Leonardo DRS Inc (DRS) 2025 Q3 法說會逐字稿

Ladies and gentlemen, good day and welcome to the Leonardo DRS 3rd quarter fiscal year 2025 earnings conference call. At this time, all participants are in the sno mode. Following the company's prepared remarks, there'll be an opportunity to ask questions, and instructions will be given at that time. As a reminder, this event is being recorded. I would now like to turn the conference over to Steve Bader.

女士們、先生們，大家好，歡迎參加 Leonardo DRS 2025 財年第三季財報電話會議。此時，所有參與者都處於雪上模式。公司發言結束後，將安排提問環節，屆時將給予相關說明。再次提醒，本次活動正在錄影。現在我將把會議交給史蒂夫·巴德爾。

Senior Vice President of Investor relations and corporate finance, please go ahead.

投資者關係和企業融資高級副總裁，請開始。

Good morning and thanks for participating on today's quarterly earnings conference call. Joining me today are Bill Lynn, our Chairman and CEO, John Bayloi, our COO and incoming CEO, and Mike DePaul, our CFO. They'll discuss our strategy, operational highlights, financial results, and forward outlook. 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.

早安，感謝各位參加今天的季度財報電話會議。今天與我一同出席的有：我們的董事長兼執行長比爾‧林恩，我們的營運長兼即將上任的執行長約翰‧貝洛伊，以及我們的財務長麥克‧德保羅。他們將討論我們的策略、營運亮點、財務表現和未來展望。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，您還可以在那裡找到收益報告和補充簡報。

Management make forward-looking statements during the call regarding future events, anticipated future trends, and the anticipated future performance of the company. 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. For a full discussion of these risk factors, please refer to our latest Form 10k and our other SEC filings. We undertake no obligation to update any of the forward-looking statements made on this call.

管理層在電話會議中就未來事件、預期未來趨勢以及公司預期未來業績發表了前瞻性聲明。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。由於各種因素，實際結果可能與前瞻性聲明中預測的結果有重大差異。有關這些風險因素的完整討論，請參閱我們最新的 10-K 表格和我們向美國證券交易委員會提交的其他文件。我們不承擔更新本次電話會議中任何前瞻性陳述的義務。

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 releases. At this time, I'll turn the call over to Bill. Bill.

在本次電話會議中，管理階層也將討論非GAAP財務指標，我們認為這些指標可以為投資人提供有用的資訊。這些非GAAP指標不應單獨評估，也不應作為GAAP績效指標的替代。您可以在我們的獲利報告中找到本次電話會議中討論的非GAAP指標的調節表。現在，我將把電話轉給比爾。帳單。

Thanks Steve. Good morning and welcome everyone to the DRS Q3 earnings call.

謝謝你，史蒂夫。各位早安，歡迎參加DRS第三季財報電話會議。

We continue to perform well. Our 3rd quarter results demonstrate DRS's close alignment with customer priorities, which was clearly reflected in our strong bookings, revenue and profit growth, as well as solid cash flow generation.

我們繼續保持良好的業績。我們第三季的業績表明，DRS 與客戶的優先事項高度一致，這在我們強勁的預訂量、收入和利潤增長以及穩健的現金流產生方面得到了充分體現。

As I told you last call, we expected second half booking strength, and that materialized in spades in the third quarter. We secured $1.3 billion of bookings in the quarter, resulting in a 1.4 book to bill ratio.

正如我上次電話會議中所說，我們預計下半年預訂量會強勁增長，而第三季的情況也確實如此。本季我們獲得了 13 億美元的訂單，訂單出貨比為 1.4。

A year-to-date book to bill ratio sits at 1.2, and we continue to see a solid path to remain above one for the full year.

今年迄今的訂單出貨比為 1.2，我們預計全年將繼續保持 1 以上。

This quarter, demand was most evident for our counter UAS advanced infrared sensing, naval network computing, and electric power and propulsion technologies.

本季度，市場對我們的反無人機系統先進紅外線感測技術、海軍網路計算技術以及電力和推進技術的需求最為明顯。

Our exceptional bookings propelled us to another record total backlog, which now sits at $8.9 billion up 8% year over year and also up sequentially. Funded backlog also saw remarkable year over year growth of 20% in the quarter.

我們出色的預訂量使我們的總積壓訂單量再次創下紀錄，目前達到 89 億美元，年增 8%，環比也增長。本季已獲資金支持的積壓訂單也實現了顯著的同比增長，達到 20%。

Diving deeper into our quarterly financial performance across metrics, we sustained double-digit growth in the year-to-date, including in Q3.

深入分析我們各季度的財務績效指標，我們今年迄今保持了兩位數的成長，包括第三季。

This provides greater visibility to close out the air on a strong footing.

這樣可以提供更大的視野，從而在堅實的基礎上結束比賽。

Furthermore, the foundation built in the year-to-date leads us to increase our full year revenue growth expectations to 10% to 11%.

此外，今年迄今所奠定的基礎使我們把全年營收成長預期提高到 10% 至 11%。

Our profit metrics also showed strong performance. Adjusted EBITDA was up 17%, although the margins slightly lagged behind prior year levels as we continue to ramp our investment in internal research and development.

我們的獲利指標也顯示出強勁的表現。調整後 EBITDA 成長了 17%，但由於我們持續增加對內部研發的投資，利潤率略低於去年水準。

Adjusted diluted EPS increased by 21%.

經調整後的稀釋每股收益成長了 21%。

Lastly, free cash flows significantly surpassed prior year levels reflecting improved collection linearity and working capital efficiency.

最後，自由現金流顯著超過上年水平，反映出收款線性度和營運資本效率的提高。

In aggregate, our strong Q3 results place us in a solid position to meet our full year outlook.

總體而言，我們強勁的第三季業績使我們處於有利地位，能夠實現全年預期目標。

However, we continue to operate in a dynamic market environment and are focused on smoothly navigating its complexities. The team and I remain focused on execution discipline and maintaining investment to sustain strong organic growth.

然而，我們仍然在瞬息萬變的市場環境中運營，並專注於順利應對其複雜性。我和我的團隊將繼續專注於執行紀律，並保持投資以維持強勁的內生成長。

While DRS continues to perform well, the operating environment offers both opportunities and challenges. Global threats persist, leading to continued growth in US and allied defense investments to expand and enhance capabilities to deter and contest these adversaries.

儘管DRS繼續保持良好的業績，但營運環境既帶來了機遇，也帶來了挑戰。全球威脅持續存在，導緻美國及其盟國不斷增加國防投資，以擴大和增強威懾和對抗這些對手的能力。

We are thankful that earlier this month the remaining Israeli hostages were returned and that initial steps toward peace are being made in the Middle East.

我們欣慰地看到，本月初剩餘的以色列人質獲釋，中東和平進程也邁出了初步步伐。

We are hopeful that the ceasefire sustains and brings lasting stability not only for our employees in the region but for all situated there.

我們希望停火能持續下去，並為該地區的員工以及所有身處該地區的人們帶來持久的穩定。

Domestically, the federal government remains shut down, marking the longest full shutdown on record.

國內方面，聯邦政府仍然處於關閉狀態，這是有史以​​來持續時間最長的全面關閉。

Unlike the last lengthy government shutdown in late 2018, all agencies, including the Department of Defense, are impacted.

與 2018 年底那次長時間的政府停擺不同，這次包括國防部在內的所有機構都受到了影響。

Thankfully to date we have not seen a meaningful impact on our ability to execute our programs or deliver for our customers.

值得慶幸的是，到目前為止，我們還沒有看到這對我們執行專案或為客戶提供服務的能力產生實質影響。

However, as the shutdown extends, we are keeping a watchful eye on any impacts. We are hopeful that Congress and the administration negotiate and enact funding to provide clarity and visibility to our national security customers.

然而，隨著停工時間的延長，我們將密切注意其可能造成的任何影響。我們希望國會和政府能夠協商並頒布撥款法案，為我們的國家安全客戶提供清晰明確的資訊和指導。

Zooming out and taking a look at the bigger picture, DRS remains well positioned in areas of customer priority with strong alignment to enduring themes of counter UAS, improving shipbuilding throughput via industrial-based expansion, enhancing missile production, and sensing and electronics modernization.

從更宏觀的角度來看，DRS 在客戶優先考慮的領域仍然佔據著有利地位，與反無人機系統、透過工業擴張提高造船產能、增強飛彈生產以及感測和電子設備現代化等持久主題高度契合。

There are clear funding tailwinds in the $150 billion for defense embedded in the tax reconciliation passed earlier this year. We are eager to see the enacted funding start to flow to our customers.

今年稍早通過的稅收和解協議中包含了 1500 億美元的國防預算，這無疑為國防資金提供了有利條件。我們熱切期盼已批准的資金開始流向我們的客戶。

Shifting to the supply chain, we are executing the strategy laid out last quarter to strengthen our germanium supply chain. We have begun recycling initiatives and are seeing early success in extracting adequate levels of germanium.

轉向供應鏈方面，我們正在執行上個季度製定的策略，以加強我們的鍺供應鏈。我們已開始回收計劃，並在提取足夠數量的鍺方面取得了初步成功。

We are also actively working on strategic agreements with several partners to ensure consistent supply in 2026.

我們目前也積極與多家合作夥伴達成策略協議，以確保2026年供應穩定。

Overall, I'm pleased with the progress made today. There's still work to be done before resolving this constraint fully, but I am confident that the initiatives that we have put in place will successfully resolve this challenge in 2026.

總的來說，我對今天的進展感到滿意。在徹底解決這項限制之前，還有許多工作要做，但我相信，我們已經採取的措施將在 2026 年成功解決這項挑戰。

Let me wrap up my remarks with a few closing thoughts.

最後，我想補充幾點看法。

Our year-to-date results reflect the resilience of our business and the strength of our differentiated technology portfolio.

今年迄今的業績反映了我們業務的韌性和我們差異化技術組合的實力。

Customer demand is clear for our capabilities, and we remain focused on executing with excellence to support them in their most critical missions.

客戶對我們能力的需求很明確，我們將繼續專注於卓越執行，以支援他們完成最關鍵的任務。

The team has performed remarkably. Their commitment is unwavering, and their incredible contributions are foundational to our financial success.

團隊表現非常出色。他們的奉獻精神堅定不移，他們所做的巨大貢獻是我們財務成功的基石。

Earlier today, I announced that I will be retiring as Chairman and CEO on January 1, and our COO John Bayloi, has been named the company's new CEO.

今天早些時候，我宣布我將於 1 月 1 日卸任董事長兼執行長一職，我們的營運長 John Bayloi 已被任命為公司新任執行長。

I've had the distinct privilege of leading DRS as CEO since 2012. The DRS we have today is unmistakably better and stronger than the one I joined 14 years ago. I could not be prouder of what the team and I have accomplished together.

自 2012 年以來，我榮幸地擔任 DRS 的執行長。我們現在的DRS系統無疑比我14年前加入的系統更好、更強大。我為我和我的團隊共同取得的成就感到無比自豪。

We have strategically transformed DRS through a steadfast focus on reshaping the portfolio into enduring areas of demand, driving consistent innovation and executing to provide exceptional capability into the hands of our warfighters.

我們透過堅定不移地專注於將產品組合重塑為持久的需求領域，推動持續創新，並努力為我們的作戰人員提供卓越的能力，從而對 DRS 進行了戰略轉型。

All of these strategic actions have resulted in a consistently growing business with expanding profitability and strong cash generation.

所有這些策略舉措都帶來了業務的持續成長、獲利能力的提升和強勁的現金流。

I am pleased with where the company is positioned today and the incredible potential ahead of it. This inflection point offers an opportunity for me to hand the reins over to someone who has been my right hand for a near decade.

我對公司目前的地位以及它未來的巨大潛力感到滿意。這個轉捩點為我提供了一個機會，讓我可以將領導權交給一位近十年來一直是我的得力助手的人。

While I'm delighted with what we have achieved, I have high expectations for what this company will achieve under John's leadership as our next CEO.

雖然我對我們所取得的成就感到高興，但我對約翰擔任下一任執行長後公司將取得的成就抱有很高的期望。

Many of you already know John. He's an outstanding leader and is absolutely the right person to take this on. He has a wealth of knowledge, deep technological expertise, and vast experience at DRS spanning over 35 years with significant operational impacts.

你們當中很多人都認識約翰。他是一位傑出的領導者，絕對是承擔這項任務的合適人選。他擁有豐富的知識、深厚的技術專長，以及在 DRS 超過 35 年的豐富經驗，並產生了重大的營運影響。

Equally important, he possesses a profound understanding of our customers and their needs, coupled with an unwavering commitment to driving innovation and delivering solutions that ensure their mission success.

同樣重要的是，他對我們的客戶及其需求有著深刻的理解，並堅定不移地致力於推動創新和提供解決方案，以確保他們的任務成功。

Separately, the board is unanimously elected Fran Townsend, our current lead independent director, to become chair.

另外，董事會一致選出我們現任首席獨立董事弗蘭湯森擔任主席。

She has been a steady hand on our board dating back to our acquisition by Leonardo.

自從李奧納多收購我們以來，她一直是董事會的中流砥柱。

As part of this transition process, John, Mike, Steve, and I will have several opportunities to meet with many of you over the coming months. John and I will be sharply focused on ensuring a seamless transition through the end of the year.

作為過渡過程的一部分，在接下來的幾個月裡，約翰、麥克、史蒂夫和我將有很多機會與你們中的許多人見面。約翰和我將全力確保年底前的工作順利過渡。

Congratulations, John.

恭喜你，約翰。

Now let me turn the call over to him so he can review our operational highlights.

現在我把電話交給他，讓他回顧我們的營運亮點。

Thank you, Bill. First, on behalf of all of our employees, I want to thank you for your extraordinary leadership and the incredible impact you've had on the company. I am honored to be the next CEO of DRS, and I appreciate the trust you and the board have in me to lead this exceptional organization.

謝謝你，比爾。首先，我謹代表全體員工，感謝您卓越的領導能力以及您對公司的巨大影響。我很榮幸能成為DRS的下一任首席執行官，感謝您和董事會對我的信任，讓我能領導這個卓越的組織。

I'm very excited about where DRS is today. More importantly, where we can take this company moving forward. The opportunities to create value for both our customers and shareholders are abundant as ever.

我對DRS目前的發展狀況感到非常興奮。更重要的是，我們能帶領這家公司走向何方。我們為客戶和股東創造價值的機會一如既往地多。

Let me now turn to discuss key business highlights from the quarter. As Bill mentioned earlier, we continue to see vigorous appetite for our counter UAS solutions. Due to the evolving threats, we are constantly iterating our offerings to stay ahead of the threat.

接下來，我將介紹本季的主要業務亮點。正如比爾之前提到的，我們持續看到市場對我們的反無人機系統解決方案的強勁需求。由於威脅不斷演變，我們不斷迭代我們的產品和服務，以保持領先於威脅。

Earlier this month at the AUSA annual meeting, we showcased our leading expertise in counter UAS. We demonstrated our ability to develop and integrate a palletized mission equipment package that is vehicle and platform agnostic and applicable to both banned and unmanned systems. Furthermore, we successfully combined both short range air defense and counter UAS missions into a significantly smaller and lighter platform than JLTV.

本月初在 AUSA 年會上，我們展示了我們在反無人機系統領域的領先技術。我們展示了我們開發和整合托盤式任務設備包的能力，該設備包與車輛和平台無關，適用於被禁系統和無人系統。此外，我們成功地將短程防空和反無人機任務結合到一個比 JLTV 更小更輕的平台上。

In a growing field of counter UAS solutions, DRS stands out due to its reputation for bringing best of brief technologies well ahead of others and with proven field tested results and mission effectiveness. To that end, I would like to commend the team for taking first place at a recent Army counter UAS competition, showcasing our cutting edge electronic warfare capabilities to disrupt drone threats. Additionally, in Q3, we demonstrated cross modality success in solving some of the hardest problems facing our armed forces, integrating our sensors to enable threat neutralization through a platform to platform kinetic kill handoff.

在日益發展的反無人機系統解決方案領域，DRS 因其領先其他公司推出最佳簡易技術的聲譽而脫穎而出，並擁有經過實地測試的可靠結果和任務有效性。為此，我要表揚該團隊在最近舉行的陸軍反無人機系統競賽中獲得第一名，展示了我們尖端的電子戰能力，以擾亂無人機威脅。此外，在第三季度，我們展示了跨模態技術在解決我們武裝部隊面臨的一些最棘手的問題方面的成功，整合了我們的感測器，透過平台間的動能殺傷交接，實現了威脅消除。

Our leadership position in Canada has translated into demand across our portfolio, including our integrated systems and sensing solutions and tactical radar, electronic warfare, and infrared. I want to highlight that in the quarter we were awarded over $250 million in contracts for our premier ground-based counter UAS and short range air defense programs.

我們在加拿大的領先地位已轉化為對我們產品組合的需求，包括我們的整合系統和感測解決方案以及戰術雷達、電子戰和紅外線技術。我想強調的是，本季度我們獲得了超過 2.5 億美元的合同，用於我們首屈一指的地面反無人機系統和短程防空項目。

Moving to sensing, we continue to see strong demand building in the missile domain domain.

轉向感測領域，我們持續看到導彈領域的需求強勁成長。

We are actively engaged in initiatives to expand sensing capacity and bring generational upgrades to sensing content on new platforms. Additionally, unmanned systems present a growing area of opportunity for our multi-modal sensing business as we integrate our technologies into both unmanned aerial and surface vessel platforms.

我們積極參與各項舉措，以擴大感知能力，並在新平台上為感知內容帶來世代升級。此外，隨著我們將技術整合到無人機和水面艦艇平台中，無人系統為我們的多模式感測業務提供了一個日益增長的機會領域。

Lastly, in our core infrared business, we continue to capture an outsized share of the market to supply our customers with infrared capabilities for dismounted and ground combat vehicle applications.

最後，在我們核心的紅外線業務領域，我們繼續佔據相當大的市場份額，為我們的客戶提供用於步兵和地面作戰車輛應用的紅外線功能。

Next, I want to highlight our new software offering, Sage Core. Sage Core is an integrated operating system that brings AI, advanced sensor, and edge computing together in a single deployable solution for use on tactical platforms across multi-domain environments. Sage Core is one piece of the innovation we are bringing to the next generation computing and sensor fusion.

接下來，我想重點介紹一下我們的新軟體產品 Sage Core。Sage Core 是一個整合作業系統，它將人工智慧、進階感測器和邊緣運算整合到一個可部署的解決方案中，用於跨多域環境的戰術平台。Sage Core 是我們為下一代運算和感測器融合帶來的創新之一。

In the quarter we also released Thor, a 4 plus 1 multifunction network computing product with the ability to host electronic warfare on board crypto, and tactical Wi FY capabilities. Thor complements the AI processor we developed earlier this year. It supports the Army's Next Generation C2 initiative with a zero trust cost effective solution for tactical and ruggedized computing at the edge. Additionally, we continue to see steady demand for our next generation naval network computing solutions in support of the Navy's network sensor and integrated Fire Control initiative Cooperative Engagement Capability, or CEC. Last but certainly not least, I want to commend our electric power and propulsion business for the consistent and remarkable performance.

本季我們也發表了 Thor，這是一款 4+1 多功能網路運算產品，具備在機載加密和戰術 Wi-Fi 功能上搭載電子戰的能力。Thor 是我們今年稍早開發的 AI 處理器的補充。它為陸軍的下一代 C2 計劃提供了一種零信任、成本效益高的邊緣戰術和加固計算解決方案。此外，我們持續看到對我們下一代海軍網路運算解決方案的穩定需求，以支援海軍的網路感測器和整合火力控制計畫「協同作戰能力」（CEC）。最後，我要特別表揚我們的電力和推進業務，感謝他們持續且卓越的表現。

The impact of the strong execution is evident not only at the segment level but also at the company level. We continue to see this part of our business driving significant growth and marginal expansion. We are well positioned to capture incremental scope and remain active in active conversations with our customers on industrial-based expansion, particularly steam turbine generators. The growth opportunity of proliferating our electric power and propulsion technology into future platforms remains an exciting growth factor.

強而有力的執行所帶來的影響不僅在部門層面顯而易見，而且在公司層面也顯而易見。我們持續看到這部分業務推動著我們業務的顯著成長和穩定擴張。我們已做好充分準備，抓住增量機會，並與客戶就工業擴張（特別是蒸汽渦輪發電機）保持積極的對話。將我們的電力和推進技術推廣到未來平台上的成長機會仍然是一個令人興奮的成長因素。

Let me now turn the call over to Mike. We'll review our third quarter and our revised 2025 guidance in greater detail.

現在我把電話交給麥克。我們將更詳細回顧第三季業績和修訂後的2025年業績指引。

Thanks, John, and congratulations. I look forward to working closely with you in your new role to create value for our customers and shareholders. Bill, it's been a heck of a ride and I'd like to thank you for your outstanding leadership.

謝謝你，約翰，也恭喜你。我期待與您在新職位上密切合作，為我們的客戶和股東創造價值。比爾，這段旅程真是精彩紛呈，我要感謝你優秀的領導。

Overall, I'm pleased with our solid year to day performance, particularly amidst a complex and dynamic operating environment. Our third quarter reflects the results of our sustained focus on driving innovation, processing customer demand into revenue growth, and maintaining disciplined execution.

整體而言，我對我們穩健的年度表現感到滿意，尤其是在複雜多變的經營環境下。第三季業績反映了我們持續專注於推動創新、將客戶需求轉化為收入成長以及保持嚴謹執行的成果。

Let me start by discussing our Q3 performance.

首先，我想談談我們第三季的業績。

Quarterly revenue grew by 18% over the prior year, totaling $960 million. The team did an impressive job converting strong customer demand. We also benefited from favorable timing of material receipts resulting in revenue above the framework laid out on the Q2 call.

季度營收比上年同期成長 18%，總計 9.6 億美元。團隊出色地完成了任務，成功滿足了客戶的強勁需求。我們也受益於原物料到貨的有利時機，使得收入超過了第二季電話會議上所製定的框架。

From a segment perspective, IMS with our growth engine. IMS quarterly revenue was up 34%, driven by strong contributions from counter UAS and electric power propulsion programs. ASC demonstrated a healthy upper single-digit increase of 9% thanks to growth from naval network computing, advanced infrared sensing, and tactical radar programs.

從細分市場的角度來看，IMS 是我們的成長引擎。IMS季度營收成長34%，主要得益於反無人機系統和電力推進專案的強勁貢獻。由於海軍網路計算、先進紅外線感測和戰術雷達項目的成長，ASC 實現了 9% 的健康個位數成長。

Shifting to adjusted EBITDA Q3 adjusted IBETA was 117 million, up 17% from last year.

轉為調整後 EBITDA，第三季調整後 IBETA 為 1.17 億，比去年成長 17%。

Quarterly adjusted IBETA margin was 12.2%, reflecting a 10 basis point margin contraction from the prior year. Higher volume and improved electric power propulsion program profitability were all set by increased research and development investments, less favorable program mix, and less efficient program execution, leading to the slight margin decrease in the quarter.

季度調整後的 IBETA 利潤率為 12.2%，較上年同期下降 10 個基點。更高的產量和更高的電力推進專案獲利能力都是由增加的研發投資、不太有利的專案組合和不太高效的專案執行所決定的，這導致本季利潤率略有下降。

Shifting to the segment view.

切換到分段視圖。

ASC adjusted EBITA was flat on a dollar basis but saw a 100 basis point contraction due to greater internal research and development investment along with less favorable program mix.

ASC 調整後的 EBITA 以美元計算持平，但由於內部研發投入增加以及專案組合不太有利，導致 EBITA 下降了 100 個基點。

IMS adjusted EBITDA was up 47%, but margin expanding by 120 basis points thanks to higher volume and improved profitability on our Columbia Class program.

IMS 調整後的 EBITDA 成長了 47%，但由於哥倫比亞級專案的銷售增加和獲利能力提高，利潤率擴大了 120 個基點。

Onto the bottom line metrics, 3rd quarter net earnings were $72 million and diluted EPS was $0.26 a share, up 26% and 24% respectively.

從最終指標來看，第三季淨利潤為 7,200 萬美元，稀釋後每股收益為 0.26 美元，分別成長了 26% 和 24%。

Our adjusted net earnings of $78 million and adjusted diluted EPS of $0.29 a share. We're up 22% and 21% respectively.

調整後的淨利潤為 7,800 萬美元，經調整後的攤薄每股收益為 0.29 美元。我們分別上漲了 22% 和 21%。

The favorable year over year compares were driven primarily by operationally led profit growth coupled with slightly lower interest expense.

同比利好主要得益於營運驅動的利潤成長以及利息支出略有下降。

Now on to free cash flow. Free cash flow with $77 million for the quarter, up significantly over the prior year, despite increased capital expenditure investment driven by increased net profitability and better working capital efficiency.

接下來我們來看看自由現金流。本季自由現金流為 7,700 萬美元，較上年同期大幅成長，儘管淨利潤成長和營運資本效率提高推動資本支出投資增加，但仍實現了這一成長。

With one quarter remaining, we are revising our full year 2025 guidance to incorporate our strong year-to-date performance along with factors we expect to influence the business as we close out the year.

距離年底還有一個季度，我們將修訂 2025 年全年業績預期，以納入我們今年迄今的強勁表現，以及我們預計在年底前會影響業務的因素。

We now expect revenue in the range of 3.55 to 3.6 billion, implying 10 to 11% year over year growth.

我們現在預計營收將在 35.5 億至 36 億美元之間，這意味著年增 10% 至 11%。

Our backlog position provides clarity into the execution range. The single most important factor driving the output is the variability in the timing and level of material receipts received by year end.

我們的積壓工作情況可以清楚反映出執行範圍。影響產量最重要的因素是年底前收到的物料到貨時間和數量的波動性。

I would resist the urge to fixate on the implied 4th quarter trend.

我會克制住自己，不去分關注第四季的隱含趨勢。

Over the past few years we have steadily worked to improve quarterly linearity and our year to day performance this year is certainly reflective of that initiative.

過去幾年，我們一直在努力提高季度線性度，而我們今年的年度業績也充分體現了這項努力。

We expect Q4 to reflect comparable patterns as last year, where there's a step down in growth from the 1st 9 months of the year.

我們預計第四季將呈現與去年類似的趨勢，即成長速度較前九個月有所放緩。

Lastly, the nature of our business makes it challenging to run rate quarterly performance into any useful trend. Bottom line, to step down and imply growth to close the year should not be used as a read through for next year just as Q4 2024 was not indicative of the growth we are currently on track to deliver for 2025.

最後，由於我們業務的性質，很難將季度業績轉化為任何有用的趨勢。總之，年底業績下滑並暗示成長，不應被視為明年業績的預測依據，就像 2024 年第四季的業績並不能代表我們目前預計在 2025 年實現的成長一樣。

Next, we are maintaining the range of adjati EBITDA.

接下來，我們將維持鄰近 EBITDA 的範圍。

As a reminder, the range is between 437 and 453 million.

再次提醒，範圍在 4.37 億到 4.53 億之間。

As evidenced by our year-to-date results, we continue to expect IMF to be the source of the vast majority of profit and margin expansion for the year.

從我們今年迄今的業績來看，我們仍然預計 IMF 將成為今年利潤和利潤率擴張的主要來源。

Adjusted EPEA margin at the company level continues to be constrained by increased R&D investment, less favorable program mix, and less efficient program execution, including the impact of germanium.

公司層級的調整後 EPEA 利潤率持續受到研發投資增加、專案組合不利以及專案執行效率降低（包括鍺的影響）的限制。

The increased adjusted diluted EPS range incorporates a slightly lower effective tax rate.

調整後的稀釋每股盈餘範圍擴大，其中包含了略低的實際稅率。

We now expect adjusted diluted EPS between $1.07 and $1.12 a share.

我們現在預計調整後稀釋每股收益在 1.07 美元至 1.12 美元之間。

Our revised tax rate assumption for the year is 18%, and our other non-operational assumptions remain static from our prior guidance.

我們今年的修訂稅率假設為 18%，其他非經營性假設與我們先前的指導意見一致。

Lastly, with respect to free cash flow conversion, we are still targeting an approximately 80% conversion of adjusted net earnings for the full year.

最後，關於自由現金流轉換率，我們仍計劃全年實現調整後淨收益約 80% 的轉換率。

Shifting to 2026, we are in the middle of our normal course budgeting process.

展望 2026 年，我們正處於正常的課程預算編制過程中。

It's premature to provide specific guidance for next year, but as a team we are focused on driving continued organic growth and expanding adjusted even margins.

現在就對明年做出具體預測還為時過早，但作為一個團隊，我們專注於推動持續的內生成長並擴大調整後的均衡利潤率。

Consistent with past practice, we plan to provide formal guidance in conjunction with our 4th quarter and fiscal year 2025 call in late February.

與以往的做法一致，我們計劃在 2 月下旬舉行的 2025 財年第四季電話會議上提供正式的業績指引。

In conclusion, I want to thank the team for their incredible contributions in bringing innovation to solve complex national security challenges, delivering exceptional technologies to our customer, and delivering solid financial results for our investors. We will continue to remain focused on rigorously executing our strategy to create value through durable long-term growth. With that, we are ready to take your questions.

最後，我要感謝團隊為解決複雜的國家安全挑戰、為客戶提供卓越的技術以及為投資者帶來穩健的財務表現所做的傑出貢獻。我們將繼續專注於嚴格執行我們的策略，透過可持續的長期成長創造價值。那麼，我們就可以回答你們的問題了。

Thank you. If you would like to ask a question, please press 11 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to remove yourself, press star11 again. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster.

謝謝。如果您有任何疑問，請按電話上的 11。然後你會聽到一個自動語音訊息，告知你已被舉手。如果您想刪除自己，請再次按下星號11。我們也請您在提問前，等待您的姓名和公司名稱被宣布。請稍等片刻，我們正在整理問答名單。

The first question today will be coming from the line of Peter Ammer of Kirchenmusiker. Please go ahead.

今天第一個問題將來自 Kirchenmusiker 樂團的 Peter Ammer。請繼續。

Yeah, good morning, and congrats, Bill and John. Bill, thanks for all the support over the years. I really appreciate it. .

是的，早安，恭喜比爾和約翰。比爾，感謝你多年來的支持。我非常感謝。。

Hey, question on just our ad spending. Obviously you're seeing a lot of opportunities up pretty significantly 35% I think in 2025. How do we expect that trending just because of kind of some of the margin forms we've seen at AFC just because some of that is impacting that? How does that trend as we go forward?

您好，請問一下關於我們廣告支出的問題。顯然，你會看到很多機會大幅成長，我認為到 2025 年將成長 35%。我們如何預期這種趨勢會如何發展，僅僅因為我們在亞足聯看到的一些邊際形式，因為其中一些因素正在產生影響？隨著時間推移，這種趨勢會如何發展？

I would expect to see this internal research and development investment kind of stay at this percentage of revenues. I think we're in a more dynamic operating environment where the procurement processes has changed from the department, and I think that we're going to continue the investment levels to provide that agility in order to maintain this growth.

我預期內部研發投入佔營收的比例將維持在目前的水準。我認為我們正處於一個更動態的營運環境中，部門的採購流程已經發生了變化，我認為我們將繼續保持投資水平，以提供這種靈活性，從而維持這種成長。

Okay, so that was roughly like mid 3% or so roughly right around there.

好的，那大概是3%左右吧。

Around there, yes.

是的，就在那附近。

Yeah, okay, helpful. And then just I guess, any updates on just kind of foreign military sales activity. Obviously there's a lot of demand signals from Europe. You guys are well positioned. What do you see in there, Bill, and any opportunities for TRS?

好的，很有幫助。然後，我想問一下，關於對外軍售活動方面有什麼最新消息嗎？顯然，歐洲市場有許多需求訊號。你們的處境很有利。比爾，你覺得那裡有什麼？ TRS 從中看到了什麼機會？

Yeah, thanks, Peter. We do think we're going to see a ramp up in foreign military sales opportunity. We're just at the, I think at the start.

謝謝你，彼得。我們認為對外軍售機會將會增加。我覺得我們現在還處於起步階段。

For the force protection, the counter UAS, I think that has a real opportunity.

就部隊防護而言，反無人機系統方面，我認為這方面存在著真正的機會。

We continue to see demand for our sensors, the EOIR sensors, and for our network computing, and I think given the threat environment we expect those to continue. And then we are working to develop markets for our naval power and propulsion system, particularly in Asia.

我們持續看到市場對我們的感測器、EOIR感測器和網路運算的需求，而且我認為，鑑於當前的威脅環境，我們預計這種需求還會持續下去。然後，我們正在努力開發海軍動力和推進系統的市場，尤其是在亞洲。

Just last one for me, just on my, on the germanium pricing, if things stabilize there, if you've gotten more suppliers or or supply lined up for next year. Thanks.

最後一個問題，關於鍺的價格，如果價格穩定下來，如果明年有更多的供應商或供應安排好，那就太好了。謝謝。

Yeah, I'll take that out to start and then maybe hand it over to Bill, but first on the pricing side, as we talked about in our last call, I think we've got 2025 kind of lined out and there were no real surprises or anything from our last call on the germanium front. We are making some progress in terms of solidifying supply into 206, and I'll hand it over to you, Bill, there.

是的，我先把它拿出來，然後也許會交給比爾，但首先在定價方面，正如我們在上次電話會議中討論的那樣，我認為我們已經大致確定了 2025 年的價格，而且在鍺方面，上次電話會議也沒有什麼真正的意外或變化。我們在鞏固 206 號公路的供應方面取得了一些進展，接下來就交給你了，比爾。

Yeah. As Mike said, here, we're trying to build a structure that supports our revenue flow for optics going forward and so that that involves in the near term recycling, existing germanium from older optics. Over the midterm, we've moved to diversify our supply base with agreements with different suppliers and process.

是的。正如麥克所說，我們正在努力建造一個能夠支援我們未來光學產品收入流的結構，這包括近期對舊光學產品中現有的鍺進行回收。中期，我們透過與不同的供應商和流程達成協議，實現了供應基礎的多元化。

And basically you you were, we need to move it away from reliance on China. We're seeing success in both those near term and mid-term initiatives and we think that will put us in a strong position in 2026.

基本上，你需要擺脫對中國的依賴。我們在近期和中期計劃中都取得了成功，我們認為這將使我們在 2026 年處於有利地位。

Thanks, I'll jump back in the queue. Thanks guys.

謝謝，我會重新排隊。謝謝各位。

Thank you. And our next question will be coming from the line of Robert Stallard of Vertical Research. Your line is open.

謝謝。接下來，我們將請 Vertical Research 的 Robert Stallard 提出問題。您的線路已開通。

Thanks very much. Good morning.

非常感謝。早安.

Good morning.

早安.

And best of luck, Bill, and congratulations John.

祝你好運，比爾；也恭喜你，約翰。

So sort of kick things off, very good quarter for bookings, and I was wondering if there was any unusually large orders that were placed this quarter and in relation to that, how do you expect these bookings to flow through to revenues?

先說一下，本季預訂情況非常好，我想知道本季是否有任何異常大的訂單，以及您預計這些訂單將如何轉化為收入？

Yeah, I would say that there was an increase in demand that we saw on the counter UAS and short range air defense programs. So those came in heavy for the quarter, which accelerated some of the booking's results primarily in the IMF segment. So that was a little bit of a pop there. And then we did see some accelerations just across the board as just the typical flow you see at the government fiscal year end as September wrapped out. So a little bit plussed up that says I look out for the year.

是的，我認為反無人機系統和短程防空計畫的需求增加。因此，本季這些訂單量很大，加速了部分訂單的業績成長，尤其是在國際貨幣基金組織（IMF）業務領域。所以剛才那一下有點意外。然後，我們看到各方面都出現了一些加速成長，就像政府財政年度結束時（9 月結束）的典型情況一樣。所以稍微有點興奮，這意味著我會展望未來一年。

I expect to be comfortably ahead of the that 1 to 1 target that we've put out there. We've got a good foundation for that, so we expect the demand to continue and feel good about our bookings number. For the year in terms of the revenue turned, obviously for us it's about our funded backlog and how that pulls over into revenue.

我預計會輕鬆超過我們設定的 1 比 1 的目標。我們已經打下了良好的基礎，所以我們預計需求會持續下去，並且對我們的預訂數量感到滿意。就年度營收而言，對我們來說，顯然取決於我們已獲資金支持的訂單積壓情況以及這些訂單如何轉化為營收。

Bill mentioned in the in the prepared marks here that the funded backlog was up 20% year over year and if you look at it sequentially it's up 7%. So we're feeling good about the foundation we have for 2026, Rob.

比爾在準備好的成績單中提到，已獲資助的積壓項目同比增長了 20%，如果按環比來看，則增長了 7%。羅布，所以我們對2026年的基礎感到很滿意。

Okay. And then there's a follow-up for Bill, you hire to the extended US government shutdown. If this carries on, what sort of potential risks do you see for DRS from this situation?

好的。然後，比爾還有後續報道，你僱用他來應付美國政府長期停擺。如果這種情況持續下去，您認為DRS會面臨哪些潛在風險？

Yeah, Rob, it depends for how long, of course.

是的，羅布，當然，這取決於持續多久。

We're anticipating, at least going well into November, and as I said in the prepared remark, the impact of that length is moderate as it starts to go longer than that, it's the people who Pay us and give us the awards aren't there and so you'll start to see delays and awards and delay in pay, but it would it would really have to keep going for, a longer period. Well, we're already basically longer than we've ever seen, but it would have to be a historic link before we'd see an impact.

我們預計至少會持續到 11 月，正如我在準備好的發言稿中所說，這種持續時間的影響是中等的，但如果持續時間更長，問題就出在那些給我們發工資和頒發獎金的人身上，所以你會看到獎金和工資的延遲發放，但這真的需要持續更長時間。雖然我們現在所處的時期已經比以往任何時期都要長，但這必須是一個歷史性的聯繫，我們才能看到影響。

And then just one final one for Mike, you said there was some, I think operating efficiency issues on programs in the quarter you highlighted you. Is there anything else we should be aware of?

最後還有一個問題要問麥克，你提到你重點提到的那個季度裡，某些專案的營運效率存在一些問題。還有其他需要注意的地方嗎？

No, it, it's primarily germanium, obviously they, with our development programs, we always have, a little lower margin when we have that mix, but in terms of the context of the comment, it centers around germanium.

不，它主要是鍺，顯然，在我們的研發項目中，當這種混合物出現時，我們的利潤總是會稍微低一些，但就評論的上下文而言，它主要圍繞鍺展開。

That's great, thank you very much.

太好了，非常感謝。

Thank you.

謝謝。

And our next question will be coming from the line of Michael's ceremony of Truist Securities. Your line is open.

接下來，我們將提出一個與麥可在 Truist Securities 的就職典禮上有關的問題。您的線路已開通。

Hey, morning guys. Thanks for taking the questions. Bill, John, congrats, and Bill, thanks for for everything over the years. Maybe just back to Peter's question on the margins. I mean you guys had 26 targets out there. You've obviously got this elevated R&D. How do we think about, the payback and measuring the return on this R&D? Do we, should we expect, do we see new programs, maybe an acceleration of revenue growth off of, what you've done this year just just trying to get a sense of really measuring the payback on the R&D investments.

嘿，各位早安。謝謝您回答問題。比爾、約翰，恭喜你們！比爾，感謝你這些年來所做的一切。或許我們應該回到彼得在邊緣提出的問題。我的意思是，你們當時有26個目標。你們顯然擁有很高的研發水準。我們該如何考慮研發投入的回報以及如何衡量其效益？我們是否應該期待，是否會看到新的項目，或許會加速收入成長，這得益於你們今年所做的工作，我們只是想真正衡量研發投資的回報。

Yeah, I think the payback on the R&D investments are going to put us in positions to attack a lot of those adjacent markets and growth opportunities that we've had.

是的，我認為研發投資的回報將使我們能夠抓住許多相鄰市場和成長機會。

So I think as you think about the kind of new way of procurement and coming to the table with solutions that are already at a higher kind of technical maturity.

所以我認為，當你思考新的採購方式，並提出技術成熟度更高的解決方案時，就應該這樣做。

That's what we're really doing here and I think it is giving us some good opportunities in the encounter UAS domain. I think it's giving us some opportunities here as we look at, kind of unmanned surface vessels. So all of these are giving us some additional opportunities to continue the growth that we've seen, and that's really what we're expecting from the IRA investment that these levels might.

這就是我們在這裡真正要做的事情，我認為這為我們在遭遇無人機系統領域帶來了一些很好的機會。我認為，當我們研究無人水面艦艇時，這給我們帶來了一些機會。因此，所有這些都為我們提供了繼續保持成長的額外機會，而這正是我們對 IRA 投資的期望，這些水準可能會帶來這樣的成長。

Okay.

好的。

Is that you just mentioned counter UAS and we've heard it a couple times. I is there any way to sort of quantify or size your exposure at this point to to counter UAS programs and. Maybe size the pipeline of opportunities, you mentioned AUSA, there's certainly, a lot of competing companies from new entrants to, large scale primes guys like yourselves, everybody's throwing around, new offerings. I mean, can you give us any sense of, where your revenues are today or what you think your growth rate is or or sort of adoption, penetration there?

你剛才提到了反無人機系統，我們已經聽過好幾次了。是否有辦法量化或評估您目前面臨的風險，以應對無人機系統 (UAS) 專案？或許應該評估一下機會管道的規模，你提到了 AUSA，當然，有很多競爭公司，從新進業者到像你們這樣的大型主要承包商，每個人都在推出新的產品和服務。我的意思是，您能否大致介紹一下您目前的收入情況，或者您認為您的成長率是多少，或者您認為產品的普及率和滲透率是多少？

Yeah, and I think this is one of DRS's nice differentiators is when we talk about counter UAS that is largely all of our force protection.

是的，我認為這是 DRS 的一個顯著優勢，當我們談到反無人機系統時，這在很大程度上關係到我們所有的部隊防護。

A type of revenue that we have there, so we talk about and disclose force protection being about 20% of our revenues that's largely dominated by the short range air defense and counter UAS programs. So we have real penetration which we believe gives us an advantage as we look to the future here. So that's think about that kind of in that 18% to 20% range of revenue is all tied to those efforts.

我們在這方面有一項收入來源，我們談到並揭露，部隊保護約占我們收入的 20%，這主要由短程防空和反無人機系統計畫構成。因此，我們擁有真正的市場滲透率，我們相信這將使我們在未來佔優勢。所以，想想看，這 18% 到 20% 的收入都跟這些努力有關。

Let me let me add to that quickly and just say that you know we're the The current provider, the approved provider for counter UAS for the US Army, our solutions are battlefield tested. We know that our solutions work and we're always adapting our solutions to the evolving threat. We did see a lot of counter-UAS solutions on the AUSA floor, but we distinguish ourselves by having a battle-proven capability, and we're very close to our customer. We understand what they need. We understand what they're thinking.

我再補充一點，您也知道，我們是美國陸軍目前指定的反無人機系統供應商，我們的解決方案經過了戰場檢驗。我們知道我們的解決方案是有效的，並且我們會不斷調整我們的解決方案以應對不斷變化的威脅。我們在 AUSA 展會上看到了許多反無人機系統解決方案，但我們憑藉著經過實戰檢驗的能力脫穎而出，而且我們與客戶的聯繫非常緊密。我們了解他們的需求。我們明白他們在想什麼。

We do expect the US to kind of expand and proliferate to all echelons of the forces and really all domains and so we see a real opportunity in the future here is driving innovation and pushing this out new technology.

我們預計美國將這種技術擴展到各個層級的軍隊和各個領域，因此我們看到未來真正的機會在於推動創新，推廣新技術。

Okay. Would you say you're kind of equally exposed to both kinetic and kind of non-kinetic solutions for counter?

好的。您認為您在接觸動力學解決方案和非動力學解決方案方面，接觸的機會大致相同嗎？

Yeah, I would say this, Michael, I think that you're going to see both capabilities on the battlefield. It's going to depend on where you are in the echelon. If you're up in the front, next to the front, you're going to see some capabilities back in the back of the higher echelons, you're going to see other cap. Is going to end up probably at both both echelons, but those capabilities are going to be different. So you're going to start seeing the counter counter market kind of proliferate across all echelons, all different capabilities, and we provide all of that.

是的，邁克爾，我想說的是，我認為你會在戰場上看到這兩種能力。這取決於你在層級的位置。如果你在前線，靠近前線，你會看到一些能力，而在更高層級的後方，你會看到其他上限。最終可能會同時出現在兩個層級，但這些能力會有所不同。所以你會看到櫃檯交易市場在各個層級、各種不同的能力範圍內迅速發展，而我們恰好能提供所有這些。

Okay, last quick one for me, Mike, just should we expect the same, margin profile in 26 with kind of IMS being the the lead engine and and some more of that, IRA, dampening down the ASC margins?

好的，Mike，最後一個問題，我們是否可以預期 26 號賽道的利潤率走勢與之前相同，IMS 仍然是領頭引擎，而 IRA 等引擎則會進一步拉低 ASC 的利潤率？

Yeah, I wouldn't expect the trends to continue, we're not going to go deep into 26 here, but in terms of just the allocation of profit, the investment's going to stay heavy at ASC, and we still feel pretty good about the tailwind that is Columbia as we look into into the future.

是的，我不認為這種趨勢會持續下去，我們不會深入探討26，但就利潤分配而言，ASC的投資仍將保持強勁，展望未來，我們仍然對哥倫比亞影業的順風充滿信心。

Got it. Thanks guys.

知道了。謝謝各位。

I'll jump back.

我跳回去。

Thank you.

謝謝。

Thank you.

謝謝。

And our next question will be coming from the line of Christine Lee Wack of Morgan Stanley. Your line is open.

接下來，我們將請摩根士丹利的克莉絲汀李瓦克提問。您的線路已開通。

Hey guys, Bill, congratulations on your retirement. It's been a pleasure to see how you've transformed DRS over the years, and John, congrats on your new role. I guess, following up on the supply chain, you guys have called out germanium a few times, so I just wanted to dive a little bit deeper into this. Can you talk a little bit more about, your sourcing strategy for this? Like how much inventory do you have? It sounds like you got a little bit better access, but it would be really helpful to understand regarding some sort of timeline or some sort of quantity.

嘿，夥計們，比爾，恭喜你退休。很高興看到你這些年來對 DRS 的改造，約翰，祝賀你擔任新職務。我想，關於供應鏈，你們已經多次提到鍺，所以我想更深入地探討這個問題。能再詳細談談您的採購策略嗎？你們有多少庫存？聽起來你好像獲得了一些更好的訪問權限，但如果你能了解一下時間表或數量之類的資訊就太好了。

Yeah, thanks, Christine.

謝謝你，克里斯汀。

I don't think I can give you precise numbers, but let me give you, kind of the approach we had before, anticipating these kinds of issues, bought a buffer stock, which is we are using to transition 25 and support our 25 flow through. At the same time, we're now actively involved in recycling from over optics and pulling the extracting the germanium. And constructing new optics from that and that's now we've seen success in that that process and that will bridge us into into 26 and get us partway through 26 and then at the same time we're involved in developing partnerships with.

我無法給出確切的數字，但我可以告訴你，我們之前採取的方法，為了應對這類問題，我們購買了緩衝庫存，用於過渡 25 並支持我們的 25 流通。同時，我們現在積極參與從廢棄光學元件中回收鍺，並從中提取鍺。並以此為基礎建立新的光學系統，現在我們已經看到了這一過程的成功，這將使我們過渡到第 26 屆，並使我們完成第 26 屆的部分工作，與此同時，我們正在參與發展合作夥伴關係。

Companies in both the mining and the processing area outside of China so that we have a long-term supply and that's what gives us confidence that we're going to have a robust 26 and we're going to be able to support our germanium needs with these midterm and short-term initiatives.

我們與中國以外的採礦和加工領域的公司合作，以確保長期供應，這使我們有信心擁有穩健的26個，並且能夠透過這些中短期舉措來滿足我們的鍺需求。

Great, thank you for that. And maybe pivoting to a different topic. I mean, in the quarter you guys made a $15 million investment on hoverfly.

太好了，謝謝你。或許可以轉到另一個話題。我的意思是，你們這一季對 Hoverfly 投資了 1500 萬美元。

I wanted to, I think you're now at 25% of your equity stake here. I wanted to better understand what's your strategy regarding, these unmanned capabilities, where does this fit into your broader portfolio and strategic vision?

我想說的是，我認為你現在持有這家公司25%的股權。我想更了解你們在這些無人能力方面的策略是什麼，以及這在你們更廣泛的產品組合和策略願景中處於什麼位置？

Yeah, I would say the investment with Hoverfly is really kind of key to some of the strategy that we have in terms of making sure we're bringing the best in breed technologies to different solutions.

是的，我認為對 Hoverfly 的投資對於我們的一些策略至關重要，它確保我們將最先進的技術引入不同的解決方案。

We think this tethered capability is going to allow for obviously for elevated sensing, for targeting, potentially for counter UAS. So there's there's some good applications here for this capability, and that's what what fostered the investment.

我們認為這種系留能力顯然可以用於高空感測、目標定位，甚至可能用於反無人機系統。所以這項技術有一些很好的應用前景，這也是促成投資的原因。

Gotcha. Great. If I could do a follow-up question, IMS growth was up 34% year over year, 32% up sequentially. Can you provide any color on how much of this was driven by the Columbia class and were there any other transitions and ship sets that drove this step up?

明白了。偉大的。如果我可以問後續問題，IMS 的成長率年增了 34%，季增了 32%。您能否詳細說明一下，哥倫比亞級艦艇的建造在多大程度上推動了這項進步？還有哪些過渡和艦艇建造計畫促成了這項進步？

Thank you.

謝謝。

I didn't catch what, the first part of that question, Christine. I'm sorry.

克莉絲汀，我沒聽清楚你問題的第一部分。對不起。

Oh sorry, on IMS growth, IMS was up 34% year over year, up 32% sequentially. Just trying to understand how much of this step up was driven by Columbia Class or if there were other transitions and ships that that drove this increase.

哦，抱歉，關於IMS的成長，IMS較去年同期成長34%，較上季成長32%。我只是想了解這次升級有多少是由哥倫比亞級艦艇推動的，還是也有其他過渡和艦艇推動了這次成長。

Yeah, so a good question. The increase in the revenue actually Columbia has been pretty stable from its revenue output in a quarterly cadence throughout the course of the year. The increase in revenue is really coming from a lot of the short range air defense and counter UAS programs for the quarter. So that's where the big pop was this quarter.

是的，問得好。事實上，哥倫比亞大學的收入成長一直相當穩定，全年每季的收入都保持穩定。本季營收的成長主要來自許多短程防空和反無人機系統項目。所以，這就是本季最大的成長點。

Great, thank you.

太好了，謝謝。

Thank you.

謝謝。

And as a reminder, please limit yourself to one question and one follow-up.

再次提醒，請您只提一個問題，並可提出一個後續問題。

The next question will be coming from the line of Anthony Valentini of Goldman Sachs. Please go ahead.

下一個問題將來自高盛的安東尼·瓦倫蒂尼。請繼續。

Hey guys, thanks for taking my question and Bill, congrats on a great run. I'm just trying to get a sense for the longer-term growth prospects here. Are there opportunities to take what you guys are doing in propulsion on Columbia to other types of ships and programs and the primes are talking about significant growth in missiles, which I think are highly dependent on the sensors you guys have an expertise there so I'm wondering how large the missile business is say for DRS. And where that can go over time. Any color really on the on the large growth factors would be great. Thanks.

大家好，謝謝你們回答我的問題，比爾，恭喜你們跑得非常出色。我只是想了解這裡的長期成長前景。你們在哥倫比亞號推進系統所做的工作，是否有可能推廣到其他類型的船艦和專案中？主要承包商正在談論導彈的顯著增長，我認為這高度依賴你們擁有專業知識的傳感器，所以我想知道導彈業務對DRS來說有多大。以及隨著時間的推移，這可能會發展成什麼樣子。任何顏色，只要能促進大生長因子的生長，都會很棒。謝謝。

Thanks, Anthony.

謝謝你，安東尼。

This is John, let me let me start with the ship and the propulsion systems, and absolutely we are looking and bidding other ship classes and we have some some real progress in that regard, shaping.

我是約翰，讓我先從船舶和推進系統說起，我們當然也在考察和競標其他船型，而且我們在這方面取得了一些真正的進展，正在進行設計。

We believe that we have an advantage in providing energy flexibility on board a ship. It's not obvious, but the more energy, more power a ship has, the further away can fight, longer range radars, longer range electronic warfare, a longer range directed energy, and our solutions allow for that capability to be able to direct that energy to different places on the ship. So yes, for sure we believe that there's opportunity, long-term growth for us there turning to missiles.

我們相信，我們在為船舶提供能源彈性方面具有優勢。雖然不明顯，但船艦擁有的能量越多、動力越強，就能在更遠的距離作戰，擁有更遠距離的雷達、更遠距離的電子戰能力、更遠距離的定向能武器，而我們的解決方案能夠將這種能力引導到艦船上的不同位置。所以，是的，我們當然相信，轉向導彈領域對我們來說存在著機會和長期發展前景。

DRS has always been a supplier of the best infrared sensoring in the industry and other sensors as well. We're really at the top of the food chain. When it comes to missiles, those missiles have to be smarter. They have to have a longer range. They have to have greater cap.

DRS一直是業界最好的紅外線感測器以及其他感測器的供應商。我們真的處於食物鏈的頂端。就導彈而言，這些導彈必須更聰明。它們需要更遠的射程。他們需要更大的上限。

So we're seeing an increased po for those higher performing sensors into that space and so we're playing at all different levels from the very low cost, high volume missiles and factors all the way to the very high end missiles and effectors.

因此，我們看到高性能感測器在該領域的市場需求不斷增長，因此我們正在各個層面上開展業務，從低成本、大批量的導彈和效應器，一直到非常高端的導彈和效應器。

Thank you one moment for the next question.

請稍等片刻，下一個問題。

And the next question will be coming from the line of Mikael Grubb from JP Morgan. Your line is open.

下一個問題將來自摩根大通的米凱爾·格魯布。您的線路已開通。

Hey, thanks very much. Good morning everyone and congratulations to Bill and to John as well. I wanted to ask John, you mentioned at the outset the Sage Corps, I wonder if you could talk a little bit about how that fits into the army's NGC2 plans and you know the extent to which that can be can be a growth driver seems there's a good amount of funding headed in that direction.

嘿，非常感謝。各位早安，也祝賀比爾和約翰。我想問約翰，你一開始提到了賢者軍團，我想知道你能不能談談它如何融入陸軍的 NGC2 計劃，以及它在多大程度上可以成為增長的驅動力，似乎有很多資金正朝著這個方向發展。

Thanks Grubb. Let me step back and talk about the fact that when we see platforms, all platforms are going to end up having to think for themselves. They got the sense for for themselves and think for themselves. At the end of the day, those platforms that are at the edge of the battle space, whether it's Lancey or Air, are going to have disrupted communications in battle. So those the computing resources for those platforms to think about what's happening on the battle space has to be on the platform, has to be at the edge. And so this is where we're putting our energy. This is where we're putting a lot of our money is to is to build out that capability.

謝謝格魯布。讓我退後一步，談談這樣一個事實：當我們看到各種平台時，所有平台最終都必須獨立思考。他們學會了獨立思考，並逐漸形成了自己的判斷力。歸根究底，那些位於戰場邊緣的平台，無論是陸基平台還是空中平台，在戰鬥中都會面臨通訊中斷的問題。因此，這些平台用於思考戰場上發生的事情的運算資源必須在平台上，必須在邊緣。所以，這就是我們投入精力的方向。我們投入大量資金就是為了發展這種能力。

The connectivity from the platform up to the enterprise will be there at certain times and some of the enterprise capabilities will will play. There but but those those platforms have to think. So this is part of NGC 2, next generation C2 program with the Army, is being able to build out a capability on the platform, not just to communicate but also to think. And so we're adding the AI capability and now with the Sageo, it's really the DRS's operating system which we're going to place onto those computing resources at the edge and allow those platforms to. Think for themselves to fuse the sensing information to have AI to understand what's going on on the edge and to be able to make sense and act on the information. So that's where Sage Corps fits into the program, not just for the Army's platforms, but we're also using it on the sea for USBs. We're also putting in other air platforms and in space as well.

平台與企業之間的連結會在特定時間建立，並且一些企業功能將會發揮作用。但是，那些平台必須考慮這一點。這是 NGC 2（下一代 C2 計畫）的一部分，該計畫是與陸軍合作，旨在建立一個平台，使其不僅能夠進行通信，還能進行思考。因此，我們正在添加人工智慧功能，現在有了 Sageo，實際上是將 DRS 的作業系統部署到邊緣的運算資源上，並允許這些平台運行。自主思考，將感知資訊融合起來，使人工智慧能夠理解邊緣正在發生的事情，並能夠理解資訊並採取行動。所以這就是 Sage Corps 在該計劃中的作用，它不僅適用於陸軍平台，我們還在海上將其用於 USB。我們也在其他空中平台和太空進行部署。

Excellent thanks and yeah as a follow-up we could just talk about IMS and on the on the Columbia kind of what ships that you're up to or maybe a different way of saying it is you know how far up the curve are we in terms of when you know you've got kind of to a place where pricing is is kind of stabilized.

非常感謝。接下來我們可以聊聊IMS，以及哥倫比亞號郵輪，你們目前在建造哪些船隻，或者換句話說，我們現在處於什麼階段，價格是否已經趨於穩定。

Yeah, and we've talked about Colombia in the past that we're always kind of working on 3 different ship sets simultaneously in terms of our revenue base.

是的，我們之前也談過哥倫比亞，就我們的收入來源而言，我們總是同時開發 3 個不同的項目。

What happens in 2025 is we will start to pretty much retire the second ship set, which was bid at a lower price point. And so subsequent to 2025 we'll be at a cadence where all of the new ship and revenue base associated with the different ship classes will be negotiated after the design was, materially complete after the inflation impacts to labor and materials, so we should see more consistent.

2025 年，我們將開始逐步淘汰第二組船艦組件，這套組件的競標價格較低。因此，從 2025 年起，我們將進入一個節奏，所有與不同船型相關的新船和收入基礎都將在設計基本完成、通貨膨脹對勞動力和材料的影響消除之後進行談判，因此我們應該會看到更一致的結果。

Margin output from Columbia starting in 2026 with one more year of margin expansion and then the little asterisk I put on that is that is before we see the margin benefit from the South Carolina facility and think about that impact starting in 2027.

哥倫比亞工廠從 2026 年開始盈利，利潤率再增長一年，然後我加了個小星號，這是在我們看到南卡羅來納州工廠的利潤率收益並考慮其從 2027 年開始的影響之前的情況。

Great. Great.

偉大的。偉大的。

Thanks very much.

非常感謝。

Thank you.

謝謝。

Our next question will be coming from the line of Andre Madrid of BTIG. Your line is open.

下一個問題將來自BTIG的安德烈·馬德里。您的線路已開通。

Good morning, everybody, and congrats to Bill and John.

各位早安，祝賀比爾和約翰。

Thank you.

謝謝。

I wanted to talk again about Hoverfly, great to see the up investment there. Is this something that fits into your previously outlined M&A criteria?

我想再次談談 Hoverfly，很高興看到那裡的投資不斷增加。這是否符合您先前列出的併購標準？

Yeah, I would say that when we're talking about M&A we're looking at different aspects of that, whether they're joint ventures, partnerships, minority investments, and certainly with this capability, having the ability to assist us in elevated sentencing to bring our sensors through from a network perspective, I think that this, kind of checks the boxes that we were looking at from an M&A perspective and it's certainly strategic to where DRS is headed.

是的，我想說，當我們談論併購時，我們會考慮不同的方面，無論是合資企業、合作夥伴關係、少數股權投資，當然還有這項能力，它能夠幫助我們提昇技術水平，從網絡角度推進我們的傳感器應用。我認為這符合我們從併購角度考慮的所有條件，而且對於DRS的發展方向來說，這無疑是具有戰略意義的。

Got it, that's that's helpful and then I wanted to follow-up on.

明白了，這很有幫助，然後我想跟進一下。

The CUAS work that you guys are doing, could you maybe talk a bit more about the margin profile of that work and if it's generally a creative or dilutive to IMS?

你們正在進行的CUAS工作，能否再詳細談談這項工作的利潤率情況，以及它對IMS來說是創造收益還是稀釋收益？

Yeah, we don't get into the to the marginality of this particular programs, but it's the same customer said. It's it's, in line with the rest of our portfolio. There's no anomalies here from a from a drag or from a tailwind perspective.

是的，我們不深入探討這個特定項目的邊緣性，但這是同一位客戶的說法。它與我們投資組合中的其他產品保持一致。從阻力或順風的角度來看，這裡沒有任何異常。

Got it.

知道了。

I appreciate the color mic, and I'll I'll leave it there.

我很喜歡這個彩色麥克風，我就說到這裡吧。

Thank you. And our next question.

謝謝。我們的下一個問題。

We'll be coming from the line of Ronald Epstein of Bank of America. Your line is open.

我們將從美國銀行的羅納德·愛潑斯坦那一線走來。您的線路已開通。

Oh hey guys, this is Alex Preston on for run today. First of all I just wanted to echo the congratulations to both Bill and John.

大家好，我是 Alex Preston，今天為大家帶來跑步報告。首先，我想再次向比爾和約翰表示祝賀。

I wanted to circle back on the government shutdown, obviously Q3 bookings are really strong. You guys mentioned there's not a ton of material impact at this point.

我想再談談政府停擺的問題，顯然第三季的預訂情況非常強勁。你們提到目前還沒有太大的實質影響。

But I'm wondering if you're seeing any slowness in the contracting environment, and if so, where, I think for instance we might have expected Golden Dome Awards to be maybe a little more firmed up by now given the reconciliation funding is to be spent. There's contract vehicles in place.

但我很好奇您是否注意到合約簽訂環境有所放緩，如果有的話，具體體現在哪些方面？例如，考慮到和解資金即將到位，我們原本預期金穹獎的簽訂現在應該會更加穩固。已有相應的合約機制。

I'm curious if you have any commentary on that.

我很想知道你對此有何評論。

Yeah, as I said, it.

是的，就像我說的。

It would take a while before this would catch up to influencing things like that. It would through, think of things like, testing to prove systems out, but those schedules are generally pretty far out, and so we haven't really seen, much more than modest impact yet, and it would have to go much closer to the end of the year, before we'd see that.

這需要一段時間才能對這類事情產生影響。例如，透過測試來驗證系統，但這些計劃通常都比較長遠，所以我們還沒有真正看到太大的影響，而且必須等到年底才能看到。

Okay, thanks. And then just as a quick follow-up, we've noted a bunch of us have noted the strength and county that's bookings and revenue this quarter.

好的，謝謝。另外，我們注意到，本季預訂量和收入都表現強勁。

Just curious if you could characterize more on where the demand is coming from. I know you mentioned this particular strength of the US Army. There's foreign military sales involvement. Just curious if you could provide any color on the split there.

我很好奇您能否更詳細地描述一下需求來源。我知道你提到美國陸軍的這項優勢。涉及對外軍售。我只是好奇您能否提供一下關於那處分割線的顏色資訊。

Yeah, I think that's where the demand is coming from for sure. We are seeing demand coming from really all over. We're seeing demand coming from the army for sure, and that's that's evident in the bookings. We're seeing demand coming from Navy, Marines. As well in the US Air Force is also plagued with this problem. We're seeing progress there in demand building and some bookings there as well. And of course direct commercial and international FMS sales as well. There's demand coming from all avenues as you might imagine, due to the changing nature of warfare.

是的，我認為需求肯定是來自那裡。我們看到來自世界各地的需求。我們看到軍隊的需求確實存在，這一點從預訂量中就能看出來。我們看到來自海軍和海軍陸戰隊的需求。美國空軍也同樣受到這個問題困擾。我們看到那裡的需求正在成長，也有一些預訂。當然也包括直接的商業和國際FMS銷售。正如你所想，由於戰爭性質的改變，各方面都出現了需求。

Great thank you guys.

非常感謝！

Appreciate the help.

感謝你的幫助。

Thank you.

謝謝。

And our next question will be coming from the line of John Tan of CJS. Please go ahead.

接下來，我們將由 CJS 的 John Tan 提出一個問題。請繼續。

Hi, good morning.

您好，早安。

Thank you for taking my questions and congratulations on your retirement and John and Fran on their appointments. My first question is, if you could drill just a little bit bit more into the germanium supply, that would be helpful. You mentioned bridging, into the future with the recycling and then alternative supply. But do you expect to be constrained in the coming quarters as your stockpile falls off and then maybe catch up later in the year or how do you expect that to shape up? Does, do do the programs that you have in mind, fill 100% of supply right out the gate or does it take time to get there?

感謝您回答我的問題，祝賀您退休，也祝賀約翰和弗蘭榮升新職。我的第一個問題是，如果您能再深入研究一下鍺的供應情況，那就太好了。你提到了透過回收和替代供應來過渡到未來。但您預計未來幾季庫存會減少，供應會受到限制嗎？然後您預計今年晚些時候會趕上？或者您預計情況會如何發展？你設想​​的那些項目，能否一開始就100%滿足供應需求，還是需要一段時間才能達到這個目標？

We think we have a plan, John, that that does bridge from the 25, where I think we've taken account of the supply restrictions and price increases, and we we have it planned in the 26 with the different initiatives that I mentioned. So we're we're feeling comfortable as to where we are.

約翰，我們認為我們有一個計劃，可以銜接 25 日的計劃（我認為我們已經考慮到了供應限制和價格上漲），並且我們已經制定了 26 日的計劃，其中包含了我提到的各種舉措。所以，我們對目前所處的位置感到很滿意。

Okay, great. That's helpful. And then second, is the price on these alternative supplies significantly higher than what you're seeing in the market? Does that further impact the ASC margin as we go forward? How should we think about the profitability there as you rent these alternative sources?

好的，太好了。那很有幫助。其次，這些替代供應品的價格是否明顯高於市場上的價格？這是否會對未來的ASC利潤率產生進一步影響？在租用這些替代資源時，我們該如何考慮獲利能力？

Yeah, I would say that as we're largely a fixed price shop, so the higher pricing is certainly going to be, inherent in those programs as we look into into 2026.

是的，我認為，由於我們基本上是固定價格的商店，因此，隨著我們展望 2026 年，這些項目中的價格上漲肯定是不可避免的。

Okay, got it. One last one if I could, just any changes to thoughts on capital allocation, you obviously did the hoverfly investment, you did some share repurchases, but any thoughts, on capital allocation and use of cash going forward?

好的，明白了。如果可以的話，我最後一個問題，關於資本配置方面有什麼想法嗎？您顯然已經投資了 Hoverfly，也進行了一些股票回購，但是對於未來的資本配置和現金使用，您有什麼想法嗎？

Yeah, I mean, We've said that we want to have a balanced capital allocation strategy, so we've instituted a dividend this year. We have a moderate buyback, but our priority continues to be seeking out M&A opportunities that meet both our strategic and financial criteria. In that we've exercised patience. We've looked at a lot of things.

是的，我的意思是，我們說過我們希望採取均衡的資本配置策略，所以我們今年開始派發股息。我們採取了適度的股票回購策略，但我們的首要任務仍然是尋找符合我們策略和財務標準的併購機會。在這方面，我們展現了耐心。我們考察了很多方面。

We are doing the hoverfly this quarter as we mentioned. We're looking at larger investments as well, but you should expect going forward to see more M&A but a balanced strategy as well.

正如我們之前提到的，我們本季將進行懸停飛行訓練。我們也在考慮更大規模的投資，但未來您應該會看到更多的併​​購活動，但同時也會採取平衡的策略。

Great.

偉大的。

Thank you and congrats again.

謝謝，再次恭喜你。

Thank you. And our next question will be coming from the line of Austin Miller of Concord. Your line is open.

謝謝。接下來，我們將提出來自康科德的奧斯汀·米勒的問題。您的線路已開通。

Hi, good morning. Thanks again, Bill and John, for your leadership.

您好，早安。再次感謝比爾和約翰的領導。

Just my first question here, you've talked about recycling germanium from older optics. It sounds like you're going to get additional legs on your supply beyond Q120. 6, which is I think what you discussed last time for your visibility. Have you looked into alternative like glass-based solutions like black diamond glass potentially to replace the germanium just given it has less temperature sensitivity and better supply?

我的第一個問題是，您之前提到過從舊光學元件中回收鍺。聽起來你除了 Q120 之外，還會增加其他供應管道。 6，我想這應該就是你上次討論的關於提高供應可見度的內容。您是否考慮過使用玻璃基解決方案（例如黑鑽石玻璃）來取代鍺，因為黑鑽石玻璃對溫度的敏感度較低，而且供應更充足？

You're correct. We have, we are looking at alternative materials. It's particularly relevant for smaller optics where you can replace germanium with other, and that is part of the portfolio of solutions we're we're pursuing and that that one is in the early stages, but we are seeing success there as well.

你說得對。我們已經開始研究替代材料了。對於可以用其他材料取代鍺的小型光學元件來說，這一點尤其重要。這是我們正在追求的解決方案組合的一部分，目前還處於早期階段，但我們也看到了成功。

Okay, and just to follow-up, if we, I know we're in a shutdown here, but if we think about the op opportunity for Golden Dome and when we start to get RFPs and contracts for that, do you have any sense of the timing next year, and there's also like your partner Aerovironment has been testing our UAS solutions at Grand Forks in North Dakota.

好的，我再補充一下，我知道我們現在處於停工狀態，但如果我們考慮一下金穹頂的運營機會，以及我們何時開始收到相關的招標書和合同，您對明年的時間安排有什麼想法嗎？另外，您的合作夥伴 Aerovironment 一直在北達科他州的大福克斯測試我們的無人機系統解決方案。

Let me take the Golden Dome part of that for sure we're seeing a lot of activity on Golden Dome while the the architecture is not yet public.

就金頂而言，我們確實看到金頂項目非常活躍，儘管其建築設計尚未公開。

We certainly see movement.

我們確實看到了進展。

You're probably aware of the shield RFI RFP that I think 1,500 companies bid. Including DRS, we do expect that to move forward very quickly.

您可能已經知道盾牌招標的 RFI RFP，據我所知，有 1500 家公司參與了投標。包括DRS在內，我們預計這將很快取得進展。

I think that we see opportunity here not just in the space sensing but also in the underlayer and also in the over the horizon radar area. So we believe that that's going to move forward and General Gutwein is moving forward very quickly on the counter. UAS fronts we see a lot of activity in counter UAS, including Andrew's activity, and I think that, just to go back to the points about the fact that we are the ones that are solving this problem for the army. We have battle proven technology, we've proven our capability and we're following the threat, making sure that we're ahead of the threat and very close to a customer.

我認為我們不僅在空間感測領域看到了機遇，而且在底層探測和超視距雷達領域也看到了機會。所以我們相信這件事會繼續推進，古特溫將軍也迅速地推進反擊。在無人機系統（UAS）領域，我們看到了很多反無人機系統（cUAS）活動，包括安德魯的活動，我認為，回到我們為軍隊解決這個問題。我們擁有經過實戰考驗的技術，我們已經證明了我們的能力，我們正在追蹤威脅，確保我們領先於威脅，並且非常接近客戶。

Got it, thanks for.

明白了，謝謝。

Filling me in.

給我詳細說明一下。

Thank you. I would like to turn the call over to management for closing remarks. Please go ahead.

謝謝。我謹將電話轉交給管理階層，請他們作總結發言。請繼續。

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

謝謝麗莎，也謝謝大家今天早上抽出時間，謝謝大家對DRS的關注。如有任何後續問題，請隨時致電或發送電子郵件給我。我們期待盡快再次與各位交流。祝您今天餘下的時間愉快。