Leonardo DRS Inc (DRS) 2025 Q2 法說會逐字稿

Ladies and gentlemen, good day, and welcome to the Leonardo Doctors (sic - Leonardo DRS) second quarter fiscal year 2025 earnings conference call. (Operator Instructions) As a reminder, this event is being recorded.

女士們、先生們，大家好，歡迎參加 Leonardo Doctors（原文如此 - Leonardo DRS）2025 財年第二季財報電話會議。（操作員指示）提醒一下，此事件正在被記錄。

I would now like to turn the conference over to Steve Vather, Senior Vice President of Investor Relations and Corporate Finance. Please go ahead.

現在，我想將會議交給投資者關係和公司財務高級副總裁史蒂夫·瓦瑟 (Steve Vather)。請繼續。

Good morning, and thanks for participating on today's quarterly earnings conference call. Joining me today are Bill Lynn, our Chairman and CEO; and Mike Dippold, our CFO. They will discuss our strategy, operational highlights, financial results and forward outlook.

早安，感謝您參加今天的季度財報電話會議。今天與我一起出席的還有我們的董事長兼執行長 Bill Lynn 和我們的財務長 Mike Dippold。他們將討論我們的策略、營運亮點、財務表現和未來展望。

Today's call is being webcast on the Investor Relations portion of the website, where you'll also find the earnings release and supplemental presentation. Management may also make forward-looking statements during the call regarding future events, anticipated future trends and the anticipated future performance of the company.

今天的電話會議將在網站的投資者關係部分進行網路直播，您也可以在那裡找到收益報告和補充介紹。管理層還可能在電話會議中就未來事件、預期未來趨勢和預期公司未來業績做出前瞻性陳述。

We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors.

我們提醒您，此類聲明並非對未來業績的保證，並且涉及難以預測的風險和不確定性。由於多種因素，實際結果可能與前瞻性聲明中的預測有重大差異。

For a full discussion of these risk factors, please refer to our latest Form 10-K and our other SEC filings. We undertake no obligation to update any of the forward-looking statements made on this call. During this call, management will also discuss non-GAAP financial measures, which we believe provide useful information for investors. These non-GAAP measures should not be evaluated in isolation or as a substitute for GAAP performance measures. You can find a reconciliation of the non-GAAP measures discussed on this call in our earnings release.

有關這些風險因素的完整討論，請參閱我們最新的 10-K 表格和其他 SEC 文件。我們不承擔更新本次電話會議中任何前瞻性陳述的義務。在本次電話會議中，管理階層還將討論非公認會計準則財務指標，我們相信這些指標將為投資者提供有用的信息。這些非 GAAP 指標不應單獨評估或取代 GAAP 績效指標。您可以在我們的收益報告中找到本次電話會議中討論的非 GAAP 指標的對帳表。

At this time, I'll turn the call over to Will. Will?

現在，我將把電話轉給威爾。將要？

Thanks, Steve. Good morning, and welcome, everyone, to the DRS Q2 earnings call. Our second quarter results reflect sustained momentum in capturing customer demand, driving revenue growth and expanding both profitability and margin.

謝謝，史蒂夫。早安，歡迎大家參加 DRS 第二季財報電話會議。我們第二季的業績反映了我們在滿足客戶需求、推動收入成長以及擴大獲利能力和利潤率方面的持續勢頭。

In the quarter, we secured $853 million of bookings which is a 1.0 book-to-bill ratio for the quarter. We saw particular strength for our electric power and propulsion, naval network computing, advanced infrared sensing and ground systems technologies, all of which contributed meaningfully to Q2 bookings.

本季度，我們獲得了 8.53 億美元的訂單，本季的訂單出貨比為 1.0。我們的電力和推進、海軍網路運算、先進的紅外線感測和地面系統技術尤其具有優勢，這些技術都對第二季的預訂量做出了重大貢獻。

Our total backlog stood at $8.6 billion, rising 9% year-over-year. Also noteworthy was that our funded backlog maintained a healthy double-digit growth rate in the quarter. We continue to expect a book-to-bill ratio greater than 1.0 for the full year, thanks to strong performance in the first half and consistent customer demand across the portfolio.

我們的總積壓訂單為 86 億美元，年增 9%。同樣值得注意的是，我們的資金積壓訂單在本季度保持了健康的兩位數成長率。由於上半年的強勁表現和整個產品組合中持續的客戶需求，我們預計全年訂單出貨比將超過 1.0。

Diving deeper into our quarterly financial performance, we delivered double-digit organic revenue growth squarely in line with the framework shared on the last call. Furthermore, the foundation built in the year-to-date is leading us to increase our full year revenue growth expectations to 9% to 11%.

深入研究我們的季度財務業績，我們發現我們的有機收入實現了兩位數成長，這與上次電話會議上分享的框架完全一致。此外，今年迄今建立的基礎使我們把全年營收成長預期提高到 9% 至 11%。

Our profit metrics also showed strong performance. Adjusted EBITDA was up 17%, corresponding margin increased by 70 basis points and adjusted diluted EPS was up 28%. In aggregate, our strong Q2 results position us well to meet our full year outlook. That said, the team and I remain focused on disciplined program execution, investing for future growth and navigating a complex operational environment. We continue to operate in a dynamic macro backdrop, one that remains largely favorable to DRS, though not without its complexities.

我們的獲利指標也表現出色。調整後的 EBITDA 成長 17%，相應利潤率增加 70 個基點，調整後的稀釋每股盈餘成長 28%。總體而言，我們強勁的第二季業績使我們有充分理由實現全年預期。話雖如此，我和我的團隊仍然專注於嚴格的專案執行、投資未來成長以及應對複雜的營運環境。我們繼續在動態的宏觀背景下運營，這一背景對 DRS 仍然非常有利，儘管也存在複雜性。

Let me begin with the positives. Earlier this month, the One Big Beautiful Bill Act was enacted, a sweeping tax reconciliation package that includes $150 billion in defense funding with $113 billion front-loaded into FY26. This legislation represents significant opportunities and tailwinds for DRS.

讓我先從正面的方面說起。本月初，《一項偉大的美麗法案》頒布，這是一項全面的稅收和解方案，其中包括 1500 億美元的國防資金，其中 1130 億美元將預先撥付到 2026 財年。這項立法為 DRS 帶來了重大機會和順風。

The funding emphasizes the following, Shipbuilding and enhancing industrial base resiliency, layered strategic air and missile defense, including initial funding for the Golden Dome initiative, counter UAS and unmanned systems, electronic warfare, missiles and munitions, and more broadly, greater investment in innovation to enhance asymmetric capabilities. Our portfolio is well aligned with these national priorities, and we expect to benefit across the company as this funding is obligated over the coming years.

這筆資金主要著重於以下幾個方面：造船和增強工業基礎的彈性、分層戰略防空和飛彈防禦（包括對「金頂」計畫的初始資助）、對抗無人機和無人系統、電子戰、飛彈和彈藥，以及更廣泛地說，加大對創新的投資以增強不對稱能力。我們的投資組合與這些國家優先事項高度一致，我們預計，由於未來幾年這筆資金的到位，整個公司都將受益。

Additionally, the Administration's FY26 defense budget request calls for $962 billion in total defense spending, including the reconciliation funding, which in total represents a 12% increase year-over-year. Beyond the US, global defense spending continues to rise amid ongoing geopolitical tensions.

此外，政府的26財年國防預算請求要求國防總支出為9,620億美元，其中包括和解資金，總額較去年同期增加12％。除美國外，在持續的地緣政治緊張局勢下，全球國防開支續上升。

Notably, NATO members are now targeting 5% of GDP for national security with 3.5% dedicated to defense, a sharp increase from the long-standing 2% benchmark. This trend is expected to support incremental international demand, particularly for our ready-now differentiated capabilities. The intensifying global threat landscape is especially acute for our operations and employees in Israel.

值得注意的是，北約成員國目前的目標是將 GDP 的 5% 用於國家安全，其中 3.5% 用於國防，比長期以來的 2% 基準大幅增加。預計這一趨勢將支持不斷增長的國際需求，特別是對我們現有的差異化能力的需求。日益加劇的全球威脅情勢對我們在以色列的業務和員工來說尤其嚴重。

We are grateful to report that all employees in the region are currently safe. We are closely monitoring the situation and are taking proactive steps to enhance employee safety and operational continuity. Shifting to supply chain. While our overall supply chain remains relatively healthy, germanium availability and pricing remain a thorny issue. Export restrictions have constrained the available global supply of this raw material.

我們非常高興地報告，該地區所有員工目前都很安全。我們正在密切關注情況並採取積極措施，以提高員工安全和營運連續性。轉向供應鏈。雖然我們的整體供應鏈仍然相對健康，但鍺的供應和定價仍然是一個棘手的問題。出口限制限制了這種原料的全球供應。

Unfortunately, new mining and refining capacity has also been slower to ramp. We are currently relying on our safety stock, which provides sufficient runway through most of the year. However, in order to sustain timely product deliveries, material flow must improve in the second half. We are actively mitigating the germanium availability challenge through a multipronged approach. We expect these mitigation efforts to offer more meaningful relief in 2026.

不幸的是，新的採礦和煉油能力的成長也比較緩慢。我們目前依靠我們的安全庫存，它可以在一年中的大部分時間提供足夠的運行空間。然而，為了確保及時交付產品，下半年的物料流必須改善。我們正在透過多管齊下的方法積極緩解鍺供應方面的挑戰。我們預計這些緩解措施將在 2026 年帶來更有意義的緩解。

On to tariffs. The temporary reprieve granted by the administration is set to expire later this week. As previously discussed, we expect to be largely insulated from direct impacts, particularly for inputs where cost increases can be clearly tied to tariffs. However, second order risks persist, including the potential for retaliatory trade restrictions on items such as critical minerals.

談關稅。政府給予的臨時緩刑將於本週稍後到期。如同先前所討論的，我們預計很大程度上不會受到直接影響，特別是對於成本增加與關稅明顯掛鉤的投入。然而，二階風險依然存在，包括對關鍵礦產等產品實施報復性貿易限制的可能性。

Despite the complexities of the macro environment, DRS continues to innovate and deliver cutting-edge technologies to meet the evolving needs of our customers. This quarter, we delivered advanced infrared sensing content for the next-generation short-range interceptor or Stinger replacement as well as other future missile systems. These sensors provide a distinct operational advantage, offering higher resolution, improved countermeasure resilience, lower cost and enhanced overall performance.

儘管宏觀環境複雜，DRS 仍不斷創新並提供尖端技術，以滿足客戶不斷變化的需求。本季度，我們為下一代短程攔截器或毒刺替代品以及其他未來飛彈系統提供了先進的紅外線感測內容。這些感測器具有獨特的操作優勢，可提供更高的解析度、更好的對抗彈性、更低的成本和增強的整體性能。

We're also seeing growing opportunities to integrate our mobile power generation solutions into new missile systems. Overall, I am pleased with our ability to broaden the applicability of our infrared sensing expertise into this logical adjacency.

我們還看到將我們的行動發電解決方案整合到新的飛彈系統中的機會越來越多。總的來說，我很高興我們能夠將紅外線感測專業知識的適用性擴展到這個邏輯鄰接領域。

Amid rising strategic and tactical threats, there is heightened focus on building resilient multilayered air defense architectures. Golden Dome is a critical part of this effort. Our portfolio, including our over-the-horizon radar and tactical radar technologies as well as counter UAS capabilities is highly relevant and well positioned to support this demand.

在戰略和戰術威脅日益增加的背景下，人們更加重視建構有彈性的多層防空系統。金色穹頂是這項努力的關鍵部分。我們的產品組合，包括超視距雷達和戰術雷達技術以及反無人機能力，都高度相關，能夠很好地滿足這一需求。

Additionally, some of our increased internal research and development investment is being directed towards further demonstrating and maturing our space sensing capabilities. We believe we have a highly differentiated offering that can provide customers added capability in space-based missile tracking and intercept.

此外，我們增加的部分內部研發投資正用於進一步展示和完善我們的空間感知能力。我們相信，我們擁有高度差異化的產品，可以為客戶提供額外的太空飛彈追蹤和攔截能力。

We are committed to securing competitive successes in this domain. The persistent threat environment is driving escalation of customer interest and an expansion of existing contracts across each of the capability areas I noted earlier. Our tactical radar offering has maintained strong international demand as allied nations look to reinforce their short-range air defense posture.

我們致力於確保該領域的競爭成功。持續的威脅環境正在推動客戶興趣的升級以及我之前提到的每個能力領域的現有合約的擴展。由於盟國希望加強其短程防空態勢，我們的戰術雷達產品一直保持著強勁的國際需求。

At the same time, we're seeing rapid expansion in counter-UAS opportunities across the company. DRS not only offers industry-leading tactical radars for these missions, but also a comprehensive technology suite, including infrared sensors, laser and RF systems, along with platform integration expertise to deliver best-of-breed solution.

同時，我們看到整個公司反無人機機會正在迅速擴大。DRS 不僅為這些任務提供業界領先的戰術雷達，還提供全面的技術套件，包括紅外線感測器、雷射和射頻系統，以及平台整合專業知識，以提供最佳的解決方案。

Customer focus on counter UAS is here to stay and its importance is only growing as evidenced by the recent launch of a joint interagency task force to tackle this ongoing threat. Beyond sensing and force protection, our network computing business plays a critical role in enabling next-generation shipboard computing, supporting both US and allied naval modernization initiatives.

客戶對反無人機系統的關注將持續存在，而且其重要性只會日益增加，最近成立的聯合機構間工作小組將應對這一持續的威脅，這證明了這一點。除了感知和武力保護之外，我們的網路運算業務在實現下一代艦載運算方面發揮關鍵作用，支援美國和盟國的海軍現代化計劃。

Our proprietary ice piercer cooling technology is starting to gain traction, especially as customers seek to increase computing density and system performance on constrained platforms. Lastly, to round up my operational updates, I want to briefly touch on our electric power and propulsion business.

我們專有的冰穿刺冷卻技術開始受到關注，特別是當客戶尋求在受限平台上提高運算密度和系統效能時。最後，為了總結我的營運更新，我想簡要地談談我們的電力和推進業務。

This part of DRS continues to perform exceptionally well, serving as a consistent financial tailwind propelling both top line growth and margin expansion. We are well positioned to capitalize on medium- and long-term opportunities tied to next-generation platforms and to expand platform content in support of the priority to improve shipbuilding throughput.

DRS 的這一部分持續表現優異，成為持續的財務順風，推動營收成長和利潤率擴張。我們已做好準備，利用與下一代平台相關的中長期機遇，擴大平台內容，以支援提高造船吞吐量的優先事項。

Our Q2 financial results reflect the strength of our portfolio and growing demand for our differentiated capabilities in a rapidly evolving threat environment. We have solid momentum in bookings and a remarkable backlog that provides ample runway visibility into enhanced revenue growth. That said, we remain rigorously focused on execution to continue delivering for our customers. Our success to date is a testament to the hard work of our team, and we are committed to building on this foundation in the second half of the year.

我們第二季的財務表現反映了我們產品組合的實力以及在快速發展的威脅環境中對我們差異化能力日益增長的需求。我們的預訂勢頭強勁，積壓訂單量驚人，為提高收入成長提供了充足的可見性。話雖如此，我們仍然嚴格專注於執行，以繼續為客戶提供服務。我們迄今為止的成功證明了我們團隊的辛勤工作，我們致力於在今年下半年在此基礎上再接再厲。

Let me now turn the call over to Mike, who will review the second quarter and our revised 2025 guidance in greater detail.

現在，我將把電話轉給麥克，他將更詳細地回顧第二季和我們修訂後的 2025 年指引。

Thanks, Bill. I am pleased with our year-to-date performance. We had a solid quarter, but we are keeping focus on consistent execution to deliver against our full year financial objectives. Let me begin by reviewing Q2 performance. Revenue for the quarter was $829 million, 10% higher year-over-year.

謝謝，比爾。我對我們今年迄今為止的表現感到滿意。本季我們表現穩健，但我們將繼續專注於持續執行，以實現全年財務目標。首先讓我回顧一下第二季的表現。本季營收為 8.29 億美元，年增 10%。

The strong continued organic growth is fueling our ability to raise our guidance for the full year, which I will discuss shortly. Both segments had relatively balanced contribution to our increased quarterly revenue. The IMS segment and the company in total benefited from greater revenues from electric power and propulsion programs. Advanced infrared sensing and ground network computing programs bolstered growth at ASC as well as at DRS at large.

持續強勁的有機成長將增強我們提高全年業績預期的能力，我很快就會對此進行討論。這兩個部門對我們季度營收成長的貢獻相對均衡。IMS 部門和整個公司都受益於電力和推進專案帶來的更大收入。先進的紅外線感測和地面網路計算程式促進了 ASC 以及 DRS 的整體成長。

Moving now to adjusted EBITDA. Adjusted EBITDA in the quarter was $96 million, up 17% from last year. Adjusted EBITDA margin in Q2 was 11.6%, representing 70 basis points of margin expansion compared to last year. The increased margin was from higher volume and improved profitability at our electric power and propulsion business, most notably on our Columbia-class program. Shifting to the segment view.

現在轉到調整後的 EBITDA。本季調整後的 EBITDA 為 9,600 萬美元，較去年同期成長 17%。第二季調整後的 EBITDA 利潤率為 11.6%，較去年同期擴大 70 個基點。利潤率的提高得益於電力和推進業務的產量增加和獲利能力的提高，尤其是哥倫比亞級專案。轉向分段視圖。

ASC adjusted EBITDA increased by 5%, but margin contracted by 50 basis points due to greater internal research and development investment, along with less favorable program mix and less efficient program execution caused by rising raw material costs, namely germanium.

ASC 調整後的 EBITDA 成長了 5%，但由於內部研發投入增加，以及原材料成本（即鍺）上漲導致專案組合不太有利且專案執行效率較低，利潤率收縮了 50 個基點。

IMS adjusted EBITDA was up 41% and margin expanded by 290 basis points, thanks to improved profitability on our Columbia-class program and across the rest of the electric power and propulsion business. On to the bottom-line metrics. Second quarter net earnings were $54 million and diluted EPS was $0.20 a share, up 42% and 43%, respectively.

由於哥倫比亞級專案以及其他電力和推進業務獲利能力的提高，IMS 調整後的 EBITDA 成長了 41%，利潤率擴大了 290 個基點。討論底線指標。第二季淨利為 5,400 萬美元，攤薄每股收益為 0.20 美元，分別成長 42% 和 43%。

Our adjusted net earnings of $62 million and adjusted diluted EPS of $0.23 a share were up 32% and 28%, respectively. Solid core operating performance, coupled with reduced interest expense led to favorable year-over-year comparisons.

我們的調整後淨收益為 6,200 萬美元，調整後稀釋每股收益為 0.23 美元，分別成長 32% 和 28%。穩健的核心營運業績，加上利息支出的減少，帶來了良好的年比業績。

Moving to free cash flow. Although our quarterly cash usage was higher than this time last year, it was in line with our expectations as we anticipated increased working capital levels to fuel growth in the second half of the year. Despite higher capital expenditure investments in 2025, our first half free cash outflow shows a clear year-over-year improvement that reflects enhanced profitability and a more efficient working capital position.

轉向自由現金流。儘管我們的季度現金使用量高於去年同期，但這符合我們的預期，因為我們預期營運資本水準的提高將推動下半年的成長。儘管 2025 年的資本支出投資增加，但我們上半年的自由現金流出同比明顯改善，這反映出獲利能力的增強和營運資本狀況的更有效率。

Halfway through the year, we are revising our full year 2025 guidance across our key metrics. We are increasing the range of revenue to $3.525 billion to $3.6 billion, implying a 9% to 11% year-over-year growth. We have solid backlog visibility for the balance of the year with a modest portion of our revenue coming from book-to-bill programs. Approximately 90% of our full year revenue has been realized or is in backlog.

今年年中，我們正在修訂 2025 年全年關鍵指標的指引。我們將營收範圍提高至 35.25 億美元至 36 億美元，這意味著年增 9% 至 11%。我們對今年剩餘時間的積壓訂單有很好的了解，其中一小部分收入來自訂單出貨計畫。我們全年約 90% 的收入已經實現或處於積壓狀態。

Given the healthy visibility, the timing of material receipts will be the most important factor in determining the level of our revenue output. We are also narrowing the range of adjusted EBITDA. The revised range is expected to be between $437 million and $453 million.

鑑於健康的可見性，材料收據的時間將是決定我們收入產出水準的最重要因素。我們也在縮小調整後的 EBITDA 範圍。修訂後的範圍預計在 4.37 億美元至 4.53 億美元之間。

At this time, we expect IMS to offer more growth and margin improvement opportunity relative to ASC. The guidance adjustments to revenue and adjusted EBITDA result in a reduced implied margin expansion for the year. This is due to two factors. One, we are increasing R&D investment well above plan, and two, we are seeing increased raw material input costs, namely related to germanium.

目前，我們預期 IMS 相對於 ASC 將提供更多的成長和利潤率提升機會。收入和調整後 EBITDA 的指導調整導致本年度隱含利潤率擴張減少。這是由於兩個因素造成的。一是，我們正在增加研發投入，遠超計畫；二是，我們看到原料投入成本（尤其是與鍺相關的成本）正在增加。

Our revised adjusted diluted EPS range incorporates the tailwinds from increased core profitability, lower net interest expense and a reduced diluted share count. We now expect adjusted diluted EPS between $1.06 and $1.11 a share.

我們修訂後的調整後稀釋每股盈餘範圍涵蓋了核心獲利能力提高、淨利息支出降低和稀釋股數減少所帶來的利多因素。我們現在預計調整後的稀釋每股收益將在 1.06 美元至 1.11 美元之間。

Assumed in these figures is a tax rate of 19%, which is unchanged from our prior guide and a 269 million fully diluted share count, lower than our prior guide as we factor in the impact of stock repurchases. With respect to free cash flow conversion, we still anticipate approximately 80% conversion of our adjusted net earnings for the full year.

這些數字假設稅率為 19%，與我們先前的指導意見相同，完全稀釋的股票數量為 2.69 億股，低於我們先前的指導意見，因為我們考慮了股票回購的影響。關於自由現金流轉換，我們仍然預期全年調整後淨收益的轉換率約為 80%。

The recently enacted tax legislation is expected to offer a limited benefit to our 2025 free cash flow, but it will be a modest tailwind in 2026 and beyond. That said, we are still working to quantify the specific impact. Now let me offer up our framework for the third quarter.

預計最近頒布的稅收法案將為我們 2025 年的自由現金流帶來有限的好處，但它將在 2026 年及以後帶來適度的順風。話雖如此，我們仍在努力量化具體影響。現在讓我介紹一下我們第三季的框架。

We expect revenue in the neighborhood of approximately $925 million, adjusted EBITDA margin in the mid-12% range and free cash flow generation comparable to Q3 of 2024. Please note the timing of material receipts will weigh heavily on how the second half is allocated on a quarterly basis.

我們預計營收約為 9.25 億美元，調整後的 EBITDA 利潤率在 12% 左右，自由現金流產生量與 2024 年第三季相當。請注意，材料收貨的時間將對下半年按季度的分配方式產生重大影響。

Let me offer some closing thoughts before we take questions. I want to extend my gratitude to the broader DRS team. Our financial success is a direct result of their incredible efforts and unwavering commitment. As we navigate an increasingly complex global environment, we remain consistently focused on delivering exceptional technology to our customers, executing with excellence and driving sustainable long-term growth. With that, we are ready to take your questions.

在我們回答問題之前，請容許我講幾句結束語。我要向廣大 DRS 團隊表示感謝。我們的財務成功直接歸功於他們的不懈努力和堅定不移的承諾。在日益複雜的全球環境中，我們始終致力於為客戶提供卓越的技術、卓越執行並推動可持續的長期成長。現在，我們已準備好回答您的問題。

(Operator Instructions)

（操作員指示）

Peter Arment, Baird.

彼得·阿門特，貝爾德。

Bill, Mike, Steve, nice results. Bill, thanks for the color on kind of Golden Dome and how you're positioned. Maybe if I could just ask, when you expect -- I know the architecture hasn't been fully laid out with General Guetlein just getting the assignment. But how do you expect it to kind of roll out in terms of impacting your backlog? When should we start to see kind of some of the programs that you might be well positioned on?

比爾、麥克、史蒂夫，結果不錯。比爾，謝謝你對金色圓頂的色彩以及你的定位。也許我可以問一下，您預計什麼時候——我知道架構還沒有完全確定，蓋特林將軍剛剛接到任務。但是，就影響您的積壓工作而言，您預計它會如何發展？我們什麼時候可以開始看到一些您可能處於有利地位的項目？

Yes. Thanks, Peter. I mean as you said, they're just organizing themselves on the architecture. There are industry meetings starting and the department has an internal effort to lay out an architecture. So I think that means you won't see much in the way of bookings or orders this year in calendar '25.

是的。謝謝，彼得。我的意思是，正如你所說，他們只是在架構上進行自我組織。產業會議已經開始，部門內部也在努力製定架構。所以我認為這意味著今年 25 年的預訂或訂單不會太多。

But I think given that they're trying to really focus on doing things in this presidential term, you'll start to see orders roll out in the '26-time frame.

但我認為，鑑於他們正試圖真正集中精力在本屆總統任期內做事，你會開始看到在 26 個時間內推出的命令。

Okay. Appreciate that. And just as my follow-up, just could you talk maybe a little bit about the M&A environment? I know you've had interest there in the past. And just are you seeing more deals just given where funding is and any update there?

好的。非常感謝。作為我的後續問題，能否稍微談談併購環境？我知道你過去對那裡有興趣。鑑於資金情況以及有任何更新，您是否看到了更多交易？

Yes. I mean we're -- as you know, we're in the market, we're looking, we're doing diligence. We're seeing a continual flow of things in our -- those four core markets where we're focused. We have been active. I'd say the only change we're seeing is given the interest in the sector, I think prices are pushing up.

是的。我的意思是——正如你所知，我們在市場上，我們正​​在尋找，我們正在盡職調查。我們看到，我們所關注的四個核心市場正在發生持續的變化。我們一直很活躍。我想說，我們看到的唯一變化是，鑑於對該行業的興趣，我認為價格正在上漲。

So I think that's been a factor here. We're having to assess our financial criteria, which are relatively strict, although we're open to things. The closer they are strategically to our main areas of focus, the more we're willing to extend on financial criteria. And that's the -- what's going on right now is that strategic focus, we are seeing properties that would be interesting there. The prices are relatively high.

所以我認為這是其中一個因素。我們必須評估我們的財務標準，儘管我們對此持開放態度，但這些標準相對嚴格。它們在策略上越接近我們關注的重點領域，我們就越願意在財務標準上做出擴展。這就是——現在的戰略重點是，我們看到了那裡有趣的財產。價格相對較高。

Robert Stallard, Vertical Research.

羅伯特‧斯托拉德 (Robert Stallard)，垂直研究。

A couple for you. First of all, I was wondering if you could dig into this whole germanium thing and what's going on there? How much of a headwind has it been so far this year? What are you expecting in the second half? And what is this metal used for in terms of your products?

給你一對。首先，我想知道您是否可以深入研究整個鍺的事情以及那裡發生了什麼？今年到目前為止，逆風有多大？您對下半年有什麼期待？就你們的產品而言，這種金屬的用途是什麼？

And then, secondly, maybe following up on Peter's question. I was wondering if you could elaborate on this flexibility on looking at M&A. Does this mean you might be open to using equity, for example? Are you looking at a different return metric in terms of when the deal might pay off? That would be helpful.

其次，也許可以繼續回答彼得的問題。我想知道您是否可以詳細說明這種在併購方面的靈活性。例如，這是否意味著您可能願意使用股權？您是否在考慮交易何時可能帶來回報的不同回報指標？那將會很有幫助。

Yes. Peter, let me -- sorry, Rob, let me start on germanium and then let Mike expand. On germanium what's happened is, given the tension with China, the source of most of the germanium in the world, is the supply has reduced to a trickle. We anticipated this to -- in the sense that we built up a safety stock, and we're now having to utilize that safety stock. That has been effective for us, but it has caused prices to increase.

是的。彼得，讓我－－對不起，羅布，讓我先從鍺開始，然後讓麥克展開。就鍺而言，由於與中國之間的緊張關係，全球大部分鍺的供應量已減少到涓涓細流。我們預料到了這一點——從某種意義上說，我們建立了安全庫存，現在我們必須利用該安全庫存。這對我們來說是有效的，但卻導致價格上漲。

And it's also caused us to seek other sources of germanium outside China. So we're looking other countries, sources of germanium. We're looking at other customers. There is an ability to recycle out of existing products. And then there are opportunities on some products we could use something other than germanium although that requires at least a couple of months' work in terms of redesign, requalifying.

這也促使我們在中國以外尋找其他鍺資源。因此我們正在尋找其他國家的鍺資源。我們正在尋找其他客戶。可以回收現有產品。在某些產品上，我們有機會使用鍺以外的其他材料，儘管這需要至少幾個月的重新設計和重新鑑定工作。

It's not overly taxing, but there is a time lag. We're pursuing all of those with a target of 2026 to bring some or all of those online. Let me let Mike address your question on the fiscal impacts.

雖然不是太費力，但存在時間差。我們正在努力實現所有這些目標，目標是到 2026 年將其中部分或全部內容上線。讓我讓麥克來回答你關於財政影響的問題。

Yes. So Rob, first, you had a question in terms of what products are these used for. This is going through our infrared product line. So in our Advanced Sensing and Computing business, but more focused on our infrared sensing capabilities, that's where you see this metal being used. For the impact, we spoke a little bit about last quarter in terms of the price shock that we saw because of the supply and demand elements that were in play.

是的。那麼 Rob，首先，你的問題是這些產品用於什麼用途。這是透過我們的紅外線產品線進行的。因此，在我們的先進感測和運算業務中，我們更專注於紅外線感測能力，這就是這種金屬的應用。對於影響，我們稍微談了一下上個季度由於供需因素的影響而出現的價格衝擊。

And we made the comment that absent the germanium impact that the margins of ASC would have been in line in Q1 with expectations. We looked into Q2 here, and the prices remain fairly stable. But what we're seeing is as that availability becomes a concern later in the year, we've had some absorption issues and some overhead rates that have impacted a little bit more than we had anticipated in Q1. So that's what we're looking at from an impact perspective. All of that that's now incorporated into the revised guide that we put forth.

我們評論說，如果沒有鍺的影響，ASC 第一季的利潤率將與預期一致。我們研究了第二季度，價格保持相當穩定。但我們看到，隨著供應問題在今年稍後成為一個令人擔憂的問題，我們遇到了一些吸收問題和一些間接費用率，其影響比我們在第一季預期的要大一些。這就是我們從影響角度所看到的情況。所有這些內容現在都已納入我們提出的修訂指南中。

Rob, I can come back on your M&A question, the financial. We have three financial metrics, EPS, ROIC and then our overall margin and growth. On EPS, we expect it to be accretive in the first year. There's a little flex there, but probably not. With that, we will look -- ROIC, we're looking at a multiyear return.

羅布，我可以回到你的併購問題上，財務問題。我們有三個財務指標：每股盈餘、投資報酬率以及我們的整體利潤率和成長率。就每股收益而言，我們預計它在第一年就會實現成長。那裡有一點彎曲，但可能不是。有了它，我們將會看到——ROIC，我們正在關注多年的回報。

I think there, we would have flex. I think things that would take maybe a little bit longer to bring a positive contribution to ROIC, we're willing to kind of go beyond our notional three-year window, looking four years, five years. I think that would be well within something we'd find acceptable. And the other is more general. We have, I think, a very strong right now double-digit growth story.

我認為，我們會有彈性。我認為，有些事情可能需要更長的時間才能對 ROIC 產生積極貢獻，我們願意超越我們設想的三年時間窗口，著眼於四年、五年。我認為這完全在我們可以接受的範圍內。另一個則更為普遍。我認為，我們目前擁有非常強勁的兩位數成長動能。

We have a margin enhancement story, I don't think we are now changing our approach there. We don't want to undercut that story with a significant acquisition, and that really hasn't changed. So the change is, I think we'll be more flexible on ROIC.

我們有一個提高利潤率的故事，我認為我們現在不會改變我們的方法。我們不想透過重大收購來削弱這個故事，這一點確實沒有改變。所以變化是，我認為我們將在 ROIC 方面更加靈活。

Michael Ciarmoli, Truist Securities.

Truist Securities 的 Michael Ciarmoli。

Bill, maybe just a little bit more clarification on what Pete was asking about Golden Dome. I mean, thinking about timing of order flow, does that kind of stand for already deployed existing systems? Or is this kind of -- are you talking architecture for some of the newer kind of systems and capabilities that might be deployed?

比爾，也許我只是想稍微澄清一下皮特關於金色穹頂的問題。我的意思是，考慮訂單流的時間，這是否代表已經部署的現有系統？或者這是——您是在談論一些可能部署的較新類型的系統和功能的架構嗎？

Right. It's a little hard to be specific because they don't even have a program yet. But I think directionally, I think the first orders would have to be on existing systems. Just given the timing. And you're going to have to develop -- it will take longer time to develop first the requirements and then the RFP and then the competition for future oriented.

正確的。很難具體說明，因為他們甚至還沒有一個計劃。但我認為從方向上看，第一批訂單必須在現有系統上。只是給了時間。而且你必須開發——首先開發需求，然後是 RFP，然後是面向未來的競爭，這將需要更長的時間。

So I think you're -- what's behind your question is right. The early orders are likely to come from something that has some maturity, some -- that's already something that can be produced.

所以我認為你的問題背後的含義是正確的。早期訂單可能來自一些已經比較成熟的產品，一些已經可以生產的產品。

Got it. Okay. And then just if I may, just because you used to be in the building, this is obviously a unique and dynamic budget environment. We're getting a big bump up in front-end load here with reconciliation, but we don't have a FYDP yet. How are you guys thinking about just budget and trajectory longer term? And maybe kind of, like I said, just drawing on your experience from being in the building.

知道了。好的。然後，如果可以的話，僅僅因為您曾經在這棟大樓裡，這顯然是一個獨特且充滿活力的預算環境。透過協調，我們的前端負荷得到了大幅提升，但我們還沒有 FYDP。你們對於長期預算和發展軌跡有何看法？也許就像我說的，只是藉鏡你在建築物中的經驗。

Yes. It's actually not unusual at this point not to have a FYDP, usually, a new administration just puts out a first-year budget and is in the middle as they are of their kind of their strategic plan. Obviously, what they have done so far, they really inherited from Biden. It takes some months to develop that strategic plan, which they're doing. So I wouldn't expect to see a FYDP until the next budget, which is February but that's not unusual.

是的。實際上，目前沒有財政年度發展計劃並不罕見，通常，新政府只會發布第一年的預算，並且正處於他們的戰略計劃的中間階段。顯然，他們迄今為止所做的一切實際上是從拜登那裡繼承下來的。制定這個戰略計劃需要幾個月的時間，他們目前正在這樣做。因此，我預計直到下一輪預算（即二月）才會看到 FYDP，但這並不罕見。

In terms of what to expect, I mean, there's lots of puts and takes in the reconciliation bill. I think if you look at just general historical trends and tendencies, when you move from a Democratic to a Republican administration, normally what you see is a modest, at least, bump up in the overall defense spending. Generally, politically, a Republican administration sees itself as stronger on defense, wants to show that in the budget.

至於預期結果，我的意思是，和解法案中有很多妥協之處。我認為，如果你只看一般的歷史趨勢和傾向，當你從民主黨政府轉向共和黨政府時，通常你會看到整體國防開支至少會適度增加。總體而言，從政治角度來看，共和黨政府認為自己在國防方面實力更強，並希望在預算中反映這一點。

And then second, they have more initiatives, multiple questioners have mentioned Golden Dome, but there's force protection, there's shipbuilding, there are programmatic reasons to increase the budget. So I think at the end of the day, when the smoke clears, you'll see a Trump budget that over time is moderately higher than its Biden predecessor.

其次，他們有更多的舉措，多位提問者提到了「金頂」計劃，但還有軍隊保護、造船，還有增加預算的計劃原因。因此我認為，最終，當煙霧散去後，你會看到川普的預算隨著時間的推移會比拜登的前任略高。

Seth Seifman, JPMorgan.

塞思‧塞夫曼，摩根大通。

Wanted to ask the -- you talked about performance, good performance in electric power and propulsion and about the opportunities there, maybe to capitalize on what's coming into the resources coming into the industrial base. I wonder if you could be more specific around kind of where you see opportunities? Do those opportunities come out of the new facility in Charleston primarily? And what the time line for capitalizing on some of those opportunities might be?

想問一下——您談到了性能、電力和推進方面的良好性能以及那裡的機會，也許可以利用進入工業基礎的資源。我想知道您是否可以更具體地說明您看到了哪些機會？這些機會主要來自查爾斯頓的新工廠嗎？那麼利用這些機會的時間表是什麼呢？

Sure, Seth. And I'll start and then let Mike add some more color. I mean, first of all, the core program, of course, in our naval power is Columbia, which is secured through the middle of the next decade and is on a steady increase. And we are using that South Carolina facility to execute that program with greater and greater efficiency, which should be a tailwind on margins.

當然，塞思。我先開始，然後讓麥克添加一些顏色。我的意思是，首先，我們海軍力量的核心項目當然是哥倫比亞號，該項目將確保在下個十年中期完成，並且正在穩步增長。我們正在利用南卡羅來納州的設施來更有效率地執行該計劃，這將對利潤率產生推動作用。

Beyond that, which is really what I think you're asking is we see that facility and our overall capability generally is well positioned to help the Navy surge content into the industrial base with the goal of particularly increasing the throughput of submarines where we have important content beyond just Columbia.

除此之外，我認為您真正想問的是，我們看到該設施和我們的整體能力總體上能夠很好地幫助海軍將內容湧入工業基地，目標是特別提高潛艇的吞吐量，除了哥倫比亞號之外，我們還擁有重要的內容。

In particular, I would say the first of those opportunities is in the area of steam turbine generators. The Navy has now given us $50 million of that industrial base money to build a test capacity in South Carolina for that. What should follow on is another contract to design a new steam turbine generator with production to follow. The problem that's addressing is that there's only one producer of steam turbine generators, which makes it something of a choke point in submarine production. And the Navy is interested in a second source to address that choke point. So I think we're a principal part of the avenue to address that challenge.

具體來說，我想說第一個機會是在蒸汽渦輪發電機領域。海軍現已向我們提供了 5000 萬美元的工業基礎資金，用於在南卡羅來納州建立試驗設施。接下來應該簽訂另一份合同，設計新型蒸汽渦輪發電機並進行生產。需要解決的問題是，蒸汽渦輪發電機只有一家生產商，這成為潛水艇生產的瓶頸。海軍對第二個來源感興趣，以解決這一瓶頸問題。所以我認為我們是應對這項挑戰的主要途徑。

And beyond that, I think there's a more general view, and we're talking to the navy in the future about can we use our capacity as a supplier to take on more work and allow the yards to dedicate their resources to producing submarines faster. That's still sort of an early-stage discussion, but I think there's real potential for additional content to move to suppliers such as DRS with, again, the goal of increasing that submarine throughput.

除此之外，我認為還有一種更普遍的觀點，我們將來會與海軍討論我們是否可以利用我們作為供應商的能力來承擔更多的工作，並讓船廠將他們的資源投入到更快地生產潛艇上。這仍處於早期階段的討論，但我認為確實有可能將更多內容轉移給 DRS 等供應商，目的同樣是為了提高潛艇的吞吐量。

Yes. The only thing I'll add, Seth, is from a timing perspective, we do expect the Columbia portion of the building to begin to come on in 2026 -- in late 2026 and actually begin to pull the work in. That Columbia piece of the investment will not only cover Columbia, but also if we have some successes in new platforms that will help from a capacity perspective and ability to execute.

是的。塞思，我唯一要補充的是，從時間角度來看，我們確實預計哥倫比亞部分的建築將於 2026 年開始動工——也就是 2026 年底，並真正開始投入工作。對哥倫比亞的投資不僅涵蓋哥倫比亞，而且如果我們在新平台上取得一些成功，這將有助於提高產能和執行能力。

What Bill was mentioning in terms of the steam turbine efforts, that funding is now flowing, and we're starting those exercise. That will come on from a timing perspective a little later outside of 2026 as we create that test capabilities and start to move forward on the steam initiatives.

比爾提到的蒸汽渦輪機計畫資金現已到位，我們正在開始這些工作。從時間角度來看，這將在 2026 年之後稍晚實現，屆時我們將創建測試能力並開始推進蒸汽計劃。

From there, you can start to see that extra tool that we're putting in the toolbox from a steam turbine generator perspective start to be an impact to revenue outside of that 2027-time frame as we begin to execute development work with the anticipation of hopefully having production thereafter.

從那時起，您可以開始看到，從蒸汽渦輪發電機的角度來看，我們放入工具箱中的額外工具開始對 2027 年時間範圍之外的收入產生影響，因為我們開始執行開發工作，並期望此後能夠進行生產。

Great. And maybe just as a quick follow-up, do you expect -- how do you look at the bookings environment for the second half? Do you expect to exit the year with the backlog higher than it was at June 30?

偉大的。也許只是為了快速跟進一下，您是否預計——您如何看待下半年的預訂環境？您是否預計今年底的積壓訂單量會比 6 月 30 日的更高？

Yes, we do. But let me let Mike address it.

是的，我們有。但讓我讓麥克來解決這個問題。

Yes. I would -- I think the bookings for the quarter of the kind of 1:1 ratio, I wouldn't put too much thought stock into that. We're continuing to see strong demand across all elements of the business. For the six-month period, we're still sitting above the 1:1 ratio, and we expect that to continue throughout the second half of the year.

是的。我認為本季的預訂量是 1:1 的比例，我不會對此考慮太多。我們持續看到業務各環節的強勁需求。就六個月而言，我們的比例仍然高於 1:1，我們預計這種狀況將持續到今年下半年。

So still a lot of confidence. The macro tailwinds in the threat environment is still there, the budget alignment is there, and we feel good about our ability to continue to see strong bookings throughout the remainder of the year.

所以還是很有信心的。威脅環境中的宏觀順風仍然存在，預算調整仍然存在，我們對在今年剩餘時間內繼續保持強勁預訂量的能力感到滿意。

Andre Madrid, BTIG.

安德烈·馬德里，BTIG。

You previously disclosed intentional sales would outpace the broader sales growth for this year. With the new NATO commitments, again, that's not instantaneous. It's over a decade, but could we see upside to what you initially thought international would be through the out years?

您之前曾透露，今年的意向銷售額成長將超過整體銷售額成長。鑑於北約的新承諾，這並非瞬間就能實現的。已經過去十多年了，但我們是否能看到您最初認為的國際化在未來幾年會有什麼好處？

Yes. I think a couple of things are happening in the international space right now. First off, what will drive a little bit of the international is what happens with Ukraine. So I think first and foremost, that's going to be an indicator of where our international sales go. So far, that demand has continued.

是的。我認為目前國際上正在發生一些事情。首先，烏克蘭局勢將對國際局勢產生一定影響。因此我認為，首先，這將是我們國際銷售走向的一個指標。到目前為止，這種需求仍在持續。

From a NATO perspective, we are seeing consistent demand signals across some of the Eastern European members of NATO and are focused on being able to execute there. The question in the long term will be what does that mean from a European industrial base investment versus buying American. We continue to see the elements moving towards the ready-now capabilities are still important. So we see that as a tailwind to kind of US domestic opportunities to sell abroad.

從北約的角度來看，我們看到北約一些東歐成員國發出了一致的需求訊號，並致力於在那裡執行。從長遠來看，問題在於，從歐洲工業基礎投資與購買美國產品的角度來看，這意味著什麼。我們繼續看到，朝著現成能力邁進的要素仍然很重要。因此，我們認為這對美國國內的海外銷售機會來說是一個順風。

I expect to see that trend continuing, and we still view the international market as the growth engine because of NATO, but also just because of the other macro trends and the hot global conflicts that are emerging.

我預期這種趨勢將會持續下去，我們仍然將國際市場視為成長引擎，這不僅是因為北約，也是因為其他宏觀趨勢和正在出現的全球熱點衝突。

Got it. Got it. Maybe a follow-up to that. I mean, so long as they fit into the criteria that you've outlined already, would you be especially interested in acquiring anything over in Europe? And I guess, following on to that, given that valuations have been a little high right now, a little rich, what's your attitude towards forging partnerships with other defense tech names?

知道了。知道了。也許是對此的後續行動。我的意思是，只要它們符合您已經概述的標準，您是否特別有興趣在歐洲收購任何東西？我想，鑑於目前的估值有點高，有點高，您對與其他國防科技公司建立合作關係持何種態度？

I mean, this seems to become more prevalent in the current threat and demand environment. So curious to hear your thoughts there.

我的意思是，在當前的威脅和需求環境中，這種情況似乎變得更加普遍。非常好奇想聽聽您的想法。

Yes. We have a global focus on our M&A. Obviously, we demonstrated that when we acquired RADA and the triangular merger that brought us public, RADA, an Israeli company. And we have looked in Europe and Asia as well. So we have an international focus.

是的。我們的併購業務面向全球。顯然，當我們收購 RADA 並透過三角合併將我們上市時，我們證明了這一點，RADA 是一家以色列公司。我們也關注了歐洲和亞洲。因此我們具有國際視野。

We're not limited just to the US In terms of partnerships, that, too, is on the table. We have had discussions with different companies about arrangements we might make that will increase our mutual competitiveness. And so that's -- that would be on the table as well.

我們不僅限於美國，就合作夥伴關係而言，這也是我們考慮的。我們已經與不同的公司討論了可以採取哪些措施來提高我們之間的相互競爭力。所以這也是可以考慮的。

Kristine Liwag, Morgan Stanley.

克莉絲汀‧利瓦格，摩根士丹利。

Bill, you've kind of talked a lot about the germanium risks here. I was wondering, are there other rare earth metals that you're watching? And it sounds like 2026, you'll see some improvement. But if you have -- I guess, what we're seeing in the industry is everybody else is also trying to figure out their supply. If things don't necessarily pan out as you expect for 2026, how could this shortage of germanium or higher cost affect operating performance?

比爾，你在這裡談論了很多有關鍺的風險。我想知道，您是否還在關注其他稀土金屬？聽起來到 2026 年你會看到一些改善。但如果你有——我想，我們在這個行業中看到的是其他所有人也都在試圖弄清楚他們的供應。如果 2026 年的情況不一定如您預期的那樣發展，那麼鍺的短缺或成本的上升將如何影響營運績效？

Thanks, Kristine. We do look at other -- I would say the biggest other material we think about is permanent magnets because that's a part of the electric drive system in Columbia, and the other. We are pretty well protected right now and that we have the supply for all of our existing programs. So as we look at it, it's more protecting against future programs, and we're looking at what steps would we need to do, to do that. But in terms of germanium on '26, as I said, we have multiple paths in terms of recycling, other sources, other materials.

謝謝，克里斯汀。我們確實在考慮其他——我想說我們考慮的最重要的其他材料是永久磁鐵，因為它是哥倫比亞電力驅動系統的一部分，還有其他部分。我們現在受到了很好的保護，並且我們所有現有項目的供應都很充足。因此，我們認為這更多的是為了防範未來的計劃，我們正在研究需要採取哪些措施來做到這一點。但就 26 年的鍺而言，正如我所說，我們在回收、其他來源、其他材料方面有多種途徑。

We think that through the course of '25, those are going to come online and allow us to start -- begin back up the ramp again in terms of germanium and protect the '26 program.

我們認為，到 25 年，這些項目將上線，讓我們能夠重新開始——在鍺方面再次恢復成長，並保護 26 年計畫。

I see. That's really helpful. And following up on the opportunity in European NATO. Even though NATO in Europe wants to spend more money on defense, there's also a concerted effort to focus more on indigenous capabilities. So I mean, you guys are largely an American company, but your ownership is also with a European parent.

我懂了。這真的很有幫助。並跟進歐洲北約的機會。儘管歐洲北約希望在國防上投入更多資金，但他們也齊心協力地更加重視本土能力。所以我的意思是，你們基本上是一家美國公司，但你們的所有權也歸歐洲母公司所有。

So do you have any indication in terms of how these governments view you? Do they view you as an American company? Or do they view you as a hybrid because of your European parent ownership? How does that work? And does that change the opportunity for Europe for you regarding their higher spend?

那麼，您能透露一下這些政府如何看待您嗎？他們認為你們是美國公司嗎？還是由於您的父母是歐洲人，所以他們把您視為混血兒？這是如何運作的？這是否會改變歐洲在增加支出方面的機會？

I think we're in a proxy, we're most definitely a US company, and I think that's how we're viewed both in the US and in Europe. I think though the angle towards which you're headed is, right, is where we have opportunity, which is maybe unique given our ownership structure is we have the opportunity to team with and collaborate with Leonardo because of our closeness, and that allows us then to go into Europe as a home team and to use the good offices and the teaming arrangements with Leonardo. And we're seeing opportunities in the U.K.

我認為我們是代理，我們絕對是一家美國公司，而且我認為這就是我們在美國和歐洲的看法。我認為，你所關注的角度是對的，我們有機會，這可能是獨一無二的，因為我們的所有權結構，我們有機會與萊昂納多合作，因為我們關係密切，這讓我們可以作為主隊進入歐洲，並利用與萊昂納多的良好合作關係。我們在英國看到了機會。

and elsewhere where we can execute on that partnership. It's that partnership rather than just being seen as a -- it's not how we're seen as our country origin, it's how we partner with our share -- 70% shareholder.

以及我們可以在其他地方執行這種合作關係。這是一種合作關係，而不僅僅是被視為——這不是我們如何被視為我們的原籍國，而是我們如何與我們持有的 70% 股份的股東合作。

Austin Moeller, Canaccord Genuity.

奧斯汀·莫勒（Austin Moeller），Canaccord Genuity。

Just my first question here. If we look at the House Appropriation Committee's draft of the defense bill, there's a 57% plus up to about $5.27 billion for the Columbia-class program. And I was wondering if you could just comment on that and the reported 12- to 16-month delay in boat construction for Columbia-class and how that affects the one versus two production rate for Columbia and Virginia-class and how we should think about that?

這是我的第一個問題。如果我們看一下眾議院撥款委員會的國防法案草案，就會發現哥倫比亞級項目的撥款增加了 57%，達到約 52.7 億美元。我想知道您是否可以對此發表評論，並報道哥倫比亞級潛艇建造延遲 12 至 16 個月的消息，這會對哥倫比亞級潛艇和弗吉尼亞級潛艇的生產率產生什麼影響，我們應該如何看待這個問題？

Yes. On Columbia, the Navy working with the yards has intentionally put us in a relatively segregated position so that we have, as I said, the contracts on Columbia for the shipsets all the way through shipset 12, which takes you into the mid-2030s. The purpose of that was to insulate this critical component from the ups and downs of the program itself. And the reason to do that is you don't want to lose -- this is a complex program. You don't want to lose the learning.

是的。對於「哥倫比亞號」，海軍與船廠的合作有意將我們置於相對隔離的位置，以便我們能夠像我所說的那樣，獲得從第 12 艘艦艇到「哥倫比亞號」的合同，這將持續到 2030 年代中期。這樣做的目的是使這個關鍵組件免受程式本身的起伏影響。這樣做的原因是你不想失敗——這是一個複雜的程序。你不想失去所學的知識。

You don't want to lose the expertise of the workforce by having gaps and having down cycles and then forced to retrain. That will cause schedule and budget issues in the Navy and nor are we looking for that. So we're not really affected by that budget increase that you talked about.

您不希望因為出現空缺和低迷週期而導致員工失去專業知識，然後被迫重新接受培訓。這將導致海軍的進度和預算問題，而這也是我們不希望看到的。因此，我們實際上並沒有受到您所說的預算增加的影響。

We have our budget set by contract all the way through the 2030s. And the intent of setting that contract out was not to change the motor schedule, the drive schedule based on relatively modest changes in the ship delivery schedule -- the submarine delivery schedule.

我們的預算是透過合約確定的，一直到2030年代。簽訂該合約的目的並不是根據船舶交付計劃（潛艇交付計劃）的相對溫和的變化來改變引擎計劃和駕駛計劃。

Okay. And if we think about the force protection, counter UAS side of the equation, if we do see the Ukraine war continue, I think you talked about this a little bit already, but presumably, that's incrementally positive for sales into US NATO allies, et cetera?

好的。如果我們考慮武力保護、對抗無人機系統方面的問題，如果我們確實看到烏克蘭戰爭繼續下去，我想你已經談到了這一點，但據推測，這對向美國北約盟國的銷售會產生積極的影響，等等？

I think more generally, the threat that Putin posed through by attacking Ukraine is what's driving Europe to higher defense budgets, and they're seeing that concrete threat that Putin is prepared to cross borders in a way that we haven't seen in 80 or 90 years.

我認為，更普遍的是，普丁透過攻擊烏克蘭所構成的威脅促使歐洲增加了國防預算，他們看到了普丁準備以 80 或 90 年來從未見過的方式跨越國界的具體威脅。

That is then driving programmatic implications, prominent among them is force protection. The advent of drones, the importance of having not just kind of perimeter protection around your formations, but really organic protection inside those formations.

這正在推動計劃的影響，其中最突出的是武力保護。無人機的出現，不僅需要在編隊周圍建立週邊保護，而且需要在編隊內部建立真正的有機保護。

So programs like our M-LIDS, that counter UAS system, become critical. And what we're seeing is a growing international demand for that kind of system, partly driven by Ukraine, but more generally driven by the trends in warfare that you're seeing in Ukraine, you're seeing in Israel and how do you bring on systems that counter that and with some urgency given what Putin is doing in Ukraine and the future implications of that.

因此，像我們的 M-LIDS 這樣對抗 UAS 系統的程序變得至關重要。我們看到國際社會對這種系統的需求日益增長，部分原因是烏克蘭問題，但更普遍的原因是烏克蘭和以色列的戰爭趨勢，以及考慮到普丁在烏克蘭的所作所為及其未來影響，如何盡快建立應對這些戰爭趨勢的系統。

Jon Tanwanteng, CJS Securities.

Jon Tanwanteng，CJS 證券。

I was wondering if you could break down the new guidance range and just the components of it, especially the revenue line. What's driving that? Is it stronger demand or contract modifications, maybe just more confidence in the ability to work down the backlog with improved supplier execution? Is it something else that's going on? Just a little help there would be helpful.

我想知道您是否可以分解新的指導範圍及其組成部分，特別是收入線。是什麼原因導致的呢？是需求更強勁還是合約修改，或許只是對透過改善供應商執行力來減少積壓訂單的能力更有信心？還有其他事情發生嗎？只要有一點幫助就會有幫助。

Yes. From the guidance on the revenue side here, the uplift is certainly driven just by the continued demand that we're seeing. We got out of the gate really hot from a bookings perspective in Q1. And that confidence, coupled with the consistency of the supply base and the material receipts, germanium with the asterisks there, continues to perform well, and that gave us the confidence to increase the guide for the full year. At the half from a revenue perspective, we're up 13% year-over-year.

是的。從這裡的收入方面的指導來看，這種成長肯定是由我們看到的持續需求所推動的。從第一季的預訂量來看，我們取得了非常好的成績。這種信心，加上供應基礎和材料收據的一致性，帶有星號的鍺繼續表現良好，這使我們有信心提高全年的指導。從收入角度來看，上半年我們的營收年增了 13%。

So the bookings demand, where we are with the backlog year-over-year, what we've executed to date through the six months and the stability of the supply base gave us the confidence to increase the revenue guide, Jon.

因此，預訂需求、我們與去年同期的積壓情況、我們在過去六個月中迄今為止所執行的操作以及供應基礎的穩定性使我們有信心提高收入指南，喬恩。

Okay. Great. And how should we think about the R&D intensity going forward over the next three to five years and how that affects the operating leverage, especially if you chase these new programs in the new DoD budgets and increasing spending?

好的。偉大的。我們應該如何看待未來三到五年的研發強度以及這將如何影響營運槓桿，特別是如果您在新的國防部預算中追逐這些新項目並增加支出？

I'm sorry, Jon, I didn't catch the end of that. I lost you. Can you repeat that question again?

抱歉，喬恩，我沒聽清楚。我失去了你。你能再重複一次這個問題嗎？

Yes. How should we think about R&D intensity and the operating leverage that you have, especially with the new DoD budgets and with the higher NATO commitments.

是的。我們應該如何看待研發強度和營運槓桿，特別是在新的國防部預算和更高的北約承諾的情況下。

Yes. So from an R&D budget perspective, I'm assuming you're talking about our internal R&D spend?

是的。那麼從研發預算的角度來看，我假設您談論的是我們的內部研發支出？

Correct. Yes.

正確的。是的。

But ultimately, what we wanted to do and what we've made a priority of is there's certainly an emphasis within the administration to get products to the warfighter quicker. And therefore, they're trying to accelerate procurements. And we wanted to ensure that we have ready-now solutions and ready-now capabilities and are investing in increased IRAD in order to make that a reality.

但最終，我們想要做的和我們優先考慮的是，政府內部肯定強調要更快地將產品送到作戰人員手中。因此，他們正在努力加速採購。我們希望確保我們擁有現成的解決方案和現成的能力，並正在投資增加 IRAD 以實現這一目標。

So we've taken up our IRAD from about 2.8% in 2024 to an area where we're sitting at the mid-3s here at the half year point. So that's a sizable headwind from a margin perspective, but we do believe we're investing in areas that are getting a lot of enthusiasms surrounding it.

因此，我們將 IRAD 從 2024 年的 2.8% 左右提高到了半年時的 3% 左右。因此，從利潤率的角度來看，這是一個相當大的阻力，但我們確實相信，我們正在投資那些受到廣泛關注的領域。

And when you talk about the counter drone capabilities, when you talk about space, missile seekers, as Bill mentioned in the prepared remarks, these are the areas we're investing in. The markets are growing, and we thought it would be prudent to continue to invest heavily in there to facilitate our continued growth.

當你談到反無人機能力時，當你談到太空、飛彈導引頭時，正如比爾在準備好的發言中提到的，這些都是我們正在投資的領域。市場正在成長，我們認為繼續大力投資以促進我們的持續成長是明智之舉。

Okay. Great. If I could sneak one more in there. Just when do you think you can get margins on products containing germanium or alternatives back to the normalized range, whether that's through pricing or improved supply or going to some of these alternative, I guess, technology to do so.

好的。偉大的。如果我能再偷偷溜進去一個。您認為什麼時候才能使含鍺產品或替代品的利潤率回到正常範圍，無論是透過定價或改善供應，或採用一些替代技術來實現。

Yes. I think the first challenge we have is to execute against the backlog. Right now, we're in a position where we're a predominantly fixed-price shop. So the pricing fluctuations are being realized in our results, and that's what's realized in our guide.

是的。我認為我們面臨的第一個挑戰是解決積壓問題。目前，我們主要是一家固定價格商店。因此，價格波動在我們的結果中得以體現，這也是我們的指南中所體現的。

Prospectively, we are looking at contract modifications that allow some flexibility in terms of the recovery when you have the volatility in germanium like we've seen, which is largely due to some of the trade wars and other elements that are going on that are kind of outside of our control. We've seen mixed results from a customer receptive perspective on that, and we're continuing to push hard on that to make sure that we're derisked from the price volatility.

從未來來看，我們正在考慮對合約進行修改，以便在出現我們所見的鍺價格波動時，在復甦方面提供一定的靈活性，而這種波動主要是由於一些貿易戰和其他一些我們無法控制的因素造成的。從客戶接受的角度來看，我們看到了好壞參半的結果，我們將繼續努力，以確保我們免受價格波動的影響。

Okay. Any sense of timing of when that normalizes overall?

好的。有沒有時間觀念顯示什麼時候整體會恢復正常？

It's going to be a program-by-program negotiation to be fair. So it will be on a contract-by-contract basis.

公平地說，這將是一個逐個項目進行的談判。因此，這將根據具體合約進行。

(Operator Instructions)

（操作員指示）

Ronald Epstein, Bank of America.

美國銀行的羅納德·愛潑斯坦。

So germanium has been a bit of an issue for you guys. It really doesn't seem like it's been for anybody else. I'm curious why that may be the case? And then two, are there any other rare earths that we should start worrying about for you or others given what's going on broadly with trade, particularly with China?

所以鍺對你們來說是一個有點問題。這看起來確實不像是其他人所經歷的那樣。我很好奇為什麼會這樣？其次，考慮到當前的貿易形勢，特別是與中國的貿易形勢，是否還有其他值得我們為您或其他人擔心的稀土問題？

Ron, I think, obviously, we're a sensor house, and it's an important piece of our product base. So germanium, I think, stands out for us. I don't know what's going on with others. But I'm sure they're not getting germanium. The other one, and I mentioned it on an earlier question, I'd say the principal other one we focus on is in the electric power area is permanent magnets.

羅恩，我認為，顯然，我們是一家感測器公司，它是我們產品基礎的重要組成部分。所以我認為鍺對我們來說很突出。我不知道其他人的情況怎麼樣。但我確信他們沒有得到鍺。另一個，我在之前的問題中提到過，我想說我們關注的另一個主要領域是電力領域的永久磁鐵。

And there, I think currently, we're in a strong position with holding what we need for -- to execute our current programs, but we are trying to anticipate future disruptions and trying to think about how do we -- we're hopeful, of course, of winning future electric drive programs. So we need to think about how we protect future sources of supply. It's a high-class problem, but we're anticipating winning other programs, and we're taking steps now to protect against that future potential.

我認為，目前，我們處於有利地位，掌握了執行當前計劃所需的一切，但我們正試圖預測未來的中斷，並試圖思考我們如何——當然，我們希望贏得未來的電力驅動計劃。因此，我們需要考慮如何保護未來的供應源。這是一個高級問題，但我們預計將贏得其他項目，我們現在正在採取措施來防止未來可能出現的問題。

And then if you could peel back the onion a little bit on -- with the big investments that are being made into the naval industrial base -- shipbuilding industrial base. What other opportunities are out there for you all? I mean, I would imagine there's got to be a whole bunch of them, if you could maybe mention a few.

如果你能稍微剝開一點皮，你會發現人們對海軍工業基地——造船工業基地進行了大規模的投資。你們還有哪些機會？我的意思是，我想應該有很多這樣的人，如果你能提幾個的話。

Are you talking shipbuilding? Or are you looking beyond shipbuilding?

您是在談論造船嗎？還是您的目光不僅限於造船業？

Shipbuilding.

造船。

Well, in shipbuilding, I think, as we said, we have the current Columbia program, the biggest near-term opportunity is the steam turbine generator that I talked about. Coming after that, I think, is just the general enhancement of Virginia-class and other industrial base programs and the realignment of the workload between yards and suppliers.

嗯，在造船方面，我認為，正如我們所說的，我們有當前的哥倫比亞計劃，最大的近期機會就是我談到的蒸汽渦輪發電機。我認為，接下來的只是弗吉尼亞級和其他工業基礎項目的全面增強以及船廠和供應商之間工作量的重新調整。

And then the one I didn't mention, but -- well, two I didn't mention, beyond that, a little bit longer term out is future ship classes we think will look to electric drive as the propulsion system because of the operational advantages in terms of cost, in terms of quietness and in terms of the power density, when you start to look at it, directed energy weapons, mechanical systems just cannot meet the needs. And even as you increase sensor demand, which is inevitable, mechanical systems won't meet the needs. So we think the next-generation destroyer, DDG(X), is a good candidate.

然後我沒有提到的一點，但是——嗯，還有兩點我沒有提到，除此之外，從更長遠的角度來看，我們認為未來的船級將採用電力驅動作為推進系統，因為它在成本、安靜度和功率密度方面具有操作優勢，當你開始研究它時，定向能武器、機械系統根本無法滿足需求。即使增加了感測器需求（這是不可避免的），機械系統也無法滿足需求。因此我們認為下一代驅逐艦 DDG(X) 是一個不錯的選擇。

The next-generation submarine, the SSN(X), is probably an even better candidate. And then internationally, international navies are looking at electric drive as well. So we think over the next 5 to 10 years, there's going to be a shift into electric drive, and we think we stand to benefit from that.

下一代潛艇 SSN(X) 可能是更好的選擇。在國際上，各國海軍也關注電力驅動。因此，我們認為在未來 5 到 10 年內，汽車將轉向電力驅動，我們認為我們將從中受益。

Got it. Got it. And then if I can ask you just one more sort of more macro question, again, given your experience kind of on the Hill and in the building. How would you expect fiscal '27 to play out, right? I mean in terms of the budget process this year was sort of bizarre, right?

知道了。知道了。然後，鑑於您在國會山莊和大樓裡的經驗，我可以再問您一個更宏觀的問題嗎？您預計 27 財年將會如何發展，對嗎？我的意思是，就今年的預算過程而言，有點奇怪，對吧？

Do we get another reconciliation? I mean, how is it all going to go? I mean it seems kind of likely that there's going to be another continuing resolution. I don't know. I mean if you were to look in your crystal ball and take a swag at it, how would you guess fiscal '27 plays out?

我們還能再得到一次和解嗎？我的意思是，一切會如何進行？我的意思是，似乎很有可能還會有另一個繼續決議。我不知道。我的意思是，如果你用水晶球來預測未來，你會猜測 27 年財政年度的走勢如何？

I think -- as I said, at the end of the day, it's hard. As you said, this has been a very unusual year, particularly with a very large increase in the reconciliation bill. And there's still -- they allocated a lot of that to '26, but not all of it. So there's still some reconciliation money out there that needs to be allocated. They have to make a decision on what is the '27 base bill.

我認為——正如我所說，到最後，這很難。正如你所說，這是非常不尋常的一年，尤其是和解費用大幅增加。而且還有——他們將其中的大部分分配給了 26 個，但不是全部。因此，仍有一些和解資金需要分配。他們必須就 27 號基本法案做出決定。

And as I said in the answer to an earlier question, I have a hard time believing a Republican President wants to be lower than his democratic predecessor. So I think that's going to drive some increase. So I mean, I think what you want to see is maybe is -- what you'd like to see is a sustained and predictable increases in the defense budget that will let us meet the growing threats from China and Russia. That's, I think, the policy goal. I do think it's going to be -- it's the policy goal of this administration.

正如我在回答之前的問題時所說，我很難相信一位共和黨總統會想要比他的民主黨前任更低的地位。所以我認為這將推動一些成長。所以我的意思是，我認為你們希望看到的也許是——你們希望看到的是國防預算持續且可預測的增長，這將使我們能夠應對來自中國和俄羅斯日益增長的威脅。我認為這就是政策目標。我確實認為這將是——這是本屆政府的政策目標。

So I think they're going to have to find a way through reconciliation, maybe a second reconciliation bill, I don't know. And the core budget bills to execute on that sustained predictable growth, that should be their goal, and I think it is their goal.

所以我認為他們必須找到和解的方法，也許是第二份和解法案，我不知道。而核心預算法案要實現持續可預測的成長，這應該是他們的目標，我認為這就是他們的目標。

I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Steve Vather for any closing remarks.

目前隊列中沒有其他問題。現在我想將電話轉回給史蒂夫·瓦瑟 (Steve Vather) 做結束語。

Thanks for your time this morning and for your interest in DRS. As usual, if you have any follow-up questions, please call or e-mail. We look forward to speaking with all of you again soon. Enjoy the rest of your day.

感謝您今天上午抽出時間並關注 DRS。與往常一樣，如果您有任何後續問題，請致電或發送電子郵件。我們期待很快能再次與大家交談。享受這一天剩下的時間。

This concludes today's program. Thank you for participating. You may now disconnect.

今天的節目到此結束。感謝您的參與。您現在可以斷開連線。