Ducommun Inc (DCO) 2025 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q1 2025 Ducommun earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 2025 年第一季 Ducommun 收益電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to Ducommun's Senior Vice President, Chief Financial Officer, Mr. Suman Mookerji. Please go ahead.

現在，我想將會議交給 Ducommun 的高級副總裁兼財務長 Suman Mookerji 先生。請繼續。

Thank you, and welcome to Ducommun's 2025 first quarter conference call. With me today is Steve Oswald, Chairman, President and Chief Executive Officer. 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.

謝謝，歡迎參加 Ducommun 2025 年第一季電話會議。今天和我一起的是董事長、總裁兼執行長史蒂夫·奧斯瓦爾德。我將在隨後的準備好的發言或問答環節中討論我們可能做出的有關未來事件、預測或表現的任何前瞻性陳述的某些限制。

Certain statements today that are not historical facts, including any statements as to future market and regulatory conditions, results of operations and financial projections, including those under our Vision 2027 game plan for investors are forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are, therefore, prospective.

今天的某些陳述並非歷史事實，包括有關未來市場和監管條件、經營業績和財務預測的任何陳述，包括我們為投資者制定的 2027 願景遊戲計劃中的陳述，均根據 1995 年《私人證券訴訟改革法案》屬於前瞻性陳述，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.

這些前瞻性陳述受風險、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表達或暗示的未來結果有重大差異。儘管我們相信前瞻性陳述中反映的預期是合理的，但我們不能保證這些預期將被證明是正確的。

In addition, estimates of future operating results are based on the company's current business, which is subject to change. 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, our ability to obtain additional financing and service existing debt to fund capital expenditures and meet our working capital needs, legal and regulatory risks, including pending litigation matters, the cost of expansion, consolidation and acquisitions, competition, economic and geopolitical developments, including supply chain issues, international trade restrictions, the impact of tariffs 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.

此外，對未來經營績效的估計是基於公司目前的業務，而該業務可能會發生變化。Ducommun面臨的特殊風險包括但不限於：我們終端市場週期性、美國政府國防開支水準、我們的客戶可能遇到新產品發布和認證延遲、客戶訂單時間、我們獲得額外融資和償還現有債務以資助資本支出和滿足營運資金需求的能力、法律和監管風險（包括未決訴訟事項） 、擴張、合併和收購的成本、競爭、經濟和地緣政治發展（包括供應鏈問題）、國際貿易限制、關稅和利率上升或高利率的影響、吸引和留住關鍵人才和避免勞工中斷的能力、充分保護和執行知識產權的能力、流行病、自然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.

有關風險的詳細討論，請參閱我們不時向美國證券交易委員會提交的 10-K 表年度報告、10-Q 表季度報告和其他報告以及今天發布的新聞稿。我們的前瞻性陳述受這些風險的影響。

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. 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 Q1 2025 quarterly report on Form 10-Q with the SEC today.

本次電話會議中所作的陳述僅代表當時的觀點，我們不打算更新本次演示中的任何陳述，除非監管機構要求。本次電話會議也包括非公認會計準則財務指標。請參閱我們向美國證券交易委員會 (SEC) 提交的文件，以了解本次電話會議中引用的 GAAP 與非 GAAP 指標的對帳。我們今天向美國證券交易委員會提交了 2025 年第一季 10-Q 表季度報告。

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

現在我想將電話轉給史蒂夫·奧斯瓦爾德，讓他審查一下經營業績。史蒂夫？

Thanks, Suman, and thanks, everyone, for joining us today for our first quarter conference call. Today, and as usual, I will give an update of the current situation of the company, after which Suman will review our financials in detail.

謝謝蘇曼，也謝謝大家今天參加我們的第一季電話會議。今天，像往常一樣，我將介紹公司的現狀，之後蘇曼將詳細審查我們的財務狀況。

Let me start off again on this quarterly call with Ducommun's Vision 2027 game plan for investors as we start our third year in 2025. The strategy and vision were developed coming out of the COVID pandemic over the summer and fall of 2022, unanimously approved by Ducommun Board in November 2022 and then presented to investors the following month in New York, where we got excellent feedback.

在 2025 年開啟第三年之際，讓我在本季電話會議上再次向投資者介紹 Ducommun 的 2027 年願景遊戲計畫。這個策略和願景是在 2022 年夏秋新冠疫情期間制定的，並於 2022 年 11 月獲得 Ducommun 董事會的一致批准，並於次月在紐約向投資者展示，我們獲得了極好的反饋。

Since that time, Ducommun's management has been executing the Vision 2027 strategy. This includes increasing the revenue percentage of engineered products and aftermarket content, which finished at 23% for 2024, up from 19% in 2023, consolidating our rooftop footprint and contract manufacturing, continuing the targeted acquisition program, executing our offloading strategy with defense primes and high-growth segments of the defense budget, driving value-added pricing and expanding content on key commercial aerospace platforms.

自那時起，Ducommun 的管理層一直在執行 2027 願景策略。這包括提高工程產品和售後市場內容的收入百分比（2024 年達到 23%，高於 2023 年的 19%），鞏固我們的屋頂足跡和合約製造，繼續有針對性的收購計劃，執行我們的國防主要項目和國防預算高增長部分的卸載戰略，推動增值定價並擴展主要商業航空平台上的內容。

All of us here as well as my fellow Board members continue to have a high level of conviction in the Vision 2027 strategy and financial goals and believe the many catalysts ahead present unique value creation opportunity for shareholders. The Q1 2025 results are another example of our strategy and initiatives working. Just look at the margin expansion performance and much more to come this year and in 2026.

我們在座的各位以及董事會成員都對「2027 願景」策略和財務目標充滿信心，並相信未來的許多催化劑將為股東帶來獨特的價值創造機會。2025 年第一季的業績是我們策略和措施奏效的另一個例子。只要看看今年和 2026 年的利潤擴張表現以及更多表現。

Despite the challenges discussed on our prior earnings call, I'm happy to report Q1 sales of $194.1 million, which was 1.7% over prior year, making this quarter our 16th consecutive quarter with year-over-year growth in revenue. Team achieved this despite the headwinds in commercial aerospace build rates, destocking at BA and SPR and the continued strategic pruning of our non-core industrial business.

儘管我們在先前的收益電話會議上討論了挑戰，但我很高興地報告第一季的銷售額為 1.941 億美元，比上年增長 1.7%，這使本季度成為我們連續第 16 個季度實現收入同比增長。儘管面臨商用航空航太製造速度的阻力、英國航空和新加坡石油公司的庫存減少以及非核心工業業務的持續策略性精簡，團隊仍然實現了這一目標。

It was also our seventh consecutive quarter above $190 million in revenue. Strong growth in our missile and electronic warfare, along with military helicopter programs drove our military and space revenue to 15% growth over prior year. This includes not just order increases, but also major programs I've been speaking about coming online, such as the offload of the next-generation jammer from RTX and AMRAAM.

這也是我們連續第七個季度的營收超過 1.9 億美元。我們的飛彈和電子戰以及軍用直升機計畫的強勁成長推動我們的軍事和太空收入比上年增長了 15%。這不僅包括訂單增加，還包括我一直在談論的即將上線的主要項目，例如從 RTX 和 AMRAAM 中卸載下一代幹擾器。

Our Defense business looks great with Apache blades coming back online in Q2, Tomahawk cables along with the TOW missile case in Q3. We can't wait. I also want to point out that three of our top five customers in Q1 were defense primes, and that is consistent with all of 2024 as well. Our team continues to build scale at other defense customers outside of RTX, which is and has been a long-term goal. Northrop Grumman is a great example of the strategic effort.

我們的國防業務表現良好，阿帕奇刀片在第二季度重新上線，戰斧電纜以及 TOW 飛彈殼在第三季重新上線。我們等不及了。我還想指出，我們第一季的前五名客戶中有三個是國防主要客戶，這與 2024 年全年的情況一致。我們的團隊繼續在 RTX 以外的其他國防客戶擴大規模，這是一個長期目標。諾斯羅普·格魯曼公司就是這項策略努力的典範。

The strong growth in our Defense business more than offset lower revenue in our Commercial Aerospace business, which declined 10% in the quarter and was anticipated. This is the first Commercial Aerospace decline in the past 15 quarters for DCO. We had tough compares in Q1 as both Boeing and Spirit drove higher demand during this period last year.

我們國防業務的強勁成長足以抵消商用航空業務收入的下降，商用航空業務本季營收下降 10%，這在預料之中。這是 DCO 過去 15 個季度以來商業航空業務首次出現下滑。由於波音和精神航空去年同期的需求均有所增加，因此我們在第一季進行了艱難的比較。

We have seen steady improvement in demand with both these customers over the course of Q1 2025, coming out of the Boeing strike in Q4 of last year, and the outlook is promising. I also want to add that everything we are seeing out of Boeing commercial the last few months has been very encouraging, both on the 737 and 787, our main platforms. We are optimistic that build rates will be at [38] soon on the 737.

自去年第四季波音罷工以來，我們看到這兩家客戶的需求在 2025 年第一季穩定改善，前景看好。我還想補充一點，過去幾個月波音的商業表現令人鼓舞，無論是我們的主要平台 737 還是 787。我們樂觀地認為，737 的建造率很快就會達到 [38]。

Gross margin also grew $4.7 million to 26.6% in Q1, a new quarterly record, up 200 basis points year-over-year from 24.6% as we continue to realize year-over-year benefits from our growing engineered products portfolio with aftermarket, strategic value pricing initiatives, restructuring actions and productivity improvements. We have ceased manufacturing operations at both our Monrovia, California and Berryville, Arkansas facilities and are already seeing cost savings from this action.

第一季毛利率也成長了 470 萬美元，達到 26.6%，創下新的季度紀錄，較去年同期的 24.6% 同比增長 200 個基點，因為我們繼續從不斷增長的工程產品組合中實現同比增長，其中包括售後市場、戰略價值定價舉措、重組行動和生產力改進。我們已經停止了位於加州蒙羅維亞和阿肯色州貝裡維爾工廠的生產業務，並且已經看到了這項舉措帶來的成本節約。

We expect to see these savings be higher as the receiving plants ramp up production later this year and fully in 2026. Stay tuned. For adjusted operating income margins in Q1, the team delivered 9.9%, which was a 90 basis point improvement compared to prior year of 9%. We continue to be pleased with the growth in our engineered products portfolio and our Structures business this quarter, which fully recovered from a onetime expense in Q4 2024.

我們預計，隨著接收工廠在今年稍後提高產量並在 2026 年全面提高產量，這些節省的金額將會更高。敬請關注。就第一季的調整後營業收入利潤率而言，該團隊實現了 9.9%，與去年同期的 9% 相比提高了 90 個基點。我們繼續對本季工程產品組合和結構業務的成長感到滿意，這些業務已從 2024 年第四季的一次性支出中完全恢復。

We did tell investors last quarter, it was onetime and kept our word. Adjusted EBITDA continues to grow compared to last year at 15.9%, a record for us as a percentage of sales, up $3.5 million and almost $31 million, fantastic progress. This is our second quarter with adjusted EBITDA above $30 million and it represents an expansion of 150 basis points above prior year and continues the strong momentum we saw in 2024 as we work towards the 18% goal in our Vision 2027 plan.

我們上個季度確實告訴投資者，這是一次性的，我們信守了諾言。調整後的 EBITDA 與去年相比繼續增長 15.9%，創下銷售額百分比的最高紀錄，增加了 350 萬美元，接近 3,100 萬美元，取得了驚人的進步。這是我們第二個調整後 EBITDA 超過 3000 萬美元的季度，比上年增長了 150 個基點，延續了我們在 2024 年看到的強勁勢頭，我們正在努力實現 2027 願景計劃中 18% 的目標。

GAAP diluted EPS was $0.69 a share in Q1 2025 versus $0.46 a share for Q1 2024. And with the adjustments, diluted EPS was a strong $0.83 a share compared to adjusted diluted EPS of $0.70 a share in the prior-year quarter. The higher GAAP and adjusted diluted EPS during the quarter was driven by improved operating income as well as lower interest costs due to lower interest rates, along with a lower outstanding debt balance. The company's consolidated backlog continues to be strong at $1.05 billion, increasing $8 million year-over-year. The defense backlog increased over $50 million compared to the prior-year quarter.

2025 年第一季 GAAP 稀釋每股收益為 0.69 美元，而 2024 年第一季為 0.46 美元。經過調整後，稀釋每股收益達到每股 0.83 美元，而去年同期的調整後稀釋每股收益為每股 0.70 美元。本季 GAAP 和調整後稀釋每股收益的提高是由於營業收入的提高、利率降低導致的利息成本的降低以及未償債務餘額的減少。該公司的合併未交付訂單持續保持強勁勢頭，達到 10.5 億美元，較去年同期增加 800 萬美元。與去年同期相比，國防積壓訂單增加了 5,000 多萬美元。

No surprise there and is now at $620 million. The commercial aerospace backlog decreased by $31 million compared to the prior-year quarter due to lower OEM production rates, but fully expect it to come back. In December 2022, we set a target of generating 25% plus of our revenue from engineered products, which was 9% in 2017 and 15% in 2022.

這並不令人意外，目前已達 6.2 億美元。由於原始設備製造商 (OEM) 生產率下降，商業航空積壓訂單與去年同期相比減少了 3,100 萬美元，但預計它將回升。2022 年 12 月，我們設定了目標，工程產品的收入占公司總收入的 25% 以上，2017 年為 9%，2022 年為 15%。

In 2024, we reported that our Engineered Products business drove 23% of our total revenue, up from 19% in 2023, positioning us well ahead of the curve in achieving our Vision 2027 goal and certainly pushing for a lot more. We achieved this both through focused investment driving organic growth in our current businesses as well as the BLR acquisition.

2024 年，我們報告工程產品業務貢獻了我們總收入的 23%，高於 2023 年的 19%，這使我們在實現 2027 年願景目標方面處於領先地位，並且肯定會取得更大的進步。我們透過集中投資推動當前業務的有機成長以及收購 BLR 實現了這一目標。

In Q1 2025, we have maintained this mix at 23% and continue to work on both organic and inorganic opportunities to drive this higher. We made tremendous progress to date, and I'm proud of our team and strategic plans. As for 2025 revenue, we are positioned to benefit from the expected Boeing recovery in the second half along with defense, which includes three programs mentioned earlier coming back online in Q2 and Q3.

2025 年第一季度，我們將這一比例維持在 23%，並繼續致力於有機和無機機會來推動這一比例更高。我們迄今為止取得了巨大的進步，我為我們的團隊和策略計劃感到自豪。至於 2025 年的收入，我們將受益於波音公司下半年的預期復甦以及國防業務，其中包括前面提到的三個將在第二季和第三季恢復營運的項目。

We are reaffirming our guide of mid-single-digit revenue growth for the year, with Q2 being flattish to last year due to commercial aerospace, including destocking, but anticipate good strength in the second half of 2025.

我們重申今年中位數個位數收入成長的指導方針，由於商業航空航天（包括去庫存）的影響，第二季度的收入與去年持平，但預計 2025 年下半年將保持強勁增長。

In addition, we also believe tariffs will have a limited, if any, impact on our 2025 revenues, a good story for our investors. I want to reiterate as well that Ducommun is a US manufacturer with US employees and 95% of our revenue is produced in the US. Our only other facility is based in Guaymas, Mexico, and that production is less than 5% of our revenue and thankfully, covered under the USMCA, exempting us from tariffs.

此外，我們也認為，關稅對我們 2025 年的收入的影響即使有，也是有限的，這對我們的投資者來說是個好消息。我還想重申，Ducommun 是一家美國製造商，擁有美國員工，我們 95% 的收入都來自美國。我們唯一的另一家工廠位於墨西哥瓜伊馬斯，其產量不到我們收入的 5%，幸運的是，它受到 USMCA 的保護，並免除關稅。

The other good news is the common sales into China is almost entirely one program for an Airbus supplier who is owned by the government constitute less than 3% of our revenues, and we have not seen any impact at this point on tariffs for our sales. On the supplier side, we do procure some parts from Europe and Asia, but it is manageable. And so far, the impact has been pretty de minimis.

另一個好消息是，對中國的共同銷售幾乎完全是針對一家由政府擁有的空中巴士供應商的一項計劃，占我們收入的不到 3%，而且我們目前尚未看到關稅對我們銷售產生任何影響。在供應商方面，我們確實從歐洲和亞洲採購一些零件，但這是可控的。到目前為止，影響還很小。

We will continue to monitor as the situation evolves. But at this point, we certainly don't see it as being something material to the company. To sum it up, Ducommun in a lot of ways is the new trade policy with most of US manufacturing operations and US employees.

我們將繼續關注事態的發展。但就目前而言，我們當然不認為這對公司有什麼重大影響。總而言之，杜科蒙在許多方面都是針對大多數美國製造業企業和美國員工的新貿易政策。

Now let me provide some additional color on our markets, products and programs. Beginning with our military and space sector, we saw revenues of $114 million compared to $99 million in Q1 2024. Growth was driven by missile programs such as the TOW and AMRAAM, electronic warfare and radar programs, including the NGJ, Aegis combat system, GATR and on the F-16 and Blackhawk for fixed and rotary wing platforms. These are partially offset by weakness on the F-35, Patriot and the V-22.

現在，讓我進一步介紹一下我們的市場、產品和項目。從我們的軍事和航太部門開始，我們的收入為 1.14 億美元，而 2024 年第一季的收入為 9,900 萬美元。推動成長的因素包括 TOW 和 AMRAAM 等飛彈計劃、電子戰和雷達計劃，包括 NGJ、宙斯盾作戰系統、GATR 以及用於固定翼和旋翼平台的 F-16 和黑鷹戰鬥機。這些劣勢被 F-35、愛國者和 V-22 的弱點部分抵消。

We also ended the first quarter with a backlog of $620 million, an increase of $51 million year-over-year, representing 59% of Ducommun's total backlog. Within our commercial aerospace operations, first quarter revenue took a step backwards, declining 10% year-over-year in the quarter to $72 million, driven mainly by lower rates on the 737 MAX, commercial helicopters and in-flight entertainment, partially offset by growth on the A320 and 787.

我們第一季的積壓訂單量為 6.2 億美元，比去年同期增加了 5,100 萬美元，佔 Ducommun 總積壓訂單量的 59%。在我們的商用航空業務中，第一季收入出現倒退，當季同比下降 10% 至 7,200 萬美元，主要原因是 737 MAX、商用直升機和機上娛樂系統的費率下降，但 A320 和 787 的成長部分抵消了這一影響。

As I mentioned earlier, we believe that finally, a much better story is ahead for BA and the MAX. Now that production is ramping up again after the strike. We have seen demand pick up at both Boeing and Spirit over the last few months. The backlog within our Commercial Aerospace business was $411 million at the end of the first quarter, decreasing $31 million compared to prior year, driven by Boeing strike late last year and its impact on production rates.

正如我之前提到的，我們相信，英國航空和 737 MAX 的未來將會更加美好。罷工結束後，產量現已再次增加。過去幾個月，我們看到波音和精神航空的需求都有所回升。截至第一季末，我們的商用航空業務積壓訂單為 4.11 億美元，比去年同期減少 3,100 萬美元，這主要是由於去年年底波音公司罷工及其對生產力的影響。

We expect this to recover as production rates ramp up in 2025. Revenue in our Industrial business declined to $9 million during Q1 as we continue to strategically prune non-core business from the portfolio. This will benefit the company in the long term as we transition that capacity to our core aerospace and defense platforms.

我們預計，隨著 2025 年生產力的提高，這一數字將會恢復。由於我們繼續從投資組合中策略性地削減非核心業務，我們的工業業務收入在第一季下降至 900 萬美元。隨著我們將這種產能轉移到我們的核心航空航太和國防平台，這將使公司長期受益。

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

有了這些，我會讓蘇曼詳細審查我們的財務結果。蘇曼？

Thank you, Steve. As a reminder, please see the company's 10-Q and Q1 earnings release for a further description of information mentioned on today's call.

謝謝你，史蒂夫。提醒一下，請參閱公司的 10-Q 和 Q1 收益報告，以獲取今天電話會議上提到的資訊的進一步描述。

As Steve discussed, our first quarter results reflected another period of solid performance with strong growth in our military end markets. We also continue to make good progress on our facility consolidation projects, which are nearing completion and will drive further synergies in late 2025 and into 2026 as we close out the recertification of the various product lines at the receiving facilities over the next few months.

正如史蒂夫所討論的，我們的第一季業績反映了另一個穩健的表現時期，我們的軍事終端市場強勁成長。我們的設施整合專案也持續取得良好進展，這些專案即將完工，並將在未來幾個月內完成接收設施各個產品線的重新認證，從而在 2025 年底和 2026 年推動進一步的協同效應。

As Steve highlighted earlier, we also made great progress in continuing to build up our engineered product portfolio with those revenues now contributing 23% to our mix. These actions, along with our strategic pricing initiatives drove continued margin expansion in Q1 and is keeping us on pace to achieve our Vision 2027 goals.

正如史蒂夫之前所強調的那樣，我們在繼續建立工程產品組合方面也取得了巨大進展，這些收入目前對我們產品組合的貢獻率為 23%。這些舉措以及我們的策略性定價舉措推動了第一季利潤率的持續擴大，並使我們保持步伐朝著實現 2027 願景的目標邁進。

Now turning to our first quarter results. Revenue for the first quarter of 2025 was $194.1 million versus $190.8 million for the first quarter of 2024. The year-over-year increase of 1.7% reflects strong growth in military and space of 15%, driven by increases in electronic warfare missiles and radar systems. This was partially offset by weakness in our Commercial Aerospace business, mainly driven by lower revenues on the 737 MAX.

現在來看看我們的第一季業績。2025 年第一季的營收為 1.941 億美元，而 2024 年第一季的營收為 1.908 億美元。較去年同期成長 1.7%，反映出軍事和太空領域 15% 的強勁成長，這得益於電子戰飛彈和雷達系統的成長。這被我們商用航空業務的疲軟部分抵消，主要原因是 737 MAX 的收入下降。

We posted total gross profit of $51.6 million or 26.6% of revenue for the quarter versus $46.9 million or 24.6% of revenue in the prior-year period. We continue to provide adjusted gross margins as we had certain non-GAAP cost of sales items in the prior-year period relating to inventory step-up amortization on our acquisitions and restructuring charges. On an adjusted basis, our gross margins were 26.6% in Q1 2025 versus 25% in Q1 2024.

本季我們的總毛利為 5,160 萬美元，佔營收的 26.6%，而去年同期的總毛利為 4,690 萬美元，佔營收的 24.6%。我們繼續提供調整後的毛利率，因為去年同期我們的某些非公認會計準則銷售成本項目與我們的收購和重組費用的庫存逐步攤銷有關。經調整後，我們的 2025 年第一季毛利率為 26.6%，而 2024 年第一季為 25%。

The improvement in gross margin was driven by our growing engineered products portfolio, strategic pricing initiatives, productivity improvements and restructuring savings across both our Structural Systems and Electronic Systems segments. We also continue to make progress on supply chain and labor. Through our proactive efforts, including strategic buys and our inventory investments, we have been able to avoid any significant impact thus far on our business.

毛利率的提高得益於我們不斷增長的工程產品組合、策略性定價措施、生產力提高以及結構系統和電子系統部門的重組節省。我們在供應鏈和勞動力方面也持續取得進展。透過我們的積極努力，包括策略性採購和庫存投資，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。

Going forward, we will continue to work to improve the working capital turns in the business and improve our cash flow. I also want to add that we did not see any measurable impact from tariffs in the first quarter. And as Steve mentioned, do not anticipate any significant impact to our P&L.

展望未來，我們將繼續努力提高業務的營運資金周轉率並改善我們的現金流。我還想補充一點，我們在第一季沒有看到關稅產生任何可衡量的影響。正如史蒂夫所提到的，預計這不會對我們的損益產生任何重大影響。

We are a US manufacturing business with US employees and generate 95% of revenues from our domestic facilities. The other 5% comes from Mexico, and all that revenue is tariff-free through the USMCA. Our sales are also largely to domestic customers with US sales being in excess of 85% in 2024. Sales to China were less than 3%, mostly to one customer for Airbus, and there has been no impact to those volumes or orders at this time due to the tariffs.

我們是一家擁有美國員工的美國製造企業，95% 的收入來自國內工廠。其餘 5% 來自墨西哥，所有收入均透過 USMCA 免關稅。我們的銷售主要面向國內客戶，到 2024 年，美國銷售額將超過 85%。對中國的銷售額不到 3%，主要銷往空中巴士的一家客戶，目前關稅尚未對這些銷售或訂單產生影響。

Our supply chain is also largely domestic with less than 5% of our direct suppliers being foreign. Some of our domestic suppliers do source materials from outside the United States, but even that is a very manageable spend with China being a low single-digit percentage. We expect to mitigate the impact of tariffs on our material spend through military duty-free exemptions, alternate sourcing of materials from domestic suppliers or by passing on the impact to our customers.

我們的供應鏈也主要在國內，其中不到5％的直接供應商是外國的。我們的一些國內供應商確實從美國以外採購材料，但即使是這樣，由於中國比例較低，因此這也是非常可控的支出。我們希望透過軍事免稅、從國內供應商採購材料或將影響轉嫁給客戶來減輕關稅對我們材料支出的影響。

Ducommun reported operating income for the first quarter of $16.6 million or 8.5% of revenue compared to $12.6 million or 6.6% of revenue in the prior-year period. Adjusted operating income was $19.2 million or 9.9% of revenue this quarter compared to $17.1 million or 9% of revenue in the comparable period last year.

Ducommun 公佈第一季營業收入為 1,660 萬美元，佔收入的 8.5%，而去年同期的營業收入為 1,260 萬美元，佔收入的 6.6%。本季調整後的營業收入為 1,920 萬美元，佔營收的 9.9%，而去年同期為 1,710 萬美元，佔營收的 9%。

The company reported net income for the first quarter of 2025 of $10.5 million or $0.69 per diluted share compared to net income of $6.8 million or $0.46 per diluted share a year ago. On an adjusted basis, the company reported net income of $12.6 million or $0.83 per diluted share compared to adjusted net income of $10.4 million or $0.70 in Q1 2024. The higher net income and adjusted net income during the quarter was driven by the higher operating income and adjusted operating income.

該公司報告稱，2025 年第一季淨收入為 1,050 萬美元，即每股攤薄收益 0.69 美元，而去年同期淨收入為 680 萬美元，即每股攤薄收益 0.46 美元。經調整後，該公司報告的淨收入為 1,260 萬美元，即每股攤薄收益 0.83 美元，而 2024 年第一季的調整後淨收入為 1,040 萬美元，即每股攤薄收益 0.70 美元。本季淨收入和調整後淨收入的增加得益於營業收入和調整後營業收入的增加。

Now let me turn to our segment results. Our Structural Systems segment posted revenue of $84.4 million in the first quarter of 2025 versus $83.3 million last year. The year-over-year increase reflected $2.3 million of higher sales across our military and space applications, including Blackhawk and TOW. Commercial Aerospace was down just 2%, driven primarily by a decline in 737 MAX and commercial helicopters.

現在讓我來談談我們的分部表現。我們的結構系統部門在 2025 年第一季的營收為 8,440 萬美元，而去年同期為 8,330 萬美元。與去年同期相比，我們的軍事和太空應用（包括 Blackhawk 和 TOW）的銷售額增長了 230 萬美元。商用航空僅下跌 2%，主要原因是 737 MAX 和商用直升機的銷售下滑。

Structural Systems operating income for the quarter was $10.4 million or 12.3% of revenue compared to $2.9 million or 3.4% of revenue for the prior-year quarter.

本季結構系統營業收入為 1,040 萬美元，佔營收的 12.3%，而去年同期為 290 萬美元，佔營收的 3.4%。

Excluding restructuring charges and other adjustments in both years, the segment operating margin was 14.9% in Q1 2025 versus 7.8% in Q1 2024. In Q4 2024, we had noted unfavorable program mix and onetime costs impacting the profitability of the segment. We had highlighted these as temporary with an expected recovery in Q1 2025. Our performance here in Q1 2025 validates those comments as we saw a strong recovery in the margins of the Structural Systems segment.

不計入兩年的重組費用和其他調整，2025 年第一季該部門的營業利潤率為 14.9%，而 2024 年第一季為 7.8%。在 2024 年第四季度，我們注意到不利的專案組合和一次性成本影響了該部門的獲利能力。我們強調這些都是暫時的，預計 2025 年第一季將出現復甦。我們在 2025 年第一季的表現證實了這些評論，因為我們看到結構系統部門的利潤率強勁復甦。

Our Electronic Systems segment posted revenue of $109.7 million in the first quarter of 2025 versus $107.5 million in the prior-year period. Higher revenues from TOW and AMRAAM missiles as well as from electronic warfare and radar programs were partially offset by lower revenues from F-35 inflight entertainment electronics, along with the reduction in our Industrial business as we chose to selectively prune non-core work.

我們的電子系統部門在 2025 年第一季的營收為 1.097 億美元，而去年同期的營收為 1.075 億美元。TOW 和 AMRAAM 飛彈以及電子戰和雷達項目的收入增加，但被 F-35 機上娛樂電子設備的收入下降以及我們選擇選擇性削減非核心工作導致的工業業務的減少部分抵消。

We have been pruning our Industrial business now for multiple quarters, maintaining only select customers that are accretive to our business. Electronic Systems operating income for the first quarter was $18.1 million or 16.5% of revenue versus $19 million or 17.6% of revenue in the prior-year period.

我們已經連續多個季度精簡工業業務，只保留那些對我們的業務有增值作用的特定客戶。電子系統第一季的營業收入為 1,810 萬美元，佔營收的 16.5%，而去年同期的營業收入為 1,900 萬美元，佔營收的 17.6%。

Excluding restructuring charges and other adjustments in both years, the segment operating margin was 16.9% in Q1 2025 versus 18.4% in Q1 2024. The year-over-year decrease was primarily due to lower manufacturing volume and higher manufacturing costs, partially offset by favorable product mix in the quarter.

不計入兩年的重組費用和其他調整，2025 年第一季該部門的營業利潤率為 16.9%，而 2024 年第一季為 18.4%。年比下降主要是由於製造量下降和製造成本上升，但本季有利的產品組合部分抵消了這一影響。

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。提醒一下，正如之前所討論的，我們早在 2022 年就啟動了重組計劃。採取這些措施是為了使公司在短期和長期內獲得更好的業績。其中包括關閉我們位於加州蒙羅維亞和阿肯色州貝裡維爾的工廠，並將該工作轉移到我們位於墨西哥瓜伊馬斯的低成本營運中心和美國其他現有的性能中心。

We continue to make progress on these transitions and are working diligently with our customers, Boeing and RTX to obtain the requisite approvals, which are expected to be completed by the end of Q3. Later this month, we expect to start full production of rotor blades for the Apache helicopter at our Coxsackie, New York facility, which will complete the transition of that program from our Monrovia, California facility.

我們在這些轉變上繼續取得進展，並正在與我們的客戶波音和 RTX 密切合作以獲得必要的批准，預計將在第三季末完成。本月晚些時候，我們預計將在紐約州柯克薩基的工廠開始全面生產阿帕奇直升機的旋翼葉片，這將完成該項目從加州蒙羅維亞工廠的過渡。

We are also working through the transition of 737 MAX spoilers, Tomahawk harnesses and the TOW missile case, which are all expected to go into production in Guaymas in the second half of this year. During Q1 2025, we recorded $0.4 million in net restructuring charges. We expect to incur an additional $0.5 million to $1 million in restructuring expenses as we complete the program. As previously communicated, we expect to generate $11 million to $13 million in annual savings from our actions and have already seen some realization of savings in 2024 and the first quarter of this year.

我們也正在進行 737 MAX 擾流板、戰斧式安全帶和 TOW 飛彈箱的過渡，預計這些產品將於今年下半年在瓜伊馬斯投入生產。2025 年第一季度，我們記錄了 40 萬美元的淨重組費用。我們預計，在完成該計劃後，將產生額外的 50 萬至 100 萬美元的重組費用。正如之前所傳達的，我們預計我們的行動每年將節省 1100 萬至 1300 萬美元，並且已經在 2024 年和今年第一季實現了部分節省。

We expect the synergies to ramp up in late 2025 and into 2026 as the product recertification is complete and the receiving facilities move up the learning curve and ramp up production. We anticipate selling the land and building at both Monrovia, California and Berryville, Arkansas. During the quarter, we reclassified the Berryville land buildings and building improvements to assets held for sale and are making progress towards the sale of that property in Q2.

我們預計，隨著產品重新認證的完成以及接收設施學習曲線的上升和產量的提高，協同效應將在 2025 年末和 2026 年增強。我們預計將出售位於加州蒙羅維亞和阿肯色州貝裡維爾的土地和建築物。在本季度，我們將貝裡維爾土地建築和建築改良物重新歸類為持有待售資產，並正在推進在第二季度出售該房產。

Turning now to liquidity and capital resources. In Q1 2025, we generated $0.8 million in cash flow from operating activities, which was an improvement compared to a use of $1.6 million in Q1 2024. The improvement was due to net income growth of $3.7 million, offset by investments in working capital.

現在來談談流動性和資本資源。2025 年第一季度，我們從經營活動產生了 80 萬美元的現金流，與 2024 年第一季的 160 萬美元相比有所改善。這一增長是由於淨收入增長了 370 萬美元，但被營運資本投資所抵消。

As of the end of the first quarter, we had available liquidity of $221.7 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 market, allowing us to reduce our spread, increase the size of our revolver and allowing us the flexibility to execute on our acquisition strategy.

截至第一季末，我們的可用流動資金為 2.217 億美元，包括未使用的循環信貸額度部分和庫存現金。我們現有的信貸安排是在 2022 年 7 月信貸市場的有利時機建立的，這使我們能夠降低利差、增加循環信貸規模，並使我們能夠靈活地執行收購策略。

Interest expense in Q1 2025 was $3.3 million compared to $3.9 million in Q1 of 2024. The year-over-year improvement in interest cost was primarily due to lower interest rate, along with a lower debt balance. In November 2021, we put in place an interest rate hedge that went into effect for a 7-year period starting January 2024 and pegged the 1-month term SOFR at 170 basis points for $150 million of our debt. The hedge will continue to drive significant interest savings in 2025 and beyond.

2025 年第一季的利息支出為 330 萬美元，而 2024 年第一季的利息支出為 390 萬美元。利息成本較去年同期改善主要由於利率下降以及債務餘額下降。2021 年 11 月，我們實施了一項利率對沖計劃，自 2024 年 1 月起生效，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。對沖將在 2025 年及以後繼續帶來巨額利息節省。

To conclude the financial review for Q1 2025, I would like to say that the first quarter results are a strong start to the year, building on the momentum from 2024 positions us well for the rest of 2025 and beyond.

總結 2025 年第一季的財務回顧，我想說，第一季的業績為今年開了個好頭，在 2024 年勢頭的支撐下，我們為 2025 年剩餘時間及以後的發展做好了準備。

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

現在我將把時間交還給史蒂夫，請他作最後發言。史蒂夫？

Okay. Thanks, Suman. In closing, Q1 was an excellent start to the year despite the anticipated headwind from commercial aerospace. As mentioned several times, we achieved another record for gross margin percentage at 26.6%. And just keep in mind, a few years ago, we had a run rate of roughly 20% for an entire year, and that was back in 2022.

好的。謝謝，蘇曼。總而言之，儘管預計商業航空航太業將面臨阻力，但第一季仍然是今年的一個好開始。如同多次提到的，我們的毛利率再創歷史新高，達到 26.6%。請記住，幾年前，我們全年的運行率約為 20%，那是在 2022 年。

So we've come a long way in two years and could not be happier about that. Adjusted EBITDA percentage was great and a record as well at 15.9% of sales. We're also very well positioned to meet and exceed our Vision 2027 target of 25% plus of Engineered Product revenues with 2021 -- 2025 Q1 coming in at 23% and we're getting this as high as possible as it is our #1 strategic focus.

因此，我們在兩年內取得了長足的進步，對此我們感到非常高興。調整後的 EBITDA 百分比非常高，達到銷售額的 15.9%，創下了歷史新高。我們也完全有能力實現並超越我們的 2027 願景目標，即工程產品收入佔比 25% 以上，2021 年至 2025 年第一季將達到 23%，而且我們會盡可能地提高這一目標，因為這是我們的首要策略重點。

Finally, with commercial build rates heading higher in the second half, getting past destocking, along with stronger defense activity, I'm very optimistic about what lies ahead in the next few years for DCO, its shareholders and other stakeholders. Okay. Let's go to questions, please. Thank you.

最後，隨著下半年商業建設率走高、擺脫去庫存階段以及國防活動加強，我對 DCO、其股東和其他利益相關者未來幾年的前景非常樂觀。好的。請讓我們開始提問。謝謝。

(Operator Instructions)

（操作員指示）

Mike Crawford, B. Riley Securities.

邁克·克勞福德 (Mike Crawford)，B. Riley 證券。

Thank you. Starting with commercial aerospace. I mean, we know that Boeing is increasing their monthly build rates. But how would you characterize any delay in when your shipset rates to Boeing and Spirit would increase if Boeing does get production up to 38 a month?

謝謝。從商業航空航天開始。我的意思是，我們知道波音公司正在提高其每月的生產力。但是，如果波音公司的每月產量確實達到 38 架，那麼您如何描述您向波音和 Spirit 公司的出貨率何時會增加的延遲？

We are seeing rates from Boeing in the low 20s. We're seeing rates from Spirit ramp up to the mid- to high 20s as we went through Q1 and into April. We have -- know publicly that Boeing is likely producing at in the low 30s at the moment. So there is some destocking impact that we are seeing, but the rates have continued to progress and go up over the last four months this year.

我們看到波音的利率在 20% 出頭。隨著第一季和四月的到來，我們看到 Spirit 航空的運價上漲至 25% 左右。我們已經公開知道波音目前的產量可能在 30% 左右。因此，我們看到了一些去庫存的影響，但今年過去四個月利率持續上升。

And so we are very optimistic that there will continue to be -- despite the destocking, continued growth in the demand for us on both those platforms. And the expectation is that Boeing is able to get to their rate of 38 by the end of this year.

因此，我們非常樂觀地認為，儘管庫存減少，但這兩個平台對我們的需求仍將持續成長。預計波音公司今年底將達到 38 架的產量。

Mike, this is Steve. I'm very confident where they are. They had a great April, as you can see from the announcements they made. March to April was really impressive.

麥克，這是史蒂夫。我對他們所在的地方非常有信心。從他們發布的公告中你可以看出，他們度過了一個美好的四月。三月到四月確實令人印象深刻。

I think their efficiency and everything they're doing within fusion technology has gotten a lot better. I think 38 is in the cards, probably maybe by September, October. So we're going to see a lift.

我認為他們的效率以及他們在聚變技術領域所做的一切都已經得到了很大的提高。我認為 38 是有可能的，可能在九月或十月。因此我們將會看到提升。

Okay, thank you. And then just turning to rotary wing. You had some weakness, but you also had some "selected" rotary wing platforms with higher rates. I take it that's Apache or Apache blades are coming on in Q2. So what was performing higher in Q1? And how much of this would you attribute to BLR Aerospace?

好的，謝謝。然後就轉向旋翼了。你有一些弱點，但你也有一些「精選」的具有更高速率的旋翼平台。我認為 Apache 或 Apache 刀片將在第二季推出。那麼第一季哪些產品表現較好呢？您認為這在多大程度上歸功於 BLR Aerospace？

So we did, as you rightly pointed on the defense side of our business, see well, the weakness that you pointed out, we saw in -- on the commercial side, there -- we have some transitions ongoing with production moving from Monrovia to Coxsackie and so some demand with the Bell Helicopter, some issues with materials on Sikorsky platforms, which drove temporary softness in the quarter on commercial helicopter.

正如您正確指出的我們業務的防禦方面，我們看到了您所指出的弱點——在商業方面——我們正在進行一些轉型，生產從蒙羅維亞轉移到柯克斯薩奇，因此對貝爾直升機有一些需求，西科斯基平台的材料存在一些問題，這導致本季度商用直升機的暫時疲軟。

But we are going to see the Apache production here ramp up, which should be really a positive in Q2 and beyond on the rotorcraft side for us.

但我們將看到這裡的阿帕奇產量上升，這對我們旋翼機第二季度及以後的產量來說應該是一個利好。

Plus, Mike, we're on the Apache engine with MagSeal. So that's also -- they're going great with the engine business there. So that's a part of that lift. But we might have this in that with blades right now.

另外，麥克，我們在 Apache 引擎上使用 MagSeal。所以這也是——他們在那裡的引擎業務進展順利。這就是升力的一部分。但我們現在可能已經擁有了這種刀片。

But now we're just starting to get ramped up. We cut the blades. Boeing looked at them, everything is looking great. We got everybody trained out in New York.

但現在我們才剛開始加大力度。我們切割刀片。波音公司看著他們，一切看起來都很棒。我們在紐約對每個人都進行了培訓。

So we're hoping -- obviously, these are high energy parts, you got to be careful. But we're hoping in May, we're going to start really ramping up. And we got the orders. We just got to get the production in place.

所以我們希望——顯然，這些都是高能量部件，你必須小心。但我們希望在五月能夠真正開始加速發展。我們收到了訂單。我們只需要讓生產到位。

Oh, okay, thank you. I just end with the DSO increase in Q1, is that anything structural or contractual that changed? Or should we look for those DSOs to come back down? Thank you.

噢，好的，謝謝你。我剛剛以第一季的 DSO 增加作為結束，這是否是結構性或合約性的變化？或者我們應該等待那些 DSO 回落嗎？謝謝。

That's a good point. So we did have just some seasonality in the sales in Q1. We had a slightly bigger March. We had some items that went out towards the end of the quarter that drove it. there isn't any structural change. It was just the seasonality, a onetime kind of thing during the quarter.

這是一個很好的觀點。因此，第一季的銷售確實受到一些季節性的影響。我們的三月稍微熱鬧一點。我們在本季末推出了一些產品，這對其發展起到了推動作用。沒有任何結構性變化。這只是季節性現象，是本季一次性發生的事情。

Alright, thank you.

好的，謝謝。

Yeah Mike, thanks.

是的，麥克，謝謝。

Ken Herbert, RBC Capital Markets.

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

Yeah, hi, good morning, Steve, and Suman, I wanted to ask first on the M&A pipeline. You obviously have placeholder for M&A contribution as we think about Vision '27. It's been quiet recently on the deal front. Are you still tracking towards the placeholder you've got in place for '27 from M&A? And maybe can you give any more detail on how the pipeline looks now and due diligence efforts and maybe expectations for M&A this year?

是的，嗨，早上好，史蒂夫和蘇曼，我想先問一下有關併購管道的問題。當我們思考「27 年願景」時，您顯然為併購貢獻預留了空間。最近交易方面比較平靜。您是否仍在追蹤 M&A 為 27 年設定的佔位符？您能否更詳細地介紹一下目前的通路狀況、盡職調查工作以及今年的併購預期？

So we -- Ken, thank you for the question as well. We continue to track multiple opportunities in our pipeline. And we've got to be disciplined and make sure we execute on the right one. We see enough in the pipeline for us to feel fairly confident in being able to get a deal done this year. And I think that's I would say --

所以我們——肯，也感謝你提出這個問題。我們將繼續追蹤我們渠道中的多個機會。我們必須嚴守紀律，確保執行正確的政策。我們看到有足夠的準備工作，讓我們有信心在今年達成協議。我想這就是我要說的--

I would say the deal volume is good. We -- and I know we just looked at something fairly hard and did a lot of -- put a lot of hours in on it and it turned out it just wasn't for us. So we're involved in diligence as you asked, and we're looking forward to getting one sooner than later, Ken.

我想說交易量不錯。我知道，我們剛剛研究過一件相當困難的事情，並且為此付出了很多努力，投入了大量的時間和精力，但結果卻發現它不適合我們。因此，正如您所要求的，我們正在盡職調查，並且我們期待著盡快得到一份報告，肯。

Okay, That's helpful. And are you seeing more in aerospace or defense or combined or anything maybe we should just keep in mind?

好的，這很有幫助。您是否在航空航太、國防或綜合領域看到了更多值得我們關注的領域？

I would say the businesses that we look at tend to be kind of niche engineered product businesses, which often will span across some defense platforms as well as commercial aerospace. So there is a mix of both. It isn't necessarily skewed one way or the other.

我想說，我們關注的企業往往是一些利基工程產品企業，它們通常涉及一些國防平台以及商業航空航天。因此，兩者是混合的。它不一定以某種方式傾斜。

Other. I would say that's right, Ken. I'd say we usually have sort of a mix. It's usually never 100% one way or the other. So that's sort of what we're seeing and what we've seen.

其他。我想說這是對的，肯。我想說我們通常會採用某種混合方式。通常情況下，無論哪種方式都不可能達到 100%。這就是我們所看到的和已經看到的。

Okay, And just finally, you seem to be running ahead of your '27 targets in terms of contribution from the engineered products. And if you do another deal this year, I'm assuming it would be very focused on the engineered products. How should we think about the -- maybe the margin contribution from these engineered products?

好的，最後，從工程產品的貢獻來看，你們似乎已經超越了你們 27 年的目標。如果你今年再做一筆交易，我認為它會非常專注於工程產品。我們該如何看待這些工程產品帶來的獲利貢獻？

You talked obviously a lot about the sales contribution. To maybe help us understand how impactful this could be as you grow that mix to the EBITDA?

您顯然談了很多有關銷售貢獻的問題。也許可以幫助我們了解當您將該組合擴展到 EBITDA 時這會產生多大的影響？

I mean I can imagine it's been a big component of obviously just the margin improvement on the gross margins and EBITDA. But any help you can give in framing that as we think moving forward on the engineered products would be nice.

我的意思是，我可以想像這顯然是毛利率和 EBITDA 利潤率提高的一個重要因素。但是，當我們考慮推進工程產品開發時，如果您能提供任何幫助，那就太好了。

Thank you.

謝謝。

Great question, Ken. And these are significantly accretive to our margins, right? These are engineered proprietary product businesses with access to the aftermarket and in line with some of the other aftermarket peers that you covered, right?

很好的問題，肯。這些對我們的利潤率有顯著的提升，對嗎？這些都是經過精心設計的專有產品業務，可以進入售後市場，並且與您所報道的其他一些售後市場同行保持一致，對嗎？

Margins are in line with those. So they tend to be accretive. They tend to provide also significant margin runway for us to execute on post-acquisition. And so we believe that this is going to continue to be as we do additional acquisitions, a key driver of margin expansion for us into 2027.

利潤與這些一致。因此它們往往具有增值性。它們往往也會為我們的收購後執行提供巨大的利潤空間。因此，我們相信，隨著我們進行更多收購，這種情況將繼續成為我們 2027 年利潤率擴張的關鍵驅動力。

Yeah, Ken, also, we have -- as far as the value we provide for these products, I mean, we have very good pricing power. So that's the other thing which is important for investors to know. Thanks.

是的，肯，就我們為這些產品提供的價值而言，我們擁有非常好的定價權。這是投資者需要了解的另一件重要的事情。謝謝。

Great, thanks.

太好了，謝謝。

Michael Ciarmoli, Truist Securities.

Truist Securities 的 Michael Ciarmoli。

Hey, good morning guys. Thanks for taking the questions. Really nice margins here. Maybe, Steve or Suman, just to kind of level set us and unpack maybe the revenue guidance for the rest of the year, mid-single-digit growth. Defense obviously had a really strong quarter here, but the comps do get a bit tougher and you're obviously going to have some of this recovery in Commercial Aero. But maybe how are you thinking about the growth rates between Commercial Aero and Defense for the remainder of the year?

嘿，大家早安。感謝您回答這些問題。這裡的利潤真的很好。也許，史蒂夫或蘇曼只是為了給我們設定一個水平，並解讀今年剩餘時間的收入預期，即中等個位數的增長。國防業務在本季顯然表現強勁，但競爭確實變得更加激烈，而商用航空業務顯然會迎來一些復甦。但是，您如何看待今年剩餘時間內商用航空和國防之間的成長率？

Yeah, Just let me jump in there first. I think first thing, Mike, just to note, I think this is a real benefit for shareholders. that we have this mix of defense and commercial, right? We've had a lot of peer groups that -- or peers that have more commercial and they're struggling a bit. But as you can see, our Defense business, we've been talking about really came to the fore as they say, in Q1.

是的，首先讓我跳進去。麥克，首先我想指出的是，我認為這對股東來說是真正的好處。我們擁有這種防禦和商業的結合，對嗎？我們有很多同齡人，或者說擁有更多商業頭腦的同齡人，他們正在經歷一些掙扎。但正如您所看到的，我們一直在談論的國防業務確實在第一季脫穎而出。

So first of all, we're really pleased with our balance. As far as what I can see, obviously, we're flattish in Q2, but we feel very good about destocking and commercial rates going up, not only on the 37, but on the 87, right? Because we have a very good content mix there. So very positive on the back half. And I think maybe Defense going forward, maybe not 15%, but certainly a very respectable growth number.

首先，我們對我們的平衡感到非常滿意。據我所知，顯然，我們在第二季度持平，但我們對去庫存和商業利率上漲感到非常樂觀，不僅在 37 個方面，而且在 87 個方面，對嗎？因為我們在那裡擁有非常好的內容組合。後半部分錶現非常積極。我認為國防未來的成長可能不會達到 15%，但肯定是一個非常可觀的成長數字。

The only thing I'd add there, Steve, is that we're going to see the ramp-up in the programs that have been transitioning, right? So we have the TOW missile cases, the spoilers and the Tomahawk program across commercial and defense, we're going to get some lift in the back half from those programs coming back online.

史蒂夫，我唯一要補充的是，我們將會看到那些正在轉型的專案的加速發展，對嗎？因此，我們有 TOW 飛彈箱、擾流板和戰斧計劃，涵蓋商業和國防領域，這些計劃的恢復將使我們在下半年獲得一些提升。

Yes, which is going to be great for everyone.

是的，這對每個人來說都是一件好事。

Okay. Got it. What about the A220? I know Airbus' commentary around both the 220 and 350 have been a little bit squishy just given the Spirit facilities. Do you expect that to be a material contributor to the A220 this year?

好的。知道了。A220 怎麼樣？我知道，考慮到 Spirit 的設施，空中巴士對 220 和 350 的評價有點含糊。您是否預計這會對今年的 A220 產生重大貢獻？

Look, yeah, so a couple of things. First, that A220 program has been great for us. As we talked about, we make the fuselage skins. We're a supplier into China. We haven't seen any headwind yet.

看，是的，有幾件事。首先，A220 計劃對我們來說非常有益。正如我們所說的，我們製造機身蒙皮。我們是中國的供應商。我們尚未看到任何逆風。

So we feel very good about that. So that's going to continue. We feel as far as where we sit here today, it's going to again be good business this year leading into next year. I understand about the Spirit issue and the engine issue and I'm hoping sooner or later, they're going to work through that.

因此我們對此感到非常高興。這種情況將會持續下去。我們認為，就目前的情況而言，今年和明年的生意仍將很好。我了解「精神號」的問題和引擎的問題，我希望他們遲早能夠解決這個問題。

But we're running rates higher than what they're shipping. That's for sure. And we're happy about that. The other thing is on the A350, we're really -- we're not a player on the A350. So I know they're struggling. It won't impact us.

但我們的運費比他們的運費高。這是肯定的。我們對此感到高興。另一件事是關於 A350，我們真的——我們不是 A350 的參與者。所以我知道他們正在掙扎。這不會影響我們。

Got it. Got it. And last one for me. I think you called out the in-flight entertainment side of commercial as being weak. I was just wondering if you could potentially size that business. What are the thoughts there, just given that's maybe viewed as more discretionary spending from the airlines. Does that continue to be a headwind for the remainder of the year? Or was that just kind of short term here temporary?

知道了。知道了。對我來說這是最後一個。我認為您說的是商業航班的機上娛樂方面比較薄弱。我只是想知道您是否有可能擴大該業務的規模。您有什麼想法嗎？只是考慮到這可能被視為航空公司更多的可自由支配的支出。這是否會成為今年剩餘時間的持續阻力？或者這只是一種短期的臨時措施？

That -- it's not a huge portion of our business. It's low single-digit percentage of our total business. I think we'll continue to see some softness there through the rest of this year that we expect will be offset by other things in the portfolio.

那——這不是我們業務的很大一部分。它只占我們整個業務的個位數百分比。我認為，今年剩餘時間我們將繼續看到一些疲軟趨勢，我們預計這些疲軟趨勢將被投資組合中的其他因素所抵消。

Mike, the other I'd say, I think the compares get a little bit easier. We had a really good Q1 2024 with in-flight. I mean, it's one customer. So -- and obviously, we didn't have a great rest of the year with things kind of tamped down a bit. So I think going forward, we'll probably moderate around that on a comparable basis.

麥克，我想說的是，我認為比較變得更容易一些。2024 年第一季度，我們的飛行業務表現非常好。我的意思是，只有一位顧客。所以——顯然，我們今年剩餘的時間過得併不好，情況有點低迷。因此我認為，展望未來，我們可能會在可比較的基礎上對此進行調整。

Perfect. Thanks. Guys. I'll jump back in the queue. See you this week.

完美的。謝謝。夥計們。我會重新回到隊列中。本週見。

Jason Gursky, Citi.

花旗銀行的傑森古爾斯基。

Hey, good morning everybody. Steve, I wonder if you could just spend a few minutes talking about the potential for new work scopes for you all. And maybe start with the commercial side. Obviously, Spirit AeroSystems is going through a thing here. And I'm just wondering if there won't be some more opportunities there for you as those assets land in different hands.

嘿，大家早安。史蒂夫，我想知道你是否可以花幾分鐘時間談談你們所有人新的工作範圍的潛力。也許可以從商業方面開始。顯然，Spirit AeroSystems 正在經歷一些事情。我只是想知道，當這些資產落在不同人手中時，是否還會有更多機會給你。

So is there opportunity here either at Boeing or Airbus as a result of what's going on at Spirit AeroSystems for you guys? That would be the first part.

那麼，Spirit AeroSystems 的現況對你們來說是否為波音或空中巴士帶來機會呢？那是第一部分。

Yes. And then the second part would be on the defense. I'm just kind of curious if you are beginning to see any signs of increased outsourcing initiatives by any of the big cap defense companies?

是的。第二部分是防守。我只是有點好奇，您是否開始看到任何大型國防公司增加外包措施的跡象？

Okay, Thanks. Certainly, it's funny you asked that we have our Senior VP out at Spirit actually today meeting with them in Wichita. So we have a very close relationship with Spirit. They're obviously a top customer of ours.

好的，謝謝。當然，你問到我們 Spirit 的高級副總裁今天實際上在威奇託與他們會面，這很有趣。所以我們與 Spirit 的關係非常密切。他們顯然是我們的重要客戶。

And we do see more opportunity, especially as things ramp up, okay? So for instance, we just got going on the 737 MAX skins. And that's early on, right?

我們確實看到了更多的機會，特別是隨著事態的發展，好嗎？例如，我們剛開始研究 737 MAX 外觀。那隻是早期的事情，對吧？

So we do four or five skins and we do 15 a month. That's the deal we have, right? So it's not pay by the drink. And we feel very good about increasing business there. We understand there's delivery challenges.

因此我們製作四、五種皮膚，每月製作 15 種。這就是我們的交易，對吧？所以不是按杯付費。我們對在那裡的業務成長感到非常高興。我們了解交付存在挑戰。

We're pretty much 100% on time. We're pretty close to both Airbus and Spirit and Boeing. So our operations are very strong. So we think there is growth there. We're continuing to work with them.

我們基本上 100% 準時。我們與空中巴士、精神航空和波音公司的差距非常大。所以我們的營運非常強勁。因此我們認為那裡有增長。我們將繼續與他們合作。

I think the skins is sort of in the lead as well as maybe some other things as well as Airbus, we're getting quoted heavily by Airbus, frankly, because some of the other suppliers are not getting the job done.

我認為外殼處於領先地位，其他一些方面也處於領先地位，還有空客，坦白說，我們從空中巴士獲得了大量報價，因為其他一些供應商沒有完成這項工作。

Whether that changes hands, we'll have to see, but we see a lot of growth activity as far as quoting at this point. So I think that's -- I think a good story. I think if you look at our just percentage of what we have on the programs in general and our operation performance, it's all very positive. Do you want to handle the second part or?

我們還要拭目以待，看看最終結果是否會改變，但就目前的報價而言，我們看到了許多成長活動。所以我認為這是個好故事。我認為，如果你看一下我們在整體專案中所佔的百分比以及我們的營運績效，你會發現一切都非常積極。您想處理第二部分嗎？

On the defense side, I think we are continuing to see numerous opportunities to bid for work. RTX is a big customer for us, our biggest customer, and we are actively bidding both a lot of new work with them. So I think stay tuned for additional wins for us there on the defense side as well.

在國防方面，我認為我們繼續看到大量競標工作的機會。RTX 是我們的大客戶，也是我們最大的客戶，我們正在積極與他們競標許多新工作。因此我認為請繼續關注我們在防守方面取得的更多勝利。

Yeah, The only thing I'd say as well, Jason, is that, look, especially like on card businesses, CCAs, those type of things on very difficult applications. I mean, we're really good, right? So we picked up a lot from RTX that used to make these cards in Massachusetts. And now that's coming our way in Tulsa, and we have other things we're working on with Northrop.

是的，傑森，我唯一想說的是，看，尤其是像信用卡業務、CCA 這類非常困難的應用程式。我的意思是，我們真的很好，對吧？因此，我們從 RTX 那裡學到了很多東西，RTX 曾在馬薩諸塞州生產這些卡片。現在，這項工作正在塔爾薩進行，我們也正在與諾斯羅普合作其他工作。

So that's not changing. And I've been bullish on defense. I've been telling investors, look, these things take time and they do because when you're moving something from an internal operation at RTX to Tulsa, they're not going to give you everything at first. You got to get 50%, you got to get testing machines. So all this is going to come together for us, I believe, in this year and next year.

所以這並沒有改變。我一直對防守持樂觀態度。我一直告訴投資者，看，這些事情需要時間，而且確實如此，因為當你將某些東西從 RTX 的內部營運轉移到塔爾薩時，他們不會一開始就把所有東西都給你。你必須獲得 50%，你必須獲得測試機器。所以我相信，今年和明年，所有這一切都會實現。

So I was very happy with the 15%, I'll say that in defense this quarter.

所以我對 15% 感到非常滿意，我會說這是本季的防守。

Yeah, good enough. All right, thanks guys.

是的，夠好了。好的，謝謝大家。

Tony Bancroft, GAMCO Investors, Inc.

班克羅夫特（Tony Bancroft），GAMCO Investors, Inc.

Hey, good morning, gents. Congratulations well done. Based on the $1 trillion PBR, you sort of talked about this a little bit, but -- and then on top of that, sort of a two-pronged attack here and then the increase in European defense spending.

嘿，先生們，早安。恭喜你做得好。基於 1 兆美元的 PBR，您稍微談到了這一點，但是——除此之外，這裡還有一種雙管齊下的攻擊，然後是歐洲國防開支的增加。

Maybe you could talk a little bit more in detail about how you see yourselves being positioned for that growth trajectory. And then maybe a little further out, there have been questions of being able to continue that growth. How do you see this maybe playing out over the next few years? And what programs that you're on that are going to have the best exposure to the growth?

也許您可以更詳細地談談您如何看待自己在這一成長軌跡中的定位。或許再往前走一點，人們就會質疑這種成長能否持續下去。您認為未來幾年這種情況會如何發展？您所參與的哪些項目最能帶來成長？

Yeah, Tony, I'll jump in and then you can. So Tony, I think first, I think just in general, our whole portfolio around electronic warfare, missiles, radar, obviously, things are going to be happening with the Golden Dome and some other things we're still trying to figure out.

是的，東尼，我先跳進去，然後你就可以了。所以托尼，我認為首先，我認為總的來說，我們的整個產品組合圍繞著電子戰、導彈、雷達，顯然，事情將發生在金色穹頂上，還有一些其他的事情我們仍在努力弄清楚。

We really feel very good and strong about being a part of this $1 trillion budget being able to support all these customers. I mentioned in my remarks that we -- in the past, right or wrong, we were a big Raytheon house, as they would say.

作為這 1 兆美元預算的一部分，我們能夠為所有這些客戶提供支持，我們感到非常高興和自豪。我在演講中提到，過去，無論對錯，我們都是一家大型雷神公司，正如人們所說的那樣。

And now we're moving in much more to Northrop. We're moving into BAE systems. We're moving into some of these other companies on purpose, right? To kind of build out this customer base. And we got a lot of things to provide.

現在我們正進一步向諾斯羅普靠攏。我們正在轉向 BAE 系統。我們是故意進入這些其他公司，對嗎？擴大這個客戶群。我們還有很多東西可以提供。

cabling, we're great at that. We're great at cards. So we think that we're in the right position.

佈線，我們在這方面很擅長。我們擅長玩紙牌。因此我們認為我們處於正確的位置。

And as I mentioned earlier, not only the budget, but also customers like RTX are offloading, right? They're offloading, they're driving margins. They might be three or four years into a program with 7-year fixed pricing, and they have nowhere to go. So they're going to move stuff out and they're going to try to drive margins that way as a company. So it's all looking good, Tony.

正如我之前提到的，不僅預算減少，而且像 RTX 這樣的客戶也在減少，對嗎？他們正在卸載產品，他們正在提高利潤率。他們可能已經參與了為期 7 年的固定價格計劃三四年了，但他們卻無處可去。因此，他們將會把產品轉移出去，並嘗試以此方式來提高公司利潤率。一切看起來都很好，東尼。

A nice job positioning yourself. Great job, Steve. Thanks.

很好地定位了自己。幹得好，史蒂夫。謝謝。

Thanks very much. Good to hear from you.

非常感謝。很高興收到你的來信。

(Operator Instructions)

（操作員指示）

Noah Poponak with Goldman Sachs.

高盛的 Noah Poponak。

Hey guys. I know. Yes ma'am.

嘿，大家好。我知道。是的，女士。

Just kind of thinking through the pace of growth through the rest of the year. I think you had last quarter talked about 1Q being flat, 2Q a little better. The 1Q actual is a little better. Still feel the same about 2Q? Or is that looking better?

只是思考今年剩餘時間的成長速度。我認為您上個季度談到第一季持平，第二季略有好轉。第一季的實際情況稍微好一點。對第二季還有同樣的感覺嗎？或看起來更好？

And I guess the Defense growth rate is quite high in the quarter, as others have noted. The compares get a little tougher there through the rest of the year, but not that much tougher. And Aero is just down a ton in the first quarter and Boeing was on strike and had things turned off and -- or I guess, was coming out of the strike.

正如其他人所指出的，我猜本季的國防成長率相當高。今年剩餘時間的比較會變得更加困難，但也不會困難太多。而 Aero 在第一季的銷售量大幅下滑，波音公司當時正處於罷工階段，公司業務也暫停營運 — — 或者我猜，他們正在走出罷工的陰影。

So I don't know, maybe I'm splitting hairs on the mid-single for the full year, but it's a little tough to get there, I guess, if things break the right way, maybe it's just early in the year and there's -- it's a dynamic macro and you're being conservative. But how do you see the growth rate playing out through the year? And what's the upside of where things could land?

所以我不知道，也許我對全年的中期單打獨鬥有些吹毛求疵，但我想，如果事情以正確的方式發展，那麼實現這一目標有點困難，也許只是在年初，這是一個動態的宏觀，你是保守的。但您如何看待全年的成長率？那麼事情最終會如何發展呢？

Good afternoon. Noah, so great question. On the Commercial Aerospace side, I would say that -- so if you look at Boeing and Airbus, they're about 50% of our total Commercial Aerospace business. So we do expect that to ramp up in the second half of the year, but I wouldn't apply that growth rate on our entire Commercial Aerospace revenue, right?

午安.諾亞，這個問題問得真好。在商用航空方面，我想說——如果你看看波音和空中巴士，它們約占我們整個商用航空業務的 50%。因此，我們確實預計下半年這一數字會上升，但我不會將這一增長率應用於我們的整個商用航空收入，對嗎？

So 50%. The other 50% includes business jets and rotorcraft and other things. But there will be growth there. There will be continued strength in the Defense business, as Steve mentioned earlier, may not be at the 15% mark, but we do expect based on the programs that -- and the visibility we have to the rest of the year, there's going to be continued strength there.

所以是 50%。其餘 50% 包括公務機、旋翼機和其他東西。但那裡將會有成長。國防業務將繼續保持強勁，正如史蒂夫之前提到的那樣，可能不會達到 15% 的水平，但根據這些計劃以及我們對今年剩餘時間的預見，我們確實預計國防業務將繼續保持強勁。

And then we have also the ramp-up on the programs that have moved from one facility to another and are currently kind of in hibernation, but are expected to ramp up in the second half of the year. They include TOW missile case, they include the spoilers and the 737 MAX as well as the Tomahawk harnesses along with the Apache blade.

然後，我們還將加大對從一個設施轉移到另一個設施的項目的力度，這些項目目前處於休眠狀態，但預計在今年下半年將開始增加。它們包括 TOW 飛彈彈殼、擾流板和 737 MAX，以及戰斧式安全帶和阿帕奇刀片。

So those are all expected to give us some lift in the second half. So we see good growth in Commercial Aerospace, good growth in Defense to kind of get us to that mid-single-digit number for the full year.

所以這些都有望在下半年為我們帶來一些提振。因此，我們看到商用航空航太和國防領域都實現了良好的成長，使得全年的銷售額達到了中等個位數。

Yeah, No, I'd also say, look, we're -- okay, is it a little conservative right now? Yes, we want to really see how the second quarter goes with BA and Spirit, obviously, that's a big part of our growth story. So we'll probably have a firmer number, we will in the next call, but that's kind of where we see it right now.

是的，不，我還想說，看，我們——好吧，現在是不是有點保守？是的，我們真的想看看英航和精神航空第二季度的業績如何，顯然，這是我們成長故事的重要組成部分。因此，我們可能會在下次電話會議上給出一個更確切的數字，但這就是我們現在看到的情況。

Okay. That makes sense. Where do you expect your mix of revenue from Engineered Systems to be as you're exiting the year?

好的。這很有道理。截至今年年底，您預計 Engineered Systems 的營收組成將如何？

It will kind of depend on the acquisition. I think if we do get an acquisition, it's likely to exceed or get very close to kind of the 25% target that we've set. And again, depends on the timing also of the acquisition and how much of revenues are contributed. But we expect it to kind of be in that 23% to 24% likely this year and with an acquisition ramping up to beyond 25% in the next 12 months.

這在某種程度上取決於收購。我認為，如果我們確實完成收購，它很可能會超過或接近我們設定的 25% 的目標。這也取決於收購的時間以及貢獻的收入金額。但我們預計今年的收購比例可能在 23% 至 24% 之間，未來 12 個月的收購比例將上升至 25% 以上。

Yeah, I think that's right. I think we're going to -- we're obviously -- job one right now is another acquisition, right? So we're -- everybody is working hard on that. So once we do that, we think we'll be over that. And then come next year, we'll have new thoughts about the next five years, right? So what we're holding right now with the Vision 2027, and we're happy where we are.

是的，我認為是這樣。我認為我們要做——顯然——現在的首要任務是進行另一項收購，對嗎？所以我們——每個人都在為此努力。所以，一旦我們這樣做了，我們認為我們就會克服這個問題。那麼到了明年，我們會對未來五年有新的想法，對嗎？我們現在正在實施 2027 願景，我們對現狀感到滿意。

Okay. Should we expect the first quarter segment operating margin to be the low watermark for the year and you work higher sequentially off of it? Or is there seasonality or expense timing or mix that could drive a lower quarter at some point in the year?

好的。我們是否應該預期第一季分部營業利潤率將成為今年的最低水位，而您的工作將以此為基礎連續提高？或者是否存在季節性、費用時機或組合因素，可能導致一年中某個時間點的季度收入下降？

So I would say there is some goodness in the Q1 margin. So at 15.9% EBITDA margin, we're also -- and if you linearly space out our Vision 2027 goal, we would kind of have to be at 16% by the end of the year. So we kind of are there already in Q1. But it does have 50 basis points to 75 basis points of, I would say, mix goodness in it.

所以我想說第一季的利潤率有一些好處。因此，在 15.9% 的 EBITDA 利潤率下，我們也是 - 如果您線性擴展我們的 2027 願景目標，那麼到年底我們必須達到 16%。所以我們在第一季就已經達到這個水準了。但我想說，它確實具有 50 個基點到 75 個基點的混合優點。

So we'll continue to see, I think, good margins for the rest of the year, but I wouldn't say this is a low watermark. But with that 50 basis points to 75 basis points range, I think we're -- is how I would say.

因此，我認為，今年剩餘時間我們將繼續看到良好的利潤率，但我不會說這是一個低水位線。但在 50 個基點至 75 個基點的範圍內，我認為我們 - 這就是我要說的。

Around 16% should be good, right? For the year.

16% 左右應該不錯，對吧？今年。

Yeah, to the end of the year.

是啊，到年底了。

Makes sense. And then just last one, Suman. What are you expecting for full year 2025 free cash conversion, whether from your adjusted net income or EBITDA?

有道理。接下來是最後一個，蘇曼。您對 2025 年全年自由現金轉換有何預期（無論是來自調整後的淨收入還是 EBITDA）？

So we did -- Noah, we had 40% free cash flow conversion last year. In 2024, we had a little over 30% free cash flow conversion in 2023. We expect 2025 to be continuing that path of improvement. I wouldn't guide to a specific number for the year. We don't typically provide free cash flow guidance.

所以我們做到了——諾亞，去年我們的自由現金流轉換率為 40%。2024 年，我們的自由現金流轉換率略高於 2023 年的 30%。我們預計 2025 年將繼續保持這種改善趨勢。我不會給出今年的具體數字。我們通常不提供免費現金流指導。

Our end goal here over the next few years is to get back to 100% free cash flow as a percentage of adjusted net income. But that will happen over the next couple of years as we unwind our working capital investments.

我們未來幾年的最終目標是使自由現金流佔調整後淨收入的百分比恢復到 100%。但隨著我們解除營運資本投資，這將在未來幾年內發生。

So it will be better this year.

所以今年會更好。

But it will be better this year than it was.

但今年的情況會比去年更好。

Continuing that trajectory?

繼續這個軌跡嗎？

Yes, that's right. Yes.

是的，沒錯。是的。

Okay, thank you so much.

好的，非常感謝。

Okay, thanks for joining us.

好的，感謝您的加入。

I'm showing no further questions at this time. I would now like to turn it back to Steve Oswald for closing remarks.

我目前沒有其他問題。現在我想請史蒂夫·奧斯瓦爾德作最後發言。

Okay, just wrapping up here. Thank you again for joining us for the call. Again, just to reiterate, we feel great about our start this year. We appreciate the thoughtful questions, the support from our shareholders.

好的，就到這裡。再次感謝您參加我們的電話會議。再次重申，我們對今年的開局感到非常滿意。我們感謝這些深思熟慮的問題以及股東的支持。

I feel very optimistic about this year and next year, and we look forward to reconnecting after Q2. Have a very good day and a safe day. Thank you.

我對今年和明年感到非常樂觀，我們期待第二季後重新建立聯繫。祝您有個愉快、平安的一天。謝謝。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。