Leonardo DRS Inc (DRS) 2026 Q1 法說會逐字稿

Ladies and gentlemen, good day and welcome to the Leonardo DRF First Quarter Fiscal Year 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the company's prepared remarks, there will be an opportunity to ask questions and instructions will be provided at that time. As a reminder, this event is being recorded.

各位女士、先生，大家好，歡迎參加 Leonardo DRS 2026 會計年度第一季財報電話會議。目前所有與會者皆處於僅收聽模式。在公司預先準備的發言結束後，將開放提問，屆時會提供相關指示。提醒各位，本次活動將被錄音。

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

現在我想把電話會議交給企業發展與投資人關係資深副總裁 Steve Vather。請開始。

Good morning, and welcome, everyone. Thank you for joining today's quarterly earnings conference call. With me today are John Baylouny, our President and CEO, and Mike Dippold, our CFO. They'll discuss our strategy, operational highlights, financial results, and outlook. Today's call is being webcast on the Investor Relations section of the website, where you can also find the earnings release and supplemental presentation.

各位早安，歡迎大家。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總裁暨執行長 John Baylouny，以及財務長 Mike Dippold。他們將討論我們的策略、營運重點、財務結果與展望。今天的電話會議將在公司網站的投資人關係專區進行網路直播，您也可在該處找到財報新聞稿與補充簡報資料。

Management may also make forward-looking statements during the call regarding future events, future trends, and the anticipated future performance of the company. We caution you that such statements are not guarantees of future performance that 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 full discussion of these risk factors, please refer to our latest Form 10-K and our other SEC filings. We undertake no obligation other than. As may be required by law to update any of the forward-looking statements made on this call.

管理層也可能在本次電話會議中就未來事件、未來趨勢以及公司預期的未來表現發表前瞻性陳述。我們提醒您，此類陳述並非對未來表現的保證，且涉及難以預測的風險與不確定性。由於多種因素，實際結果可能與前瞻性陳述中所預測者存在重大差異。關於這些風險因素的完整討論，請參閱我們最新的 Form 10-K 以及其他向 SEC 提交的文件。除法律要求外，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 release. With that, I will turn the call over to John. John?

在本次電話會議中，管理層也將討論非 GAAP 財務衡量指標，我們認為這些指標可為投資人提供有用資訊。這些非 GAAP 指標不應被單獨評估，亦不應作為 GAAP 績效衡量指標的替代。您可在我們的財報新聞稿中找到本次電話會議所討論之非 GAAP 指標的調節表。接下來，我將把電話會議交給 John。John？

Thank you, Steve, and welcome, everyone. We appreciate you joining us to discuss our first quarter 2026 results. This morning, we're pleased to report strong quarterly results and an excellent start to 2026. The team's steadfast execution is translating into tangible financial outperformance, as results clearly demonstrate. Revenue for the first quarter was up 6% year-over-year. Adjusted EBITDA grew 28% year-over-year, allowing us to deliver adjusted diluted EPS of $0.26 a share. Importantly, we're delivering these results while maintaining healthy levels of organic investment in R&D and capital expenditures. This disciplined approach reflects our commitment to meeting both current and future customer needs as we continue to build on our foundation of growth.

謝謝你，Steve，也歡迎各位。我們感謝各位加入我們，一同討論 2026 年第一季的業績表現。今天早上，我們很高興報告強勁的季度成果，並為 2026 年帶來極佳的開局。團隊堅定不移的執行力正轉化為具體的財務超預期表現，從結果可清楚看出。第一季營收年增 6%。調整後 EBITDA 年增 28%，使我們得以交出調整後稀釋每股盈餘（EPS）0.26 美元。重要的是，我們在維持研發與資本支出等有機投資的健康水準下，仍能達成上述成果。這種自律的做法反映了我們致力於同時滿足當前與未來客戶需求的承諾，並在既有成長基礎上持續深化。

Let me share a few performance highlights from the quarter. Robust customer demand drove our 17th consecutive book-to-bill of at least one times revenue, bolstering our funded backlog to new company records and enhancing visibility and growth for the full year. That momentum, coupled with favorable material receipt timing, accelerated revenue growth and enabled outperformance against our expectations in Q1. Increasing volume, favorable program mix and solid operational execution unlocked higher profitability and margin expansion. Overall, the strength delivered in the first quarter gives us confidence to raise our expected growth and profitability for the full year. Our differentiated technology portfolio and exceptional people are foundational to these results. I want to thank the entire team for their dedication and unwavered commitment to our customers, partners, and shareholders.

我分享幾項本季的績效亮點。強勁的客戶需求推動我們連續第 17 季的接單出貨比（book-to-bill）至少達到 1 倍營收，將已獲資金支持的在手訂單（funded backlog）推升至公司新高紀錄，並提升全年能見度與成長動能。這股動能再加上有利的材料到貨時點，加速了營收成長，並使我們在第一季的表現優於原先預期。出貨量提升、有利的專案組合以及穩健的營運執行，帶來更高的獲利能力與利潤率擴張。整體而言，第一季展現的強勁表現讓我們有信心上調全年預期的成長與獲利目標。我們具差異化的技術組合與卓越的人才是這些成果的基石。我要感謝全體團隊對客戶、合作夥伴與股東的投入與始終如一的承諾。

The global threat environment remains elevated with limited signs of near-term easing. Against that dynamic backdrop, our focus remains on delivering differentiated technologies that drive overmatch and mission success for our customers. Our customers are operating with a clarity of a full year appropriations for fiscal year 2026. Additionally, there are indications that supplemental defense funding, enacted through last summer's reconciliation package, will be deployed this fiscal year, accelerating the procurement of critical capabilities. The overall funding and budget environment continues to be favorable.

全球威脅環境仍然處於高檔，短期內緩解的跡象有限。在此動態背景下，我們的重點仍是提供具差異化的技術，協助客戶取得壓倒性優勢並確保任務成功。我們的客戶在 2026 會計年度已獲全年撥款（appropriations）的明確性下運作。此外，也有跡象顯示，透過去年夏季協調法案（reconciliation package）所立法的補充國防資金，將於本會計年度投入使用，進而加速關鍵能力的採購。整體資金與預算環境仍然有利。

Last month, the Administration released its fiscal year 2027 budget request, proposing $1.5 trillion in total defense spending. As usual, Congress will consider and negotiate the final funding allocations. Importantly, we remain strongly aligned with our customers' spending priorities, including shipbuilding and industrial-based resiliency, layered air and missile defense, counter-UAS, unmanned systems, space and missile replenishment. Furthermore, the recent tensions in the Middle East, along with ongoing conflict in Ukraine, continue to reinforce several key lessons shaping requirements and budgets.

上個月，政府發布了 2027 會計年度預算請求案，提議國防總支出達 1.5 兆美元。依慣例，國會將審議並協商最終的資金分配。重要的是，我們仍與客戶的支出優先事項高度一致，包括造船與工業基礎韌性、多層次防空與飛彈防禦、反無人機系統（counter-UAS）、無人系統、太空與飛彈補充（replenishment）。此外，中東近期緊張局勢以及烏克蘭持續衝突，仍在強化多項正在塑造需求與預算的關鍵教訓。

First, missiles and one-way drones are now so widespread that attacks that were once anomalous are expected at scale and are proliferating. This reality is fundamentally reshaping requirements and the nature of warfare. Layered air defense and counter-UAS are no longer optional. They are now required.

第一，飛彈與一次性（單向）無人機如今已極為普及，以往屬於異常的攻擊現在預期會以大規模方式發生，且正在擴散。這一現實正從根本上重塑需求與戰爭型態。多層次防空與反無人機不再是可選項，而是必需。

Second, adversaries are increasingly targeting the large radars and other high-value assets to degrade infrastructure, sensing, and defensive capabilities to quickly create exploitable vulnerabilities. This is accelerating the shift towards distributed, resilient, and modular sensing and battle management architectures that can be rapidly proliferated, replaced and scaled. We're already seeing this trend in space, with the shift from geosynchronous to low-Earth orbit satellites, and it's also beginning to manifest in the ground and naval arenas, where unmanned vessels can be utilized as sensor and effector-equipped perimeters deployed around manned platforms.

第二，對手愈來愈常鎖定大型雷達與其他高價值資產，以削弱基礎設施、感測與防禦能力，從而迅速製造可被利用的弱點。這正在加速轉向分散式、具韌性且模組化的感測與戰鬥管理架構，這些架構可快速大量部署、替換並擴充。我們已在太空領域看到此趨勢，亦即從地球同步軌道轉向低地球軌道衛星；同時，該趨勢也開始在地面與海軍領域顯現，無人載具可作為搭載感測器與效應器（effector）的周界力量，部署於有人平台周邊。

Third, volume scalability and effector cost symmetry are essential to counter-growing threats. Magazine depth and munition stockpiles are a key factor in operational endurance. We are supporting production ramps across several weapon systems, advancing seeker capabilities for improved sensing on next-generation missile platforms, and introducing. Lower-cost seekers to enable more symmetric countermeasures. Each of these trends represents a fundamental shift and plays directly to DRS's strengths. DRS is a market leader in tactical radars, and our technology continues to deliver significant operational and mission impact.

第三，產量可擴展性與效應器成本對稱性對於因應日益增長的威脅至關重要。彈藥庫深度（magazine depth）與彈藥存量是作戰持久力的關鍵因素。我們正支援多項武器系統的產能爬坡，推進導引頭（seeker）能力以提升下一代飛彈平台的感測效能，並推出成本更低的導引頭，以實現更具對稱性的反制手段。上述每一項趨勢都代表根本性的轉變，且都直接契合 DRS 的優勢。DRS 是戰術雷達市場的領導者，我們的技術持續帶來顯著的作戰與任務影響。

Additionally, our tactical radars continue to see immense global demand, and we are aggressively increasing throughput and production capacity to satisfy that appetite. Recent hostilities have again demonstrated that force protection cannot be confined to fixed sites. It must also be embedded in maneuver units and proliferated at scale. Our force protection solutions span multiple domains. In the quarter, we received a $533 million production contract IDIQ with the Distributed Aperture Infrared Countermeasure System, or DAIRCM , for aircraft survivability. DAIRCM combines both missile warning and infrared countermeasures into one system and leverages multiple sensors to provide a 360-degree threat picture. Each with a laser director to defeat increasingly capable missiles that threaten aircraft.

此外，我們的戰術雷達在全球仍持續面臨龐大需求，我們正積極提升產出與產能以滿足這股需求。近期敵對行動再次證明，部隊防護不能僅限於固定據點，也必須嵌入機動單位並以規模化方式廣泛部署。我們的部隊防護解決方案涵蓋多個領域。本季，我們獲得一份金額 5.33 億美元的生產合約 IDIQ，項目為分散式孔徑紅外線反制系統（Distributed Aperture Infrared Countermeasure System，DAIRCM），用於提升航空器生存能力。DAIRCM 將飛彈預警與紅外線反制整合於單一系統，並運用多個感測器提供 360 度威脅圖像，並搭配雷射指向器（laser director）以擊敗對航空器構成威脅、能力日益提升的飛彈。

As recent operations have demonstrated, both rotary and fixed-wing platforms without this capability are vulnerable in contested airspace. Across our portfolio, our capabilities are modular and platform agnostic, optimized for size, weight, power, and cost to meet customers' specific needs. Let me illustrate that with a few examples. We can deploy power and propulsion technologies on a platform as compact as a medium unmanned surface vessel and scale all the way to the Columbia-class submarine. That modularity approach is one we strongly advocate for as the Navy considers future surface combatant platforms. Similarly, our infrared. Sensing capabilities span deployment from attritable Class 1 drones to the most sophisticated ground combat vehicles. And because our technologies are domain agnostic, that same sensing capability can be deployed across ground, air, sea and space. We also span the benefit as customers accelerate modernization and expand production rates, a tailwind evident throughout our portfolio. We're investing in both research and development and capital against that broader demand.

如近期作戰所示，無論旋翼或固定翼平台，若缺乏此能力，在爭奪制空的空域中都將面臨風險。在我們的產品組合中，各項能力皆採模組化且不受平台限制（platform agnostic），並針對尺寸、重量、功耗與成本進行最佳化，以滿足客戶的特定需求。我用幾個例子說明：我們可在小至中型無人水面載具的平台上部署電力與推進技術，並可一路擴展至哥倫比亞級潛艦。當海軍考量未來水面作戰艦平台時，我們強力倡議此一模組化方法。同樣地，我們的紅外線感測能力可從可消耗（attritable）的 Class 1 無人機部署到最先進的地面戰鬥車輛。而由於我們的技術不受領域限制（domain agnostic），同樣的感測能力也可跨地面、空中、海上與太空部署。隨著客戶加速現代化並提高產量，我們也能受惠於此一順風，且此趨勢在我們的整體產品組合中清晰可見。我們正針對這股更廣泛的需求，同步加大研發與資本投資。

Overall, we view these trends as part of an enduring structural shift, and they align directly with our core strengths. The business continues to perform well, and we remain focused on three key strategic priorities: innovation, growth, and execution. The diversity and differentiation of our portfolio creates multiple growth avenues. Our increased investment in innovation is evident through the accelerated pace. And procurement-ready prototypes that meet the needs of our customers. Those capabilities include next-generation multi-domain counter UAS solutions, key technologies underpinning next-generation command and control architectures, and cutting-edge space sensing capabilities, among others.

整體而言，我們將這些趨勢視為持久的結構性轉變的一部分，且與我們的核心優勢直接一致。業務持續表現良好，我們仍聚焦於三項關鍵策略優先事項：創新、成長與執行。我們產品組合的多元性與差異化創造了多條成長途徑。我們對創新的加大投資，從加速的節奏中可見一斑，以及能滿足客戶需求、可供採購的原型。這些能力包括下一代多領域反無人機（counter UAS）解決方案、支撐下一代指揮與控制架構的關鍵技術，以及最先進的太空感測能力等。

In the quarter, we demonstrated counter UAS mission execution from both unmanned ground and unmanned naval platforms, further validating a platform-agnostic approach where our enabling technologies can be. Be integrated into virtually any platform. We also released Thor, a tactical high-performance embedded computing product. Thor is an open architecture, rugged chassis, designed to deliver high-density processing as a tactical edge with native support for AI-enabled operations and multi-sensor data fusion. We remain deeply committed to a truly open architectural approach, giving our customers the flexibility to deploy best-of-breed hardware and software solutions, not blocked to a single provider. Our approach is open, flexible, modular, and portable, enabling customers to scale sustainably. Our capabilities extend beyond hardware into integration and software.

在本季度，我們從無人地面與無人海上平台展示了反無人機任務的執行能力，進一步驗證了平台無關（platform-agnostic）的做法，使我們的賦能技術幾乎可以整合到任何平台中。我們也發布了 Thor，一款戰術級高效能嵌入式運算產品。Thor 採用開放式架構、堅固耐用的機箱設計，旨在以戰術邊緣運算形式提供高密度處理能力，並原生支援 AI 賦能作業與多感測器資料融合。我們仍堅定致力於真正的開放式架構方法，讓客戶能彈性部署同級最佳（best-of-breed）的硬體與軟體解決方案，而不被單一供應商所限制。我們的方法是開放、彈性、模組化且可移植，協助客戶以可持續方式擴展。我們的能力不僅限於硬體，也延伸至整合與軟體。

We apply the same open and modular philosophy to software as we do hardware. Our platform-level operating system, SAGEcore accelerates data fusion across disparate sensor and effective solutions, converting that data into actionable intelligence for improved and faster decision-making. SAGEcore is a key component of the integrated counter UAS solution being tested with our customers today. Our innovation and growth initiatives are backstopped by customer trust earned through consistent execution. As we add new efforts to the portfolio, including the SDA Tracking Layer Trust 3 program, we're applying the same operational rigor that guides execution across the company.

我們對軟體採用與硬體相同的開放與模組化理念。我們的平台級作業系統 SAGEcore 可加速跨不同感測器與有效解決方案的資料融合，將資料轉化為可採取行動的情報，以提升決策品質並加快決策速度。SAGEcore 是目前與客戶共同測試之整合式反無人機解決方案的關鍵組成。我們的創新與成長計畫，建立在透過一貫執行所贏得的客戶信任之上。隨著我們將新的工作納入產品組合，包括 SDA Tracking Layer Trust 3 計畫，我們正以同樣的營運嚴謹度，來指導全公司範圍內的執行。

Our customers operate in some of the most demanding and consequential environments in the world, and earning their trust requires more than great technology. It requires consistent, reliable delivery and partnership. We take that mandate seriously, and our ultimate measure of success is enduring our. Ensuring that our customers know what they need, when they need it. We believe that solid execution enables growth and that philosophy is embedded in everything that we do. With that, I'll turn it over to Mike to walk through the financials.

我們的客戶在全球一些最嚴苛且最具關鍵性的環境中運作，要贏得他們的信任不僅需要卓越的技術，還需要一致、可靠的交付與夥伴關係。我們嚴肅看待這項使命，而我們最終的成功衡量標準是持久的我們。確保客戶在需要的時候，獲得他們所需要的。我們相信，扎實的執行能帶來成長，而這一理念已融入我們所做的一切。接下來，我把時間交給 Mike，請他帶大家看財務表現。

Thanks, John. John covered the strategic backdrop and why our portfolio remains well positioned. Let me walk through first quarter results by key metric and then discuss our revised 2026 outlook. Overall, our first quarter results were well above the framework we provided on our last call, as both revenue and profitability came in stronger than expected. Revenue in the first quarter was $846 million, up 6% year-over-year. Quarterly revenue exceeded expectations on favorable receipt timing, and the year-over-year growth came from programs related to tactical radars, infrared sensing, and electric power and propulsion.

謝謝，John。John 已說明策略背景以及為何我們的產品組合仍具備良好定位。我將依主要指標帶大家回顧第一季結果，並討論我們修訂後的 2026 年展望。整體而言，我們第一季的結果明顯優於上次電話會議所提供的框架，營收與獲利能力皆高於預期。第一季營收為 8.46 億美元，年增 6%。季度營收因有利的收款時點而超出預期；年對年成長則來自與戰術雷達、紅外線感測，以及電力與推進相關的專案。

The strong contribution from tactical radars and infrared sensing was evident in the increased ASC segment revenue. In IMS, Q1 revenue growth was more modest as electric power and propulsion strength was offset by a tough compare and force protection program, mostly attributed to timing.

戰術雷達與紅外線感測的強勁貢獻，反映在 ASC 事業部營收的提升上。在 IMS，第一季營收成長較為溫和，因電力與推進的強勢表現被較高的比較基期以及一項部隊防護（force protection）專案所抵銷，而後者主要與時點因素有關。

Moving to profitability, adjusted EBITDA was $105 million in the first quarter, representing year-over-year growth of 28%. Adjusted EBITDA margin was 12.4%, reflecting 210 basis points of year-over-year margin expansion. The increased adjusted EBITDA and margin came from strong program execution across the business, favorable mix, and operational leverage from higher volume.

接著看獲利能力，第一季調整後 EBITDA 為 1.05 億美元，年增 28%。調整後 EBITDA 利潤率為 12.4%，較去年同期擴張 210 個基點。調整後 EBITDA 與利潤率的提升，來自全業務範圍內強勁的專案執行、有利的產品組合，以及更高出貨量帶來的營運槓桿。

Shifting to the segment view. In Q1, ASC adjusted EBITDA was up 48%, with margin expanding by 290 basis points, reflecting improved execution, better mix, and operational leverage. For IMS, adjusted EBITDA growth of 8% outpaced the top-line with margin expanding 90 basis points, driven by strong program execution, including on the Columbia class.

轉向事業部觀點。第一季 ASC 調整後 EBITDA 年增 48%，利潤率擴張 290 個基點，反映執行改善、更佳的組合，以及營運槓桿。IMS 的調整後 EBITDA 成長 8%，增幅超過營收成長，利潤率擴張 90 個基點，主要由強勁的專案執行所帶動，其中包括 Columbia 級專案。

Turning to the bottom line metrics, first quarter net earnings were $62 million and diluted EPS was $0.23 a share, up 24% and 21%, respectively. Our adjusted net earnings of $69 million and adjusted diluted EPS of $0.26 a share were up 28% and 30% respectively. The favorable year-over-year compares were driven primarily by strong operating profitability and lower net interest expense.

再看損益底線指標，第一季淨利為 6,200 萬美元，稀釋後每股盈餘（EPS）為 0.23 美元，分別年增 24% 與 21%。我們的調整後淨利為 6,900 萬美元，調整後稀釋 EPS 為 0.26 美元，分別年增 28% 與 30%。年對年比較的有利因素，主要來自強勁的營運獲利能力以及較低的淨利息費用。

Moving to free cash flow in the quarter reflected typical seasonality with a modest outflow. However, relative performance improved meaningfully versus last year. Higher profitability, better working capital management, and solid program execution drove the improvement. We are only one quarter into the year. Our strong start to that year gives us confidence to increase our full-year outlook across metrics. We are increasing our range from revenue to $3.9 billion to $3.975 billion, implying strong year-over-year organic revenue growth of 7% to 9%. Our funded backlog continues to provide a healthy visibility into growth. That said, the timing and level of material receipts, pace of program execution, and the capture of book-to-bill revenue remain as the primary drivers behind the variability in the range.

第一季自由現金流反映典型季節性，呈現小幅流出。然而，相較去年表現有顯著改善。更高的獲利能力、更佳的營運資金管理，以及穩健的專案執行共同推動了改善。我們今年才走過一季；今年的強勁開局讓我們有信心上調全年各項指引。我們將營收區間上調至 39 億至 39.75 億美元，意味著強勁的年對年有機營收成長 7% 至 9%。我們的已獲資金支持（funded）的在手訂單（backlog）持續提供良好的成長能見度。儘管如此，材料收貨的時點與規模、專案執行節奏，以及訂單轉化為營收（book-to-bill revenue）的取得，仍是造成區間波動的主要驅動因素。

Additionally, we are increasing the range of adjusted EBITDA to between $515 million and $530 million, which also assumes an improved margin expectation over our prior guide. As we do not provide granular guidance on our segments, but to help with your modeling, let me provide some directional color. We continue to expect strong revenue growth from both our segments. Adjusted EBITDA dollar growth is expected across both segments, but the margin improvement over the ad-reported 2025 will come from IMS. Stronger operational execution combined with reduced assumptions for net interest expense is flowing through to our bottom-line metrics. We are now projecting adjusted diluted EPS to be in the $1.26 to $1.30 per share range.

此外，我們將調整後 EBITDA 區間上調至 5.15 億至 5.30 億美元，這也反映相較先前指引更佳的利潤率預期。由於我們不提供事業部的細項指引，但為協助各位建模，我提供一些方向性的補充。我們仍預期兩個事業部都將有強勁的營收成長。兩個事業部的調整後 EBITDA 金額預計都會成長，但相較已報告的 2025 年，利潤率改善將來自 IMS。更強的營運執行，加上對淨利息費用假設的下修，正反映在我們的底線指標上。我們目前預估調整後稀釋 EPS 將落在每股 1.26 至 1.30 美元區間。

Our underlying assumptions for tax rate and diluted share count for the year remain unchanged at 18.5% and 269 million, respectively. We are now targeting free cash flow generation at approximately 75% of adjusted net earnings for the year. Despite the lighter capital expenditures in the quarter, we still expect increased capital investment for the balance of the year. This slight revision to our free cash flow conversion for the year is largely driven by increased assumption for working capital investment to fund future growth. Finally, let me give you some color on our current expectations for the second quarter.

我們對全年稅率與稀釋後股數的基本假設維持不變，分別為 18.5% 與 2.69 億股。我們目前目標為全年自由現金流約為調整後淨利的 75%。儘管本季資本支出較少，我們仍預期今年剩餘期間的資本投資將增加。此次對全年自由現金流轉換率的小幅修訂，主要是因為我們提高了為支應未來成長而投入營運資金的假設。最後，我也補充一下我們對第二季的目前預期。

We expect revenue to trend around $900 million, and adjusted EBITDA margins should be comparable to Q1 in the mid-12% range. Additionally, we expect to be modestly free cash flow positive in the quarter, alleviating some of the cash generation load from the second-half. Let me turn the call back over to John for closing remarks.

我們預期營收將落在約 9 億美元左右，調整後 EBITDA 利潤率應與第一季相近，約在 12% 的中段區間。此外，我們預期本季自由現金流將小幅轉正，減輕下半年現金創造的壓力。接下來我把電話交回給 John 作結語。

Thanks, Mike. I want to recognize our team for the dedication and mission focus they bring every day in support of our customers and the nation's most important security priorities. Our team understands the stakes. Our nation is at war, and our service members are counting on the technology and products that we deliver. That's why we're operating on a wartime footing across the company.

謝謝，Mike。我想表揚我們的團隊，他們每天以投入與任務導向的精神，支持客戶以及國家最重要的安全優先事項。我們的團隊了解其中利害關係。我們的國家正處於戰爭之中，我們的軍人仰賴我們所交付的技術與產品。這也是為什麼我們在全公司以戰時態勢運作。

Our first quarter performance, along with the progress we've made over the last several years, highlights the quality of our portfolio and validates the strategy we've been executing. We're starting this year from a position of strength, and we intend to build out on that momentum. Driving meaningful growth in the near term while continuing to develop the longer horizon opportunities that will shape the next phase of DRS. We're investing in innovation and capacity at the moment when the demand for these capabilities is both urgent and enduring.

我們第一季的表現，以及過去幾年所取得的進展，凸顯了我們產品組合的品質，並驗證了我們一直在執行的策略。我們以強勢的姿態展開今年，並打算在這股動能上持續擴展。在短期內推動具意義的成長，同時持續培育將塑造 DRS 下一階段的較長期機會。我們正於對這些能力的需求既迫切又持久的時刻，投資於創新與產能。

Looking forward, our priority is clear, provide differentiated next-generation solutions with speed, quality, and the ability to scale so we can deliver the consistent performance our customers and shareholders have come to expect. With that, we're happy to take your questions.

展望未來，我們的優先事項很明確：以速度、品質與可擴展能力，提供具差異化的下一代解決方案，從而交付客戶與股東一貫期待的穩定表現。接下來，我們很樂意回答各位的提問。

Thank you. And we will now begin the question-and-answer session. If you would like to ask a question. Please press star followed by the number one on your telephone keypad to join the queue. If you would like to withdraw your question, simply press * and then the number one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute while asking your question.

謝謝。現在我們將開始問答環節。若您想提問，請在電話鍵盤上按星號（*）再按數字 1 以加入排隊。若您想撤回問題，只需再次按 * 然後按 1。若輪到您提問且您正透過裝置的擴音功能收聽，請拿起聽筒，並在提問時確認您的電話未處於靜音狀態。

Just a reminder, we ask you that you please limit yourself with one question and one follow-up only. And after that, you can simply join the queue again. Thank you. And your first question comes from the line of Peter Arment from Baird. Please go ahead.

提醒各位，我們請您每次僅限一個問題與一個追問。之後您可以再重新加入排隊。謝謝。第一個問題來自 Baird 的 Peter Arment。請開始。

Yeah, thanks. Good morning, John, Mike, Steve, nice results. Hey, John, maybe just to kick things off at a high level, we've gotten a lot of materials out from the budget and the request. Obviously, you mentioned the reconciliation bill and opportunities there, but when you look across kind of some of those details on the fiscal 2027 request, anything that jumps out at you, whether the opportunities that you're seeing for DRS and space or forest protection, or maybe you just want to comment on broadly the portfolio? Thanks.

好的，謝謝。早安，John、Mike、Steve，成果不錯。John，我想先從較高層次切入：我們已經從預算與申請案中看到很多資料。顯然你提到和解法案以及其中的機會，但當你檢視 2027 會計年度申請案的一些細節時，有沒有什麼特別引起你注意的？不論是你看到對 DRS 與太空或森林保護的機會，或是你想更廣泛地評論整體產品組合？謝謝。

Thanks, Peter. Appreciate the question. First, the budget request represents a very high priority for defense in the United States, the $1.5 trillion. The budget is very clearly rich with opportunity and with urgency, as you probably know. Obviously, Congress will need to weigh in on the overall budget and the budget level. What I want to highlight, though, is. The most important element of that budget is really what's inside it. And the prioritization of the elements that are in there really align very nicely with DRS's capabilities. For instance, shipbuilding, air and missile defense, counter UAS, unmanned, space and missiles are all very prevalent in the budget.

謝謝你，Peter，感謝提問。首先，這份預算申請案顯示美國對國防的優先順序非常高，金額達 1.5 兆美元。這份預算很明顯充滿機會且具有急迫性，你應該也知道。當然，國會仍需要就整體預算與預算水準進行審議。不過我想強調的是：這份預算最重要的部分其實是其內容本身。而其中各項要素的優先排序，與 DRS 的能力非常契合。例如，造船、空防與飛彈防禦、反無人機系統（counter UAS）、無人化、太空與飛彈等，在預算中都非常突出。

So we see a huge alignment between where we are and where that budget is. Each of those elements is growing. It's growing very quickly. Again, we have to see what Congress does with the overall funding levels, but we're encouraged by the prioritization that's inside that budget.

因此我們看到我們的定位與該預算方向高度一致。上述每一項都在成長，而且成長非常快。同樣地，我們仍需觀察國會對整體資金水準的決定，但我們對預算內部的優先排序感到鼓舞。

Got it. And then just quickly, Mike, as a follow-up, CapEx to start the year started a little light. Any change or just how should we think about kind of cadence of CapEx for this year? Thanks again.

了解。接著快速追問一下，Mike：年初的資本支出（CapEx）起步有點偏低。有任何變化嗎？或我們應該如何看待今年 CapEx 的節奏／進度？再次感謝。

Yeah, I would say the light CapEx in Q1, Peter, was attributed to timing. You're going to see that pick up over the subsequent quarters. And as we laid out in our last call, kind of that 5% of sales threshold is where we anticipate being at the end of the year. So no real change. Just kind of ramping up as we go across the year.

是的，Peter，我會說第一季 CapEx 偏低主要是時點因素所致。你會看到在接下來幾個季度回升。正如我們在上次電話會議中所說，我們預期年底會落在約「營收的 5%」這個水準。因此沒有實質變化，只是隨著年度推進而逐步拉升。

Your next question comes from the line of Seth Seifman from JP Morgan. Please go ahead.

下一個問題來自 JP Morgan 的 Seth Seifman 團隊，由 Alex 代為提問。請開始。

Yeah, Hey guys. This is Alex on for Seth today.

是的，嗨各位。我今天是 Alex，代 Seth 提問。

Hey, Alex.

嗨，Alex。

Hey, I wanted to ask kind of on the IMS margin specifically. I mean, it got off to a good start here in Q1 at a 14.6%. It comes off of Q4, where if you kind of adjust out that one timer, it kind of ends up in the high 10s range. Curious kind of if you guys could elaborate a little bit more on the recent momentum you've been seeing with IMS profitability. Has there been any sort of unlock with respect to. Maybe the Columbia Class program specifically, and I know you guys talked about the IMS margin expansion kind of expected to drive the overall company's margin expansion for the rest of the year, so I'm curious if you guys could kind of elaborate a little bit more on that.

嗨，我想特別問一下 IMS 的利潤率。第一季開局不錯，達到 14.6%。相較第四季，如果把那個一次性因素調整掉，大概落在 10% 後段。想請你們多談談近期 IMS 獲利能力的動能：是否有任何「解鎖」因素？例如是否與 Columbia Class 計畫特別相關？另外我知道你們提到 IMS 的利潤率擴張預期將帶動公司整體利潤率在今年其餘時間擴張，所以也想請你們再多說明一些。

Yeah, sure. I'll take that, Alex. Thanks for the question. The IMS margins were notably strong, really execution-based across the segment, but the largest contributor being Columbia Class. So we're continuing to see strong execution on that program. The team is performing very well, and that continues to be the catalyst for the margin expansion within the segment. But more broadly than that, we did see program-level efficiency throughout the segment. We managed costs well, and I think that's what. Into EBITDA growth. I think you should think about this segment being, kind of in this range as we progress throughout the course of the year. I think this is a good kind of revised baseline for the segment.

好的，當然。我來回答，Alex，謝謝你的問題。IMS 的利潤率確實明顯偏強，主要來自該事業群整體的執行力，其中最大貢獻者是 Columbia Class。因此我們持續看到該計畫的強勁執行表現。團隊表現非常好，這也持續成為推動該事業群利潤率擴張的催化劑。不過更廣泛來看，我們也在整個事業群看到專案層級的效率提升。我們把成本控管得很好，我認為這也轉化為 EBITDA 的成長。我認為你可以把這個事業群視為在今年推進過程中大致維持在這個區間。這是一個不錯的、更新後的基準水準。

Okay, great. That's very helpful. And then, maybe kind of for this next question, focus a little bit more on ASC. And I certainly appreciate you guys are kind of at a record backlog level, and the overall company's book to bill has been one time or greater for the past 17 quarters. So if we kind of look at the book-to-bill specific for ASC over the past couple of quarters, it looks like it's dipped below, one time. Kind of curious if you guys can maybe provide a quick update on, what you're seeing in the order environment there?

好的，很好，這很有幫助。接著下一題想更聚焦在 ASC。我當然理解你們目前在手訂單（backlog）創新高，而且公司整體的接單出貨比（book-to-bill）在過去 17 個季度都達到或高於 1 倍。若我們看 ASC 在過去幾個季度的 book-to-bill，似乎低於 1 倍。想請你們快速更新一下：你們在那邊看到的接單環境如何？

Yes, I wouldn't be too overly concerned with the kind of the quarterly trend here that you saw last quarter and now this quarter from an ASC perspective. If you kind of zoom out a little bit on the time period, the segment over the last 12 months is right around 1 to 1, but I think more importantly, as John kind of went through on the call, we continue to see solid demand signals from the customer. Our tactical radars are continuing to see global demand and how they're important in the air defense domain. John mentioned a $500 million DIR from IDIQ contract that we haven't started to see order flow come through on.

是的，我不會對你看到的 ASC 在上一季以及本季這種季度趨勢過度擔心。若把時間拉長一點看，該事業群過去 12 個月大約在 1 比 1 左右。但我認為更重要的是，如同 John 在電話會議中提到的，我們持續從客戶端看到穩健的需求訊號。我們的戰術雷達持續看到全球需求，且在防空領域的重要性日益提升。John 也提到，我們有一份來自 IDIQ 合約的 5 億美元 DIR，但目前尚未開始看到訂單流入。

If you couple that with some of the next-gen fencing programs where we have just recently been awarded some IDIQ contracts and also what's happening in space, I think the book-to-build trend is one that's going to reverse pretty quickly in a favorable manner.

如果再加上某些下一代「圍籬」（fencing）計畫——我們最近剛獲得一些 IDIQ 合約——以及太空領域的進展，我認為 book-to-bill 的趨勢將會很快以有利的方式反轉。

Got it.T hank you.

了解。謝謝。

Your next question comes from Andre Madrid from BTIG. Please go ahead.

下一個問題來自 BTIG 的 Andre Madrid。請開始。

Hey, good morning, John, Mike and Steve. I wanted to talk a bit more about capital deployment and more specifically about what you guys are seeing on the M&A front. I know you talked last quarter about M&A being mainly focused on closing specific technology gaps with, can you maybe talk about the current M&A pipeline with that context?

嗨，早安，John、Mike、Steve。我想再多談一些資本配置，特別是你們在併購（M&A）方面看到的情況。我知道你們上季提到，M&A 主要聚焦在補足特定技術缺口。能否在這個脈絡下談談目前的 M&A 案源（pipeline）？

Okay, hello, Andre. This is the operator. You have your question repeated for them, please.

好的，Andre，你好。我是接線員。請你把問題再重複一次給他們，謝謝。

Yeah, sure. I was just pointing out, like I think M&A focus last quarter was said to be mainly on closing technology gaps. With that in context, I mean, can you maybe talk about what the pipeline currently looks like?

好的，當然。我只是想指出：我記得上季你們說 M&A 的重點主要是補足技術缺口。在這個脈絡下，你們能否談談目前的案源大概是什麼樣子？

Yeah, Andre, thanks for the question. We have a little bit of a gap in your question, but I think we got it. Look, our primary. A focus for capital deployment. It's really, as we talked about before, organic. We are spending more on IR&D, more on CapEx, focusing a lot on building capability inside the business. That said, we are still looking for technology gap fulfilment and kind of tuck-ins in the M&A pipeline. That pipeline does span the gamut of capabilities from hardware to software, where we see. Areas of growing demand and growing a market pull, if you will, as well as aligning with gaps and when I talk about gaps, I'm talking about areas where, for want of a piece of technology, we could provide a solution to the customer. And so those are the kinds of things that we're looking for typically, we do a lot of partnerships for filling those kind of gaps, but we look for them in the M&A market as well.

好的，Andre，謝謝你的問題。你的提問有一點斷訊，但我想我們理解了。你看，我們資本配置的首要重點——如同之前談過——是有機成長。我們在 IR&D 上投入更多、在 CapEx 上投入更多，並且非常專注於在公司內部建立能力。即便如此，我們仍在 M&A 案源中尋找能補足技術缺口的標的，以及一些小型併購（tuck-ins）。這個案源涵蓋從硬體到軟體的各種能力，我們看到某些領域需求成長、以及市場拉力（market pull）在增強，同時也與我們的缺口相契合。我所說的缺口，是指如果缺少某一項技術，我們就無法向客戶提供完整解決方案的那些領域。因此這些通常就是我們在找的方向。一般而言，我們也會透過許多合作夥伴關係來補足這類缺口，但我們同樣也會在 M&A 市場中尋找。

Hopefully, that answers your question.

希望這能回答您的問題。

Yes, that's definitely helpful. And I guess on that point, you mentioned the organic investments you're making, higher IRAD spend. I guess when you look at IRAD, what is most of your attention going towards, if you can maybe provide like a top three kind of areas in which you're looking to invest specifically through the balance of 2026?

是的，這確實很有幫助。我想就這點延伸一下，您提到正在進行的有機投資、較高的 IRAD 支出。我想問的是，當您看 IRAD 時，您大部分的關注重點放在哪些方向？如果可以的話，能否提供大概前三大、您計畫在 2026 年剩餘期間特別透過 IRAD 投資的領域？

Well, I would tell you that those our focus, our investment is definitely focused in areas of highest demand. And when I say highest demand, I'm talking about growth, right? So if you go back to the budget request, you kind of see that shipbuilding, you're seeing missiles, and we provide seekers for missiles, counter UAS, where you're seeing kind of in the $14 billion, $15 billion in the request. For counter UAS, those capabilities are really well aligned. Our investments are really well aligned to those growing demand space, et cetera. That's where we're putting our money.

嗯，我會告訴你，我們的重點、我們的投資，確實是聚焦在需求最高的領域。而我所說的「需求最高」，指的是成長，對吧？所以如果你回頭看預算請求，你會看到造船、你會看到飛彈，而我們為飛彈提供導引頭（seeker）、反無人機系統（counter UAS）——在該請求中你會看到大約 140 億、150 億美元的規模。就反無人機系統而言，這些能力非常契合。我們的投資也非常契合這些需求正在成長的領域等等。這就是我們投入資金的地方。

Got it. That's very helpful. Thanks, John. I appreciate the color.

了解。這非常有幫助。謝謝你，John。我很感謝你提供的補充說明。

Thanks, Andre.

謝謝你，Andre。

And your next question comes from Austin Moeller from Canaccord Genuity. Please go ahead.

下一個問題來自 Canaccord Genuity 的 Austin Moeller。請開始提問。

Hi, good morning, John and Mike. So just my first question here, the adjusted EBITDA margin improvement within ASC, is that partially being driven by improvement in germanium availability and supply, is it being driven by any inflation cost escalators of renegotiations of contracts, or is it just more favorable mix of tactical radars and deer comes and volume moving through the factory?

嗨，早安，John 和 Mike。我第一個問題是：ASC 的調整後 EBITDA 利潤率改善，是否部分是由鍺（germanium）供應與可得性改善所帶動？是否與通膨成本調整條款或合約重新談判的價格調升有關？還是只是戰術雷達與（deer comes）更有利的產品組合，以及產量在工廠端放量所致？

Austin, thanks for the question. I would say that the margin expansion, first and foremost, is driven by the favorable mix coming out of the tactical radar piece that we had and demand we saw there. Also, we're starting to see the operational leverage materialize as the IRAD wasn't a headwind to margin, so that certainly helped the margin expansion. But the last point of the margin expansion is where you directed the question. We certainly have had a better result on the margin side because of the raw material costing, especially germanium. So that helped the segment outperform the prior year.

Austin，謝謝你的問題。我會說，利潤率擴張首先是由有利的產品組合所驅動，主要來自我們的戰術雷達業務，以及我們在那裡看到的需求。此外，我們也開始看到營運槓桿逐步顯現，因為 IRAD 並未對利潤率造成逆風，所以這確實有助於利潤率擴張。不過你問題指向的最後一點也成立：由於原物料成本，特別是鍺的成本，我們在利潤率方面確實有更好的結果。因此這也幫助該事業部門的表現優於去年同期。

Okay and I think you guys said in your prepared remarks, you alluded to underwater platforms or counter UAS for underwater platforms. Could you elaborate on that a little bit more? Is that radar? Is that sonar? Is that like the tactical MHRs? How should we think about that?

好的。我想你們在事先準備的講稿裡提到水下平台，或是針對水下平台的反無人機系統。你能再多說一點嗎？那是雷達嗎？是聲納嗎？還是像戰術 MHR 那樣的東西？我們應該怎麼理解？

Yes, Austin, we were referring to unmanned surface vessels. And what we've done is we've taken our counter UAS mission equipment package, really kind of taking it off a tank and putting it on. We did on unmanned surface vessels and we put it on unmanned ground vehicles. So we believe that the future of warfare is increasingly going to be robotic. So you're going to have unmanned platforms out in front protecting manned platforms. And so what we've done is we've put these on the ground vehicle side, on the surface side, we put it at sea and we demonstrated this capability. Again, there's a lot of money that the Navy will spend on. On unmanned surface vessels.

是的，Austin，我們指的是無人水面載具（unmanned surface vessels）。我們所做的是把我們的反無人機任務裝備套件（mission equipment package），基本上是把它從坦克上拆下來再裝上去。我們把它裝到無人水面載具上，也裝到無人地面載具上。我們相信未來的戰爭將越來越機器人化。因此你會看到無人平台在前方，保護有人平台。所以我們已經在地面載具端、在水面端、在海上部署並展示了這項能力。再說一次，海軍會在無人水面載具上投入很多資金。

The money is in the reconciliation bill from 2026. The question is, what are they going to do with the unmanned surface vessels? We believe that there's a market here for Cannery UAS. That's why we went and did this demonstration as part of our IRAD to put that to sea. So I think really incredible capability. Our team really did a great job here. If you look at some of the LinkedIn posts, you can see the pictures. Of that platform.

這筆資金在 2026 年的協調法案（reconciliation bill）裡。問題是，他們打算如何運用無人水面載具？我們相信這裡存在一個反無人機系統的市場。這也是為什麼我們把這次示範作為 IRAD 的一部分，將其帶到海上。我認為這是一項非常了不起的能力。我們的團隊在這裡做得非常出色。如果你看看一些 LinkedIn 的貼文，你可以看到那個平台的照片。

Great. That's very interesting.

太好了。這非常有意思。

Thank you.

謝謝。

Your next question comes from John from CJS Securities. Please go ahead.

下一個問題來自 CJS Securities 的 John。請開始提問。

Hi, good morning and thank you for taking my questions and really nice quarter and outlook there.

嗨，早安，謝謝你們回答我的問題；這一季表現以及展望都很不錯。

Thanks, John.

謝謝，John。

I was wondering if you could give us an update on the status of your radar operations in Israel, if you're seeing disruptions there just from the conflict, and if there's any resolution to that as you move forward?

我想請問你們能否更新一下在以色列的雷達營運狀況？衝突是否造成任何干擾？以及隨著你們往前推進，是否有任何解決方案或改善？

Well, first and foremost, the backlog and the revenue there is rising pretty quickly. The demand for those capabilities is nearly insatiable. We're investing in infrastructure, to be able to increase production at a very high rate, the team is doing a great job of doing that, we, of course some of our employees have to do some reserve duty and things like that hasn't really impacted us in any material way. And I think the team is doing a great job of increasing production, but the demand is there for sure.

嗯，首先，那裡的在手訂單（backlog）與營收正在相當快速地上升。對這些能力的需求幾乎是無止盡的。我們正在投資基礎設施，以便能以非常高的速度提升產能；團隊在這方面做得非常好。當然，我們有些員工需要去服預備役之類的，但並沒有在任何重大程度上影響我們。我認為團隊在提升產能方面做得很出色，而需求確實存在。

Got it. That's good to hear. Thank you. And then, I was also wondering if you could talk about maybe your expectations for this fall and what happens if Congress changes hands. Would you expect to see friction or vulnerability in any specific parts of the budget or overall, and where would you expect to see continued strength?

了解。很高興聽到這點，謝謝。接著我也想問，你們對今年秋季的預期是什麼？如果國會換黨執政，會發生什麼？你們是否預期預算的某些特定部分或整體會出現摩擦或脆弱性？又在哪些地方你們預期會持續強勁？

Yeah, it's a great question. Look, I'm not going to kind of predict what happens to the overall -- to Congress or to the budget, but I would just go back to the point of what's in the budget. I think that the prioritization of capability that we provide is clear in that budget request. No matter what happens on the Hill, no matter what happens with the funding level, first of all, there will be an increase in budget, whether it goes. The 1.5 or not is another question, but there will be an increase. But the more important point is that the focus of attention and the prioritization in that budget is aligned to DRS and aligned to our capabilities.

是的，這是個很好的問題。你看，我不會去預測整體——國會或預算會怎麼走，但我會回到預算內容本身。我認為，我們所提供能力的優先順序在那份預算請求中是很清楚的。不管國會山莊發生什麼、不管資金水位如何，首先，預算都會增加；至於是否會到 1.5（的水準）是另一個問題，但一定會增加。不過更重要的是，那份預算中的關注焦點與優先排序，與 DRS 以及我們的能力是對齊的。

Got it. Thank you.

了解。謝謝。

And your next question comes from Alexandra Mandary from Truist Securities. Please go ahead.

下一個問題來自 Truist Securities 的 Alexandra Mandary。請開始提問。

Good morning. Nice results, and thanks for taking my question. Given the strong defense demand environment across domains, how are you prioritizing resources internally, given opportunities across naval, ground, space, and in the air? And where do you expect the most growth in 2026 and into 2027?

早安。結果很不錯，謝謝你們回答我的問題。鑑於各領域的國防需求環境都很強勁，面對海軍、地面、太空與空中等多方機會，你們在內部是如何優先配置資源的？以及你們預期 2026 年到 2027 年，哪裡會有最多的成長？

It's a great question. We're really prioritizing our internal capital based on growth rates, on market growth rates. And so the areas that we're focusing attention, which I mentioned already, shipbuilding and air and missile defense, counter UAS, unmanned space and missiles are all prioritized in our internal efforts. I think we're going to see growth in all of those areas of our plan, of our portfolio. I wouldn't want to guess as to which one's going to win, but we certainly run a competition here. So we'll see which one wins.

這是個很好的問題。我們主要是依據成長率、也就是市場成長率，來優先配置內部資本。因此我們聚焦的領域——我先前也提過——造船、空中與飛彈防禦、反無人機系統、無人太空與飛彈，都是我們內部工作的優先項目。我認為在我們計畫、我們產品組合的所有這些領域都會看到成長。我不想猜哪一個會勝出，但我們確實在這裡進行競爭。所以我們會看看最後是哪一個勝出。

Great. And can you provide additional color on what drove improved execution and operations in the quarter?

很好。你能否再補充一些細節，說明本季執行與營運改善是由哪些因素驅動？

Yes, I'll take that. I'll say one of the major elements was what he alluded to earlier on the call, which is we've got a little bit more line of sight from what we've done from a raw material and supply perspective. So the material favorability that we've seen, both from a timing perspective driving the revenue as well as from an execution perspective, helped on the margin side. There the other elements were really more attributed to the actual volume of revenue and the operational leverage driving that additional revenue and gross margin contribution down to the bottom line as the IRED spend and the G&A spend were much less of a headwind in Q1 of 2026 than they were in the prior year.

好的，我來回答。我會說其中一個主要因素，是他在電話會議稍早提到的：就原物料與供應面而言，我們所做的工作讓我們的能見度更高了一些。因此，我們看到的材料成本有利因素，無論是從時點角度帶動營收，或是從執行角度，都對利潤率有所幫助。其他因素則更多歸因於實際的營收量，以及營運槓桿帶動額外營收與毛利貢獻落到最終獲利，因為 2026 年第一季的 IRED 支出與 G&A 支出，相較去年同期對利潤率的逆風小得多。

Awesome, Thank you.

太棒了，謝謝你。

Before we proceed, again, I would like to inform everyone that if you want to join the queue, simply press *1 on your telephone keypad. And your next question comes from Ron Epstein from Bank of America. Please go ahead.

在我們繼續之前，我再次提醒各位，如果您想加入提問佇列，只要在電話鍵盤上按 *1。接下來的問題來自美國銀行（Bank of America）的 Ron Epstein。請開始。

Hi, good morning. This is Alex Preston on for Ron today. Thank you for taking the question. If we could start maybe on shipbuilding, right, output continues to expand. At the same time, outsourcing is expanding as well, and the supply base seems to be making, call it, slow and steady progress. Can you just update us maybe on any options or discussions to expand content or second sourcing, perhaps in addition to what's already in progress at Charleston?

嗨，早安。我今天代表 Ron 的是 Alex Preston。謝謝讓我提問。如果可以的話，我們先從造船談起，對吧，產出持續擴張。同時，外包也在擴大，而供應基礎看起來正在取得所謂穩健但緩慢的進展。您能否更新一下，是否有任何選項或討論要擴大供應內容或進行第二來源採購（second sourcing），也許是在查爾斯頓（Charleston）目前已在進行的工作之外？

Yes, sure, let me take that. First of all, we are working with our customer on second sourcing the steam turbine generators for the submarine industrial base. We're seeing that look, at the end of the day, the Navy deserves to have at least two sources for these capabilities. Right now, they have one we're starting to see some of the money move out of the reconciliation bill, out of OMB to the customer set. Some of that money has made its way to us already. So this is one area of focus for us is to continue growing content to be a steam turbine generator's second source. Another area that I'll point you to is the Navy's focused on a battleship. And one of the things that we believe is that whatever the Navy ends up trying to design in the next generation service combatant, they need to have an electric propulsion system. That electric propulsion system is really necessary to be able to move power around within the ship. We know that those ships are going to have to fight from a longer distance because the anti-ship missiles have a greater range today. And so having an electric propulsion system allows those ships to provide power to radars, for longer range radars, for directed energy weapons, for electronic warfare, for a longer range. And so we believe that's the architecture of the future. Going one step further than that, we believe that the Navy should be focused on a. Modular architecture, an architecture that would provide the capability from all the way from a battleship down to a cruiser to a destroyer or a frigate or a Corvette, even a USV, a medium-sized USV.

好的，當然，我來回答。首先，我們正與客戶合作，為潛艦產業基礎的蒸汽渦輪發電機推動第二來源。我們看到，說到底，海軍理應至少有兩個來源來提供這些能力。目前他們只有一個來源；我們開始看到部分資金從協調法案（reconciliation bill）中撥出，從 OMB 轉到客戶端。其中一些資金已經到我們這裡了。因此，我們的一個重點領域就是持續擴大供應內容，成為蒸汽渦輪發電機的第二來源。另一個我想指出的領域是，海軍正聚焦於戰艦。其中我們相信的一點是，無論海軍最終在下一代水面作戰艦艇（service combatant）上要設計什麼，他們都需要電力推進系統。電力推進系統對於在艦內調度電力非常必要。我們知道這些艦艇必須在更遠距離作戰，因為如今反艦飛彈射程更遠。因此，電力推進系統讓艦艇能為雷達（更長距離雷達）、定向能武器、電子戰等提供電力，以支援更長作戰距離。所以我們認為那是未來的架構。更進一步，我們認為海軍應該聚焦於模組化架構——一種能從戰艦一路延伸到巡洋艦、驅逐艦、巡防艦或輕型護衛艦（Corvette），甚至到 USV（中型無人水面載具）的架構。

And so the Navy would design an architecture once and then move forward. So we're investing in these components. Power components that would provide that flexibility for the Navy to basically build whatever they want to build once they've designed and tested an architecture. And so we're focused there on providing that capability for the Navy. We think that the Navy is moving in that direction. We're helping them with some ideas here on how to do that. And so I think that's another big vector for us, and that's where we're investing some money.

如此一來，海軍只需設計一次架構，然後再往前推進。因此我們正在投資這些元件——電力元件——以提供那種彈性，讓海軍在完成架構設計與測試後，基本上能建造他們想建造的任何艦型。我們的重點就是在這裡，為海軍提供那項能力。我們認為海軍正朝這個方向前進；我們也在提供一些想法協助他們如何做到。因此我認為這也是我們另一個重要的成長向量，而這正是我們投入資金的地方。

Got it. Thank you. And then I know the budget's been brought up a couple of times, but maybe to ask a question from a slightly different angle. I'm curious if you can talk maybe more specifically about your assumptions between the base and reconciliation budgets into 2027. Some of the largest items in reconciliation seem maybe more relevant to DRS. I'm curious if reconciliation is sort of considered upside for you or in your plans and maybe broadly how that's influencing your planning into 2027 and beyond. Thanks.

了解，謝謝。接著我知道預算已被提到好幾次，但我想從稍微不同的角度問一個問題。我很好奇您能否更具體談談，您對 2027 年之前「基礎預算」與「協調預算」之間的假設。一些協調預算中最大的項目看起來可能與 DRS 更相關。我想了解協調預算對你們而言是被視為上行空間（upside），還是已納入你們的計畫之中？以及更廣泛地說，這如何影響你們對 2027 年及之後的規劃？謝謝。

It's a great question, Alex. I think that, as you look at the bill, a lot of the reconciliation elements are things that are needed right now. And I think that the administration did that purposely. But I would say that if you. Looked at the base budget, they have the same kind of prioritization that aligns well with DRS's capabilities. But certainly, our capabilities are applicable to the reconciliation portion of the bill, but very well aligned to the base bill as well. I would tell you that our. Our plan does not include it's not dependent on a $1.5 trillion budget. I wouldn't say we're expecting, but this isn't we're not dependent on a $1.5 trillion budget. So whatever comes out of the hill on the other side is going to have the same prioritization that that base bill has, which aligns directly with the RSS capabilities.

這是個很好的問題，Alex。我認為，當你看這項法案時，許多協調法案的要素都是當下就需要的，我想政府是刻意這麼做的。但我會說，如果你看基礎預算，它也有同樣的優先順序，且與 DRS 的能力高度契合。當然，我們的能力適用於法案中的協調部分，但同樣也與基礎法案非常一致。我可以告訴你，我們的計畫並不包含、也不依賴 1.5 兆美元的預算。我不會說我們在期待，但我們並不依賴 1.5 兆美元的預算。因此，無論國會那邊最後產出什麼，優先順序都會與基礎法案相同，而這與 RSS 的能力直接對齊。

Got it. Thank you very much for taking my questions.

了解。非常感謝您回答我的問題。

Appreciate it. You're welcome.

感謝你。不客氣。

There are no further questions at this time. And now I would like to turn the call back over to John Baylouny, Chief Executive Officer, for the closing remarks. Please go ahead.

目前沒有進一步的問題。現在我想把電話交回給執行長 John Baylouny 作結語。請開始。

Well, I want to thank everyone for joining today's call. This quarter underscores the momentum in our business, strong profitability, sustained organic growth, and a disciplined approach to investing. We're off to a strong start in 2026, our execution and visibility support raising our full-year outlook. As I discussed earlier, we continue to see a rapid range of change in the nature of warfare. And we believe the theme of capability proliferation is enduring, and it's driving a shift toward distributed, resilient, modular architectures that can be quickly replaced and scaled. DRS has a strategic advantage because we provide enabling technologies, and we pair that with deep integration expertise and growing software capabilities. As our funded backlog reaches new company records, we continue to invest in innovation and capacity to execute on the clear, multi-year demand in front of us. If you have any further follow-up questions, Steve and the team will be available after the call. We appreciate your time and continued interest in DRS. We look forward to updating you again next quarter.

我想感謝各位參加今天的電話會議。本季凸顯了我們業務的動能：強勁的獲利能力、持續的有機成長，以及有紀律的投資方式。我們在 2026 年有一個強勁的開局，我們的執行力與能見度支持我們上調全年展望。如我先前所述，我們持續看到戰爭型態正在快速變化。我們相信「能力擴散」這個主題將長期存在，並正推動轉向分散式、具韌性、模組化的架構，這些架構可以快速替換並擴大規模。DRS 具備策略優勢，因為我們提供關鍵使能技術，並結合深厚的整合專業與日益增長的軟體能力。隨著我們的已獲資金支持的在手訂單（funded backlog）創下公司新高紀錄，我們將持續投資創新與產能，以因應眼前明確的多年期需求。如果您還有任何後續問題，Steve 和團隊會在會後提供協助。感謝各位撥冗以及持續關注 DRS。我們期待在下個季度再次向各位更新。

Thank you.

謝謝。

Ladies and gentlemen, thank you all for joining. And that concludes today's conference call. All participants may now disconnect.

各位女士、先生，感謝大家參與。今天的電話會議到此結束。所有與會者現在可以掛線。