Ducommun Inc (DCO) 2024 Q2 法說會逐字稿

Good day, everyone, and thank you for standing by. Welcome to the Second Quarter 2024 Ducommun Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好，感謝你們的支持。歡迎參加 Ducommun 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

Now I will pass the call over to Ducommun's Senior Vice President and Chief Financial Officer, Suman Mookerji. Please go ahead.

現在我將電話轉給 Ducommun 的高級副總裁兼財務長 Suman Mookerji。請繼續。

Thank you, and welcome to Ducommun's 2024 Second Quarter Conference Call. With me today is Steve Oswald, Chairman, President and CEO.

謝謝，歡迎參加 Ducommun 2024 年第二季電話會議。今天與我在一起的是董事長、總裁兼執行長史蒂夫奧斯瓦爾德 (Steve Oswald)。

I'm going to discuss certain limitations to any forward-looking statements regarding future events, projections or performance that we may make during the prepared remarks or the Q&A session that follows. Certain statements today that are not historical facts, including any statements as to future market conditions, results of operations and financial projections are forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are therefore prospective.

我將討論我們在準備好的發言或隨後的問答環節中可能做出的有關未來事件、預測或業績的任何前瞻性陳述的某些限制。今天的某些非歷史事實的陳述，包括有關未來市場狀況、經營業績和財務預測的任何陳述，均屬於 1995 年《私人證券訴訟改革法案》規定的前瞻性陳述，因此具有前瞻性。

These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from the future results expressed or implied by such forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. In addition, estimates of future operating results are based on the company's current business, which is subject to change.

這些前瞻性陳述受到風險、不確定性和其他因素的影響，可能導致實際結果與此類前瞻性陳述明示或暗示的未來結果有重大差異。儘管我們認為前瞻性聲明中反映的預期是合理的，但我們不能保證此類預期將被證明是正確的。此外，對未來經營績效的估計是基於公司目前的業務，可能會發生變化。

Particular risks facing Ducommun include, amongst others, the cyclicality of our end-use markets; the level of US government defense spending; our customers may experience delays in the launch and certification of new products; timing of orders from our customers; legal and regulatory risks; the cost of expansion and acquisitions; competition; economic and geopolitical developments, including supply chain issues and rising or high interest rates; the ability to attract and retain key personnel and avoid labor disruptions; the ability to adequately protect and enforce intellectual property rights; pandemics; disasters, natural or otherwise; and risk of cybersecurity attacks.

Ducommun 面臨的特殊風險包括我們的最終用途市場的周期性；美國政府國防開支水準；我們的客戶可能會遇到新產品推出和認證方面的延遲；客戶訂單的時間表；法律和監管風險；擴張和收購的成本；競賽;經濟和地緣政治發展，包括供應鏈問題以及利率上升或高點；吸引和留住關鍵人員並避免勞動力中斷的能力；充分保護及執行智慧財產權的能力；流行病；自然災害或其他災害；以及網路安全攻擊的風險。

Please refer to our annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed from time-to-time with the SEC, as well as the press release issued today for a detailed discussion of the risks. Our forward-looking statements are subject to those risks. Statements made during this call are only as of the time made and we do not intend to update any statements made in this presentation, except if and as required by regulatory authorities.

請參閱我們的 10-K 表格年度報告、10-Q 表格季度報告以及不時向 SEC 提交的其他報告，以及今天發布的新聞稿，以了解有關風險的詳細討論。我們的前瞻性陳述面臨這些風險。本次電話會議期間發表的聲明僅截至當時的情況，我們不打算更新本簡報中的任何聲明，除非監管機構要求。

This call also includes non-GAAP financial measures. Please refer to our filings with the SEC for a reconciliation of the GAAP to non-GAAP measures referenced on this call. We filed our Q2 2024 quarterly report on Form 10-Q with the SEC today.

此電話會議還包括非公認會計準則財務指標。請參閱我們向 SEC 提交的文件，以了解本次電話會議中引用的 GAAP 與非 GAAP 措施的調整表。我們今天向 SEC 提交了 10-Q 表格形式的 2024 年第二季季度報告。

I would now like to turn the call over to Steve Oswald for a review of the operating results. Steve?

我現在想將電話轉給史蒂夫奧斯瓦爾德（Steve Oswald），以審查營運結果。史蒂夫？

Okay. Thank you, Suman. Thanks, everyone, for joining us today for our second quarter conference call. Today, and as usual, I'll give an update on the current situation of the company. Afterwards, Suman will review our financials in detail.

好的。謝謝你，蘇曼。感謝大家今天參加我們的第二季電話會議。今天，像往常一樣，我將介紹公司目前的最新情況。之後，Suman 將詳細審查我們的財務狀況。

Let me first start off this quarterly call with Ducommun's Vision 2027 game plan for investors. Strategy and vision were developed coming out of the COVID pandemic over the summer and fall of 2022, unanimously approved by the Ducommun Board in November of 2022 and then presented to investors the following month in New York, where we got excellent feedback.

讓我先以 Ducommun 為投資者制定的 2027 年願景遊戲計畫開始本次季度電話會議。策略和願景是根據 2022 年夏季和秋季的新冠疫情制定的，並於 2022 年 11 月獲得 Ducommun 董事會的一致批准，然後於次月在紐約向投資者提交，我們在那裡得到了極好的反饋。

Since that time, Ducommun's management has been executing the Vision 2027 strategy by consolidating its facility or rooftop footprint, increasing the revenue percentage of engineered products and aftermarket content, continuing its targeted acquisition program, executing our offloading strategy with defense primes in high-growth segments of the defense budget, and by expanding content on key commercial aerospace platforms.

從那時起，Ducommun 的管理層一直在執行「2027 年願景」策略，透過整合其設施或​​屋頂足跡、提高工程產品和售後市場內容的收入百分比、繼續其有針對性的收購計劃、在高增長領域執行我們的國防主力卸載戰略國防預算，並擴大關鍵商業航空航天平台的內容。

All of us here have a high level of conviction in the Vision 2027 strategy and financial goals and believe the many catalysts ahead present a unique value creation opportunity for shareholders. The Q2 2024 results are also a very good example of our strategy working.

我們所有人都對 2027 年願景策略和財務目標充滿信心，並相信未來的眾多催化劑將為股東提供獨特的價值創造機會。2024 年第二季的業績也是我們策略發揮作用的一個很好的例子。

Q2 was a record revenue and gross margin quarter, follows up the strong start we experienced in the first quarter. Revenues were $197 million, growing 5.2% over the prior year, and this is our fourth consecutive quarter with revenues exceeding $190 million. Strong growth in our commercial aircraft business across Boeing, Airbus and business jets helped drive revenue during the quarter.

繼第一季強勁開局之後，第二季的營收和毛利率創歷史新高。營收為 1.97 億美元，比上年成長 5.2%，這是我們連續第四個季度營收超過 1.9 億美元。波音、空中巴士和公務機等商用飛機業務的強勁成長推動了本季的營收成長。

We saw significant growth on the A220 program, where we make the skins for the entire fuselage, along with good growth in twin-aisle platforms as well. Business jet revenues were higher, driven by work we do for Gulfstream. We also saw an increase in our commercial revenue as we build buffer stock to support the Monrovia facility closure and transfer it to DCO's Guaymas, Mexico operation. Q2 was also supported by us building a higher production rate than SPR and BA to allow for efficiencies, workforce retention and level loading of our production.

我們看到 A220 專案的顯著成長，我們為整個機身製造蒙皮，同時雙通道平台也取得了良好的成長。公務機收入增加，這得歸功於我們為灣流所做的工作。隨著我們建立緩衝庫存以支持蒙羅維亞工廠的關閉並將其轉移到 DCO 的墨西哥瓜伊馬斯工廠，我們的商業收入也有所增加。第二季也得到了我們的支持，我們建立了比 SPR 和 BA 更高的生產力，以提高生產效率、保留勞動力和水平負載。

Overall, commercial aerospace was up 13% from Q2 2023. We have now grown year-over-year revenue in our commercial aerospace business for 12 consecutive quarters, demonstrating the resilience of our business even in a challenging OEM environment with SPR and BA.

整體而言，商業航空航太業務較 2023 年第二季成長了 13%。目前，我們的商業航空航太業務收入已連續 12 個季度實現同比增長，這證明了即使在 SPR 和 BA 充滿挑戰的 OEM 環境中，我們的業務仍具有彈性。

The other good news for DCO's commercial aerospace business is the fuselage skin project for the 737 MAX at Spirit, which we have been working on. We now anticipate having the FAI approved in September and shipping the first production set in October. 2025 revenue for the four skins should be over $3.5 million at 15 ship sets a month. Keep in mind this is less than 10% of the fuselage. So stay tuned for more news as we move forward and gain more program share.

對於 DCO 商業航空業務來說，另一個好消息是 Spirit 的 737 MAX 機身蒙皮項目，我們一直在致力於這個項目。我們現在預計 FAI 將在 9 月獲得批准，並在 10 月交付第一套生產設備。以每月 15 套船計算，到 2025 年，這四種皮膚的收入應該會超過 350 萬美元。請記住，這不到機身的 10%。因此，隨著我們的前進並獲得更多的計劃份額，請繼續關注更多新聞。

Our defense business grew 3% year-over-year with strong demand for the F-15, Blackhawk and radar platform, as well as selective naval submarine programs. Growth was partially offset by declines in programs such as the JSF, F-18, which we have discussed in the past, and the F-16.

由於對 F-15、黑鷹和雷達平台以及選擇性海軍潛艇項目的強勁需求，我們的國防業務同比增長 3%。JSF、F-18（我們過去討論過）和 F-16 等項目的下降部分抵消了成長。

A pause in the TOW missile production contributed as well, but we now have a new PO from RTX, anticipate starting shipments again in July 2025 from Guaymas, Mexico. Defense business was $100 million in revenue for the third time in the last four quarters, and we remain optimistic about the growth ahead.

TOW 飛彈生產的暫停也造成了影響，但我們現在收到了來自 RTX 的新訂單，預計將於 2025 年 7 月再次從墨西哥瓜伊馬斯開始發貨。國防業務的收入在過去四個季度中第三次達到 1 億美元，我們對未來的成長保持樂觀。

On offloading from RTX, our SPY-6 radar circuit card business grew over 100% from Q3 last year, tracking now for over $10 million in revenue in 2024 for just one CCA. We have the next card for the SPY-6 program in process and that will be in production next year.

從 RTX 卸載後，我們的 SPY-6 雷達電路卡業務比去年第三季度增長了 100% 以上，目前追蹤到 2024 年僅一個 CCA 的收入就超過 1000 萬美元。我們正在製作 SPY-6 項目的下一張卡片，並將於明年投入生產。

Another record highlight in Q2 was gross margin of 26% for the quarter, up 460 bps year-over-year from 21.4% and 140 bps compared to the first quarter as we continue to realize benefits from our strategic value pricing initiatives, productivity improvements, favorable product mix, growing engineered product portfolio with aftermarket, and initial restructuring savings.

第二季的另一個創紀錄亮點是該季度的毛利率為26%，比去年同期的21.4% 成長了460 個基點，與第一季相比成長了140 個基點，因為我們繼續從策略價值定價計劃、生產力提高、有利的產品組合、不斷增長的售後工程產品組合以及初始重組節省。

In addition, our Berryville, Arkansas facility is now down to less than 10 people to maintain capability on single platforms until the receiving plant is certified. Our Monrovia, California facility also significantly reduced headcount this month, with most production activities shut down, and the team is down to less than 20 employees. The Monrovia plant will be fully closed by the end of September. We will see the cost savings of these moves as the receiving plants ramp up production in 2025. So stay tuned.

此外，我們位於阿肯色州貝裡維爾的工廠目前已減少至不到 10 名員工，以維持單一平台的能力，直到接收工廠獲得認證。我們位於加州蒙羅維亞的工廠本月也大幅減少了員工人數，大部分生產活動都關閉，團隊人數減少到不到 20 名。蒙羅維亞工廠將於九月底完全關閉。隨著接收工廠在 2025 年提高產量，我們將看到這些措施所節省的成本。所以請繼續關注。

For adjusted operating income margin in Q2, the team delivered 10.1%, a record performance and well ahead of the 8.1% number in Q2 2023. This is a great result, driven, again, by the continued growth in our engineered product businesses, favorable product mix, impact of our strategic pricing initiatives, and our restructuring savings beginning to kick in during the quarter.

對於第二季調整後的營業利潤率，該團隊實現了 10.1%，創歷史新高，遠高於 2023 年第二季的 8.1%。這是一個很好的結果，再次受到我們工程產品業務的持續成長、有利的產品組合、我們的策略定價計劃的影響以及我們在本季度開始發揮作用的重組節省的推動。

Adjusted EBITDA was another great story in Q2, hitting $30 million for the first time, a big deal, while expanding a robust 130 basis points to 15.2% of revenue compared to 13.9% in Q2 2023. This all provides momentum along with the Q1 results as we work towards the 18% goal in our Vision 2027 plan.

調整後 EBITDA 是第二季度的另一個精彩故事，首次達到 3000 萬美元，這是一件大事，同時強勁增長了 130 個基點，佔收入的 15.2%，而 2023 年第二季度為 13.9%。這一切都與第一季的業績一起為我們努力實現 2027 年願景計畫中 18% 的目標提供了動力。

The GAAP diluted EPS was $0.52 a share in Q2 2024 versus $0.17 a share for Q2 2023. And with adjustments, diluted EPS was an impressive $0.83 a share compared to diluted EPS of $0.54 in the prior year quarter. The higher gap in adjusted diluted EPS was driven by improved operating income as well as lower interest costs due to our hedging strategy during the quarter.

2024 年第二季 GAAP 攤薄後每股收益為 0.52 美元，而 2023 年第二季為每股 0.17 美元。經過調整後，稀釋後每股收益達到令人印象深刻的 0.83 美元，而去年同期稀釋後每股收益為 0.54 美元。調整後攤薄每股收益的較大差距是由於本季度我們的對沖策略導致營業收入提高以及利息成本降低。

The company's consolidated backlog increased both sequentially and compared to the prior year quarter. Total company backlog ended Q2 at a new record of $1.068 billion, increasing over $22 million sequentially and almost $58 million year-over-year. Defense backlog increased $98 million compared to the prior year quarter to end at a record of $592 million.

該公司的綜合積壓訂單環比和去年同期均有所增加。第二季末，該公司未完成訂單總額達到 10.68 億美元的新紀錄，季增超過 2,200 萬美元，年增近 5,800 萬美元。與去年同期相比，國防積壓訂單增加了 9,800 萬美元，達到創紀錄的 5.92 億美元。

The commercial aerospace backlog decreased $14 million year-over-year, primarily due to industry issues with single-aisle production rates and the MAX issues with Boeing and Spirit. However, our commercial aerospace backlog still grew on a sequential quarterly basis to $451 million.

商業航空航太積壓訂單年減 1,400 萬美元，主要是由於單通道生產率的行業問題以及波音和 Spirit 的 MAX 問題。然而，我們的商用航空航太積壓訂單仍較上季成長至 4.51 億美元。

As for the 2024 revenue guidance, despite continued uncertainty surrounding Boeing, Spirit and the FAA on the MAX, we are maintaining our guide of mid single-digits for the year, with Q3 flattish to last year followed by an uptick again in Q4. While we have seen a significant slowdown in the MAX build rates at the OEM level in Q2 and anticipate the same in Q3, we are positioned for the recovery as the build rates ramp back up.

至於 2024 年的營收指引，儘管波音、Spirit 和 FAA 的 MAX 業務仍存在不確定性，但我們仍維持今年中等個位數的指引，第三季與去年持平，第四季再次上升。雖然我們在第二季看到 OEM 等級的 MAX 建造率顯著放緩，並預計第三季也會出現相同情況，但隨著建造率回升，我們已做好復甦準備。

If BA is at 38 by year-end for their most recent communications on the MAX, this will be a major lift for DCO. I will also add that despite the challenges in the MAX, we are comforted by continued strength on other programs at BA and Spirit, Airbus and Gulfstream.

如果 BA 在 MAX 上最近一次通信到年底達到 38，這將是 DCO 的重大提升。我還要補充一點，儘管 MAX 面臨挑戰，但我們對 BA 和 Spirit、空中巴士和灣流其他項目的持續實力感到欣慰。

Now let me provide some color on our markets, products and programs. Beginning with our military and space sector, we experienced revenues at $101 million compared to $97 million in Q2 2023. Growth was driven by the F-15 program along with military rotary aircraft, notably the Blackhawk program, as well as our radar franchise, again driven by the SPY-6 program. These were partially offset by weakness in F-35, F-18 and F-16 revenues.

現在讓我對我們的市場、產品和項目進行一些介紹。從軍事和航太領域開始，我們的收入為 1.01 億美元，而 2023 年第二季的收入為 9,700 萬美元。成長是由 F-15 項目和軍用旋翼飛機（特別是黑鷹項目）以及我們的雷達特許經營權（再次由 SPY-6 項目推動）推動的。F-35、F-18 和 F-16 收入疲軟部分抵消了這些影響。

The second quarter military and space revenue represented 51% of Ducommun's revenue in the period, down from 59% back in 2022 and 70% in 2021. We expect these trends -- we expected these trends and it reflects more balance with commercial aerospace, which we like. We also ended the second quarter with a backlog of $592 million, an increase of $98 million year-over-year, representing 55% of Ducommun's total backlog.

第二季軍事和航太收入佔 Ducommun 同期收入的 51%，低於 2022 年的 59% 和 2021 年的 70%。我們預計這些趨勢——我們預計這些趨勢，它反映了與商業航空航天的更多平衡，這是我們所喜歡的。截至第二季末，我們的積壓訂單金額為 5.92 億美元，年增 9,800 萬美元，佔 Ducommun 積壓訂單總額的 55%。

Within our commercial aerospace operations, second quarter revenue continued to see double-digit growth, increasing 13% year-over-year to $87 million, driven mainly by growth on the A220 platform, twin-aisle aircraft, business jets, as well as buffer build to support the closure of Monrovia facility.

在我們的商業航空業務中，第二季度收入繼續實現兩位數增長，同比增長 13% 至 8,700 萬美元，主要得益於 A220 平台、雙通道飛機、公務機以及緩衝飛機的增長建設以支持蒙羅維亞設施的關閉。

As mentioned earlier, we believe a much better story is ahead for BA and MAX by the end of Q4 and into 2025. The backlog within our commercial aerospace business was $451 million at the end of the second quarter, increasing almost $9 million sequentially, and a solid number given the temporary weakness in the commercial aerospace market.

如前所述，我們相信到第四季末和 2025 年，BA 和 MAX 將會迎來更好的故事。截至第二季末，我們的商業航空航太業務的積壓訂單為 4.51 億美元，比上一季增加了近 900 萬美元，考慮到商業航空航太市場暫時疲軟，這一數字相當可觀。

Now with that, I'll have Suman review our financial results in detail. Suman?

現在，我將讓蘇曼詳細審查我們的財務表現。蘇曼？

Thank you, Steve. As a reminder, please see the company's Q2 10-Q and Q2 earnings release for a further description of information mentioned on today's call. As Steve discussed, our second quarter results reflected another period of strong performance with growth in both our commercial aerospace and military end markets, as well as continued improvement in our margins.

謝謝你，史蒂夫。提醒一下，請參閱該公司第二季 10-Q 和第二季收益發布，以了解今天電話會議中提到的資訊的進一步說明。正如史蒂夫所討論的，我們第二季度的業績反映了我們的商業航空航太和軍事終端市場的成長以及我們的利潤率持續改善的另一個強勁業績時期。

We remain encouraged by the continued strength in domestic and global travel, which would support higher long-term demand for aircraft as we work through some of the industry issues impacting single-aisle production rates. In addition, we also made good progress on our facility consolidation efforts during the quarter, which will drive savings in 2025 and beyond. With all this, we feel like 2024 is showing good momentum that will continue to drive our performance towards our Vision 2027 goals.

我們仍然對國內和全球旅行的持續強勁感到鼓舞，這將支持對飛機的長期更高需求，因為我們正在解決一些影響單通道生產力的行業問題。此外，本季我們的設施整合工作也取得了良好進展，這將推動 2025 年及以後的節約。綜上所述，我們認為 2024 年呈現出良好的勢頭，將繼續推動我們的業績實現 2027 年願景目標。

Now turning to our second quarter results. Revenue for the second quarter of 2024 was $197 million versus $187.3 million for the second quarter of 2023. The year-over-year increase of 5.2% reflects growth in both commercial aerospace and military and space, highlighted by $9.9 million of growth across our commercial aerospace platforms and $3.2 million of growth in our military and space platforms.

現在轉向我們的第二季業績。2024 年第二季的營收為 1.97 億美元，而 2023 年第二季的營收為 1.873 億美元。5.2% 的同比增長反映了商業航空航天以及軍事和太空領域的增長，其中商業航空航天平台增長了 990 萬美元，軍事和太空平台增長了 320 萬美元。

We posted total gross profit of $51.2 million or 26% of revenue for the quarter versus $40.1 million or 21.4% of revenue in the prior year period. We continue to provide adjusted gross margins as we have certain non-GAAP cost of sales items in the current and prior period relating to inventory step-up, amortization on our recent acquisitions, restructuring charges, and the impact from the Guaymas fire on our operations.

我們公佈的本季總毛利為 5,120 萬美元，佔營收的 26%，去年同期為 4,010 萬美元，佔營收的 21.4%。我們繼續提供調整後的毛利率，因為我們在當前和前期有某些非公認會計準則銷售成本項目，涉及庫存增加、最近收購的攤銷、重組費用以及瓜伊馬斯火災對我們運營的影響。

On an adjusted basis, our gross margins were 26.6% in Q2 2024 versus 23.1% in Q2 2023. The improvement in gross margin was driven by our growing engineered products portfolio as well as favorable product mix in our manufacturing services businesses, strategic pricing initiatives, productivity improvements, and some initial restructuring savings.

調整後，我們 2024 年第二季的毛利率為 26.6%，而 2023 年第二季為 23.1%。毛利率的提高是由於我們不斷增長的工程產品組合以及製造服務業務中有利的產品組合、戰略定價舉措、生產力提高以及一些初始重組節省所推動的。

We continue to make progress working through a difficult operating environment with supply chain and labor. Through our proactive efforts, including strategic buys on our inventory investments, we have been able to avoid any significant impact thus far on our business. During the second quarter of 2024, we reduced our inventory by $7.1 million from Q1 while still keeping our performance centers positioned to meet our 2024 delivery commitments and ready for a ramp-up in commercial aerospace build rates.

我們在供應鏈和勞動力的困難營運環境中繼續取得進展。透過我們的積極努力，包括對庫存投資的策略性購買，迄今為止，我們已經能夠避免對我們的業務產生任何重大影響。2024 年第二季度，我們的庫存比第一季度減少了 710 萬美元，同時仍保持我們的性能中心能夠滿足 2024 年的交付承諾，並為商業航空航天建造率的提高做好準備。

We grew our contract assets by $13 million versus Q1. This was partly due to buffer build of product to support the Monrovia facility closure, as well as some modest build ahead in our commercial aerospace structures business to level load production. We continue to look for opportunities to unwind our working capital investments to improve our cash flow.

與第一季相比，我們的合約資產增加了 1300 萬美元。這部分是由於緩衝生產以支援蒙羅維亞設施關閉，以及我們的商業航空航天結構業務的一些適度的提前建設以平衡負載生產。我們繼續尋找機會解除我們的營運資本投資，以改善我們的現金流。

Ducommun reported operating income for the second quarter of $13.9 million or 7.1% of revenue compared to $5 million or 2.7% of revenue in the prior year period. Adjusted operating income was $19.9 million or 10.1% of revenue this quarter compared to $15.2 million or 8.1% of revenue in the comparable period last year.

Ducommun 報告第二季營業收入為 1,390 萬美元，佔營收的 7.1%，而上年同期為 500 萬美元，佔營收的 2.7%。本季調整後營業收入為 1,990 萬美元，佔營收的 10.1%，而去年同期調整後營業收入為 1,520 萬美元，佔營收的 8.1%。

The company reported net income for the second quarter of 2024 of $7.7 million or $0.52 per diluted share compared to net income of $2.4 million or $0.17 per diluted share a year ago.

該公司公佈 2024 年第二季淨利潤為 770 萬美元，即稀釋後每股收益 0.52 美元，而一年前淨利潤為 240 萬美元，即稀釋後每股收益 0.17 美元。

On an adjusted basis, the company has reported net income of $12.5 million or $0.83 per diluted share compared to net income of $7.3 million or $0.54 in Q2 2023. The higher net income and adjusted net income during the quarter were driven by higher operating income and adjusted operating income. Additionally, our interest rate hedge helped to reduce our year-over-year interest expense.

在調整後的基礎上，該公司公佈的淨利潤為 1,250 萬美元，即稀釋後每股收益 0.83 美元，而 2023 年第二季的淨利潤為 730 萬美元，即每股稀釋收益 0.54 美元。本季淨利和調整後淨利的增加是由於營業收入和調整後營業收入的增加所致。此外，我們的利率避險有助於減少我們的年比利息支出。

Now let me turn to our segment results. Our Structural Systems segment posted revenue of $95.6 million in the second quarter of 2024 versus $80.2 million last year. The year-over-year increase reflected $10.4 million of higher sales across our commercial aerospace applications, including the A220 and select twin-aisle platforms, in addition to regional business jets and buffer build to support the Monrovia facility closure.

現在讓我談談我們的部門結果。我們的結構系統部門在 2024 年第二季的營收為 9,560 萬美元，而去年為 8,020 萬美元。同比增長反映了我們的商業航空航天應用銷售額增加了 1,040 萬美元，包括 A220 和精選雙通道平台，以及支援蒙羅維亞設施關閉的支線公務機和緩衝區建設。

In addition, we maintained commercial aerospace build rates for selected products to help level load production and maintain production efficiencies. The $5 million of higher revenue within the military and space markets was driven by strength in Blackhawk and other military programs.

此外，我們維持選定產品的商業航空製造率，以幫助平衡負載生產並保持生產效率。軍事和太空市場收入增加了 500 萬美元，這得益於黑鷹和其他軍事項目的實力。

Structural Systems' operating income for the quarter was $10.6 million or 11% of revenue compared to $5.4 million or 6.7% of revenue for the prior year quarter. Excluding restructuring charges and other adjustments in both years, the segment operating margin was 15.4% in Q2 2024 versus 16% in Q2 2023. The slight decline was from higher costs due to the transition of production from Monrovia to Guaymas, partially offset by strategic pricing initiatives and operating leverage from higher revenues at other performance centers within the segment.

Structural Systems 本季的營業收入為 1,060 萬美元，佔營收的 11%，而去年同期的營業收入為 540 萬美元，佔營收的 6.7%。不包括這兩年的重組費用和其他調整，2024 年第二季該部門的營業利潤率為 15.4%，而 2023 年第二季為 16%。略有下降的原因是生產從蒙羅維亞轉移到瓜伊馬斯導致成本上升，但部分被戰略定價舉措和該部門其他績效中心收入增加帶來的營運槓桿所抵消。

Our Electronic Systems segment posted revenue of $101.4 million in the second quarter of 2024 versus $107.1 million in the prior year period. The decline is attributable to lower revenues from in-flight entertainment electronics, F-18 and F-35 platforms, along with a reduction in our industrial business as we chose to selectively prune non-core business. The declines were partially offset by strength on select military platforms, including the F-15, SPY-6 radar and naval and submarine programs, along with business jets with Gulfstream and on the A220 platform with Airbus.

我們的電子系統部門在 2024 年第二季的營收為 1.014 億美元，而去年同期為 1.071 億美元。下降的原因是機上娛樂電子產品、F-18 和 F-35 平台的收入下降，以及我們選擇選擇性地削減非核心業務而導致工業業務的減少。部分下降被部分軍事平台的實力所抵消，包括F-15、SPY-6雷達以及海軍和潛艇項目，以及灣流的公務機和空中巴士的A220平台。

Electronic Systems' operating income for the second quarter was $16.8 million or 16.6% of revenue versus $9.5 million or 8.9% of revenue in the prior year period. Excluding restructuring charges and other adjustments in both years, the segment operating margin was 16.9% in Q2 2024 versus 11.4% in Q2 2023.

Electronic Systems 第二季營業收入為 1,680 萬美元，佔營收的 16.6%，而去年同期為 950 萬美元，佔營收的 8.9%。不包括這兩年的重組費用和其他調整，2024 年第二季該部門的營業利潤率為 16.9%，而 2023 年第二季為 11.4%。

The year-over-year increase was primarily due to shifting mix with higher growth in revenues and profitability in our engineered product businesses, along with strategic value pricing initiatives as well as savings from the restructuring program. Restructuring savings were driven by the transition of product lines from our Berryville performance center to other facilities.

年比成長主要是由於我們的工程產品業務收入和盈利能力的更高成長所帶來的結構轉變，以及策略價值定價舉措以及重組計劃帶來的節省。產品線從貝裡維爾性能中心轉移到其他設施，推動了重組節省。

Next, I would like to provide an update on our ongoing restructuring program. As a reminder and as discussed previously, we commenced a restructuring initiative back in 2022. These actions are being taken to better position the company for stronger performance in the short and long-term. This includes the shutdown of our facilities in Monrovia, California and Berryville, Arkansas, and the transfer of that work to our low-cost operation in Guaymas, Mexico and to other existing performance centers in the United States.

接下來，我想介紹一下我們正在進行的重組計劃的最新情況。謹此提醒，如同先前所討論的，我們早在 2022 年就開始了重組計畫。採取這些行動是為了使公司更好地定位，從而在短期和長期內取得更強勁的業績。這包括關閉我們在加州蒙羅維亞和阿肯色州貝裡維爾的設施，並將該工作轉移到我們在墨西哥瓜伊馬斯的低成本營運中心以及美國其他現有的表演中心。

We continue to make progress on these transitions with excellent employee retention and engagement and are also working diligently with our customers, Boeing and RTX, to obtain the requisite approval. During Q2 2024, we recorded $2.1 million in restructuring charges. The majority of these charges were severance and related benefits, as we continue to wind down the 2 operations. We expect to incur an additional $3 million to $4 million in restructuring expenses, through the end of 2024 and early 2025 as we complete the program.

我們憑藉出色的員工保留率和敬業度，繼續在這些轉型方面取得進展，並與我們的客戶波音和 RTX 努力合作，以獲得必要的批准。2024 年第二季度，我們記錄了 210 萬美元的重組費用。隨著我們繼續減少這兩項業務，這些費用大部分是遣散費和相關福利。到 2024 年底和 2025 年初完成該計劃時，我們預計將額外產生 300 萬至 400 萬美元的重組費用。

Upon the completion of our restructuring program, we expect to generate $11 million to $13 million in annual savings from our actions, and are already beginning to see some realization of savings from these actions this year. We anticipate selling the land and building at both Monrovia, California and Berryville, Arkansas.

重組計劃完成後，我們預計每年可透過我們的行動節省 1100 萬至 1300 萬美元，並且今年已經開始看到這些行動帶來了一些節省。我們預計出售加州蒙羅維亞和阿肯色州貝裡維爾的土地和建築物。

Turning next to liquidity and capital resources. Year-to-date Q2 2024, we generated $1.8 million in cash flow from operating activities, which was an improvement compared to year-to-date Q2 2023, which had a usage of $9.7 million. The improvement was due to higher net income of $7 million as well as improvements, compared to prior year in accrued and other liabilities.

接下來轉向流動性和資本資源。2024 年第二季迄今，我們從經營活動中產生了 180 萬美元的現金流，這比 2023 年第二季迄今的 970 萬美元的現金流有所改善。這一改善是由於淨利潤增加了 700 萬美元，與前一年相比，應計負債和其他負債也有所改善。

As of the end of the second quarter, we had available liquidity of $205.4 million, comprising of the unutilized portion of our revolver and cash on hand. Our existing credit facility was put in place in July 2022 at an opportune time in the credit markets, allowing us to reduce our spread, increase the size of our revolver, and allowing us the flexibility to execute on our acquisition strategy.

截至第二季末，我們的可用流動資金為 2.054 億美元，包括左輪手槍的未使用部分和手頭現金。我們現有的信貸安排於 2022 年 7 月在信貸市場的適當時機到位，使我們能夠減少利差，增加左輪手槍的規模，並使我們能夠靈活地執行收購策略。

Interest expense was $4 million compared to $5.7 million in Q2 of 2023. The year-over-year improvement in interest costs despite a higher debt balance was due to the interest rate hedge going into effect.

利息支出為 400 萬美元，而 2023 年第二季為 570 萬美元。儘管債務餘額較高，但利息成本同比有所改善，這是由於利率對沖的生效。

In November 2021, we put in place an interest rate hedge that went into effect for a 7-year period starting January 2024 and pegs the 1-month term SOFR at 170 basis points for $150 million of our debt. The hedge resulted in interest savings of $1.4 million in Q2 2024 and will continue to drive significant interest cost savings in 2024 and beyond.

2021 年 11 月，我們實施了利率對沖，利率對沖從 2024 年 1 月開始生效，為期 7 年，並將我們 1.5 億美元債務的 1 個月期限 SOFR 固定在 170 個基點。該對沖在 2024 年第二季節省了 140 萬美元的利息，並將在 2024 年及以後繼續大幅節省利息成本。

To conclude the financial review for Q2 2024, I would like to say that the second quarter results continued our momentum from Q1, and positions us well for the rest of 2024.

在結束 2024 年第二季的財務回顧時，我想說第二季的業績延續了第一季的勢頭，並為我們在 2024 年剩餘時間做好了準備。

I'll now turn it back over to Steve for his closing remarks. Steve?

現在我將把它轉回給史蒂夫做總結發言。史蒂夫？

Okay. Thanks, Suman. And just in closing, Q2 was an excellent quarter and a record in some cases with many highlights for the company and our shareholders. You start to realize some of the gains we all expect for the Vision 2027, especially around margin expansion. Our first half positioned us well to deliver a strong performance in 2022, despite some of the current constraints. The progress on gross and EBITDA margin expansion has been excellent. We're not surprised and feel right on schedule.

好的。謝謝，蘇曼。剛結束時，第二季度是一個出色的季度，在某些情況下創下了記錄，為公司和我們的股東帶來了許多亮點。您開始意識到我們都期望 2027 年願景能夠實現的一些收益，特別是在利潤率擴張方面。儘管目前存在一些限制，但上半年我們已做好充分準備，在 2022 年實現強勁業績。毛利率和 EBITDA 利潤率的擴張進展非常出色。我們並不感到驚訝，感覺一切如期進行。

In addition, on two key tenets of our 2027 game plan, we're tracking well against the goals of 18% EBITDA margins and 25%, or more of engineered product and aftermarket revenues. With commercial aerospace build ramps still ahead of us and the benefits from our facility consolidation expected to kick in starting in 2025, I'm excited about what lies ahead for us at Ducommun and our shareholders in the years ahead. Stay tuned.

此外，根據我們 2027 年計劃的兩個關鍵原則，我們正在很好地實現 18% EBITDA 利潤率和 25% 或更多工程產品和售後市場收入的目標。由於商業航空航太建設仍處於領先地位，而且我們的設施整合預計將於 2025 年開始帶來好處，我對 Ducommun 和我們的股東在未來幾年的前景感到興奮。敬請關注。

Okay. With that, let's please go to questions.

好的。那麼，就讓我們開始提問吧。

Jason Gursky with Citi.

花旗銀行的賈森古爾斯基。

Steve, maybe start with you and talk a little bit about the pipeline of new opportunities and maybe, just kind of give us a flavor of how things have evolved year-to-date, starting at the beginning of the year where you are today and what you see in the pipeline. I'm just curious if anything kind of new and interesting has popped up for you here over the last 6, 7 months. And when you look out over the next couple of years, what you think the pipeline conversion might look like and book-to-bills, just kind of general demand flavor as well?

史蒂夫，也許可以從你開始，談談新機會的管道，也許只是讓我們了解一下今年迄今為止的情況是如何演變的，從今年年初你現在所處的位置開始，您在管道中看到的內容。我只是好奇在過去的 6、7 個月裡，這裡是否出現了一些新的、有趣的東西。當你展望未來幾年時，你認為管道轉換可能會是什麼樣子，訂單到帳單，也只是一般需求的味道？

Good to be with you. So first, let me just tackle commercial aerospace. There's -- I talked about the skins and that's, though, not a huge number. Starting next year, about $3 million or $4 million. I mean, we're only doing less than 10% of the fuselage for the MAX. We do 100% of the fuselage for the A220. So we can do it right. We have the capacity, we have the machine.

很高興和你在一起。首先，讓我來談談商用航空航太。我談到了皮膚，但這並不是一個很大的數字。從明年開始，大約 300 萬或 400 萬美元。我的意思是，我們只為 MAX 製作了不到 10% 的機身。我們100%為A220做機身。所以我們可以做對。我們有能力，我們有機器。

So that's something in the pipeline we're very, very excited about. We're also, and just to kind of disclose it today, we're also working on opportunities more on the commercial aerospace side and specifically, around share shift from some of our competitors. And we'll get into it today. But we have some nice things happening there. We're going to pick up. I can disclose this.

所以這是我們非常非常興奮的事情。我們今天也透露，我們還在商業航空航太方面更多地尋找機會，特別是圍繞著一些競爭對手的份額轉移。今天我們就來深入探討一下。但我們那裡正在發生一些美好的事情。我們要去接。我可以透露這一點。

We're going to pick up also on the 787, a good amount of business starting in January 2025. And the 787 gets to 5 or 10. That's real money for DCO. So on that side, it's good. We just met with Airbus at the Air Show. We're in a very good position with Airbus there. They're going on the way up, and we're going to go on the way up with them. So I think on the commercial side, it's all looking very positive, and there'll be more news coming.

我們還將增加 787 的業務，從 2025 年 1 月開始，業務量很大。而 787 則達到 5 或 10。這對 DCO 來說是真金白銀。所以從這方面來說，這很好。我們剛剛在航展上與空中巴士公司會面。我們與空中巴士公司的合作處於非常有利的位置。他們正在上升，我們也將與他們一起上升。所以我認為在商業方面，一切看起來都非常積極，並且將會有更多消息傳來。

On the defense side, we certainly work on sort of the hypersonic and the other sort of things that we probably can't discuss on the call too much. But I'll just give you one example. This offloading program has been great for us. We're really getting heavy into radar. We make one card so far on the SPY-6. And year-to-date, it's been over $5 million for one card. So, we're going to bring on another card next year.

在國防方面，我們當然致力於高超音速和其他一些我們可能無法在電話會議上討論太多的事情。但我只舉一個例子。這個卸載計劃對我們來說非常好。我們真的很重視雷達。到目前為止，我們在 SPY-6 上製作了一張卡。今年迄今為止，一張卡的售價已超過 500 萬美元。因此，我們明年將推出另一張卡。

So we've got some very nice things happening in defense, not only organically, but obviously with share shift as well. And we just met with Raytheon at the Air Show and had a great meeting. And the Tomahawks are going to go to Guaymas, which is going to be a great boost for us, from where we are now in Berryville. That's a major program. We've had that since the 80s.

因此，我們在防守方面發生了一些非常好的事情，不僅是有機的，而且顯然伴隨著份額的轉移。我們剛剛在航展上與雷神公司會面，並進行了一次愉快的會面。戰斧隊將前往瓜伊馬斯，這對我們現在在貝裡維爾的位置來說將是一個巨大的推動。這是一個重大計劃。我們從 80 年代就開始這樣做了。

Right now, obviously, we built all the buffer to move it, so -- but we have some wonderful margin expansion happening there as well as we go to Guaymas and the TOW. So the TOW is also coming back. We talked about that already in my remarks coming back mid-year. We already have the PO for that in Guaymas.

現在，顯然，我們建立了所有的緩衝區來移動它，所以 - 但我們在那裡發生了一些美妙的利潤擴張，以及我們去瓜伊馬斯和 TOW。所以TOW也回來了。我們在年中的講話中已經討論過這一點。我們已經在瓜伊馬斯擁有了這方面的採購訂單。

So both on the commercial and defense side, looking good to very good. And then also, obviously, if the build rates, which I think are going to go up eventually, that's going to be some nice tailwind as well.

因此，無論是在商業方面還是在國防方面，看起來都不錯甚至非常好。而且，顯然，如果建造率（我認為最終會上升），那也將是一些不錯的順風車。

Okay, great. And just a quick follow-up. Suman, you mentioned maybe some additional liquidity or capacity. And I think you mentioned M&A on the same sentence. So, I'm just kind of curious to get an update just on the pipeline of potential M&A. And have you further opened the aperture on potentially doing something larger, where we'd be bringing in more revenue than what you had targeted for Vision 2027?

好的，太好了。只是快速跟進。Suman，您提到可能需要一些額外的流動性或能力。我認為您在同一句話中提到了併購。因此，我只是想了解有關潛在併購的最新資訊。您是否進一步開放了可能做一些更大的事情的可能性，在這些事情上我們會帶來比您 2027 年願景目標更多的收入？

So, we continue to look at a number of opportunities. I would say that in terms of us being able to meet and exceed the target we set forth in Vision 2027, which is a $75 million placeholder for revenue from acquisitions, we feel very good about being able to meet and exceed that. So I would agree. Are we looking to do something bigger than, or something more transformational at this time?

因此，我們繼續尋找一些機會。我想說的是，就我們能夠達到並超越我們在 2027 年願景中設定的目標（即收購收入佔 7500 萬美元）而言，我們對能夠達到並超越這一目標感到非常高興。所以我會同意。我們現在是否想做一些更大的事情，或更具變革性的事情？

No, we're looking to continue our strategy of doing these tuck-in acquisitions of niche product lines in kind of a more manageable size range and be prudent with our leverage at this time. So, we aren't looking to change the aperture on size of deals, but we feel good about being able to exceed the Vision 2027 target for acquisition revenue.

不，我們希望繼續我們的策略，以更易於管理的規模範圍對利基產品線進行這些收購，並在此時謹慎對待我們的槓桿。因此，我們並不打算改變交易規模，但我們對能夠超越 2027 年願景收購收入目標感到很高興。

Mike Crawford with B. Riley Securities.

B. Riley 證券公司的 Mike Crawford。

So, Suman, you benefit from absorption as you built some buffered stock. Now, can you just walk us through how margins are affected by the ramp-up at Guaymas and as you work through this buffer that you've built up and get into a more normalized cadence?

所以，蘇曼，當你建立了一些緩衝庫存時，你會從吸收中受益。現在，您能否向我們介紹一下瓜伊馬斯的利潤成長對利潤率有何影響，以及當您通過已建立的緩衝並進入更正常化的節奏時？

Right. So, great question, Mike. And we did have a significant improvement in our structures segment margins on a sequential quarter basis. And to the point you just made, it was driven to a large extent by Monrovia having better absorptions. Actually it's Monrovia had significantly lower revenues in Q1 versus the Q4 of last year and Q1 of last -- of 2023.

正確的。所以，這是個好問題，麥克。我們的結構部門利潤率確實比上個季度有了顯著改善。就您剛才提出的觀點而言，這在很大程度上是由蒙羅維亞更好的吸收率所推動的。事實上，蒙羅維亞第一季的營收明顯低於去年第四季和 2023 年第一季。

So, we saw a very low revenue base, kind of trying to handle higher fixed cost base in Q1, which led to -- and higher one-time costs related to the transition in Monrovia in Q1. We had lower costs. We had double the revenue in Monrovia, as we built up buffer stock and looked to close out operations. We had doubled the revenue in Q2 versus Q1 in that Monrovia facility.

因此，我們看到收入基礎非常低，有點試圖應對第一季較高的固定成本基礎，這導致了與第一季蒙羅維亞轉型相關的一次性成本較高。我們的成本較低。由於我們累積了緩衝庫存並希望結束業務，我們在蒙羅維亞的收入翻了一番。我們在蒙羅維亞工廠的第二季營收比第一季翻了一番。

That helped with absorption, again, to the point you made, right. And we also had some slightly better mix. So, we feel like the improvement that we're seeing in that structures segment margin in Q2, which is in line with where structures margins have been historically, is sustainable if that's kind of where you are getting to.

這再次有助於吸收，達到你所說的觀點，對吧。我們也有一些稍微好一點的組合。因此，我們認為，我們在第二季度看到的結構部門利潤率的改善是可持續的，這與歷史上結構利潤率的情況一致，如果這就是你所要達到的目標的話。

Okay. And just, excuse me, related, you're getting near the end of this, I guess, second restructuring program since you guys joined the company, and put it on its current trajectory. But I know there's $11 million to $13 million cost savings target, but I imagine a chunk of that has already been realized.

好的。只是，對不起，相關的，我想，自從你們加入公司並將其置於目前的軌道以來，第二個重組計劃即將結束。但我知道有 1,100 萬至 1,300 萬美元的成本節約目標，但我想其中很大一部分已經實現了。

That is correct. So I would say, that from our Berryville and Joplin facility, we are right now tracking at a run rate of, I would say, $2 million to $3 million of savings annually. So an annual run rate of $2 million to $3 million, I would say, is where we are right now from the shutdown of Berryville. Of course, that will ramp-up later in 2025, when we actually start production of some of those product lines in Guaymas, Mexico. So that hasn't started yet.

這是正確的。所以我想說，從我們的貝裡維爾和喬普林工廠來看，我們現在的運行速度是每年節省 200 萬至 300 萬美元。因此，我想說，從 Berryville 關閉以來，我們現在的年運行率為 200 萬至 300 萬美元。當然，到 2025 年晚些時候，我們將在墨西哥瓜伊馬斯實際開始生產其中一些產品線。所以這還沒開始。

Yes, I wouldn't say a good chunk, Mike. I would say it's, I think two to three is fair. Okay. There's a lot more coming.

是的，我不會說太多，麥克。我想說的是，我認為二到三是公平的。好的。還有更多的事情即將發生。

(Operator Instructions)

（操作員說明）

Michael Ciarmoli with Truist Securities.

Truist 證券公司的 Michael Ciarmoli。

Good results. Yes, Steve or Suman, the buffer stock, I think coupling that with maybe, I think you said you're building ahead right now. How should we sort of calibrate ourselves just on the revenue? I think you said 3Q would be down a little bit, but do we have to go through and unwind period here, as we look out over the second half of the year, even into early '25? Just depend -- I mean, I don't think we have a crystal ball with Boeing's rates or Airbus's for sure, but how should we think about maybe the impact of the build ahead and buffer on revenues?

良好的結果。是的，史蒂夫或蘇曼，緩衝庫存，我認為也許，我想你說過你現在正在向前推進。我們該如何根據收入來調整自己？我想你說過第三季度會略有下降，但是當我們展望今年下半年，甚至進入 25 年初時，我們是否必須經歷並放鬆一段時間？只是取決於 - 我的意思是，我認為我們不確定波音或空中巴士的費率，但我們應該如何考慮提前建造和緩衝對收入的影響？

Hi, Mike. Great question. So we -- during Q2, we had about, I would say, between the buffer build and the build ahead, somewhere between $5 million to $6 million in revenue that you could say was pulled ahead from Q3 and Q4. And so, that's kind of how I would think about how Q3 comes out in line with what Steve said a little earlier, Q3 being flattish on a year-over-year basis and then seeing improvement in Q4. So that kind of, all in all, we come out at that mid-single-digit guidance for the full year.

嗨，麥克。很好的問題。因此，我想說，在第二季度，我們在緩衝構建和未來構建之間大約有 500 萬至 600 萬美元的收入，你可以說是從第三季度和第四季度提前的。因此，這就是我對第三季度的看法，這與史蒂夫早些時候所說的一致，第三季度同比持平，然後第四季度有所改善。因此，總而言之，我們得出的全年指導值為中個位數。

Yes. Mike, I think that's the right way to think about it. I think overall, it's light. The impact is light.

是的。麥克，我認為這是正確的思考方式。我認為總的來說，它很輕。影響很輕。

Okay.

好的。

So, it's not anything I'm very concerned about, but just for everyone on the call, I mean, we're little -- Parsons is a big manufacturer for both Spirit and for BA. And we just don't want to have to layoff 40 people and then four months later, hire them again.

所以，這不是我非常關心的事情，但對於參加電話會議的每個人來說，我的意思是，我們很小——帕森斯是 Spirit 和 BA 的大製造商。我們只是不想解僱 40 名員工，然後四個月後再僱用他們。

Right. Yes, of course.

正確的。是的當然。

There's a little -- there's some retention -- employee retention in there that I think investors, I think, hopefully, will agree it's smart.

我認為，有一點——有一些保留——員工保留，我認為投資者會同意這是明智的。

And then just on the aerospace, I mean, I know we can kind of see it in our models. You've got the slide out there. Highest quarterly revenue rate since 3Q '19. Is there any way to measure that on a same-store sales basis? I mean, you've obviously had some acquisitions in there. You've picked up some new programs like the A220. But just knowing that MAX had been one of the biggest programs, just trying to get a sense as to -- if I were looking at that on same-store sales versus that 3Q, how much runway do you still have, because, I mean, we're still well below prior peak production rates here?

然後就航空航天而言，我的意思是，我知道我們可以在我們的模型中看到它。你已經把幻燈片放在那裡了。自 2019 年第三季以來的最高季度營收率。有什麼方法可以根據同店銷售來衡量嗎？我的意思是，你顯然在那裡進行了一些收購。您已經選擇了一些新程序，例如 A220。但只要知道 MAX 是最大的計劃之一，只是想了解一下 - 如果我比較同店銷售額與第三季度的情況，你還有多少跑道，因為，我的意思是，我們仍然遠低於之前的峰值生產率嗎？

Yes. I think we have a lot. I think when you go back that long, I mean, if you think about us now, there's a lot more defense business than we had back then. So, that's one thing to think about and also and which is extremely important, we have a good deal of more engineered product and aftermarket. So -- and that could also fall into commercial, right, Mike. But --

是的。我想我們有很多。我想，當你回顧那麼久，我的意思是，如果你現在想想我們，你會發現國防業務比我們當時多得多。因此，這是需要考慮的一件事，而且非常重要的是，我們擁有大量工程化的產品和售後市場。所以——這也可能會落入商業領域，對吧，麥克。但--

Yes. Okay.

是的。好的。

We were much more -- we were certainly different back then. And so, you're right that we have the -- I think, the right kind of base. I think we have good balance and I think that we're very anxious. I know it's Kelley's first day, so we're going to cheer for him and we certainly feel like things are going to get better. We're going to ride the ramp-up, and I think that's going to be great for our revenue.

那時的我們確實與眾不同。所以，你說得對，我們擁有──我認為，正確的基礎。我認為我們有很好的平衡，而且我認為我們非常焦慮。我知道這是凱利的第一天，所以我們將為他歡呼，我們當然感覺事情會變得更好。我們將乘勢而上，我認為這對我們的收入非常有利。

One more thing I'll add there, Mike, as you think about modeling our commercial aerospace revenues relative to where we were in 2019, a little over half of our revenues come from -- our commercial aerospace revenues come specifically from Boeing and Airbus platforms. So, you couldn't apply build rates directly to our entire commercial aerospace revenues. There are other elements, including business jets, commercial helicopters and other in-flight entertainment stuff and things that we do. So if you were looking really at build rates across Boeing and Airbus platforms, a little more than half is --

麥克，我還要補充一件事，當你考慮對我們的商業航空收入相對於2019 年的情況進行建模時，我們一半多一點的收入來自——我們的商業航空收入特別來自波音和空中巴士平台。因此，您無法將建造率直接應用於我們的整個商業航空航太收入。還有其他元素，包括公務機、商用直升機和其他機上娛樂設施以及我們所做的事情。因此，如果你真正關注波音和空中巴士平台的建造率，一半多一點是--

Got it. Okay.

知道了。好的。

Of course, yes that will grow higher. That will grow higher. Right now, it's that much.

當然，是的，這個數字會成長得更高。那會長得更高。現在，就這麼多了。

Okay. And it's just the last one. Any thoughts, Suman, on free cash generation? I know you kind of mentioned that inventory being down sequentially, but just, yes, I know you've got the guidance out there on the top line, talked a little bit about the margins and where we should be, but how should we think about cash generation second half of the year here and into '25?

好的。這只是最後一件。蘇曼，對於免費現金生成有什麼想法嗎？我知道您提到庫存連續下降，但是，是的，我知道您已經在頂線上提供了指導，談論了一些關於利潤率和我們應該在哪裡的問題，但是我們應該如何思考關於今年下半年和25 世紀的現金生成？

Yes, that's an important focus area for us, Mike, at the company. And Q2, as you noted, was impacted by buildup in contract assets, as we did some of these buffer builds. We did some amount of build ahead on the commercial aerospace platforms. We do expect that Q4 will be really strong for us in terms of cash flow to end up the year on a much more positive note. And that is a priority for us. I mean, I would expect Q3 to be marginally better, but not significantly, but with a real ramp-up in cash flow towards the end of the year.

是的，麥克，這對我們公司來說是一個重要的重點領域。正如您所指出的，第二季度受到合約資產累積的影響，因為我們做了一些緩衝建設。我們在商業航空航天平台上做了一些提前建造。我們確實預計第四季度的現金流對我們來說將非常強勁，從而以更積極的方式結束今年。這是我們的首要任務。我的意思是，我預計第三季會略有好轉，但不會顯著好轉，但到年底現金流量會真正增加。

Okay. That's perfect. I'll come back.

好的。那很完美。我會回來的。

As we have this pattern as well in our business.

因為我們的業務也有這種模式。

Noah Poponak with Goldman Sachs.

高盛的諾亞·波波納克。

Suman, maybe just picking up there, how should we think about where free cash to net income conversion or EBITDA conversion go over the medium term, if you kind of think about more normal times where you're not having to build ahead and you don't have so much uncertainty at the customers, and things are kind of coming along a little bit more visibly?

Suman，也許只是接一下，如果你考慮一下更正常的時期，在這種情況下，你不必提前建設，而且你不這樣做，我們應該如何考慮中期自由現金到淨利潤轉換或 EBITDA 轉換的情況客戶沒有那麼多的不確定性，事情的進展變得更明顯了嗎？

Yes. Excellent question. Thanks, Noah. In the long run, we do want to get our free cash flow closer to the net income number. We're not going to get there here in the next few quarters or next year as we continue to have significant amount of inventory and contract assets in the balance sheet. And supply chain pressures while these are still significant, we continue to have close to 2 years of lead time on inventory.

是的。很好的問題。謝謝，諾亞。從長遠來看，我們確實希望我們的自由現金流更接近淨利潤數字。我們不會在接下來的幾個季度或明年達到這個目標，因為我們的資產負債表中仍然有大量庫存和合約資產。儘管供應鏈壓力仍然很大，但我們的庫存交貨時間仍然接近兩年。

We have fluctuations in build rates, which often means we're stuck with raw material inventory. We've ordered 2 years in advance sitting on our balance sheet. So as those supply chain pressures ease, there is more predictability in production rates. We will be able to continue to wind down our strategic inventory that we have been holding for the past few years. And it will get us, over the next couple of years, closer to that target of getting our free cash flow in line with our net income.

我們的建造速度存在波動，這通常意味著我們陷入原材料庫存困境。我們的資產負債表上已經提前兩年訂購了。因此，隨著供應鏈壓力的緩解，生產率的可預測性更高。我們將能夠繼續減少過去幾年持有的戰略庫存。在接下來的幾年裡，這將使我們更接近使我們的自由現金流與我們的淨利潤保持一致的目標。

And Noah, this is Steve. I also think that some of this restructuring is going to help. I mean, there's other things, bigger rocks on the market and troubled companies and strategic buying and everything, but it also is going to help us on the manufacturing services side to have a smaller footprint and I think better management over our inventory and our processes.

諾亞，這是史蒂夫。我還認為這種重組會有所幫助。我的意思是，還有其他事情，市場上更大的石頭，陷入困境的公司和戰略購買等等，但這也將幫助我們在製造服務方面縮小足跡，我認為更好地管理我們的庫存和流程。

Okay. That's helpful. I appreciate that. On the margins -- the segment margins, I guess, would it be possible to just speak to how you expect each segment's margin in the second half to kind of directionally compare to the first half? Just electronic systems has had this pretty sizable increase year-over-year. Structurally, you talked about the difference between 1Q and 2Q, but that's a pretty big difference. How do each of those shape up? Second half, first half.

好的。這很有幫助。我很欣賞這一點。在利潤方面—我想，細分市場的利潤率是否可以直接談談您對下半年每個細分市場的利潤率與上半年的定向比較如何？光是電子系統就比去年出現了相當大的成長。從結構上講，您談到了 1Q 和 2Q 之間的差異，但這是一個相當大的差異。其中每一個是如何形成的？下半場，上半場。

Yes, I'll take that. So we don't -- but we don't give guidance at the segment level for margins. I can give you some comments, which are directionally help you. So if you look at the -- our electronics margins, they have jumped in Q1 of this year, and they've kind of stayed in the ballpark here in Q2. And that was driven by a shift in the mix within our electronic systems portfolio towards more engineered product revenue and growth in the profitability, as well as those engineered product revenues on a year-over-year basis.

是的，我會接受的。所以我們不會，但我們不會在細分市場層面提供利潤率指導。我可以給你一些意見，對你有方向性的幫助。因此，如果你看看我們的電子產品利潤率，他們在今年第一季有所躍升，而在第二季度則保持在大致水平。這是由於我們的電子系統產品組合轉向更多的工程產品收入和盈利能力的增長以及這些工程產品收入的同比增長而推動的。

That was a significant driver for the Electronics segment margins. And we, I would say, would expect margins to stay in the ballpark of where you're seeing them here in Q2 for the rest of the year, right? There is always a range of, I would say, 50 basis points to 75 basis points within which they may fluctuate based on product mix in a particular quarter. But they're in that ballpark.

這是電子部門利潤率的重要動力。我想說的是，我們預計今年剩餘時間利潤率將保持在第二季的大致水平，對吧？我想說，總有一個 50 個基點到 75 個基點的範圍，在這個範圍內，它們可能會根據特定季度的產品組合而波動。但他們就在那個球場裡。

On the structures side, you saw margins this quarter get back to historical levels. We had an unusual situation with Monrovia, which had unusually low revenue and other one-time costs as we were shutting down the facility in Q1, which subdued the overall structure segment margins. That got back to normal here in Q2, helped the structures business improve. We also had some better mix in there, which helped, in Q2 get the structures margins up.

在結構方面，您看到本季的利潤率回到了歷史水平。我們在蒙羅維亞遇到了不尋常的情況，由於我們在第一季關閉了該工廠，該工廠的收入和其他一次性成本異常低，這削弱了整體結構部門的利潤率。這在第二季度恢復正常，幫助結構業務改善。我們也在那裡進行了一些更好的組合，這有助於在第二季度提高結構利潤率。

Now with Monrovia costs being further cut down in Q3, and as Steve mentioned, we have less than 20 people now in that facility, we do believe that we will have similar levels of structures margins for the second half. And, of course, margins will continue to improve in 2025 as the restructuring savings start to kick-in and other initiatives take hold.

現在，隨著蒙羅維亞成本在第三季度進一步削減，正如史蒂夫所提到的，我們現在在該工廠的員工不到 20 人，我們確實相信下半年我們將具有類似的結構利潤水平。當然，隨著重組節省開始發揮作用以及其他措施的實施，2025 年利潤率將繼續提高。

So long-term trajectory margins improve. Second half, I would say, margins are expected to stay in the same ballpark. Q2 margins, I would say, probably have about 75 basis points of favorable mix in them just overall at the DCO level, and -- but that's typical for us. And we expect to stay in that range, yes.

因此，長期軌跡利潤率有所改善。我想說，下半年利潤率預計將維持在相同水準。我想說，第二季的利潤率總體上在 DCO 水平上可能有大約 75 個基點的有利組合，而且——但這對我們來說是典型的。是的，我們希望保持在這個範圍內。

We're going to hold serve for the most part.

我們將在大部分時間保住發球局。

Last one I had was just your defense revenue had a bit of a, I guess, transition with F-18 and the timing of missile, I think, was how you described it. And it looks like maybe you've now lapped the former and then have had some orders on the ladder. Should we expect your defense revenues to kind of be stable going forward here, or can the growth rate accelerate?

我的最後一個問題是，我想，你們的國防收入在 F-18 和飛彈的時機上發生了一些轉變，我想，就像你們所描述的。看起來也許你現在已經超越了前者，然後在階梯上收到了一些訂單。我們是否應該預期你們的國防收入未來會保持穩定，還是成長率會加快？

We probably flattish here in the rest of 2024, as we continue to face tough compares on the F-18 in particular, as well as the TOW missile program. But with TOW coming back in 2025, as well as other programs such as the SPY-6 ramping up in 2025, we should have better times in defense starting next year. Yes.

2024 年剩下的時間裡，我們的情況可能會持平，因為我們將繼續面臨艱難的比較，尤其是 F-18 以及 TOW 飛彈計畫。但隨著 TOW 計劃於 2025 年回歸，以及 SPY-6 等其他計劃於 2025 年啟動，我們從明年開始在國防方面應該會有更好的時光。是的。

We'll be better next year, for sure.

明年我們肯定會更好。

And there appears to be no further questions. I will turn the call back to Stephen Oswald for closing remarks.

而且似乎沒有其他問題了。我將把電話轉回給史蒂芬·奧斯瓦爾德（Stephen Oswald）做總結發言。

Okay. Thank you very much and just wanted to thank everyone for joining us. Obviously, we're very enthusiastic about our numbers, about our performance as we close the second quarter. We feel great about where we are, and we look forward to continuing to build a performance story, as we move to our Vision 2027 financial goals. So again, we appreciate all the support, and wish you a good day. Thank you.

好的。非常感謝，只是想感謝大家加入我們。顯然，我們對第二季結束時的數字和表現非常熱情。我們對自己所處的位置感到滿意，並期待在實現 2027 年願景財務目標的過程中繼續創造業績故事。再次感謝您的支持，並祝您有美好的一天。謝謝。

And thank you all for participating in today's conference. You may now disconnect.

感謝大家參加今天的會議。您現在可以斷開連線。