ESCO Technologies Inc (ESE) 2025 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q3 2025 ESCO Technologies earnings conference call. With us today are Bryan Sayler, President and CEO; Chris Tucker, Senior VP and CFO; and Kate Lowrey, Vice President of Investor relations. (Operator Instructions)

大家好，感謝您的收看。歡迎參加ESCO Technologies 2025年第三季財報電話會議。今天與我們一起出席的嘉賓有：總裁兼執行長Bryan Sayler；資深副總裁兼財務長Chris Tucker；以及投資者關係副總裁Kate Lowrey。 （操作員指示）

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Kate Lowrey. Please go ahead.

請注意，今天的會議正在錄製中。現在，我想將會議交給第一位發言人凱特洛瑞 (Kate Lowrey)。請開始。

Thank you. Statements made during this call, which are not strictly historical, are forward-looking statements within the meaning of the safe harbor provisions of the federal securities laws. These statements are based on current expectations and assumptions, and actual results may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment, including, but not limited to, the risk factors referenced in the company's press release issued today, which will be included as an exhibit to the company's Form 8-K to be filed.

謝謝。本次電話會議所作的陳述並非嚴格意義上的歷史事實，而是聯邦證券法安全港條款所定義的前瞻性陳述。這些陳述基於當前的預期和假設，由於公司營運和商業環境中存在的風險和不確定性，實際結果可能與前瞻性陳述中的預測存在重大差異，包括但不限於公司今天發布的新聞稿中提及的風險因素，該新聞稿將作為公司即將提交的8-K表格的附件。

We undertake no duty to update or revise any forward-looking statements, except as may be required by applicable laws or regulations. In addition, during this call, the company may discuss some non-GAAP financial measures in describing the company's operating results. A reconciliation of these measures to the most comparable GAAP measures can be found in the press release issued today and found on the company's website at www.escotechnologies.com under the link Investor Relations. Now I'll turn the call over to Bryan.

除適用法律或法規另有要求外，我們不承擔更新或修改任何前瞻性陳述的義務。此外，在本次電話會議中，本公司可能會討論一些非公認會計準則 (non-GAAP) 財務指標，以描述本公司的營運績效。這些指標與最具可比性的公認會計準則 (GAAP) 指標的對帳表可在今天發布的新聞稿中找到，也可在公司網站 www.escotechnologies.com 的「投資者關係」連結中找到。現在，我將電話會議交給 Bryan。

Thanks, Kate, and thanks everyone for joining today's call. The past few months have been a transformative period for ESCO. Early in the third quarter, we completed the Maritime acquisition, and after the close of the third quarter, we finalized the VACCO divestiture. The completion of these key transactions marks an important step forward in the execution of our portfolio strategy.

謝謝凱特，也謝謝大家參加今天的電話會議。過去幾個月是ESCO的轉型期。第三季初，我們完成了對Maritime的收購，第三季結束後，我們完成了對VACCO的剝離。這些關鍵交易的完成標誌著我們投資組合策略執行邁出了重要一步。

Now, with the addition of Maritime’s signature and power management solutions, we now have a meaningfully larger presence in the navy market. Maritime broadens our product offerings and adds significant US and UK naval platform content.

如今，隨著Maritime標誌性產品和電源管理解決方案的加入，我們在海軍市場的影響力顯著提升。 Maritime拓寬了我們的產品線，並增加了大量美國和英國海軍平台產品。

With the exit of the space market, our Aerospace and Defense segment now has a clearer focus on serving the aircraft and navy markets, both of which we believe have durable long-term growth drivers in place. This period of transition has involved an extraordinary level of hard work from our team members related to closing these deals and integrating Maritime into the ESCO portfolio and business system.

隨著航太市場的退出，我們的航空航太和防務部門現在更加專注於服務飛機和海軍市場，我們相信這兩個市場都擁有持久的長期成長動力。在這段過渡時期，我們的團隊成員付出了巨大的努力，最終促成了這些交易的達成，並將海事業務整合到ESCO投資組合和業務體系中。

In addition to supporting these efforts, our team was also busy managing day-to-day operations and delivered another outstanding quarter for ESCO. I want to personally acknowledge and thank our dedicated employees whose hard work is what makes this possible.

除了支援這些工作之外，我們的團隊還忙於日常運營，為ESCO創造了另一個出色的季度業績。我要親自感謝我們敬業的員工，是他們的辛勤付出了這一切。

In addition, I would like to take one more opportunity to welcome our new ESCO Maritime teammates in both the US and the UK. As we've now had a number of interactions with the Maritime team, it is clear that they are a strong group that is dedicated to a very important mission, which is aligned with ESCO and our core values. We are thrilled to welcome them to the team.

此外，我想再次歡迎我們在美國和英國的新ESCO海事團隊成員。我們與海事團隊進行了多次交流，顯然他們是一個強大的團隊，致力於一項非常重要的使命，這與ESCO和我們的核心價值一致。我們非常高興地歡迎他們加入我們的團隊。

I would also like to thank the Maritime staff for their hard work in supporting the ongoing integration, which does require considerable time and focus from across the organization. As I know we are all aware, the macroeconomic picture has been somewhat complicated this year with evolving trade policies and geopolitical uncertainty in the headlines. It's difficult to know exactly how these impacts will play out, but we are monitoring these changing dynamics closely and believe our teams have done a good job of managing the risks and opportunities to this point.

我還要感謝海事部門全體員工為支持正在進行的整合工作所付出的辛勤努力，這需要整個組織投入大量的時間和精力。眾所周知，今年的宏觀經濟情勢有些複雜，貿易政策不斷演變，地緣政治不確定性成為焦點。我們很難確切知道這些影響將如何顯現，但我們正在密切關注這些不斷變化的動態，並相信我們的團隊迄今為止在風險和機會管理方面做得很好。

While there have been some additional costs, we have been able to mitigate the impacts and deliver exceptional operating results. Going forward, we are in good shape in this regard and are confident in our ability to manage any potential future risks associated with tariffs during the balance of the year.

雖然有一些額外成本，但我們能夠減輕影響，並實現卓越的營運績效。展望未來，我們在這方面保持良好狀態，並有信心在今年餘下時間管理與關稅相關的任何潛在風險。

Chris will run you through all of the financial details for the quarter, but before we get to that, I want to give you a few comments on each of the segments. Let's start with Aerospace and Defense. We remain very positive regarding the long-term outlook for the Aerospace and Navy markets. Production rates across both markets need to increase to meet underlying customer and market demand. We see fundamental drivers for additional commercial and defense aircraft and expect increasing production rates to drive growth going forward.

Chris 將為您詳細介紹本季的所有財務細節，但在此之前，我想先對每個細分市場發表一些評論。首先是航空航天和國防業務。我們對航空航天和海軍市場的長期前景仍然非常樂觀。這兩個市場的生產力都需要提高，以滿足潛在的客戶和市場需求。我們看到了增加商用和國防飛機產量的根本驅動因素，並預計生產率的提高將推動未來的成長。

Overall, our Aerospace revenue was up almost 20% in the quarter and is up 15% on a year-to-date basis. On the navy side, we've been talking for a while about the procurement process for the next 17 Virginia and Columbia Class submarines. It's taken a little bit longer than expected, but it was great to see those orders begin to flow through during Q3, with Globe booking over $80 million in orders during the quarter for Block 5.2 and Block 6 on the Virginia Class platform, along with orders for initial content on the next three Columbia Class boats. By any measure, the A&D segment has had an exceptional quarter, achieving double-digit organic growth, a 560 basis point increase in margin, and ending the period with record backlog.

總體而言，我們的航空航太業務收入在本季成長了近20%，年初至今成長了15%。在海軍方面，我們一直在討論接下來17艘維吉尼亞級和哥倫比亞級潛艦的採購流程。雖然這比預期的時間略長，但很高興看到這些訂單在第三季開始陸續到位。環球公司在本季度獲得了超過8000萬美元的弗吉尼亞級Block 5.2和Block 6訂單，以及接下來三艘哥倫比亞級潛艇的初始內容訂單。無論以何種標準衡量，航空航太與國防業務本季都表現出色，實現了兩位數的有機成長，利潤率成長了560個基點，並以創紀錄的積壓訂單量結束了本季。

Switching businesses now, let's discuss the Utility Group, which had a bit of a flattish quarter from a sales and margin perspective, but did experience strong orders. If you look at the year-to-date results, the story remains quite positive, and we are confident that the long-term demand drivers remain intact. Numerous factors are contributing to the growing demand for electricity, including data centers, artificial intelligence, electrification of transportation, heat pumps, reshoring activities, and more.

現在換個業務，我們來討論一下公用事業集團。從銷售額和利潤率的角度來看，該集團本季業績略顯平淡，但訂單量確實強勁。綜觀今年迄今的業績，情況依然相當樂觀，我們相信長期需求驅動因素依然穩固。電力需求的成長受到許多因素的影響，包括資料中心、人工智慧、交通電氣化、熱泵、回流活動等等。

Expanding the grid will be a long-term and complicated endeavor, and during that process, increased electricity demand coupled with an aging infrastructure and extreme weather events will make maintaining utility assets more important than ever. Doble will continue to be a critical partner supporting the utilities as they both maintain and expand the grid.

電網擴建將是一項長期而複雜的工程。在此過程中，電力需求的增加、基礎設施的老化以及極端天氣事件的發生，將使維護公用事業資產比以往任何時候都更加重要。 Doble 將繼續作為重要的合作夥伴，為公用事業公司維護和擴大電網提供支援。

Order growth in the quarter was strong, which points to continued sales momentum in the quarters to come. The US renewables market continues to recalibrate right now in the wake of the Big Beautiful Bill Act. Our team is managing well through some uncertainty, and we remain confident that renewables will continue to have an important role to play in energy markets worldwide and in the US over the long term.

本季訂單成長強勁，預示著未來幾季的銷售動能將持續。受《美麗大法案》的影響，美國再生能源市場目前正在重新調整。我們的團隊正在應對一些不確定性，我們堅信再生能源將長期在全球和美國能源市場中繼續發揮重要作用。

Finally, I'll touch on the Test business, which had another strong revenue quarter with 21% growth over the prior year. Year-to-date, the revenue is up by 15%, and it's great to see continuing strength in their Test and Measurement, industrial shielding, and services sales this year. Their margins improved by 350 basis points sequentially, but were down a bit year over year. The team has taken the right steps to reduce costs over the past several quarters and has done a great job driving the segment EBIT margin back into the mid-teens. Overall, the Test business has stabilized and we feel good about the trajectory there moving forward.

最後，我想談談測試業務。該業務本季營收強勁，年增21%。年初至今，營收成長了15%，很高興看到測試測量、工業屏蔽和服務銷售今年持續保持強勁勢頭。利潤率較上季成長350個基點，但較去年同期略有下降。過去幾個季度，團隊採取了正確的措施來降低成本，並出色地將部門息稅前利潤率推回了15%左右。整體而言，測試業務已經企穩，我們對未來的發展軌跡充滿信心。

Overall, we are optimistic about our market positions across each of our segments and expect to outperform industry growth. Accordingly, we are again raising our full-year guidance, which reflects over 20% adjusted EPS growth compared to the prior year. With that, I'll turn it over to Chris to run you through the financial details of the quarter.

整體而言，我們對各細分市場的市場地位持樂觀態度，並預期業績將超越產業成長。因此，我們再次上調了全年業績指引，這反映了調整後每股收益較上年增長超過20%。接下來，我將請Chris為您詳細介紹本季的財務數據。

Thanks, Brian. Everyone can follow along on the chart presentation. We will start on page 3, which shows the financial highlights for the quarter. Before jumping into the numbers, I do want to point out that we are looking at everything on a continuing operations basis. Now that VACCO has been sold, it has been classified as a discontinued operation in our financial statements. So the commentary will exclude any P&L impacts for discontinued operations.

謝謝，Brian。大家可以跟著圖表一起看。我們將從第3頁開始，該頁展示了本季的財務亮點。在深入探討數字之前，我想指出的是，我們所有數據都是基於持續經營業務。由於VACCO已出售，它在我們的財務報表中被列為已終止經營業務。因此，本評論將排除已終止經營業務對損益的影響。

Now turning to the numbers, you can see that by all measures ESCO delivered a great quarter. Orders showed a significant increase in the quarter. We will go through segment details coming up, but a big driver of the reported increase relates to the acquired backlog at Maritime.

現在來看看數據，從各方面來看，ESCO 都表現出色。本季訂單量顯著成長。我們稍後會詳細介紹各部門的具體情況，但報告顯示成長的一個重要驅動因素是收購 Maritime 的積壓訂單。

Excluding that, we still had good orders performance with a 1.3 book-to-bill ratio. We ended Q3 with backlog of nearly $1.2 billion, a new record for ESCO. Sales performance was also strong with growth in the quarter of nearly 27% on a reported basis and 11% on an organic basis, which excludes the impact of the Maritime acquisition.

即便如此，我們的訂單表現依然良好，訂單出貨比達到1.3。第三季末，我們的訂單積壓額接近12億美元，創下了ESCO的新紀錄。銷售業績同樣強勁，本季報告顯示成長近27%，扣除收購Maritime的影響，有機成長11%。

Adjusted EBIT margins increased from 19.3% last year to 21.1% in this year's third quarter. Lastly, adjusted earnings per share increased by 25% to $1.06 per share. I would also point out on the bottom right of the chart that we did have a sizable amount of add-backs for adjusted earnings. This was driven by the Maritime acquisition where we had significant costs related to closing of the deal, as well as inventory step-up charges, stamp duties in the UK, and an increase in acquisition-related amortization.

調整後息稅前利潤率從去年的19.3%上升至今年第三季的21.1%。最後，調整後每股盈餘成長25%，達到每股1.06美元。我還想指出，在圖表右下角，我們確實有相當數量的調整後收益加回。這是由於收購Maritime公司所致，我們在交易完成過程中產生了巨額成本，此外還有庫存增值費、英國印花稅以及收購相關攤銷的增加。

Next we'll go through the segment highlights, starting with Aerospace and Defense. Orders increased significantly, but you can see that $364 million of this related to the backlog acquired at Maritime. Beyond that, Maritime delivered another $50 million of orders in the two months they were owned by ESCO. On an organic basis, orders were also quite strong with Globe receiving large Virginia and Columbia Class orders. Backlog for A&D finished at $832 million.

接下來我們將回顧各細分市場的亮點，首先是航空航太和國防。訂單大幅增長，但您可以看到其中3.64億美元與海事公司獲得的積壓訂單有關。除此之外，海事公司在被ESCO收購的兩個月內又交付了5,000萬美元的訂單。從有機成長來看，訂單成長也相當強勁，環球公司獲得了大量「維吉尼亞」級和「哥倫比亞」級訂單。航空航太和國防業務的積壓訂單最終達到8.32億美元。

From a sales perspective, growth was up 56% on a reported basis and 14% organically. You can see the Maritime impact was significant, but the core business also performed very well. This translated nicely to margins, which increased over 500 basis points with positive contributions from across this set of businesses. The margin increase was due to favorable impacts from price, mix, and leverage on the growth.

從銷售額來看，報告期間內成長56%，有機成長14%。可以看出，海事業務的影響顯著，但核心業務也表現優異。這很好地轉化為利潤率，利潤率成長超過500個基點，這得益於各項業務的積極貢獻。利潤率的成長得益於價格、產品組合和槓桿對成長的正面影響。

Moving on to chart 5, we have the Utility Solutions Group. Orders momentum remained healthy with growth of 5.5% in the quarter. This was driven by Doble, where orders increased nearly 7% while NRG orders in the quarter were flat.

繼續看圖5，我們來看看公用事業解決方案集團。訂單動能保持良好，本季成長5.5%。這主要得益於Doble的訂單成長近7%，而NRG的訂單在本季持平。

On the sales side, growth was a bit more muted with only 2% growth. This lower growth was also driven by Doble, where timing of shipments resulted in lower revenue growth in the third quarter. We see this as a temporary issue and expect a return to higher growth in the fourth quarter.

銷售方面，成長略顯平淡，僅2%。成長放緩也受到Doble的影響，該公司第三季的出貨時機不佳導致營收成長放緩。我們認為這只是暫時問題，預計第四季將恢復更高的成長。

As you can see on the chart, backlogs are healthy and have increased nearly 15% compared to prior year end. On the margin front, the story is similar to sales with the margin drop in the quarter driven by Doble. On a year-to-date basis, the Utility Solutions Group has delivered adjusted EBIT margins that are 130 basis points ahead of last year's first nine months. So while we have seen some weakness from NRG in the year, the Doble performance has been strong and we feel good about the full-year outlook there.

從圖表中可以看出，積壓訂單狀況良好，較前一年末增加了近15%。利潤率方面，情況與銷售額類似，本季利潤率下降主要受Doble業務的影響。年初至今，公用事業解決方案集團的調整後息稅前利潤率較去年前九個月高出130個基點。因此，儘管我們看到NRG今年表現略有疲軟，但Doble的表現強勁，我們對全年前景充滿信心。

Next, we'll cover Test, where the team delivered another strong quarter. Starting with orders where we did see a decline of nearly 6% in the quarter. We had some tough comparisons to last year, but honestly feel good about where the business is trending. Year-to-date orders are up over 30%, and you can see that backlogs are up nearly 24% compared to year end. So the momentum here has been strong during 2025.

接下來我們將介紹測試團隊，該團隊在本季又取得了強勁的業績。首先是訂單量，本季訂單量下降了近6%。與去年相比，我們進行了一些艱難的比較，但坦白說，我們對業務的趨勢感到樂觀。年初至今的訂單量增加了30%以上，可以看到，積壓訂單量與年底相比增加了近24%。因此，2025年這方面的動能將保持強勁。

Sales were very good with a 20.7% increase which drove adjusted EBIT to increase by 15.4%. Margins here were down slightly as we've experienced unfavorable mix and some tariff impacts. Year-to-date margins are up 140 basis points, so 2025 has been a positive step for this business after a couple of tough years in '23 and '24.

銷售額表現優異，成長20.7%，推動調整後息稅前利潤成長15.4%。由於產品組合不利以及部分關稅的影響，利潤率略有下降。年初至今，利潤率已上升140個基點，因此在經歷了2023年和2024年的艱難時期後，2025年對該公司而言是一個積極的進步。

Moving to chart number 7, we have year-to-date P&L highlights. As you can see, the results have been terrific through the first nine months of 2025. Brian mentioned all the portfolio work earlier, which is very important.

轉到圖表7，我們可以看到年初至今的損益亮點。如您所見，2025年前九個月的業績非常出色。 Brian之前提到了所有投資組合的工作，這非常重要。

This chart shows that the core company has continued to deliver, and we are now starting to see the impacts of the Maritime deal come through. Orders have been great. If you take out the Maritime backlog impact, we have growth of 17%. The sales story is also quite positive, with A&D at 12% organically and nearly 28% when Maritime is added in. Test sales are up 15% while the USG growth is a bit more modest at 4% due to weakness for NRG so far this year. Earnings are up double digits, with adjusted EBIT margins increasing by 200 basis points, and all three segments posting nice margin improvement over the first three quarters of the year. Finally, adjusted earnings per share is up over 24%. So by any measure, the company has performed very well year-to-date in 2025.

這張圖表顯示，核心公司持續交付，我們現在開始看到海事交易的影響顯現。訂單量很大。如果剔除海事積壓訂單的影響，我們的成長率為17%。銷售情況也相當樂觀，航空和國防業務的有機成長率為12%，加上海事業務後則接近28%。測試銷售額成長了15%，而美國政府部門的成長率略低，僅4%，因為今年迄今NRG表現疲軟。收益實現了兩位數成長，調整後的息稅前利潤率成長了200個基點，三個部門的利潤率在今年前三個季度均有顯著提升。最後，調整後每股收益成長超過24%。因此，無論以何種標準衡量，該公司2025年迄今的表現都非常出色。

Next is chart 8, where we have cash flow highlights. The first nine months of fiscal 2025 delivered strong operating cash flow results as working capital performance has been favorable compared to the first nine months of 2024. This is true for continuing operations, and it should be noted that the cash flow for discontinued operations was also quite strong through the first nine months of fiscal 2025.

接下來是圖8，其中列出了現金流亮點。 2025財年前九個月的營運現金流表現強勁，因為營運資本表現與2024年前九個月相較為良好。持續經營業務的情況也是如此，值得注意的是，2025財年前九個月，非持續經營業務的現金流也相當強勁。

Capital spending is up for the first nine months due to various programs in the A&D and Utility businesses. Our strong cash generation and the delay in getting the Maritime deal closed means that our leverage position is in good shape as of June 30 at 1.74 times. With the VACCO divestiture getting finalized in July, we expect to have the balance sheet in great shape as we close out the year.

由於航空航太與國防業務和公用事業業務的各項計劃，前九個月的資本支出有所增加。我們強勁的現金產生能力以及海事交易的延遲完成，使得我們的槓桿率截至6月30日處於良好狀態，為1.74倍。隨著VACCO資產剝離將於7月完成，我們預計在年底時資產負債表將保持良好狀態。

Last we'll discuss updated guidance for the year, which is covered on chart 9 and 10. Chart 9 is the words that go with chart 10, so I'll just talk to slide 10 here. Fundamentally, the guide represents another increase for us.

最後，我們將討論今年的最新業績指引，詳見圖9和圖10。圖9的內容與圖10相符，所以我只討論圖10。從根本上講，這份指引代表著我們的另一個成長。

You'll remember that last quarter we still had VACCO in the guidance and we had included estimates for Maritime as well. Now we need to remove VACCO as that deal has now closed. That reduces sales projections by approximately $125 million and adjusted EPS comes down by approximately $0.50. For the continuing operations, we are increasing the guide for the year.

大家應該還記得，上個季度我們的業績指引中仍然包含VACCO，並且還包含了海事業務的估值。現在我們需要移除VACCO，因為該交易已經完成。這意味著銷售額預測將減少約1.25億美元，調整後每股盈餘將下降約0.50美元。對於持續經營業務，我們將上調全年業績指引。

On the sales side, we're coming up by $20 million at both the low end and the high end of the range. For adjusted earnings per share, we are tightening the range with only one quarter to go. So the bottom of the range is coming up by $0.40 and the high end is coming up by $0.25. This adjusted EPS range represents 21% to 24% growth compared to prior years.

銷售額方面，我們的預期區間下限和上限均上漲了2000萬美元。調整後每股盈餘方面，我們僅剩一個季度的時間，正在縮減區間。因此，區間下限上漲0.40美元，上限上漲0.25美元。調整後的每股盈餘區間與前幾年相比成長了21%至24%。

The additional sales is delivering nicely to the bottom line, and while we are seeing some tariff impact in the numbers, it is at the low end of our ranges that have been guided previously. So obviously it is shaping up to be another record year at ESCO, and we are excited to share this updated outlook with you today. That concludes the financial portion of the call, and now I'll turn it back over to Brian.

新增銷售額對公司獲利產生了良好的影響。雖然我們看到一些關稅因素對業績產生了一定影響，但目前仍處於我們之前預期區間的低端。因此，ESCO 顯然有望再創歷史新高，今天我們很高興與大家分享最新的展望。這次電話會議的財務部分到此結束，現在我將把時間交還給 Brian。

As you heard, the first nine months of our year have gone really well, and we're excited about our ability to increase our full-year outlook, and we're excited about the portfolio moves that I discussed earlier. ESCO's future remains bright, and we continue to see a path for value creation and enhancement as we move forward.

正如各位所知，我們今年前九個月的業績表現非常出色，我們對能夠提升全年業績預期感到興奮，也對我之前提到的投資組合調整感到興奮。 ESCO 的未來仍然光明，我們將繼續看到一條創造和提升價值的道路。

We just wrapped up our Board meetings earlier this week, which gave us a chance to visit our Morgan Schaffer operation, which is part of Doble and the USG. This business is located in Montreal and was an ESCO acquisition in 2017 that's focused on condition monitoring of transformers.

我們本週早些時候剛結束董事會會議，這讓我們有機會參觀了摩根謝弗公司（Morgan Schaffer）的業務，該公司隸屬於Doble和USG。該公司位於蒙特利爾，是ESCO於2017年收購的，專注於變壓器的狀態監控。

It was a really great session with our Board and an opportunity for us to show them the exciting things going on at ESCO, where we're developing exciting technologies on a regular basis that are being deployed to help customers solve real-world problems.

這是與董事會進行的一次非常棒的會議，也是我們向他們展示 ESCO 正在發生的令人興奮的事情的機會，我們正在定期開發令人興奮的技術，這些技術正在部署來幫助客戶解決現實世界的問題。

We thank the Board for their ongoing support, and we're excited about the many things going on across the ESCO set of businesses. With that, I think we're done and we can turn it over for the Q&A.

我們感謝董事會一直以來的支持，並對ESCO業務的各項進展感到興奮。我想我們的討論到此結束，可以進入問答環節了。

(Operator Instructions) Tommy Mall, Stephens.

（操作員指示）湯米·馬爾，史蒂芬斯。

Good afternoon and thanks for taking my questions. Brian, I wanted to start on the A&D orders, in particular for Globe, where you reported some pretty big orders in the quarter. Any update on shipset content. I'm guessing probably nothing changed versus what you've communicated previously. And anything you can tell us just about how that has progressed through the order pipeline. I know you don't want to get in the business of guiding future orders but just give us some sense of where some of the discussions are for those Virginia and Columbia Class subs.

下午好，感謝您回答我的問題。 Brian，我想先談談A&D訂單，特別是Globe的訂單，你們報告了本季的一些相當大的訂單。關於船舶配置方面有什麼更新嗎？我猜和您之前溝通的內容相比，可能沒有什麼變化。您能否告訴我們訂單流程的進度？我知道您不想介入指導未來訂單的事情，但請您介紹一下弗吉尼亞級和哥倫比亞級潛艇的一些談判進展。

Yeah, I would say no big change from what we have communicated before on the Globe side. We, obviously we have some additional content for Virginia Class and Columbia Class that comes through on the Maritime side. I don't think we're quite in a position yet to communicate that in details, and I'll ask for a little bit of patience as we kind of work through our FY26 planning process. So we'll be in a position to communicate that kind of detail in the future, but I'm not sure we're quite ready for that today.

是的，我認為與我們之前在環球造船方面溝通的內容相比，沒有什麼重大的變化。當然，我們有一些關於弗吉尼亞級和哥倫比亞級的額外內容，這些內容來自海事造船方面。我認為我們目前還無法詳細溝通這些內容，我希望大家能耐心等待，因為我們正在推動2026財年的規劃流程。所以我們將來會溝通這些細節，但我不確定我們現在是否已經做好準備。

Sure, on sticking with A&D here. I'll ask the question on an organic basis so we can think about this ex-Maritime, ex the VACCO noise. The margin progression, even peering through both of those changes, looks pretty solid here. And so you called out several of the factors, specifically the one on price/cost. I'm just curious for an update there and versus what you would have hoped for some of the incremental margins flowing through. How did the quarter shape up and how do you feel going forward?

當然，我還是繼續討論A&D。我會自然而然地提出這個問題，這樣我們就可以考慮除Maritime和VACCO之外的情況。即使考慮到這兩項變化，利潤率的成長看起來也相當穩健。所以你提到了幾個因素，特別是價格/成本因素。我只是想知道這方面的最新情況，以及與你預期的一些增量利潤率相比的情況。本季的情況如何？你對未來有什麼看法？

Yeah, Tommy, this is Chris. I would say the margins there in the core company were really phenomenal, really good flow-through on kind of the underlying sales growth. I would kind of point out the price first. We're seeing some real good. Mostly on the aircraft component side, we're seeing some very nice price flow-through. Those are efforts that are kind of always ongoing in that business, but sometimes there can be a lag before some of that price flows through just based on working through LTAs and things like that.

是的，Tommy，我是Chris。我想說的是，核心公司的利潤率非常驚人，在基礎銷售成長的基礎上，實現了非常好的流通。我想先說一下價格。我們看到了一些非常好的利好。主要是在飛機零件方面，我們看到了一些非常好的價格流通。這些努力在該業務中一直持續進行，但有時，由於長期協議之類的原因，部分價格的流通可能會出現滯後。

So we're really seeing some good flow-through there. So that's certainly kind of the top driver. I would say on the material side, we're frankly in pretty good shape. Generally, the material inflation has probably been a little bit better than what we expected coming into the year. So we've got the price, good guy, and we've got less of a material headwind. And so that's been a pretty good equation for us so far this year.

所以我們確實看到了一些好的資金流動。這無疑是最重要的驅動力。我想說，在原料方面，坦白說，我們的狀況相當不錯。總體而言，原物料通膨可能比我們今年預期的要好一些。所以我們的價格穩定，原料方面的阻力也較小。所以，今年到目前為止，這對我們來說是一個相當不錯的平衡。

And then the other things I would point to there, we did see some good mix in the quarter. Mix can kind of move you around a little bit quarter to quarter. It was favorable this quarter, so that was another kind of boost. So you won't see that every quarter necessarily, but it came through nicely.

然後我想指出的是，我們在本季確實看到了一些不錯的產品組合。產品組合可能會對季度業績產生一定的影響。本季的產品組合表現良好，這又是一種推動。雖然不一定每季都能看到這種成長，但整體來說效果不錯。

And then again, with a good double-digit kind of underlying growth, we had nice leverage on the sales as well. So I would point to all those things as kind of key drivers for us here in the quarter.

而且，憑藉良好的兩位數潛在成長，我們在銷售方面也擁有良好的槓桿作用。所以，我認為所有這些都是我們本季業績的關鍵驅動力。

Yeah. I think we're getting a little bit of traction from some of the early stages of our ESCO Operating System implementation as well, and that's really coming through in the A&D numbers for sure.

是的。我認為我們在ESCO作業系統實施的一些早期階段也取得了一些進展，這在A&D的數據中確實有所體現。

A little bit might be an understatement, but we'll settle that later. And I'll turn it back for now.

說「有一點」可能有點輕描淡寫，但我們以後再說。現在我先把它翻回去。

Jon Tanwanteng, CJS.

Jon Tanwanteng，CJS。

Hi guys, thanks for taking the questions. I was wondering if you could talk about the increase in the outlook, maybe what businesses and product lines that's coming from. It looks like a pretty small increase in revenue, but quite a big increase in the earnings. I was wondering if you could dig a little deeper into that and just tell us where that's all sourcing.

大家好，感謝您回答問題。我想請您談談前景的成長，例如哪些業務和產品線的成長。看起來營收成長幅度不大，但獲利成長卻相當可觀。您能否更深入地談談，並告訴我們這些成長的來源。

Sure, so I would say that on the revenue side, we're frankly getting pretty big increases as we've moved through the year from Test, so that business has kind of outperformed. So we're seeing that come through. I would say on the A&D side, we're also getting a little bit of incremental volume, which is helping obviously. And then those are kind of offsetting the NRG business and Utility where we've seen a little bit of a takedown there as we move through the year just because of some of the kind of uncertainty in the renewables market that you heard Brian talk about earlier.

當然，我想說的是，就收入而言，坦白說，從測試業務開始，我們今年的收入確實大幅增長，所以這項業務的表現可以說是相當出色。我們看到了這種成長的跡象。我想說，在航空航太和國防業務方面，我們的銷量也略有成長，這顯然有所幫助。這些收入在一定程度上抵消了NRG業務和公用事業業務的銷售額。由於您之前聽到Brian提到的再生能源市場的一些不確定性，我們今年看到了這兩個業務的下滑。

So those are the sales impacts. I would say you're seeing that flow through at a reasonable rate, let's say around 30% or so. We've also got -- I mentioned the tariffs would kind of be at the low end of the range we talked about last quarter. So we said two to four last quarter as a tariff impact.

這些就是對銷售的影響。我想說，你看到的是，這些影響的轉換率是合理的，大概在30%左右。我們也提到了——我提到關稅的影響大概會處於我們上個季度討論的區間的低端。所以我們上個季度說關稅的影響是2到4%。

We're really going to be more like 2 -- maybe even slightly below 2. So a little bit of a pickup there. And then I would also point out that with the VACCO closure, we've got some pretty big proceeds here in July from that that helped the interest in the fourth quarter. So that's kind of flowing through as well. So all of those things are what are getting you to kind of that lift you see in the press release there.

我們的業績實際上會更接近2—甚至可能略低於2。所以說，這方面略有回升。然後我還要指出的是，隨著VACCO的關閉，我們在7月獲得了相當可觀的收益，這有助於提升第四季的利息。所以，這部分收益也算是流入了市場。所以，所有這些因素都是你在新聞稿中看到的那種提振因素。

Got it. That's very helpful. And then just for modeling purposes, how should we think about the impact of VACCO in '26 as you lap the sale?

明白了。這很有幫助。然後，出於建模的目的，我們應該如何看待VACCO在2026年銷售業績的影響？

Well, listen, I mean, I would say that if you kind of look through what we're going to file in the numbers now, you'll see VACCO kind of comes out and goes to discontinued operations. So you're going to have kind of the company there in the A&D results without VACCO in it and then it just becomes a picture of kind of how do you think about the growth for '26 and beyond.

嗯，聽著，我的意思是，如果你仔細看看我們現在要提交的數據，你會發現VACCO被剔除了，並被列入了停止營運業務。所以，在A&D的業績中，你會看到沒有VACCO的那家公司，然後你會看到一幅圖景，你如何看待2026年及以後的成長。

And I think there, John, we've kind of talked a lot about kind of the Navy dynamics being strong, kind of high single digits, similar for aircraft components, and then you're going to have the partial year to full year impact for Maritime since we only had five months this year.

約翰，我認為我們已經討論了很多關於海軍動態強勁、高個位數增長的情況，與飛機零件類似，然後你將對海事產生部分年度到全年的影響，因為今年我們只有五個月。

So all those things, we think contribute to a pretty nice outlook for '26. We're not really in a position to kind of give specific guidance around that, but I think where we sit today, honestly we feel really good about how we're looking going forward.

所以，我們認為所有這些因素都為2026年的前景帶來了相當不錯的預期。我們目前無法給出具體的指引，但我認為，就目前的情況來看，我們對未來的展望確實非常樂觀。

Okay, understood. The last one for me, just on the naval side, you obviously are showing strong orders. I was wondering if the pace of deliveries is going to stay relatively constant or if you're seeing a pickup there either near term or long term as the Navy tries to increase the load of all these things.

好的，明白了。最後一個問題，就海軍方面而言，你們的訂單量顯然很大。我想知道，隨著海軍試圖增加所有這些設備的負載，交付速度是否會保持相對穩定，還是在短期或長期內會回升。

Well, I think that we believe that it will increase. I think that it's a little hard to answer the question because, as you model our numbers, you've got to mix both the Globe, all of our existing Navy business along with the Maritime side.

嗯，我認為我們相信它會成長。我覺得這個問題有點難回答，因為在建模時，你必須把環球公司、我們現有的所有海軍業務以及海事業務都考慮進去。

I think the other thing that you're going to need to start thinking about more is happening over in the UK in addition to what's happening in the US. So I do think the pace is going to pick up a little bit. We'll be able to provide a better guide on that when we come together in November for the full '26. But listen, we're very upbeat about the Navy progression and what it means for our business.

我認為除了美國的情況之外，你還需要更多地考慮英國的情況。所以我認為進度會稍微加快一些。到11月我們開會討論2026年全年計畫時，我們才能提供更好的指導。不過，聽著，我們對海軍的進展以及這對我們業務的意義非常樂觀。

Great. Thank you.

太好了，謝謝。

(Operator Instructions) Tommy Mall, Stephens.

（操作員指示）湯米·馬爾，史蒂芬斯。

Had a few more. I was hoping we could get through today. On the guidance you provided for earnings per share, Chris, I heard you say that interest is probably a good guy for Q4 just because of the timing of VACCO, a good guy versus what you would have guided to previously.

還有幾個問題。我希望我們今天能談完。克里斯，關於你提供的每股盈餘指引，我聽到你說利息對第四季來說可能是一個好兆頭，因為VACCO的時機很好，與你之前的指引相比，這是一個好兆頭。

But I'm just putting everything together. It does look like the range you provided is $0.25 to $0.40 increase for the year does assume a better Q4 operationally than what you would have communicated previously. I just want to make sure I'm reading that correctly because there's a lot going on this quarter.

但我只是把所有資訊匯總起來。您提供的全年利潤增長 0.25 美元到 0.40 美元的範圍確實假設了第四季度的運營情況會比您之前傳達的更好。我只是想確保我的理解沒有錯誤，因為本季有很多事情要做。

Yeah, that's correct. I would say that the fourth quarter has come up from what we communicated last time. Again, I think obviously we're three months along the road. We had a solid third quarter, as you see, and so the fourth quarter is absolutely higher than what we had baked in last time.

是的，沒錯。我想說的是，第四季的業績比我們上次溝通的要好。再說一次，我認為我們已經走了三個月的路了。如你所見，我們的第三季業績表現穩健，所以第四季的業績絕對高於我們上次預測的水平。

Thank you. Also I wanted to ask on the USG margins. If it's possible to look just at Doble, can you comment on how the margins progressed year over year there? And if it wasn't, what you would hope, maybe what some of the drivers were.

謝謝。另外，我想問美國政府（USG）的利潤率。如果可以只看Doble，您能否評論一下該公司利潤率的逐年成長？如果沒有，您希望看到什麼成長，或許可以解釋一下其中的一些驅動因素。

Yeah, listen, I would say that honestly, the margins in the first and second quarter were probably ahead of where we would have anticipated. So we had really good kind of flow-through and mix in the first six months. And so that's why we're trying to kind of not overreact to the third quarter.

是的，說實話，第一季和第二季的利潤率可能超出了我們的預期。所以，我們在前六個月的發行和產品組合確實很好。所以我們盡量避免對第三季反應過度。

I would say that certainly it was below kind of what we anticipated when the quarter started, but a lot of that was a little bit of sales miss. And I kind of alluded to the timing of some sales here in the third quarter. As we closed out the quarter, we just didn't have some things that we anticipated getting out the door and such.

我想說的是，它確實低於我們季度初的預期，但很大程度上是因為銷售額略有下降。我之前提到了第三季一些銷售的時機。季度末的時候，我們確實沒有如預期完成一些事情。

So we had a little bit less sales, and so we lost the flow-through from that. I think had we gotten that. We'd be right kind of where we needed to be. So I would not say that we're concerned or disappointed with the Q3 margins.

所以我們的銷售額略有下降，也因此失去了相對應的流水。我想如果我們能做到這一點，我們就能達到預期的目標。所以我不會說我們對第三季的利潤率感到擔憂或失望。

I mean, I guess I'm sure we'd always like a little bit more, but I think how the business has trended for the first nine months is honestly quite positive, and we feel like the momentum and the factors that Brian talked about that are kind of driving the market there, we think those are all still in place. But certainly as we go quarter to quarter, we're going to see some ups and downs.

我的意思是，我確信我們總是希望業績能再好一點，但我認為前九個月的業務趨勢確實相當積極，而且我們感覺布萊恩提到的那些推動市場發展的勢頭和因素，我們認為這些因素仍然存在。但隨著季度的推移，我們肯定會看到一些起伏。

And I think -- so we're a little shaky there on the utility side, but the A&D folks had a great quarter from a margin perspective. And what I would say, Tommy, is in our model you're going to see some of that, right? So next quarter, we might see the A&D margins not quite so strong, but then the pickup in utilities. So we're going to have those kind of puts and takes a little bit quarter to quarter. But generally long-term picture still looks very good.

我認為——我們在公用事業方面表現有些不穩定，但從利潤率的角度來看，A&D 部門本季表現不錯。 Tommy，我想說的是，在我們的模型中，你會看到一些這樣的情況，對吧？所以下個季度，我們可能會看到 A&D 部門的利潤率不那麼強勁，但公用事業部門的利潤率會回升。所以我們每季都會有一些類似的看跌期權和看漲期權。但總體而言，長期前景仍然非常好。

Yeah, and I'd point out that the orders for Doble were very strong in the quarter. And that points to better things in the next quarter or two as we move forward.

是的，我想指出的是，Doble 本季的訂單非常強勁。這預示著未來一兩個季度的情況會更好。

Last question and then I'll turn it back for good today. Brian, in the news recently there was reference of a treaty between Britain and the Aussies on nuclear subs. I realize that it may take some time before Maritime sees any benefit here, but if there's anything you can do to frame for us on the outside, how impactful that could be or just any observations you had would be appreciated. Thank you.

最後一個問題，然後我今天就把它徹底交還。布萊恩，最近的新聞提到了英國和澳洲之間關於核潛艇的條約。我知道海事部門可能還需要一段時間才能看到任何好處，但如果您能從外部為我們闡述一下，看看這會有多大的影響，或者您有什麼觀察，我們將不勝感激。謝謝。

Yeah, listen, I think every step in that direction is a positive, not just for our business, but probably for the mutual defense for the English-speaking world. I think you're aware that there's a review going on in the Defense Department right now of the AUKUS program. That's kind of limited to what happens in the 2030s with regard to earlier generation Virginia Class submarines that are currently slated to be sold.

是的，聽著，我認為朝這個方向邁出的每一步都是積極的，不僅對我們的業務有利，而且可能對英語世界的共同防禦也有利。我想你知道國防部目前正在對AUKUS計畫進行審查。這在某種程度上僅限於2030年代針對目前計劃出售的上一代弗吉尼亞級潛艇的評估。

We don't think that there's a lot to that. We think that the decision on whether the US will follow through on those sales, that's a decision that could be made several years from now. But I think that the thing we believe about that is it just increases our conviction that the investments we've made in the Royal Navy and the shipbuilding in the UK, that those investments are going to pay off. And if anything, our belief is that they may pay off sooner.

我們認為這沒什麼大不了的。我們認為，美國是否會履行這些軍售協議，可能要幾年後才能做出決定。但我認為，我們對此的信念只會增強我們的信心，讓我們更加堅信，我們對皇家海軍和英國造船業的投資將會獲得回報。而且，我們相信，這些投資可能會更快獲得回報。

Now I'd be clear to say that the AUKUS program envisions things that are going to happen in the 8, 10, 12 years from now. So that's a little bit outside of our planning horizon, but it does bolster the commitment that we would see from the shipbuilders in the UK to follow through on some of the orders and revenue that we anticipate in the next three to five years.

現在我可以明確地說，AUKUS 計畫設想的是未來 8 年、10 年、12 年將要發生的事情。這略微超出了我們的規劃範圍，但它確實增強了英國造船廠的決心，讓我們看到他們在未來三到五年內完成我們預期的部分訂單和收入。

Thank you, Brian. I'll turn it back. Appreciate the time.

謝謝你，布萊恩。我會把它退回去。謝謝你的時間。

Thank you. I'm showing no further questions at this time. I would now like to turn it back over to Brian for any closing remarks.

謝謝。目前我沒有其他問題。現在我想把發言時間交還給Brian，請他做最後總結。

Well, thanks for taking some time to hear from us today. We're excited that we've been able to complete these large portfolio moves. And I think we're even more excited that the underlying performance of the core business has been really strong. And so we really look forward to the things that are that are in our future, and we look forward to talking to you again next quarter.

好的，感謝您今天抽空聽我們分享。我們很高興能夠完成這些大規模的投資組合調整。更讓我們興奮的是，核心業務的基本表現非常強勁。因此，我們非常期待未來的發展，並期待下個季度再次與您溝通。

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

感謝您參加今天的會議。今天的節目到此結束。您可以斷開連線了。