall, we're excited to see the continued support from industry, the administration and the influx of funding for major technology companies. These recent advancements provide us with increased optimism and further proof points to support the long term goals communicated at our investor day of doubling this portion of our business by 2028 and for our commercial nuclear market to reach $1.5 billion in annual revenues by the middle of next decade.

總體而言，我們很高興看到產業、政府的持續支持以及大型科技公司的資金湧入。最近的這些進展為我們提供了更多的樂觀情緒和進一步的證據，以支持我們在投資者日傳達的長期目標，即到2028 年將我們的這部分業務翻一番，並讓我們的商業核市場年收入在明年中期達到15 億美元。

In closing, we're pleased with our third quarter results and remain on track to achieve a number of financial and strategic milestones in 2024 including new records for total sales, free cash flow and backlog as we execute our pivot to growth strategy. We look forward to delivering continued success and long term profitable growth for our shareholders.

最後，我們對第三季的業績感到滿意，並繼續在 2024 年實現一系列財務和策略里程碑，包括在我們執行成長策略的過程中創造總銷售額、自由現金流和積壓的新紀錄。我們期待為股東帶來持續的成功和長期的獲利成長。

Thank you. And at this time, I would like to open up today's conference call for questions.

謝謝。此時此刻，我想開始今天的電話會議，提問。

(Operator Instructions)

（操作員說明）

Peter Arment, Baird.

彼得·阿門特，貝爾德。

Yeah, good morning, Lynn, Chris, Jim. Nice results. Lynn, within defense electronics, obviously, the demand signals for embedded computing and tactical communications have been really strong along with F MS activity. How are guys kind of measuring our share gain activity because it seems like that also is maybe a factor here.

是的，早安，琳恩、克里斯、吉姆。不錯的結果。Lynn，在國防電子領域，顯然，隨著 F MS 的活動，嵌入式運算和戰術通訊的需求訊號非常強烈。人們如何衡量我們的份額成長活動，因為這似乎也可能是這裡的一個因素。

So thank you. I mean, I guess I would open the same -- we're really pleased with what's going on in that business, their execution, their drive for customer satisfaction and just broadly, the overall execution of the team. Having a record order book in Q3 is something that is really to be celebrated and it isn't just one quarter, over the past two years with the outstanding growth we've seen, we're over one time book to bill, consistently over the past two years. So it isn't just a pop or a spike in one quarter.

所以謝謝你。我的意思是，我想我也會這麼說——我們對該業務的進展、他們的執行力、他們對客戶滿意度的推動以及更廣泛的團隊的整體執行力感到非常滿意。第三季度的訂單量創下歷史新高，這確實值得慶祝，這不僅僅是一個季度，在過去兩年中，我們看到了出色的增長，我們的訂單量超過了一次，持續超過過去兩年。因此，這不僅僅是一個季度的流行或飆升。

So we definitely feel the future is very bright for this group going forward. And I really do have to say there are opportunities for market share gain that we are working hard on. And I won't be bashful about saying that, but they're really not part of what we're seeing in the success of this team to date, that is really still, future opportunities for us as we work through the process of winning some business that maybe one of our competitors had in the past. And that's actually across multiple competitors where there's some struggles out there.

所以我們絕對覺得這個團隊的未來是非常光明的。我確實不得不說，我們正在努力爭取市場份額的機會。我不會害羞地說，但它們確實不是我們在這支球隊迄今為止所看到的成功的一部分，這對我們來說仍然是未來的機會，因為我們正在努力贏得勝利的過程中某些業務可能是我們的競爭對手之一過去擁有的。這實際上涉及多個競爭對手，其中存在一些困難。

And so this is really the organic results of what the team has built by. We've talked about for years, you've heard me talk about this, our investment in the MOSA in terms of and product offerings to really have the leading product offering in the industry. And it's just winning us new business and the team really worked hard. It doesn't mean we don't ever do something, not perfect for our customers, but the team really worked hard to drive customer satisfaction, communicate well, prioritize what our customers need, prioritized and deliver for them. And so that's really what's driving the results that we're very proud of.

所以這確實是團隊建構的有機結果。我們已經討論了很多年，你也聽過我談論這一點，我們對 MOSA 的投資以及產品供應，以真正擁有行業領先的產品供應。這只是為我們贏得了新業務，而且團隊真的很努力。這並不意味著我們不做一些對客戶來說不完美的事情，但團隊確實努力提高客戶滿意度，良好溝通，優先考慮客戶的需求，優先考慮並為他們提供服務。這確實是我們取得令人自豪的結果的原因。

I appreciate all that color. And then just quickly on commercial nuclear, with all the plant life extensions that are being planned, did the low double digit, does it ever like accelerate or how does it work from a, just like a road map perspective? Just because it seems like more than half or I think you mentioned three quarters of the existing 94 reactors as they applied for plan like extensions, it just seems like there's just a bow wave of work that's coming your way.

我很欣賞所有這些顏色。然後很快就商業核能，隨著所有正在計劃的核電站壽命延長，低兩位數，它是否喜歡加速，或者從路線圖的角度來看它是如何工作的？只是因為看起來超過一半，或者我想你提到了現有 94 座反應爐的四分之三，因為他們在申請類似的擴展計劃時，似乎有一波工作即將到來。

So. Yeah, I mean I think it's 80% now and that's either not necessarily have applied, but it indicated they're going to apply just to be technically correct or not. Leaving any misinformation out there. So, but no, it is great and we're pleased with the low double digit growth. I mean for a lot of years, we struggled to achieve low single digit growth. So it's really great to turn that to low double digit growth. And yeah, I mean, I think the future is just brightening, will it get higher than that. We'll have to wait and see.

所以。是的，我的意思是，我認為現在是 80%，這不一定已經應用，但它表明他們將應用只是為了技術上正確與否。留下任何錯誤訊息。所以，但不，這很棒，我們對兩位數的低成長感到滿意。我的意思是，多年來，我們一直在努力實現低個位數的成長。因此，將其轉變為兩位數的低成長真是太棒了。是的，我的意思是，我認為未來正在變得光明，它會變得比這更高嗎？我們得拭目以待。

But, I think things like, restarting of the unit one, in the Three Mile Island, that's another plant and another plant that's fairly far behind in the maintenance they did before they shut down in 2019. And so a lot of catch up and I know our team is engaged there and, it's something we talked about Canada and South Korea are going to go through plant life extensions.

但是，我認為，重啟三英里島的一號機組，這是另一座工廠，也是另一座工廠，在 2019 年關閉之前，他們所做的維護工作遠遠落後。所以有很多追趕，我知道我們的團隊正在那裡參與，我們談到加拿大和韓國將經歷植物壽命延長。

Also, we have great footprint up in Canada are working that and again, this is a little bit more long term, but we're really working to see how we can support some of the Eastern European reactors as they move away from Russian supply chains. So a lot of great things going on across this group and I feel like we really have the right products for what people are doing in these plant like extensions.

此外，我們在加拿大有很大的足跡，我們正在努力做到這一點，而且，這是一個更長期的計劃，但我們確實在努力研究如何在一些東歐反應器遠離俄羅斯供應鏈時為它們提供支持。因此，這個團隊正在發生很多很棒的事情，我覺得我們確實擁有適合人們在這些工廠中所做的事情的合適產品，例如擴展。

And just lastly on nuclear, on your SMR kind of commentary, you gave a lot of details. You've got obviously a relationship with X-energy. But can you talk about just broadly how you're positioned with some of the other players?

最後，關於核問題，關於 SMR 類型的評論，您提供了很多細節。顯然你和X-energy有關係。但你能大致談談你與其他一些球員的定位嗎？

Thank you for that. So I think it is really important and the message we want to communicate to the investment community is, we are working hard and dedicated and everyone who we work with knows this is to have content across all the major SMR providers. And so I mean, obviously our position was Westinghouse with the RCPs and their desire to have the AP1000, mimic the design of the AP1000 as much as possible. The AP300 mimic the design of AP1000, sorry for that, puts us in a strong position and we're pursuing other things with them.

謝謝你。因此，我認為這非常重要，我們想要向投資界傳達的訊息是，我們正在努力工作和奉獻精神，與我們合作的每個人都知道這就是在所有主要 SMR 提供者中擁有內容。所以我的意思是，顯然我們的立場是西屋電氣與 RCP 的合作，他們希望 AP1000 盡可能模仿 AP1000 的設計。AP300 模仿了 AP1000 的設計，對此感到抱歉，這使我們處於有利地位，並且我們正在與他們一起追求其他東西。

I mean, the RCPs kind of dwarfs the revenue. But we don't just rest on that and work hard. But I think NuScale was the first company that we announced our content with a several years ago and, still it's at $40 million per reactor and we're definitely engaged with them in pursuing more work.

我的意思是，RCP 的收入有點相形見絀。但我們不會就此止步，還要努力工作。但我認為 NuScale 是我們幾年前第一家宣布合作的公司，每個反應器的投資金額仍然是 4000 萬美元，我們肯定會與他們合作更多工作。

We have some announcements with TerraPower that we expect the two ARDP customer that energy, which we mentioned and then TerraPower being the other, we're definitely advancing our position with them and we really only have one public thing announced today, but hopefully we'll be able to put some other announcements out there.

我們與TerraPower 發布了一些公告，我們預計兩個ARDP 客戶的能源，我們提到過，然後TerraPower 是另一個，我們肯定會與他們一起提升我們的地位，我們今天實際上只宣布了一件公開的事情，但希望我們'將能夠在那裡發布一些其他公告。

And Rolls-Royce is another one that I would say we have very great engagement with and -- , talking to them about a lot of content on their reactor and know that our -- when we can close on this acquisition of Ultra and have that UK footprint, it's really going to even open up some more doors to us. And so we're very pleased with that.

勞斯萊斯是另一家公司，我想說我們與他們有非常好的接觸，與他們談論了他們反應堆上的很多內容，並且知道我們的——當我們能夠完成對Ultra 的收購並擁有這些內容時英國的足跡，它真的會為我們打開更多的大門。我們對此非常滿意。

Earlier, I think we're a little bit less advanced than what we're discussing with GE Hitachi at this point. But absolutely, good engagements there and I had a chance to meet with their leadership just a couple of weeks ago to talk about how we can advance our supply with them. So our goal is really to be universal because I really do believe there will be great market opportunity for all these guys and one of the other reactors that's kind of been in the news a bit is Kairos with their announcement with Google.

早些時候，我認為我們目前與 GE Hitachi 討論的內容稍微落後一些。但絕對是，那裡的合作很好，幾週前我有機會與他們的領導層會面，討論我們如何與他們一起推進供應。因此，我們的目標確實是普及，因為我確實相信所有這些人都會有巨大的市場機會，而其他一些反應器之一也曾出現在新聞中，那就是 Kairos 與谷歌的宣布。

And, today we don't have any established contact with them, they know who we are, they know our capabilities, they -- and I'm not speaking for them but appear to us to have a strategy of wanting to be pretty vertically integrated and we just stand there making clear of what we can do. So when they pick items that can't verbally integrate that, hopefully we will be there , to win content with them.

而且，今天我們與他們沒有任何既定的聯繫，他們知道我們是誰，他們知道我們的能力，他們——我不是代表他們說話，但在我們看來，他們有一個想要相當垂直的戰略整合在一起，我們只是站在那裡明確我們能做什麼。因此，當他們選擇無法口頭整合的項目時，希望我們能夠在那裡，為他們贏得內容。

And then a much more minor dollar some of the small micro reactors and such -- we are engaged in a lot of those, it's less needle moving dollars. But we're there to win content where we can. So the team -- the sales team is doing a great job. The engineering teams are doing a great job of really proving our capabilities to establish our position in this market.

然後是一些小型微型反應器之類的小得多的美元——我們參與了很多這樣的項目，它的資金較少。但我們的目標是盡可能贏得內容。所以團隊——銷售團隊做得很好。工程團隊做得非常出色，真正證明了我們在這個市場上建立地位的能力。

Appreciate all the details. I'll jump back in queue. Thanks Lynn.

欣賞所有細節。我會插回隊列。謝謝林恩。

Thank you, Peter.

謝謝你，彼得。

Pete Skibitski, Alembic Global.

Pete Skibitski，Alembic Global。

Hey, good morning everyone.

嘿，大家早安。

Good morning.

早安.

Lynn, I was wondering on the aerospace defense on the guidance increase. What's the biggest driver there in terms of dynamics, is it new builds -- new build platforms that drives the growth or aftermarket growth driven by usage or is it mostly upgrades? I just want to get a better sense.

林恩，我想知道航空航天防禦方面的指導增加。就動態而言，最大的驅動力是什麼？我只是想獲得更好的感覺。

I say first, welcome to the call and thanks for picking up coverage. So it's a pleasure to have you here today.

我首先說，歡迎您致電並感謝您接受報道。很高興今天您能來到這裡。

Thank you.

謝謝。

And I think I might actually turn that question over to Chris to give a substantial answer to your question.

我想我實際上可以把這個問題交給克里斯，讓他對你的問題給出實質的答案。

Yeah. So, so Pete just to be very clear, a strong overall increase, year over year across defense electronics and not only this year but this past year as Lynn had started off mentioning we've had very strong orders for the technologies that we produce in the C5ISR space, the commercial coops, tactical communications equipment and flight test equipment, supporting some pretty exciting projects that are kind of going on in the defense industry and some transitions that are taking in terms of the military's approach towards defense electronics. So very broadly, that's what's driving this.

是的。所以，皮特要說得非常清楚，國防電子產品逐年強勁的整體成長，不僅是今年，而且是去年，因為林恩開始提到我們對我們生產的技術有非常強勁的訂單。戰術通訊設備和飛行測試設備，支援國防工業中正在進行的一些非常令人興奮的項目，以及軍方在國防電子方面正在採取的一些轉變。從廣義上講，這就是推動這一趨勢的原因。

Yeah, as Lynn already mentioned record orders again in the third quarter, the defense electronics segment is nearly had $1 billion dollars in orders over the past 12 months. And as we look at the backlog for that business, despite this high growth, 13% up year-over-year. So the future is bright as it specifically relates to the increase that you saw here in a defense in the third quarter guidance.

是的，正如 Lynn 在第三季再次提到的創紀錄訂單一樣，國防電子領域在過去 12 個月的訂單接近 10 億美元。當我們觀察該業務的積壓訂單時，儘管增長速度很高，但同比增長了 13%。因此，未來是光明的，因為它特別與您在第三季度指導中看到的防守增加有關。

Most of that is relative to an increase in secured funding that the team has had regarding IR&D programs, they're working on some pretty sophisticated technologies in the aerospace defense arena. I can't really go into any more detail than that. But that shift of research and development from IR&D, which is where they started and targeted the year planning for an internal spend going into a customer funded, we will drive the bulk of the most recent change.

其中大部分與該團隊在 IR&D 專案方面獲得的固定資金的增加有關，他們正在航空航天國防領域研究一些相當複雜的技術。我實在無法透露更多細節。但是，研發從 IR&D 的轉變（IR&D 是他們開始的地方，並針對年度計劃將內部支出轉為客戶資助）進行了轉變，我們將推動最近的大部分變革。

Okay. That's great. I appreciate the color. And just one last one for me. I guess, I think, some of what you guys do is shorter cycle business.

好的。那太棒了。我很欣賞它的顏色。對我來說只是最後一件。我想，我認為，你們所做的一些事情是周期較短的業務。

So I'm just wondering, are you just not seeing any negative impact really from this ongoing CR? Could you talk through that with us? Thanks.

所以我只是想知道，您是否真的沒有看到正在進行的 CR 帶來任何負面影響？您能和我們談談嗎？謝謝。

Yeah. So important question, and hopefully we'll have a budget here in the next handful of months. But we're -- to date, we're not really feeling the impact of the CR. We're in such a good backlog position. We've always said we can weather your average 50, 60 days CR, which is kind of the norm and not feel it.

是的。這是一個非常重要的問題，希望我們能在接下來的幾個月內制定預算。但到目前為止，我們還沒有真正感受到 CR 的影響。我們的積壓情況非常好。我們總是說我們可以承受平均 50、60 天的 CR，這是一種常態，但感覺不到。

Now I will say a couple of years ago, when we had the 180 day CR, we did see it because there's no new program starts so there's no IR&D new starts out of our customer base. And that does drive tens of millions of dollars of revenue across the business. So that can start to weigh on this when it goes into that four, five, six month time frame. Hopefully, that won't be the case here. But for now, we're not feeling the impact of that and hence our confidence in our guidance.

現在我要說的是，幾年前，當我們有 180 天的 CR 時，我們確實看到了它，因為沒有新的計劃啟動，所以我們的客戶群中沒有新的 IR&D 啟動。這確實為整個企業帶來了數千萬美元的收入。因此，當進入四個、五個、六個月的時間範圍時，這可能會開始產生影響。希望這裡不會有這種情況。但目前，我們還沒有感受到這種影響，因此我們對我們的指導充滿信心。

Right. Thanks guys.

正確的。謝謝你們。

Thank you.

謝謝。

Myles Walton, Wolf Research.

邁爾斯·沃爾頓，沃爾夫研究中心。

Thanks. Good morning. I was wondering if we could chat a bit about margins, particularly in A&I. And when I had asked, I think, at the Investor Day about the opportunity of margin expansion across the segment, I was surprised when you had answered that A&I would have potentially the largest, which I guess, is what's going to play out here if you hit your implied 20% plus margins in the fourth quarter for A&I. So what's going on there that's allowing that kind of margin uplift? And how sustainable is that going forward?

謝謝。早安.我想知道我們是否可以談談利潤，特別是在 A&I 領域。我想，當我在投資者日問及該部門利潤擴張的機會時，當你回答說 A&I 可能擁有最大的機會時，我感到很驚訝，我想，如果第四季度A&I 的利潤率達到了20 % 以上。那麼，到底發生了什麼事情才導致利潤率出現這種提升呢？未來這種情況的可持續性如何？

Yeah. So I think one of the biggest drivers to that is, as you look across the full year, is really the restructuring, Myles. And what we've invested in there this year, we're going to spend $15 million to get $10 million of annualized savings. And some of that's going to affect the A&I segment. I think the biggest impact will affect the fourth quarter.

是的。因此，我認為最大的推動因素之一是，從全年來看，這實際上是重組，邁爾斯。今年我們在那裡的投資將花費 1500 萬美元，以實現年化 1000 萬美元的節省。其中一些將影響 A&I 領域。我認為最大的影響將影響第四季。

And that will probably be somewhere in the range to that segment in the full year of about $3 million. But we will definitely have a sequential improvement in those savings in Q3 to Q4.

全年該部分的收入可能約為 300 萬美元。但我們肯定會在第三季到第四季的節省方面取得連續改善。

Outside of that, I think as you look at the full year, you're looking at a fairly standard volume absorption, maybe somewhere in the range of about 25%. The business will be investing in and is investing in IR&D this year, and we're expecting just a small headwind there of about $1 million year-over-year. So that's how you would get to the midpoint of the range.

除此之外，我認為當你觀察全年時，你會看到相當標準的成交量吸收，可能在 25% 左右的範圍內。該公司今年將投資並正在投資 IR&D，我們預計這方面的阻力將比去年同期小約 100 萬美元。這就是到達範圍中點的方法。

Okay. And then conversely, I don't think in the history your Defense Electronics has ever had a down fourth quarter sequentially. But obviously, that's what you're implying both for top line and margins. And I hear you on the pull forward I guess the same thing happened in the second quarter has happened here in the third quarter. But is that the case that mix is what's driving the margins back towards where you were in the first quarter?

好的。相反，我認為在歷史上，你們的國防電子公司從未出現過第四季連續下滑的情況。但顯然，這就是您所暗示的營收和利潤率。我聽到你在向前推進，我想第二季發生的同樣的事情也發生在第三季。但這種情況是否是混合因素導致利潤率回到第一季的水平？

And then I guess from a follow-on question, the seasonality you've taken out of this year, should we expect that to continue in '25?

然後我從後續問題中猜想，您今年排除的季節性，我們是否應該期望這種情況在 25 年繼續下去？

Yeah. So we've talked a little bit, earlier this year about the efforts that the organization had been going through to try to level load the work across the business and try to get out of a little bit of this fourth quarter hockey stick that we've existed in for a very long period of time, which was more exaggerated over the past two to three years. And I think the team has made some good successes and certainly solid improvements in the supply chain from the problems that we were experiencing two years ago has helped with the level loading of that work. So I think the team has done a great job in that regard.

是的。因此，今年早些時候，我們已經討論過該組織一直在努力平衡整個企業的工作負載，並試圖擺脫我們第四季度曲棍球棒的影響。我認為團隊已經取得了一些良好的成功，並且從我們兩年前遇到的問題來看，供應鏈確實得到了切實的改進，這有助於提高這項工作的水平。所以我認為團隊在這方面做得很好。

As you approach the fourth quarter, I mean, this really is across defense electronics, unusual for us, as you pointed out, we don't normally have a decline in revenues, but between the pull forwards from Q4 to Q3 to stay ahead of customer expectations while we engage in this restructuring, which is really footprint oriented to execute on that very strong order book and backlog that we've already talked about.

當您接近第四季度時，我的意思是，這確實是整個國防電子產品，這對我們來說不尋常，正如您所指出的，我們的收入通常不會下降，但在從第四季度到第三季的拉動之間保持領先地位在我們進行這次重組時，客戶的期望是真正以足跡為導向的，以執行我們已經討論過的非常強大的訂單和積壓訂單。

That's why you're going to see the reduction. It's certainly not a sign in any way, shape or form that the demand of that business is declining, things are very strong, but we do have to take some steps to make sure that, that the footprint will support that future growth.

這就是為什麼你會看到減少。這當然不會以任何方式、形式或形式表明該業務的需求正在下降，情況非常強勁，但我們確實必須採取一些措施來確保足跡將支持未來的成長。

And as you look at it across defense electronics, you're really going to see it in two areas, you're going to see it not only within the ground defense market in tactical communications and we've had some movements there that we've already talked about earlier this year, but you'll also see it within our aerospace defense markets.

當你在國防電子領域觀察它時，你真的會在兩個領域看到它，你不僅會在戰術通訊的地面防禦市場中看到它，而且我們已經在那裡採取了一些行動。今年早些時候討論過，但您也會在我們的航空航天國防市場中看到它。

And it's just largely, impacting some very profitable portions of our business and some higher margin products within the defense electronics portfolio. So, we are expecting to see, profit -- margins sequentially decline from Q3 to Q4 based upon that pull forward and of work into Q3.

這在很大程度上影響了我們業務中一些非常盈利的部分以及國防電子產品組合中一些利潤率較高的產品。因此，我們預計，基於第三季的提前和工作量，利潤率從第三季到第四季依序下降。

Okay. Yeah. That's crystal clear. Thanks so much.

好的。是的。那是非常清楚的。非常感謝。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

Good morning, everyone.

大家早安。

I'm going to follow up on the defense electronics questions there. Maybe if you could just provide a little more color on what you're doing in restructuring the footprint, how that impacts capacity for growth as you go forward into '25 and '26 where capacity utilization is, kind of what savings you're looking to get out of this?

我將跟進那裡的國防電子問題。也許您可以就您在重組足跡方面所做的事情提供更多信息，當您進入“25”和“26”時，這將如何影響增長能力，產能利用率是多少，您正在尋找什麼節省擺脫這個？

Yeah. So without being overly specific because it's just not something that's (technical difficulty) to be talking about. But regards two of our significant sites, we are preparing for future growth and shaping our footprint globally. In one case, we're changing it on site. And in another case, we're actually preparing for a move to a larger site within Curtiss-Wright where we can leverage space that we have and give them just a better operating footprint to be able to really deliver on the growth that we see coming.

是的。因此，不要過於具體，因為這不是要討論的（技術難度）。但對於我們的兩個重要基地，我們正在為未來的成長做好準備，並塑造我們的全球足跡。在一種情況下，我們正在現場更改它。在另一種情況下，我們實際上正在準備搬到Curtiss-Wright 內的一個更大的地點，在那裡我們可以利用我們擁有的空間並為他們提供更好的營運足跡，以便能夠真正實現我們所看到的增長。

So it's -- I've done a lot of restructuring over the years, and usually, you're just cutting costs. So it's kind of fun to be doing this kind of stuff to prepare for future growth. And this -- we're doing it now in defense electronics, definitely looking across our nuclear -- naval and nuclear group of stuff that will come probably later in the decade, where we will also be -- being required to prepare for some stuff.

所以多年來我進行了大量重組，通常只是削減成本。因此，做這種事情為未來的成長做準備是很有趣的。我們現在正在國防電子領域這樣做，肯定會考慮我們的核 - 海軍和核材料組，這些材料可能會在本十年晚些時候出現，我們也會 - 被要求為一些東西做好準備。

But answering your question about going forward and kind of going back to the other thing Myles asked is, our goal is to continue the level loading that we have achieved this year and to manage the business that way going forward. It's just good all around. You have less overtime. It's good for the employees that it's not crazy around the holidays. I mean, it's just practically a good way to run the business. So that's our goal.

但回答你關於未來的問題並回到邁爾斯問的另一件事是，我們的目標是繼續我們今年所實現的水平負載，並以這種方式管理未來的業務。一切都很好。你的加班時間會少一些。假期期間不瘋狂對員工來說是件好事。我的意思是，這實際上是經營業務的好方法。這就是我們的目標。

Now is it going to be perfect every single year? We'll see. We did it this year. We're going to work on doing it next year. But I can't say that we're never going to have a hockey stick in Q4 again.

現在每年都會完美嗎？我們拭目以待。我們今年做到了。我們明年將努力做到這一點。但我不能說我們在第四季再也不會有曲棍球棒了。

But hopefully it would be very minor if it was given what we've done. Because really, Chris mentioned it with the supply chain, that we really have -- I'd say we're in a better place than we were in 2019 with our supply chain and really been able to -- some of the things we scrambled and did during the pandemic as the world was crumbling underneath us, it felt like, have really left us in a stronger place with better, deeper relationships with our supply chains and different contracting approaches, different agreements with who will hold stock for us. Just a whole variety of new tools and systems that we've implemented. And so -- and that's a big part of being able to control your load in the business. But also your order patterns will obviously affect it. So we see it as a really strong thing for the business.

但如果考慮到我們所做的事情，希望它會很小。因為克里斯在供應鏈方面確實提到了這一點，我想說，我們的供應鏈比 2019 年更好，而且確實能夠做到——我們搞亂了一些事情在大流行期間，當世界在我們腳下崩潰時，這確實讓我們處於更強大的位置，與我們的供應鏈建立了更好、更深入的關係，並採用了不同的合約方式，與誰將為我們持有庫存達成了不同的協議。只是我們實施的各種新工具和系統。所以——這是能夠控制業務負載的一個重要部分。但你的訂單模式顯然也會影響它。所以我們認為這對企業來說是一件非常強大的事。

And then I guess my follow up is going to be around commercial nuclear and the SMRs and specifically on this Amazon announcement. Can you talk about -- I know that X Energy is at the higher end of revenue of the 20 to 100 and 20-plus for you guys. If that all happens on schedule, can you just talk about what kind of revenue that could generate for you? I mean, I know it's we're talking about stuff that happens in the 2030 so it's not going to impact anything near term.

然後我想我的後續行動將圍繞著商業核能和中小型反應堆，特別是亞馬遜的這項聲明。你能談談——我知道 X Energy 的收入對你們來說處於 20 到 100 和 20 以上的高端。如果這一切都照計畫進行，您能談談能為您帶來什麼樣的收入嗎？我的意思是，我知道我們正在談論 2030 年發生的事情，所以它不會對近期產生任何影響。

And then just any kind of indications inside market intelligence that you guys have on what the magnitude of this could be in the 2030s and going forward after that. I mean, I would assume that if that all of this works out, this Amazon announcement could just be the tip of the iceberg rather than the end of the road. So just any comments you can give us on what you know about that market.

然後是市場情報中的任何跡象，表明 2030 年代以及之後的情況可能會有多大。我的意思是，我認為如果所有這一切都順利的話，亞馬遜的這一聲明可能只是冰山一角，而不是道路的盡頭。因此，您可以就您對該市場的了解向我們提供任何評論。

Yeah. So, I mean, it's -- you've heard us talk, and you've heard us talk over the past 6, 12 months that we felt there was going to be a change in market dynamics with these data center providers stepping in to accelerate the deployment of nuclear energy. It's just not geared at the utility companies to move at the pace that these guys need the power. And so just -- I'm sure everybody can do the math.

是的。所以，我的意思是，你們已經聽過我們的談話，並且在過去的6、12 個月裡你們也聽過我們的談話，我們認為隨著這些資料中心提供者的介入，市場動態將會發生變化。它只是不適合公用事業公司按照這些人需要電力的速度移動。所以我相信每個人都能算出來。

But Amazon's announcement which had two parts that was both -- they were the anchor investor in a $500 million capital raise, which is fantastic for them to be able to really just put their nose to the grindstone and drive to the end of this design project. But they -- Amazon announced an intent to bring 5 gigawatts of power on the grid, which would be 15 four-packs. You can do the math of 15 towards -- and I always want to make sure we have the potential, and we're targeting $120 million. This is an ongoing effort with X Energy. We have a great partnership with them, a great working relationship.

但亞馬遜的聲明有兩個部分——他們是 5 億美元融資的主要投資者，這對他們來說真是太棒了，他們能夠真正埋頭苦幹，推動這個設計項目的結束。但亞馬遜宣布有意向電網提供 5 吉瓦的電力，即 15 個四組電池。你可以用 15 來計算——我總是想確保我們有潛力，我們的目標是 1.2 億美元。這是 X Energy 的持續努力。我們與他們有著良好的合作關係和良好的工作關係。

But as we've said in the years past, with Westinghouse, we put our nose to the grindstone, deliver to our customers and work to earn our right to be their supplier every day. And we don't get ahead of that, and that's the same attitude we're taking here.

但正如我們在過去幾年中所說的那樣，我們與西屋電氣一起埋頭苦幹，為客戶提供服務，並每天努力贏得成為他們供應商的權利。我們不會超前，這也是我們在這裡採取的態度。

But yeah, I do think -- another thing that didn't get as much talked about, but also in the Amazon announcement was they signed an MOU with Dominion to help advance and bring an SMR online in Virginia. And so they haven't declared which one that is, but it's just another indication that this is continuing to grow. And hear buzz of other announcements that could be coming, we haven't heard from all the big AI consumers yet. So whether there'll be announcements yet this year from some of those, I mean, we'll see.

但是，是的，我確實認為 - 另一件沒有得到太多討論的事情，但也在亞馬遜的公告中，他們與 Dominion 簽署了一份諒解備忘錄，以幫助推進並在弗吉尼亞州推出 SMR 在線服務。所以他們還沒有宣布是哪一個，但這只是另一個跡象表明這一數字正在繼續增長。並聽到有關可能即將發布的其他公告的嗡嗡聲，我們還沒有收到所有大型人工智慧消費者的消息。因此，我的意思是，今年是否會有其中一些公司發佈公告，我們拭目以待。

But I mean, when I think of what we tried to do in our Investor Day that Chris did at the end of his section, we put up the art of the possible where we see these -- our revenues in nuclear growing, doubling into '28 and $1.5 billion annualized revenue by the middle of next decade, I don't think any of it -- we're not going to change any of these.

但我的意思是，當我想到我們在投資者日試圖做的事情時，克里斯在他的部分結束時所做的事情，我們在看到這些的地方展示了可能性的藝術——我們在核能方面的收入成長，翻倍成「 28 和到下一個十年中期年化收入達到 15 億美元，我認為這些都不會改變——我們不會改變任何這些。

But they sure help to provide proof points that things are going on in the industry that make those very highly probable targets that we're going to be able to achieve those types of numbers out of our commercial nuclear business. So we're working hard with the customers that we have and working to win more business and looking at our capacity plans and preparing for -- to be a great supplier to these SMR providers.

但它們確實有助於提供證據，證明該行業正在發生的事情使這些目標非常有可能實現，我們將能夠從我們的商業核能業務中實現這些類型的數字。因此，我們正在與現有客戶努力合作，努力贏得更多業務，並研究我們的產能計劃並做好準備，成為這些 SMR 供應商的優秀供應商。

Thanks very much for taking my questions.

非常感謝您回答我的問題。

Thank you.

謝謝。

Mike Ciarmoli, Truist.

麥克·恰莫利，真理主義者。

Hey, good morning guys. Thanks for taking the question. Nice result. Maybe just to stay on that topic when Lynn, you threw out, obviously, nothing changing with the targets. Can you maybe -- if we start to really see an acceleration in these plant life extensions and maybe we even see more of these restarts of older plants.

嘿，早上好，夥計們。感謝您提出問題。不錯的結果。也許只是為了留在這個話題上，當林恩，你拋出了，顯然，目標沒有改變。如果我們開始真正看到這些植物壽命的延長，也許我們甚至會看到更多舊植物的重新啟動，你可以嗎？

Can you guys help us quantify what types of revenues you might see? I mean, are there material differences from a restart if -- I don't think you have a lot of exposure on like fuel loading and reloading, but anything you can help us with it seems to be a common question we're getting from investors.

你們能幫助我們量化你們可能會看到哪些類型的收入嗎？我的意思是，與重新啟動是否存在重大差異，如果 - 我認為您對燃油裝載和重新裝載等方面沒有太多了解，但您可以幫助我們的任何事情似乎都是我們收到的常見問題投資者。

Yeah, so, I know we talked as a as a group and -- I mean, I don't -- our personal guess is there's not going to be like tens and tens more restarts because a lot of the plants are just too far into the shutdown that it's not going to be practical, but there could be others. And I know -- I've even seen some estimates of what people think specifically the Unit one at Three Mile Island will mean for Curtiss-Wright. And it's definitely meaningful business. But I'd say when we think of again, from our Investor Day, we talked about a $7 billion market through now to 2050.

是的，所以，我知道我們作為一個團隊進行了交談，而且 - 我的意思是，我不 - 我們個人的猜測是，不會有數十次重新啟動，因為很多工廠都太遠了政府關門是不切實際的，但可能還有其他的方法。我知道——我甚至看到了一些人們對三哩島第一單元對柯蒂斯-賴特意味著什麼的估計。這絕對是一項有意義的生意。但我想說的是，當我們再次想起投資者日時，我們談到了從現在到 2050 年的 70 億美元市場。

I think these things all support that estimate of the market, I don't think we would consider it needs to be additive to that target. That's a pretty big number of potential market that we have the ability to go target and sell into. So -- and again, we really have not given like a dollar figure for a plant life extension or a restart. I think you can say a restart would be greater than your typical plant life extension. Because as we know, they didn't do a lot of maintenance at the end and then things age when they're sitting there.

我認為這些事情都支持對市場的估計，我認為我們不會認為它需要補充到該目標。這是一個相當大的潛在市場，我們有能力瞄準並銷售這些市場。所以，再說一遍，我們確實沒有為延長工廠壽命或重新啟動提供類似的美元金額。我想你可以說重新啟動比典型的工廠壽命延長更有效。因為正如我們所知，他們最終沒有進行大量維護，然後當他們坐在那裡時，東西就會老化。

So that is better even than a plant life extension for us. But what we get out of a plant life extension per plant can really vary quite widely from $10 million-plus some to significantly more than that if they choose to do major upgrades like go from analog to digital and do different things like that. So we've shied away from giving like an expectation of what each plant will drive in revenues to Curtiss-Wright as they do these plant life extensions.

因此，這對我們來說甚至比延長植物壽命更好。但是，如果他們選擇進行重大升級（例如從模擬到數位）並做類似的不同事情，那麼我們從每株植物的植物壽命延長中獲得的收益確實可能相差很大，從1000 萬美元到1000 萬美元以上，甚至遠遠超過這個數字。因此，當柯蒂斯-賴特公司進行這些工廠壽命延長時，我們避免對每家工廠將帶來的收入做出預期。

Got it. And then just on the, maybe any sort of movement or update on the AP1000. And I know, Westinghouse you guys talked about that MOU and I guess, does that change -- materially change the opportunity for you at all? I mean, I guess Canadas been CANDU reactors forever and I think they passed on AP1000 and in 2011 or so, is anything -- is there any real movement there for Canada to deviate from the CANDU?

知道了。然後就是 AP1000 上的任何類型的移動或更新。我知道，西屋電氣你們談論了這份諒解備忘錄，我想，這會改變──實質地改變你們的機會嗎？我的意思是，我猜加拿大永遠都是 CANDU 反應堆，我認為他們在 2011 年左右就通過了 AP1000，有什麼——加拿大是否有任何真正的行動來偏離 CANDU？

I'd say it's too early for us to say that. We don't really have anything specific from Westinghouse. We always have -- and we continue to have ongoing marketing meetings with Westinghouse and look at opportunities. And they consider it a real opportunity. But I think their bigger focus still is the 20 to 25 potential plants in Eastern Europe.

我想說現在說這個還太早。我們確實沒有西屋電氣的任何具體資訊。我們一直並且繼續與西屋電氣舉行持續的營銷會議並尋找機會。他們認為這是一個真正的機會。但我認為他們更關注的仍然是東歐 20 到 25 個潛在工廠。

And there hasn't been a lot of new news around Westinghouse. In October, in Bulgaria, they extended their FEED study, so continuing to work through that. And in September, the Polish government committed to a significant investment of $15.7 billion into the first nuclear plant. So those are all just positive things reinforcing the places where Westinghouse believes they're going to win, and we believe they're going to win based on what we can see. And I think we really just have to wait and see in Canada.

西屋電氣並沒有太多新消息。10 月，他們在保加利亞擴展了 FEED 研究，並繼續工作。9月，波蘭政府承諾對第一座核電廠投資157億美元。因此，這些都是積極的事情，增強了西屋電氣相信他們將獲勝的地方，我們相信他們將根據我們所看到的情況獲勝。我認為我們真的只能在加拿大拭目以待。

And kind of if you think back to that chart we put in our Investor Day that showed kind of the flow of what the activity is that leads to when we get orders, I would say there is the first gate, which is political strategy and engagement. And so it's early days with Canada.

如果你回想一下我們在投資者日放置的圖表，該圖表顯示了當我們收到訂單時活動的流程，我會說有第一道門，即政治策略和參與。因此，加拿大的發展仍處於早期階段。

The only other thing I'll say about that, Mike, that I think is a little bit interesting, right, as you look at the agreement that was structured, it is just it's Westinghouse working to kind of shore up the Canadian footprint and work that would actually end up being performed within Canada. And that's valuable at this point in time of this engagement.

麥克，我要說的唯一另一件事是，我認為有點有趣，對吧，當你看看所製定的協議時，這只是西屋公司在努力支持加拿大的足跡和工作這實際上最終將在加拿大境內進行。在這次接觸的這個時刻，這是有價值的。

And then the other thing that I would add is that Westinghouse is now owned by Cameco , which is a Canadian company. So I think the dynamics are shifting there a little bit, but it's still really in the early days.

我要補充的另一件事是，西屋公司現在由加拿大公司 Cameco 擁有。因此，我認為動態正在發生一些變化，但仍處於早期階段。

Got it. Perfect. Thanks guys.

知道了。完美的。謝謝你們。

Thanks Mike.

謝謝邁克。

Kristine Liwag, Morgan Stanley.

克莉絲汀‧利瓦格，摩根士丹利。

Hi, this is Justin on for Kristine this morning. Thanks for taking the questions.

大家好，我是賈斯汀，今天早上為克莉絲汀代言。感謝您提出問題。

Hey Justin.

嘿賈斯汀。

HI. Maybe just one on the upcoming elections here and maybe we can get your thoughts on just how you're thinking about any potential risk, I guess both to the defense business and to the commercial nuclear outlook.

你好。也許只是關於即將到來的選舉的一件事，也許我們可以了解您如何看待任何潛在風險，我想無論是對國防業務還是對商業核前景。

So those are the two places that people probe at. And I think the good thing is I think the support for the defense spending and us regaining commercial nuclear leadership has really had a very strong bipartisan nature to it over the past many years, not just through this administration but the prior administration. And kind of harkening back and remind people the ARDP program actually started back under the Trump Presidency with the stated goal of regaining nuclear leadership globally as an important thing for the United States.

這就是人們探究的兩個地方。我認為好處是，我認為過去多年來對國防開支和我們重新獲得商業核領導地位的支持確實具有非常強烈的兩黨性質，不僅透過本屆政府，而且透過前政府。回顧並提醒人們，ARDP 計畫實際上是在川普總統任期內啟動的，其既定目標是重新獲得全球核領導地位，這對美國來說是一件重要的事情。

And so I think we will see broad stability regardless of who sits at the top of the ticket. And then maybe even more importantly, throughout Congress, when you look at how like things like the Advance Act even passed, that it was extremely bipartisan. And so I think it's been demonstrated that this momentum is happening.

因此，我認為，無論誰位居榜首，我們都將看到廣泛的穩定性。然後也許更重要的是，在整個國會，當你看看像《前進法案》這樣的事情是如何通過的時候，你會發現它是非常兩黨合作的。所以我認為已經證明這種勢頭正在發生。

And clearly, the world feels ever every day, almost like a less safe place, so I don't see anybody really going in and trying to disrupt the defense spending. And there isn't big increases planned, quite frankly, over the next couple of years. I mean, we're talking some modest increases off of a great base, and we had some really big increases over recent years.

顯然，世界每天都感覺像是一個不太安全的地方，所以我沒有看到有人真正介入並試圖擾亂國防開支。坦白說，未來幾年並沒有計劃大幅增加。我的意思是，我們正在談論在良好基礎上的一些適度增長，並且近年來我們有一些非常大的增長。

So it's not like it's intended to go up another 5% or 10% as we saw over the past couple of years. So I feel good about that. There are obviously some other things out there. There's various things with potential tariffs and potential changes to the tax code. But there's a lot of road between here and there to see if any of that comes to fruition. So I wouldn't even begin to speculate on any of that.

因此，它並不打算像我們過去幾年看到的那樣再上漲 5% 或 10%。所以我對此感覺很好。顯然還有其他一些事情。潛在關稅和稅法可能改變的因素有很多。但這裡和那裡之間還有很長的路要走，看看這些是否能實現。所以我什至不會開始猜測這些。

But between support here in the US for defense spending and the ongoing increase of the NATO countries, two thirds of them now spending their 2% or above, maybe even a little higher than that. And ongoing commitments there and our footprint there, I think, makes the outlook for our ability to grow our business very strong. And we don't really feel it will be impacted. Of course, we've got to stay tuned with it and react as things play out. But it's not a big concern, to be frank.

但在美國對國防開支的支持和北約國家不斷增加的開支之間，三分之二的國家現在的開支達到了2%或以上，甚至可能比這個數字還要高一點。我認為，我們在那裡的持續承諾和足跡使我們發展業務的能力前景非常強勁。我們並不認為它會受到影響。當然，我們必須保持關注並根據事情的發展做出反應。但坦白說，這並不是一個大問題。

Okay. Great. That's helpful. And then maybe if I could sneak one more in, just on M&A. You're talking capital deployment at the top of the call.

好的。偉大的。這很有幫助。然後也許我可以再偷偷地加入一次，就併購而言。您在電話會議的頂部談論了資本部署。

Maybe just if you could provide an update on how the pipeline is shaping up. We've heard from a number of A&D peers that activity has picked up in the last few months. So just curious if that tracks with what you're seeing out there.

如果您能提供有關管道如何形成的最新信息，也許就可以了。我們從許多 A&D 同行那裡得知，過去幾個月的活動有所回升。所以只是好奇這是否與你所看到的相符。

Yes, I would say it does. There's been a pretty good flow of businesses. Obviously our main focus right now is getting Ultra closed. We don't see any concern about that happening. It's just sort of, I think, caught up in the change of administration over in the UK, and things didn't go as quickly as one might have anticipated or we anticipated.

是的，我會說確實如此。生意往來相當不錯。顯然我們現在的主要焦點是讓 Ultra 關閉。我們認為沒有人擔心這種情況的發生。我認為，這只是受到了英國政府更迭的影響，事情並沒有像人們預期或我們預期的那樣發展得那麼快。

But hopefully, we'll have that deal closed here in the fourth quarter. And we're really excited about what it's going to bring to Curtiss-Wright, talked about that in our prepared remarks. But the pipeline is good. We did some share repurchase, but we have capital. And maybe I'll let Chris comment a bit more on what -- how we might think about that going forward.

但希望我們能在第四季完成這筆交易。我們對它將為柯蒂斯賴特帶來什麼感到非常興奮，在我們準備好的演講中談到了這一點。但管道很好。我們回購了一些股票，但我們有資金。也許我會讓克里斯多評論一下我們未來如何考慮這一點。

Yeah. Thanks, Lynn. Yes, I love talking about the balance sheet and where we are for sure. It's -- at the end of the third quarter, we had $440 million of cash on hand, and that was after the closure of the $100 million share buyback. Now we're going to close on Ultra Energy here in the fourth quarter, and that will be $200 million against that balance. But we're also planning to generate another $200 million.

是的。謝謝，林恩。是的，我喜歡談論資產負債表以及我們的具體情況。截至第三季末，我們手頭上有 4.4 億美元現金，這是在 1 億美元股票回購結束之後。現在，我們將在第四季度完成 Ultra Energy 項目，該餘額將達到 2 億美元。但我們也計劃再籌集 2 億美元。

So I think at the end of the year, we're likely going to finish with $400 million of cash on hand. Roughly half of that will be tied up in foreign. We'll have a clear revolver. We're really well positioned as we enter into this next year and look at some of these other properties that are on the horizon, to seize them when the opportunity is right. So we're in a good spot on the balance sheet.

所以我認為到今年年底，我們手頭上的現金可能會達到 4 億美元。其中大約一半將與外國業務相關。我們會有一把透明的左輪手槍。當我們明年進入這一領域時，我們確實處於有利位置，並著眼於即將出現的其他一些房產，以便在機會合適時抓住它們。因此，我們的資產負債表處於有利位置。

Great. Thank you both.

偉大的。謝謝你們倆。

(Operator Instructions)

（操作員說明）

Bryce Sandberg, William Blair.

布萊斯桑德伯格、威廉布萊爾。

Lynn, Chris and Jim, good morning and nice quarter.

林恩、克里斯和吉姆，早安，美好的季度。

Thank you.

謝謝。

Good morning.

早安.

Another one on the SMR opportunity. You have partnerships with NuScale, X Energy and TerraPower. If you look at the pipeline for new partnerships, when would you expect more partnerships to potentially be announced? And when would you expect the designs for those SMRs to be finalized?

另一篇關於 SMR 機會的文章。您與 NuScale、X Energy 和 TerraPower 建立了合作夥伴關係。如果您查看新合作夥伴關係的管道，您預計何時會宣布更多合作夥伴關係？您預計這些中小型反應器的設計何時能最終確定？

So I mean, there's some -- I think we'll have new partnerships, like formal partnerships announced in the next 3 to 6 months. But these are complicated situations so I might be not fulfilling that commitment. But knowing where we are engaged with some of the other major suppliers, I would think that that could be a reasonable timeline. But we'll see. We have to let these things play out as the companies work through what works for both companies.

所以我的意思是，我認為我們將建立新的合作關係，例如在未來 3 到 6 個月內宣布的正式合作夥伴關係。但情況很複雜，所以我可能無法履行這項承諾。但在了解我們與其他一些主要供應商的合作情況後，我認為這可能是合理的時間表。但我們會看到。我們必須讓這些事情在兩家公司努力解決對兩家公司都有利的事情時發揮作用。

So I think it seems like everybody is targeting, trying to get their initial SMR producing power by 2030, 2031, 2032. And with that, really across these opportunities, all are still in the design phase. And I think in the next one, two, three years, those design phases will move to prototyping, which should mean the designs are largely finished, but that's why you prototype, but sometimes you change things after your prototype. But I think it will be in this decade, and I realize that might seem like a long time. But I think they'll be substantially done after we turn into the back half of this decade.

所以我認為似乎每個人都在努力在 2030 年、2031 年、2032 年之前獲得最初的 SMR 生產能力。因此，實際上所有這些機會都仍處於設計階段。我認為在接下來的一年、兩年、三年內，這些設計階段將轉向原型設計，這應該意味著設計已基本完成，但這就是您進行原型設計的原因，但有時您會在原型設計後更改一些內容。但我認為這將是在這十年內，而且我意識到這可能看起來很長一段時間。但我認為，在進入本世紀後半葉後，這些工作將基本完成。

So the company is to move on to prototyping, then their ultimate first deployments.

因此，該公司將繼續進行原型設計，然後進行最終的首次部署。

Great. Thanks Lynn. That's all from me.

偉大的。謝謝林恩。這就是我的全部。

Thank you.

謝謝。

Tony Bancroft, Gabelli Funds.

東尼班克羅夫特，Gabelli 基金。

Good morning, Lynn and Chris and the Jim. A great job. You've obviously done an excellent job here, Lynn, with your leadership. Balance sheet is strong, strong growth outlook looking ahead. You just mentioned that the pipeline is looking strong as well. Has your view changed at all potentially doing something more transformational?

早上好，琳恩、克里斯和吉姆。幹得好。林恩，你的領導能力顯然非常出色。資產負債表強勁，未來成長前景強勁。您剛才提到管道看起來也很強大。您的觀點是否發生了根本性改變，可能會做一些更具變革性的事情？

You obviously just have a great backdrop here and there's obviously a lot of acquisition potential out there, maybe in the public space or something else, maybe outside your wheelhouse. Does it make sense? Maybe you could talk through the logic there? Thank you. Great job.

顯然，你在這裡有一個很好的背景，而且那裡顯然有很多收購潛力，也許是在公共空間或其他地方，也許是在你的駕駛室之外。有道理嗎？也許你可以談談那裡的邏輯？謝謝。幹得好。

Thank you for that and thank you for the comments. We've said consistently for four years that we are open to doing acquisitions that are more significant than anything we have executed on so far. And for those maybe just not familiar, our largest acquisition was, PacStar back in the end of 2020 which is you hear us talk about our tactical communications, often as a tailwind for us and that's mostly their equipment. So that's been great and we look at larger acquisitions.

謝謝你的意見，也謝謝你的評論。四年來我們一直表示，我們願意進行比我們迄今為止所執行的任何收購都更重要的收購。對於那些可能不熟悉的人來說，我們最大的收購是 2020 年底的 PacStar，你會聽到我們談論我們的戰術通信，這通常是我們的順風車，而這主要是他們的設備。所以這很棒，我們正在考慮更大的收購。

I mean I will say, I never like to say our risk tolerance changes because the bar is just high. We have to have clean line of sight for how we will integrate them, how they will be able to take advantage of who Curtiss-Wright is.

我的意思是，我想說，我從來不喜歡說我們的風險承受能力發生變化，因為門檻很高。我們必須對如何整合他們、他們如何利用柯蒂斯-賴特的身份有清晰的認識。

But I also look at the team's bandwidth and the growth that is coming from the opportunities we have for us. And I don't want to become spreadsheet thin from a management standpoint. And so at some point that does play into how you think about, what you might consider, but we're going to continue looking at them and consider and then put that imbalance of the growth that we're experiencing in the commercial nuclear market, low double digits this year, the growth we're experiencing in defense electronics in places where we'd like to acquire to make sure if we do something, we have the bandwidth to absorb it while other great things are going on.

但我也會關注團隊的頻寬以及來自我們擁有的機會的成長。從管理的角度來看，我不想讓電子表格變得單薄。因此，在某些時候，這確實會影響你的想法，你可能會考慮什麼，但我們將繼續關注它們並考慮，然後考慮我們在商業核市場中經歷的增長不平衡，今年，我們在國防電子領域經歷了低兩位數的成長，在我們想要收購的地方，以確保如果我們做某事，我們有足夠的頻寬來吸收它，同時其他偉大的事情正在發生。

So I would say that maybe is, put a shade of change in how I think about things, but I would still say it's on the table. We're doing something larger than we've done to date.

所以我想說，也許是，改變我對事物的看法，但我仍然會說它是在桌面上的。我們正在做一些比迄今為止所做的更大的事情。

Thanks so much. Great job, Lynn.

非常感謝。幹得好，林恩。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you. At this time, I show no further questions in queue. I will turn the floor back to Lynn Bamford for any additional or closing remarks.

謝謝。此時，我在隊列中沒有顯示任何其他問題。我將請林恩·班福德 (Lynn Bamford) 發表任何補充或結束語。

Thank you everyone for joining us today and we look forward to speaking to you in February with our full year results.

感謝大家今天加入我們，我們期待在二月與您交談我們的全年業績。

Thank you. This concludes today's Curtiss-Wright earnings conference call. Please disconnect your line at this time and have a wonderful day.

謝謝。今天的柯蒂斯-賴特收益電話會議到此結束。請此時斷開您的線路，祝您有美好的一天。