Elbit Systems Ltd (ESLT) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Elbit Systems second-quarter 2024 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們先生們，謝謝你們的支持。歡迎參加埃爾比特系統 2024 年第二季業績電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to hand over the call to David Ravia, Elbit Systems' Investor Relations Director. David, please go ahead.

我現在想將電話轉交給埃爾比特系統公司投資者關係總監 David Ravia。大衛，請繼續。

Thank you, Operator. Good day, everyone. And welcome to our second quarter 2024 earnings call. On the call with me today are Butzi Machlis, our President and CEO; and Kobi Kagan, our CFO.

謝謝你，接線生。大家好。歡迎參加我們的 2024 年第二季財報電話會議。今天與我通話的是我們的總裁兼執行長 Butzi Machlis；和我們的財務長 Kobi Kagan。

Before we begin, I would like to point out that the Safe Harbor statement and the company's press release issued earlier today also refers to the contents of this conference call. As we do every quarter, we will provide you with both our regular GAAP financial data and certain supplemental non-GAAP information. We believe that this non-GAAP information provides additional details to help understand the performance of our business.

在開始之前，我想指出，今天早些時候發布的安全港聲明和公司新聞稿也引用了本次電話會議的內容。正如我們每季所做的那樣，我們將為您提供常規 GAAP 財務數據和某些補充非 GAAP 資訊。我們相信，這些非公認會計準則資訊提供了更多詳細信息，有助於了解我們的業務績效。

You can find all the detailed GAAP financial data, as well as the non-GAAP information and their reconciliation in today's press release. Kobi will begin by providing a discussion of the financial results, followed by Butzi, who will talk about some of the significant events during the quarter and beyond. We will then turn the call over to a Q&A session.

您可以在今天的新聞稿中找到所有詳細的 GAAP 財務數據以及非 GAAP 資訊及其調整表。Kobi 將首先討論財務業績，然後 Butzi 將討論本季及以後的一些重大事件。然後我們會將通話轉入問答環節。

With that, I would like now to turn the call over to Kobi. Kobi, please.

說到這裡，我現在想把電話轉給Kobe。科比，請。

Thank you, David. Hello, everyone, and thank you for joining us today. The second quarter of 2024 yielded positive results driven by 12% year-over-year increase in revenues, additional growth of our backlog that now exceeds $21 billion and improved profitability.

謝謝你，大衛。大家好，感謝您今天加入我們。2024 年第二季取得了正面成果，營收年增 12%，我們的積壓訂單進一步成長（現已超過 210 億美元），獲利能力也有所提高。

I will now highlight and discuss key figures and trends in our financial results. Second quarter revenues reached $1,626 million, compared to $1,454 million in the second quarter of 2023. This reflects 12% growth and is the second quarter in a row in which we have experienced low double-digit revenue growth.

我現在將重點介紹並討論我們財務表現的關鍵數據和趨勢。第二季營收達到 16.26 億美元，而 2023 年第二季營收為 14.54 億美元。這反映了 12% 的成長，並且是我們連續第二季實現兩位數的低收入成長。

In the second quarter of 2024, Europe contributed 29% of revenues, North America 23% of revenues, Asia-Pacific 15% of revenues, and Israel contributed 27% of revenues. It should be noted that our diverse geographic revenue distribution is a very important factor for the long-term sustainability of our business.

2024年第二季度，歐洲貢獻了29%的收入，北美貢獻了23%的收入，亞太地區貢獻了15%的收入，以色列貢獻了27%的收入。應該指出的是，我們多元化的地理收入分佈對於我們業務的長期可持續性是一個非常重要的因素。

Israeli revenues grew from $245 million in the second quarter of 2023 to $444 million in the second quarter of 2024. This growth reflects the increased demand for a growth rate and fast solutions following the breakout of the Swords of Iron War. In addition, we see growth in North America revenues due to the increasing demand for Maritime and Warfighter systems.

以色列的營收從 2023 年第二季的 2.45 億美元成長到 2024 年第二季的 4.44 億美元。這種增長反映了鋼鐵戰爭爆發後對成長率和快速解決方案的需求增加。此外，由於對海事和作戰系統的需求不斷增加，我們看到北美收入的成長。

The non-GAAP gross margin in the second quarter was 24.4%, compared to 26.1% in the second quarter of 2023. GAAP gross margin in the second quarter was 24% of revenues, compared to 25.6% in the second quarter of 2023.

第二季非 GAAP 毛利率為 24.4%，而 2023 年第二季為 26.1%。第二季 GAAP 毛利率佔營收的 24%，而 2023 年第二季為 25.6%。

The second quarter non-GAAP operating income was $130.5 million or 8% of revenues, compared with $116.5 million or 7.9% of revenues in the second quarter of last year. GAAP operating income for the second quarter was $116.5 million or 7.2% of revenues, compared to $101.6 million or 7% of revenues in the second quarter of 2023. This growth in operating income and expansion in operating margin are the result of increased operating expenses efficiency.

第二季非公認會計準則營業收入為 1.305 億美元，佔營收的 8%，而去年第二季為 1.165 億美元，佔營收的 7.9%。第二季 GAAP 營業收入為 1.165 億美元，佔營收的 7.2%，而 2023 年第二季為 1.016 億美元，佔營收的 7%。營業收入的成長和營業利潤率的擴大是營業費用效率提高的結果。

The operating expense breakdown in the second quarter was as follows. Net R&D expenses were $116.8 million or 7.2% of revenues, compared to $93.4 million or 6.4% of revenues in the second quarter of 2023. This increase was due to additional R&D efforts in our Land segment and continuous investment in High Power Laser solutions.

第二季營業費用明細如下。淨研發費用為 1.168 億美元，佔營收的 7.2%，而 2023 年第二季為 9,340 萬美元，佔營收的 6.4%。這一增長歸因於我們陸地部門的額外研發努力以及對高功率雷射解決方案的持續投資。

Marketing and selling expenses were $87.7 million or 5.4% of revenues versus $101.7 million or 7% in the second quarter of 2023. G&A expenses were $68.7 million or 4.2% of revenues, compared to $75.4 million or 5.2% of revenues in the second quarter of 2023.

行銷和銷售費用為 8,770 萬美元，佔收入的 5.4%，而 2023 年第二季為 1.017 億美元，佔收入的 7%。一般及行政費用為 6,870 萬美元，佔營收的 4.2%，而 2023 年第二季為 7,540 萬美元，佔營收的 5.2%。

Financial expenses were $29.1 million in the second quarter of 2024, compared to $32.1 million in the second quarter of 2023. The financial expense amounts reflect the enduring capital monetary policy implemented by Central Banks in the markets in which Elbit operates including the Bank of Israel and United States Federal Reserve in response to rising inflation by retaining interest rates at high level. Additionally, a rapidly growing backlog due to the Swords of Iron War required higher levels of working capital and capital expenditures.

2024 年第二季的財務費用為 2,910 萬美元，而 2023 年第二季的財務費用為 3,210 萬美元。財務費用金額反映了埃爾比特業務所在市場的中央銀行（包括以色列銀行和美國聯邦儲備委員會）為應對通膨上升而將利率維持在高水準而實施的持久資本貨幣政策。此外，由於鋼鐵戰爭造成的積壓迅速增加，需要更高水準的營運資本和資本支出。

We recorded a tax expense of $11.3 million in the second quarter of 2024, compared to $9.2 million in the second quarter of 2023. The effective tax rate in the second quarter of 2024 was 13.2%, compared to 13.6% in the second quarter of 2023.

2024 年第二季我們的稅務支出為 1,130 萬美元，而 2023 年第二季為 920 萬美元。2024年第二季的有效稅率為13.2%，而2023年第二季的有效稅率為13.6%。

Our non-GAAP diluted EPS was $2.08 for the second quarter of 2024, compared to $1.65 in the second quarter of 2023. GAAP diluted EPS was $1.76 for the second quarter of 2024, compared to $1.40 in the second quarter of 2023. We can see a 26% increase in both non-GAAP and GAAP diluted EPS in the second quarter of 2024 compared to the second quarter of 2023. We remain focused on profitability with the aim of achieving additional growth in the next quarter of 2024.

2024 年第二季的非 GAAP 攤薄後每股收益為 2.08 美元，而 2023 年第二季為 1.65 美元。2024 年第二季 GAAP 攤薄後每股收益為 1.76 美元，而 2023 年第二季為 1.40 美元。我們可以看到，與 2023 年第二季相比，2024 年第二季非 GAAP 和 GAAP 攤薄後每股盈餘均成長了 26%。我們仍然關注獲利能力，目標是在 2024 年下一季實現進一步成長。

I will now review the second quarter of 2024 year-over-year performance of our business segments. Note that our segmental disclosure is provided on GAAP basis. Aerospace revenues were almost similar year-over-year with small 1% decrease.

我現在回顧一下我們業務部門的 2024 年第二季年比業績。請注意，我們的分部揭露是根據公認會計原則提供的。航空航太收入比去年同期幾乎相似，僅小幅下降 1%。

C4I and Cyber revenues increased by 11% year-over-year, mainly due to radio system sales. ISTAR and EW revenues increased by 9% year-over-year, mainly due to electronic warfare and electro-optic system sales in Israel and Asia-Pacific. Land revenues increased by 37% year-over-year, mainly due to increase in munition and munition sales in Israel. Elbit Systems of America revenues increased by 11% year-over-year.

C4I 和 Cyber​​ 營收年增 11%，主要得益於無線電系統銷售。ISTAR和EW營收年增9%，主要得益於以色列和亞太地區的電子戰和光電系統銷售。土地收入較去年同期成長37%，主要是由於以色列彈藥和軍火銷售的增加。美國埃爾比特系統公司營收年增 11%。

Our order backlog as of June 30, 2024, reached $21.1 billion, $5 billion higher than our backlog at the end of the second quarter of 2023. Approximately $2.5 billion of this increase came from Israel. In the second quarter of 2024, the company recorded new orders of $2.4 billion, of which $1.1 billion came out from the Israeli market.

截至 2024 年 6 月 30 日，我們的積壓訂單達到 211 億美元，比 2023 年第二季末的積壓訂單高出 50 億美元。其中約 25 億美元來自以色列。2024年第二季度，該公司新訂單24億美元，其中11億美元來自以色列市場。

Approximately 69% of the current backlog is attributable to orders from outside of Israel. Approximately 43% of the current backlog is scheduled to be performed during 2024 and 2025, while the rest is scheduled to be performed during 2026 and after, which demonstrates the potential growth of the company.

目前約 69% 的積壓訂單來自以色列境外的訂單。目前積壓的約43%計劃在2024年和2025年期間執行，其餘計劃在2026年及之後執行，這顯示了公司的潛在成長潛力。

Operating cash flow for the six months ending 30th of June, 2024, was $26 million inflow, compared to $210.7 million outflow for the second period last year for the second period last year -- for the same period last year. We continue to increase inventories to support the increase in backlog. The Board of Directors has declared a dividend of $0.50 per share.

截至 2024 年 6 月 30 日的六個月營運現金流入為 2,600 萬美元，而去年第二期的營運現金流為 2.107 億美元，去年同期為流出 2.107 億美元。我們繼續增加庫存以支持積壓的增加。董事會宣布派發每股 0.50 美元的股息。

I will now turn the call over to Mr. Machlis, Elbit CEO. Butzi, please go first.

現在我將把電話轉給埃爾比特執行長馬赫利斯先生。布茲，請先走。

Thank you, Kobi. I would like to start by expressing our sincere gratitude to all Elbit employees worldwide for their underweighting dedication and commitment to our customers in Israel and abroad. Our workforce deserves special recognition for their extraordinary efforts over the past several months in meeting the urgent needs of the Israeli MoD during the recent conflict and supporting our international customers. I, along with the entire company, wish for the immediate return of all hostages held captive in Gaza. They are in our hearts and minds and we are waiting for their return home.

謝謝你，Kobe。首先，我謹向全球所有埃爾比特員工表達誠摯的謝意，感謝他們對以色列和國外客戶的無私奉獻和承諾。我們的員工在過去幾個月為滿足以色列國防部在最近衝突期間的緊急需求和支持我們的國際客戶所做的非凡努力值得特別認可。我和整個公司希望所有在加薩被扣押的人質立即返回。他們在我們心裡，我們在等他們回家。

In line with the previous quarter, we are pleased to report continued growth in our order backlog, which now exceeded USD21 billion. Revenue increased by approximately 12% and profitability improved.

我們很高興地報告，與上一季一樣，我們的積壓訂單持續成長，目前已超過 210 億美元。收入成長約12%，獲利能力有所改善。

Two key factors have been instrumental to our success. Elbit Systems' extensive geographical footprint across Europe, North America, Asia and Israel, and our portfolio of advanced technological solutions proven effective in the context of rising global defense budgets. Elbit Systems remains committed to expanding its global presence while fulfilling our customer commitments.

有兩個關鍵因素對我們的成功發揮了重要作用。埃爾比特系統公司在歐洲、北美、亞洲和以色列擁有廣泛的地理足跡，我們的先進技術解決方案組合在全球國防預算不斷增長的背景下被證明是有效的。埃爾比特系統公司仍然致力於擴大其全球影響力，同時履行我們對客戶的承諾。

Our company continues to implement its transformation plan, aiming to meet our internal target of USD7 billion revenues, which I believe will be achieved ahead of schedule and our internal target of around 10% operating margin.

我們公司繼續實施轉型計劃，旨在實現收入 70 億美元的內部目標（我相信會提前實現）和營業利潤率 10% 左右的內部目標。

Despite the significant increase in revenues from the Israeli market, the majority of our revenues are generated outside of Israel and our primary focus remains the international market. While supply chain challenges still exist, our diversified supplier base has mitigated their impact. International revenues accounted for 73% of total revenue in the second quarter.

儘管以色列市場的收入大幅增加，但我們的大部分收入都是在以色列境外產生的，我們的主要重點仍然是國際市場。儘管供應鏈挑戰仍然存在，但我們多元化的供應商基礎已經減輕了其影響。國際收入佔第二季總營收的73%。

We were pleased to announce several recent international contract awards that enhance our global presence. Last week, for example, we announced a $270 million contract to supply rocket artillery to an international customer over a four-year period. On April 25, 2024, Elbit America celebrated the delivery of the 3,000 F-35 Helmet Mounted Display System from the company's site in Merrimack, New Hampshire. The F-35 Generation III Helmet Mounted Display System is an advanced helmet-mounted display system.

我們很高興地宣布最近授予的幾項國際合同，這些合同增強了我們的全球影響力。例如，上週我們宣布了一項價值 2.7 億美元的合同，在四年內向國際客戶供應火箭。2024 年 4 月 25 日，埃爾比特美國公司慶祝從公司位於新罕布夏州梅里馬克的工廠交付了 3,000 套 F-35 頭盔式顯示系統。F-35 第三代安全帽顯示系統是一種先進的安全帽顯示系統。

In addition to several contract-winning Israel and the Netherlands, for example, we secured an initial $37 million contract in May 2024 to supply Iron Fist Active Protection System to General Dynamic Ordnance and Tactical System for upgrade the US Army Bradley Vehicle. This 24-month contract offers significant growth potential.

例如，除了幾項贏得合約的以色列和荷蘭之外，我們還於2024 年5 月獲得了一份價值3700 萬美元的初始合同，為通用動態軍械和戰術系統提供鐵拳主動防護系統，以升級美國陸軍布拉德利車輛。這份為期 24 個月的合約提供了巨大的成長潛力。

Furthermore, we recently announced $130 million contract with BAE Systems Hägglunds for Iron Fist Active Protection System integration into the CV90 Infantry Fighting Vehicle as part of a project for European countries marking another strategic partnership. The Iron Fist System provides 360-degree protection against a wide range of anti-armor threats including rocket propellant grenades and kinetic energy tank rounds in both open terrain and urban environments. This advanced technology is the result of substantial R&D investments. The system's growing demand underscores Elbit's leadership position and the market's appetite for innovative solutions.

此外，我們最近還宣布與 BAE Systems Hägglunds 簽訂價值 1.3 億美元的合同，將鐵拳主動防護系統整合到 CV90 步兵戰車中，作為歐洲國家項目的一部分，標誌著另一個戰略合作夥伴關係。鐵拳系統可提供 360 度保護，抵禦各種反裝甲威脅，包括開放地形和城市環境中的火箭推進劑手榴彈和動能坦克砲彈。這項先進技術是大量研發投資的成果。該系統不斷增長的需求凸顯了埃爾比特的領導地位和市場對創新解決方案的需求。

Through the recent conflict, we significantly increased production to meet the IDF's urgent needs while maintaining deliveries to international customers. Our focus is on expanding production capacity to drive revenue growth beyond the increase in petrol costs.

透過最近的衝突，我們大幅增加了產量，以滿足以色列國防軍的緊急需求，同時保持對國際客戶的交付。我們的重點是擴大產能，以推動收入成長，超越汽油成本的成長。

A prime example of our capacity expansion is a recent award of a $300 million contract with the Israeli Ministry of Defense for ammunition supply. This 10-year contract will see the construction of a new manufacturing facility scheduled for completion within two years. Combining the new plant facility and the Ramat Beka facility which is scheduled for completion by the end of this year, our production capabilities will be enhanced and support increased demand for both the Israeli Ministry of Defense and international markets.

我們產能擴張的一個典型例子是最近與以色列國防部簽訂了價值 3 億美元的彈藥供應合約。這份為期 10 年的合約將建造一個新的製造工廠，計劃在兩年內完成。結合新工廠和計劃於今年年底竣工的拉馬特貝卡工廠，我們的生產能力將得到增強，並支持以色列國防部和國際市場不斷增長的需求。

In support of the surge in demand, we are also adding shifts and recruiting hundreds of new employees. On July 29th, Elbit Systems was awarded a contract worth approximately $190 million from the Israeli Ministry of Defense for the supply of Iron Sting Guided Mortar Munition. This two-year contract, which has also international potential, will see the delivery of precision-guided motor ammunition launched from a 120-milimeter motor designed to accurately target and destroy objectives utilizing both immune GPS and laser-guided technology.

為了滿足需求的激增，我們還增加了班次並招募了數百名新員工。7月29日，埃爾比特系統公司獲得以色列國防部價值約1.9億美元的合同，供應「鐵釘」制導迫擊砲彈。這份為期兩年的合約也具有國際潛力，將交付從 120 毫米發動機發射的精確導引機動彈藥，旨在利用免疫 GPS 和雷射導引技術精確瞄準和摧毀目標。

In July 2024, we participated in the Farnborough Airshow in the UK which was very successful. During the show, we demonstrated a wide range of solutions to our international customers and met with many strategic business partners.

2024年7月，我們參加了英國範堡羅航展，非常成功。展會期間，我們向國際客戶展示了廣泛的解決方案，並會見了許多策略性業務合作夥伴。

And with that, I will be happy to take your questions. Operator?

因此，我很樂意回答您的問題。操作員？

Thank you. Ladies and gentlemen, at this time we will begin the question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，現在我們將開始問答環節。（操作員說明）

Pete Skibitski, Alembic Global.

Pete Skibitski，Alembic Global。

Yes, hello. Good afternoon. Nice quarter. First of all, a comment just the backlog growth has been very impressive. It looks like backlog has grown about 40% since the end of 2022 which is just incredible, frankly. I would like to make sure I understand the gross margin dynamics a little bit better. Obviously, we've seen your geographic mix of revenue shift to Israel and it looks like that's over the last three quarters or four quarters that's brought some gross margin compression.

是的，你好。午安.不錯的季度。首先，評論只是積壓的成長非常令人印象深刻。坦白說，自 2022 年底以來，積壓訂單似乎增加了約 40%，這令人難以置信。我想確保我更好地了解毛利率動態。顯然，我們已經看到您的收入地理組合轉移到以色列，看起來在過去的三個季度或四個季度中，這帶來了一些毛利率壓縮。

And I'm just wondering how we should think about the margin dynamics going forward in light of, Butzi, it sounds like you reiterated that 10% operating margin target, which I think for 2026. I'm just wondering in light of the gross margin compression, how you guys attain that 10% target.

我只是想知道我們應該如何考慮未來的利潤率動態，Butzi，聽起來你重申了 10% 的營業利潤率目標，我認為這是 2026 年的目標。我只是想知道鑑於毛利率壓縮，你們如何實現 10% 的目標。

Thank you, Pete. It's Kobi. Actually, we see a $5 billion increase in backlog just over the last year. So that is an incredible increase in our backlog, and of course, with this increase, we also watch the backlog for stability, watch it very carefully. So, as you mentioned, we see a lower GP level, but you see a higher OP level.

謝謝你，皮特。這是科比。事實上，我們發現積壓訂單比去年增加了 50 億美元。因此，我們的積壓工作出現了令人難以置信的成長，當然，隨著這種增加，我們也會密切注意積壓工作的穩定性，並非常仔細地觀察。因此，正如您所提到的，我們看到了較低的 GP 級別，但您看到了較高的 OP 級別。

So with the sales in Israel, we see much lower M&A expenses and the total result, the OP level, is in the same level of the company profitability. So we don't see any issue and we actually now, we believe that we are in a very good position to have the 10% OP profitability non-GAAP in 2026.

因此，透過以色列的銷售，我們看到併購費用要低得多，總結果（OP 水準）與公司獲利能力處於同一水準。因此，我們沒有看到任何問題，實際上，我們現在相信我們處於非常有利的位置，可以在 2026 年實現 10% 的非 GAAP 營運利潤率。

As well, you can see a different OP profitability between the segments and also GP profitability between the segments, we disclosed in the last annual report the segment profitability and you see there the OP profitability which is quite different between the segments and you see there a decline in the profitability in the US which we see now this year a much favorable outcome in the US which supports our prediction of a continuous OP profitability expansion.

此外，您可以看到各個部門之間不同的OP 盈利能力以及各個部門之間的GP 盈利能力，我們在上一份年度報告中披露了部門盈利能力，您可以看到各個部門之間的OP 盈利能力有很大不同，您可以看到美國獲利能力下降，我們今年看到美國獲利能力下降，這支持了我們對OP獲利能力持續擴張的預測。

So the management is closely monitoring this issue of profitability and we are certain that even though the mixed risk was less favorable in GP terms, we can see the continuous growth in meeting the 10% internal target that we believe in.

因此，管理層正在密切關注這一獲利問題，我們確信，儘管混合風險對普通股而言不太有利，但我們可以看到持續成長，以實現我們相信的 10% 內部目標。

Okay. That's very helpful. Yeah. And I didn't know, it looks like SG&A altogether for this quarter was less than 10% for the first time, I don't know, at least in quite a while. And so that's a trend that we should expect will continue so that you can get to your OP target, it sounds like.

好的。這非常有幫助。是的。我不知道，看起來本季的 SG&A 總額首次低於 10%，我不知道，至少在相當長一段時間內是如此。因此，我們應該預期這種趨勢將會持續下去，以便您能夠實現您的 OP 目標，聽起來是這樣。

Thank you. You notice the increased operating expense efficiency that we see very strong in this quarter. A very strong operational efficiency -- which compensated even more than compensated for the decline in the GP profitability.

謝謝。您注意到我們在本季看到營運費用效率的提升非常強勁。非常強勁的營運效率—這甚至超過了普通合夥人獲利能力下降的補償。

Okay. That makes sense. Just last one for me, I noticed cash flow did improve this quarter and really for the first half of 2024 it's much better versus the first half of 2023. Do you think now, do you expect you can be free cash flow positive for 2024 in light of the pretty good start to the year?

好的。這是有道理的。對我來說，最後一個例子是，我注意到本季的現金流確實有所改善，而且實際上 2024 年上半年的現金流比 2023 年上半年要好得多。鑑於今年開局良好，您現在是否認為 2024 年自由現金流可以為正？

So we are very positive on this. I cannot give you a certain answer as of the profitability which we can monitor much closer. It of course depends on the continuous payments from the Ministry of Defense in Israel which paid accurately during the second quarter. So we had a very positive factor of payment from the Ministry of Defense in Israel.

所以我們對此非常積極。至於我們可以更密切監控的獲利能力，我無法給您明確的答案。當然，這取決於以色列國防部在第二季準確支付的持續付款。因此，我們從以色列國防部獲得了非常積極的付款因素。

We cannot guarantee that it's going to continue to the rest of the year and there are many other different variables and moving parts, especially the fact that we need to be ready with inventories to support the growth of the company, expected growth, and again, some issues with our supply chain that are still pushing us for additional inventories that we need to keep. So that is of course keeping the cash, this is of course stressing the cash, but to give you a bottomline we should expect a positive free cash flow for the 2024 year.

我們不能保證這種情況會持續到今年剩餘時間，而且還有許多其他不同的變數和變化因素，特別是我們需要準備好庫存來支持公司的成長、預期的成長，等等。問題仍然促使我們需要保留更多庫存。所以這當然是保留現金，這當然會給現金帶來壓力，但為了給你一個底線，我們應該預期 2024 年會有正的自由現金流。

Hi, Pete. It's good to hear from you. We are working very hard on the cash flow. We understand the importance of cash flow, specifically because of the current interest rate and that's an area of focus for the entire company.

嗨，皮特。很高興收到你的來信。我們在現金流方面非常努力。我們了解現金流的重要性，特別是因為目前的利率，這是整個公司關注的領域。

That's great. Very helpful guys. Thank you.

那太棒了。非常有幫助的人。謝謝。

Thank you. Looking forward to future.

謝謝。展望未來。

Greg Konrad, Jefferies.

格雷格·康拉德，杰弗里斯。

Good afternoon and great quarter. Maybe just sticking to margins for a minute, I mean, you called out the higher R&D in the quarter and the 10% margin target. Any thoughts around how mix evolves over the next couple of years given some of the development work you talked about and what that means for maybe production mix over the next couple of years to kind of get to that 10% target?

下午好，美好的季度。也許只是堅持一下利潤率，我的意思是，你提到了本季更高的研發和 10% 的利潤率目標。鑑於您談到的一些開發工作，您對未來幾年混合如何發展有什麼想法嗎？

So thank you, Greg, for the question. We can see a shift in the company in terms of moving from a project company to more leaning towards product company. So the ratio between project and product is different now with increased level of products. Products, I mean, for instance, the sonar buoys for our business, the maritime business or the night vision business that we have in the US or the ammunition that we're supplying here from Israel.

謝謝格雷格提出的問題。我們可以看到公司從專案公司轉向產品公司的轉變。所以現在隨著產品水準的提高，項目和產品的比例已經不同了。我的意思是產品，例如，我們在美國的業務、海事業務或夜視業務的聲納浮標，或我們從以色列提供的彈藥。

The fact that we see more product mix and a ratio of product mix is higher than we have in the past is very supportive in terms of our profitability. The certainty in products is much higher than the certainty in projects. You don't see the same phenomenon that you see in projects. We are still a project company but the fact that the ratio of products is increasing is very supportive in our profitability target.

事實上，我們看到更多的產品組合以及產品組合的比例高於過去，這對我們的獲利能力非常有支持。產品的確定性遠高於專案的確定性。您不會看到與在專案中看到的相同現象。我們仍然是一家專案公司，但產品比例不斷增加這一事實非常支持我們的獲利目標。

And then maybe just transitioning to Land. I mean, obviously, growth was very impressive in the quarter and has been very impressive the past couple of quarters. I mean, how do you think about the runway there? Are there any near-term capacity constraints just given you called out some of the elements of CapEx and any way to think about the impact of the capacity coming online relative to the overall land business?

然後也許只是過渡到陸地。我的意思是，顯然，本季的成長非常令人印象深刻，過去幾季的成長也非常令人印象深刻。我的意思是，你覺得那裡的跑道怎麼樣？考慮到您剛剛提出了資本支出的一些要素，以及是否有任何方式來考慮上線容量相對於整體土地業務的影響，是否存在任何近期容量限制？

So, as you mentioned, Land segment was very strong this quarter. We saw 37% growth from the same year-over-year, from the same quarter in 2023. And with that, of course, we need additional investments, additional CapEx investment. We are going to inaugurate the new facility in the south of Israel, Ramat Beka, as we call it here, in the end of this year, which actually gives us additional capacity increasing dramatically.

因此，正如您所提到的，本季土地業務非常強勁。與 2023 年同季相比，我們看到年增 37%。當然，我們需要額外的投資，額外的資本支出投資。我們將於今年年底在以色列南部拉馬特貝卡（Ramat Beka）落成新工廠，這實際上使我們的產能大幅增加。

Our capacity increasing efficiency as well with many technologies, robots, car bots and additional production stream which is more modern than our old facilities here in the central of Israel. So that is going to give us a lot of capacity mostly for the Land business, but not just for the Land. We have investments that we were doing here in Israel and around the world. For instance, we inaugurated a new facility for UAVs here in Israel, in a location in Israel.

我們的產能透過許多技術、機器人、汽車機器人和額外的生產線提高了效率，這些生產線比我們在以色列中部的舊設施更加現代化。因此，這將為我們提供大量產能，主要用於土地業務，而不僅僅是土地業務。我們在以色列和世界各地都有投資。例如，我們在以色列的一個地點開設了一個新的無人機設施。

We are growing our capacity in the factories in the US For instance, our Charleston facility in the US is -- actually was inaugurated last year and it's a very big investment and facility and facility. We have also a new facility in Germany and also a new facility in the UK

我們正在提高美國工廠的產能，例如，我們在美國查爾斯頓的工廠實際上於去年落成，這是一項非常大的投資和設施。我們在德國也有一個新工廠，在英國也有一個新工廠

So we keep investing and tightening this hole is more than $150 million investment that we concluded with the new ERP system that was actually most of the company, more than 90% of the company is on the new ERP systems and really without this ERP system and without this investment we couldn't support this double-digit growth that we see now in the company.

因此，我們不斷投資並縮小這個漏洞，我們對新的ERP 系統的投資超過1.5 億美元，這實際上是公司的大部分，超過90% 的公司都在使用新的ERP 系統，但實際上沒有這個ERP 系統，如果沒有這項投資，我們就無法支持公司現在看到的兩位數成長。

And then just last one for me and maybe this is somewhat tied to the last question. You mentioned Charleston, but the Americas really seem to turn in the quarter. It had been somewhat weaker the past couple with a nice uptick in Q2. What's driving the US facing business just given it kind of moved more in line with what we're seeing out of peers domestically? Any particular drivers of that normalization to call out?

然後是我的最後一個問題，也許這與最後一個問題有些關聯。您提到了查爾斯頓，但美洲似乎在本季確實發生了變化。過去幾年的表現有些疲軟，但在第二季有了不錯的上升。鑑於美國業務的發展與我們在國內同行中看到的情況更加一致，是什麼推動了美國業務的發展？這種正常化有什麼特定的驅動因素需要指出嗎？

Hi. Good afternoon. It's Butzi. We see a different picture actually. We see a growth of 10% in the US market. The last quarter our revenues in the US were approximately $370 million in comparison to the previous quarter last year which was about $337 million. So it's a 10% growth in the US market and we have very strong positions in the US market in several domains. We continue to win business and we are confident that our position in the US will continue to grow.

你好。午安.是布齊。實際上我們看到的是不同的景象。我們看到美國市場成長了 10%。上一季我們在美國的營收約為 3.7 億美元，而去年上一季約為 3.37 億美元。美國市場成長了 10%，我們在美國市場的多個領域都擁有非常強大的地位。我們繼續贏得業務，我們有信心我們在美國的地位將繼續成長。

Okay.

好的。

Thank you. I'll leave it at that.

謝謝。我就這樣吧。

Omri Efroni, Oppenheimer.

奧姆裡·埃夫羅尼，奧本海默。

Hi guys and congrats on the great quarter. I was wondering, I have a few questions. My first one is about loitering munitions. I was wondering if Elbit is thinking about entering the loitering munitions segment in a much more aggressive way. We see a lot of demand like companies from AVAV like AeroVironment and their switchblades 300 and 600. I was wondering if Elbit, with all its experience in this segment, have any plans in that area?

大家好，恭喜這個偉大的季度。我想知道，我有幾個問題。我的第一個問題是關於徘徊彈藥的。我想知道埃爾比特是否正在考慮以更積極的方式進入巡飛彈藥領域。我們看到了很多需求，例如 AeroVironment 等 AVAV 公司及其彈簧刀 300 和 600。我想知道埃爾比特在這方面擁有豐富的經驗，是否在該領域有任何計劃？

Hi, Omri. Yeah. Of course, we believe that loitering munitions is an important market for us. We have very strong positions already in this market. We are one of the first companies to introduce a loitering munitions solution to the market and we have many customers who are acquiring the SkyStriker system, which is a loitering -- which is a family of loitering munitions solutions and these systems are already operational with several customers.

嗨，奧姆裡。是的。當然，我們認為巡飛彈藥對我們來說是一個重要的市場。我們在這個市場上已經擁有非常強大的地位。我們是第一批向市場推出巡飛彈藥解決方案的公司之一，我們有許多客戶正在購買 SkyStriker 系統，這是一個巡飛彈藥解決方案系列，這些系統已經在多個系統中運行。

But you are fully right. We are planning to continue to invest in this domain. There are many additional opportunities in this domain. One of them is manned unmanned teaming. Combining several UAVs with one operator supporting with AI the way fighting procedures. That's a segment that we continue to invest in. We are planning to expand the family even more and based on the current positions we have, in the international market, we believe that it's a good opportunity for us.

但你是完全正確的。我們計劃繼續在這個領域進行投資。該領域還有許多其他機會。其中之一是有人無人編隊。將多架無人機與一名操作員結合起來，透過人工智慧支援戰鬥程序。這是我們繼續投資的一個領域。我們計劃進一步擴大家族規模，根據我們目前在國際市場上的地位，我們相信這對我們來說是一個很好的機會。

Okay, great.

好的，太好了。

I also just want to mention that we are fully vertical here. We do everything from the UAVs, from the build, the platform itself, all the communications, all the electro-optics, all the warheads, everything, the price control, everything, the command and control, everything is done internally in the company. So we are fully controlling our destiny. We are fully controlling the cost. It's all in our hands.

我還想提一下，我們這裡是完全垂直的。我們做一切事情，從無人機、建造、平臺本身、所有通訊、所有電光、所有彈頭、一切、價格控制、一切、指揮和控制，一切都是在公司內部完成的。所以我們完全掌控自己的命運。我們正在完全控製成本。一切都在我們手中。

Actually, it's an expansion of other solutions we are providing for these customers.

實際上，這是我們為這些客戶提供的其他解決方案的擴展。

So do you think the time to market is going to be quicker if you want to go to loitering munition in the next two quarters to three quarters? Is it possible to have a new, maybe much more capacity and maybe new products in the following two quarters to three quarters?

那麼，如果您想在未來兩個季度到三個季度內轉向徘徊彈藥，您認為上市時間會更快嗎？在接下來的兩個季度到三個季度內是否有可能擁有新的、可能更多的產能以及新產品？

Yes. I just want to mention that we have delivered already thousands of first SkyStriker systems to many customers. We have several production lines for this and we are ready to support any demand that will come from the market.

是的。我只想提一下，我們已經向許多客戶交付了數千套第一套 SkyStriker 系統。我們為此擁有多條生產線，我們已準備好支援市場的任何需求。

Got it. Thank you. And maybe more questions from me. Maybe you can give some color about the UAV integration center or factory, how it's called in Hebrew. And I don't know if in the boundaries that you can speak of, how much capacity is going to come from there or maybe how much more efficient it's going to be compared to the integration center you have right now.

知道了。謝謝。也許我還會提出更多問題。也許你可以提供一些關於無人機整合中心或工廠的信息，它在希伯來語中是如何稱呼的。我不知道在你所說的邊界內，那裡將產生多少容量，或者與你現在擁有的整合中心相比，它的效率可能會高多少。

We see a growing demand for our UAV solution and the beauty here is not just the UAV itself. It's the entire system. So we provide a variety of payloads which include EO payloads, EW payloads, unique other payloads like sky-high and many more. We also provide the network, the command and control, everything, once again, is coming from us. They are fully vertical here.

我們看到對我們的無人機解決方案的需求不斷增長，而這裡的魅力不僅僅是無人機本身。這是整個系統。因此，我們提供了各種有效載荷，包括光電有效載荷、電子戰有效載荷、獨特的其他有效載荷（如天空等）。我們也提供網路、命令和控制，一切都再次來自我們。它們在這裡是完全垂直的。

And we all see the importance of UAVs here in the current conflict we have in Israel and we see a growing demand for the family of UAVs that we are providing abroad as well. We introduced a new member to the family, the Hermes 650, which was introduced just recently to the market.

我們都看到了無人機在以色列當前衝突中的重要性，並且我們看到對我們在國外提供的無人機系列的需求不斷增長。我們向該家族推出了新成員 Hermes 650，最近才剛推向市場。

And because of the growing demand that we see and many orders we got, there is a need for a much more modern facility and we are consolidating several facilities into one, once again, with a lot of automation and robots, which the new facility, which is actually operational already, will be able to deliver many more solutions to the growing demand we see in the market.

由於我們看到的需求不斷增長，我們收到了許多訂單，因此需要一個更現代化的設施，我們正在將多個設施再次整合為一個，配備大量自動化設備和機器人，新設施，它實際上已經投入運行，將能夠為我們在市場上看到的不斷增長的需求提供更多的解決方案。

Maybe one more question for me, the last one. I was wondering if a hurricane situation in the Red Sea has any material effect on the company? Do you think, if so, if you have some problems with the situation, how Elbit is going to mitigate it? Thanks.

也許對我來說還有一個問題，最後一個。我想知道紅海的颶風情況是否對公司有任何實質影響？您認為，如果是這樣，如果您遇到一些問題，埃爾比特將如何緩解？謝謝。

As I mentioned in my preview, we see some supply chain issues. However, they are not significant and we find several ways to overcome them.

正如我在預覽中提到的，我們看到了一些供應鏈問題。然而，它們並不重要，我們找到了幾種方法來克服它們。

Okay. Got it. Thank you and congrats on the quarter again.

好的。知道了。謝謝您並再次恭喜本季。

(Operator Instructions)

（操作員說明）

There are no further questions at this time. Before I ask Mr. Machlis to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available two hours after the conference ends. In the US, please call 18887824291. In Israel, please call 039255900. And internationally, please call 97239255900. A replay of this call will also be available on the company's website, www.elbitsystems.com.

目前沒有其他問題。在我請馬赫利斯先生繼續他的結束語之前，我想提醒與會者，會議結束兩小時後將可以重播本次電話會議。在美國，請致電 18887824291。在以色列，請致電 039255900。國際請撥 97239255900。本次電話會議的重播也將在公司網站 www.elbitsystems.com 上提供。

Mr. Machlis, would you like to make your concluding statement?

Machlis 先生，您願意做總結發言嗎？

Thank you. I would like to thank all our employees for their continued hard work and contribution to Elbit Systems' success. To everyone on the call, thank you for joining us today and for your continued support and interest in our company. Have a good day and good-bye.

謝謝。我要感謝我們所有員工的持續辛勤工作以及為埃爾比特系統公司的成功做出的貢獻。對於參加電話會議的每一個人，感謝您今天加入我們並感謝您對我們公司的持續支持和興趣。祝你有美好的一天，再見。

Thank you. This concludes the Elbit Systems Ltd. second quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。埃爾比特系統有限公司 2024 年第二季業績電話會議至此結束。感謝您的參與。您可以繼續並斷開連線。