FTAI Aviation Ltd (FTAI) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the second quarter 2024 FTAI Aviation's earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would like now to turn your conference over to Alan Andreini, Investor Relations. Please go ahead.

女士們先生們，謝謝你們的支持。歡迎參加 FTAI Aviation 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給投資者關係部的艾倫·安德烈尼 (Alan Andreini)。請繼續。

Thank you, Michelle. I would like to welcome you all to the FTAI Aviation second-quarter 2024 earnings call. Joining me here today are Joe Adams, our Chief Executive Officer; Angela Nam, our Chief Financial Officer; and David Moreno, our Chief Operating Officer. We have posted an investor presentation in our press release on our website, which we encourage you to download if you have not already done so.

謝謝你，米歇爾。歡迎大家參加 FTAI Aviation 2024 年第二季財報電話會議。今天和我一起來的還有我們的執行長喬·亞當斯 (Joe Adams)； Angela Nam，我們的財務長；和我們的營運長大衛·莫雷諾。我們在網站的新聞稿中發布了投資者演示文稿，如果您尚未下載，我們建議您下載。

Also, please note that this call is open to the public in listen-only mode and is being webcast. In addition, we will be discussing some non-GAAP financial measures during the call today, including EBITDA. The reconciliation of those measures to the most directly comparable GAAP measures can be found in the earnings supplement.

另請注意，本次電話會議以僅聽模式向公眾開放，並且正在進行網路廣播。此外，我們將在今天的電話會議上討論一些非公認會計準則財務指標，包括 EBITDA。這些指標與最直接可比較的公認會計原則指標的調節可以在收益補充中找到。

Before I turn the call over to Joe, I would like to point out that certain statements made today will be forward-looking statements, including regarding future earnings. These statements by their nature are uncertain and may differ materially from actual results.

在我把電話轉給喬之前，我想指出，今天發表的某些聲明將是前瞻性聲明，包括有關未來收益的聲明。這些陳述本質上是不確定的，可能與實際結果有重大差異。

We encourage you to review the disclaimers in our press release and investor presentation regarding non-GAAP financial measures and forward-looking statements and to review the risk factors contained in our quarterly report filed with the SEC.

我們鼓勵您查看我們的新聞稿和投資者簡報中有關非公認會計準則財務措施和前瞻性陳述的免責聲明，並查看我們向 SEC 提交的季度報告中包含的風險因素。

Now, I would like to turn the call over to Joe.

現在，我想把電話轉給喬。

Thank you, Alan. To start today, I'm pleased to announce our 37th dividend as a public company and our 52nd consecutive dividend since inception. The dividend of $0.3 per share will be paid on August 20 based on a shareholder record date of August 12.

謝謝你，艾倫。從今天開始，我很高興地宣布我們作為一家上市公司的第 37 次股息，也是我們自成立以來連續第 52 次股息。根據股東登記日 8 月 12 日，每股 0.3 美元的股息將於 8 月 20 日支付。

Now let's turn to the numbers. The key metric for us is adjusted EBITDA. We continued the year strongly with adjusted EBITDA of $213.9 million in Q2 2024, which is up 30% compared to $164.1 million in Q1 of this year and up 40% compared to $153.1 million in Q2 of 2023. During the second quarter, the $213.9 million EBITDA number was comprised of $125 million from our leasing segment, $91.2 million from our aerospace product segment and negative $2.3 million from corporate and other.

現在讓我們轉向數字。我們的關鍵指標是調整後的 EBITDA。我們今年的表現依然強勁，2024 年第二季調整後 EBITDA 為 2.139 億美元，比今年第一季的 1.641 億美元成長了 30%，比 2023 年第二季的 1.531 億美元成長了 40%。第二季度，2.139 億美元的 EBITDA 數字包括租賃部門的 1.25 億美元、航空航太產品部門的 9,120 萬美元以及企業和其他部門的負 230 萬美元。

Turning now to leasing. Leasing had a great quarter, posting approximately $125 million of EBITDA. The pure leasing component of $125 million came in at $112 million for Q1 -- for Q2 versus $98 million in Q1 of 2024. Additionally, we sold $59 million book value of assets for a gain of $13.5 million. With exceptionally strong demand for assets and the continuation of a robust Northern Hemisphere summer travel season, we now expect to generate $500 million in EBITDA in 2024, which includes $50 million in gains on asset sales versus our prior estimate of $475 million.

現在轉向租賃。租賃業季度表現出色，EBITDA 約為 1.25 億美元。第一季純租賃部分為 1.25 億美元，第二季為 1.12 億美元，而 2024 年第一季為 9,800 萬美元。此外，我們也出售了帳面價值 5,900 萬美元的資產，獲得了 1,350 萬美元的收益。由於資產需求異常強勁，加上北半球夏季旅遊旺季持續強勁，我們目前預計 2024 年 EBITDA 將達到 5 億美元，其中包括 5,000 萬美元的資產銷售收益，而我們先前的估計為 4.75 億美元。

Aerospace products had yet another excellent quarter with $91.2 million of EBITDA at an overall EBITDA margin of 37%. We're seeing tremendous growth in the aerospace products business in general and feel good about raising our estimates for 2024 EBITDA in aerospace products, from our prior estimate of $250 million, up to $325 million to $350 million.

航太產品季度 EBITDA 再次表現出色，EBITDA 為 9,120 萬美元，整體 EBITDA 利潤率為 37%。我們看到航空航天產品業務總體上出現了巨大增長，並且對將航空航天產品 2024 年 EBITDA 的預期從先前的 2.5 億美元上調至 3.25 億美元至 3.5 億美元感到高興。

We also are experienced an expansion in aerospace products margins as demand for refurbished modules and engines remains very high while increasing efficiencies at our two CFM56 maintenance facilities in Montreal and Miami is controlling or in some cases, lowering our costs.

我們也經歷了航空航太產品利潤的擴大，因為對翻新模組和引擎的需求仍然非常高，同時我們位於蒙特利爾和邁阿密的兩個CFM56 維護設施的效率提高控製或在某些情況下降低了我們的成本。

Overall looking ahead, we now expect annual aviation EBITDA for 2024 to be between $825 million to $850 million, not counting corporate and other versus our original estimate of $675 million to $725 million.

總體而言，我們現在預計 2024 年航空業的年度 EBITDA 將在 8.25 億至 8.5 億美元之間，不包括企業和其他業務，而我們最初的估計為 6.75 億至 7.25 億美元。

And finally, about two years ago, we first outlined our corporate financial goal of generating in 2026, $1 billion of EBITDA comprised of $500 million from leasing and $500 million from aerospace products. So now that we're halfway through this time period and ahead of plan, we're resetting the target. Our new goal is $1.25 billion of EBITDA in 2026, comprised of $550 million of leasing EBITDA and $700 million of aerospace products EBITDA path.

最後，大約兩年前，我們首次概述了我們的企業財務目標，即在 2026 年實現 10 億美元的 EBITDA，其中 5 億美元來自租賃，5 億美元來自航空航天產品。現在我們已經過了這個時間段的一半並且提前了計劃，我們正在重新設定目標。我們的新目標是在 2026 年實現 12.5 億美元的 EBITDA，其中包括 5.5 億美元的租賃 EBITDA 和 7 億美元的航空航太產品 EBITDA。

With that, I'll turn the call back to Allen.

說完，我會把電話轉回給艾倫。

Thanks, Joe. Michelle, you may now open the call to Q&A.

謝謝，喬。米歇爾，您現在可以打開問答電話。

Hello?

你好？

Jason Holcomb, Morgan Stanley.

傑森‧霍爾科姆，摩根士丹利。

Good morning, Joe and Angela and David (multiple speakers) within aerospace products, you've historically mentioned that you target EBITDA margin of around 35%. The last couple of quarters that we've seen you surpassed that target would be great if you could talk about where you see margins going from here as you continue to grow and develop the business also would be great if you could speak to how that margin path may differ between both the CFM56 and the V2500 engines? Thank you.

早安，航空航太產品領域的 Joe、Angela 和 David（多位發言者），您曾經提到您的 EBITDA 利潤率目標為 35% 左右。在過去的幾個季度中，我們看到您超越了該目標，如果您能談談隨著業務的不斷發展和發展，您認為利潤率將如何變化，那就太好了。利潤率如何，那就太好了CFM56 和 V2500 引擎之間的路徑可能不同？謝謝。

Great. Thanks for the question. Yes, we are as I mentioned in the remarks, we are seeing margins trending up and it's a fairly basic it's our revenues are going up and our expenses are either flat or down. And so the revenue side is really demand-based where, as you can realize that equipment is in short supply turn times at maintenance shops are getting longer.

偉大的。謝謝你的提問。是的，正如我在評論中提到的，我們看到利潤率呈上升趨勢，這是一個相當基本的問題，我們的收入正在上升，而我們的支出要么持平，要么下降。因此，收入方面實際上是基於需求的，因為您可以意識到設備供應短缺，維修店的周轉時間越來越長。

So that means it puts a premium on having a pre-built engine or module available. So we can actually get higher -- slightly higher prices and still generate significant savings for the customers. At the same time by controlling costs through our own facilities, we do that with controlling the labor cost and that we have more specialization in the facilities.

因此，這意味著它非常重視擁有可用的預建引擎或模組。因此，我們實際上可以獲得更高的價格，但仍然可以為客戶節省大量費用。同時，透過我們自己的設施控製成本，我們可以控制勞動力成本，並且我們的設施更加專業化。

We're basically running one engine and we're teaching people to do it in a high volume manner. So it's a learning curve process. We get better and better at it as you're doing more and more frequently. So that's part of it. And we're also getting smarter about used serviceable material, forecasting the demand where is it going to be needed? When are we going to have, when we need it, getting our repairs done in advance.

我們基本上運行一個引擎，我們正在教導人們如何以大批量的方式做到這一點。所以這是一個學習曲線過程。隨著您做得越來越頻繁，我們會做得越來越好。這就是其中的一部分。我們對使用過的可用材料也越來越聰明，預測哪裡需要它？當我們需要的時候，我們什麼時候可以提前完成維修工作。

So we're using -- we're smarter and more efficient about using used materials. So it's really on both sides of the equation, revenues up expenses down that we see growing margins. We will also see increased savings when we close on Lockheed Martin and so we do see the margins trending towards 40%. And we think that will continue to grow as we get better and more experience with that facility as well, and we generate more volumes.

所以我們正在使用——我們在使用舊材料方面更聰明、更有效率。因此，實際上，在等式的兩邊，收入增加，費用減少，我們看到利潤率不斷增長。當我們關閉洛克希德馬丁公司時，我們還將看到節省的成本增加，因此我們確實看到利潤率趨向 40%。我們認為，隨著我們在該設施上獲得更好、更多的經驗，並且我們產生更多的產量，這一數字將繼續增長。

So a pretty positive outlook for today and also for the near future for the coming years. I would say on your other question on Pratt versus CFM, we've we have said that the Pratt & Whitney, V2500 deal will not be dilutive to margins. And I would continue to say that we're seeing very good demand for those engines extremely high, and we're also seeing good turnaround times on getting engines through the shops. So we continue to expect that will be the same or as good as or better than the CFM side.

因此，對於今天以及未來幾年的不久的將來來說，前景非常樂觀。我想說的是，關於您關於普惠與 CFM 的其他問題，我們已經說過，普惠 V2500 交易不會稀釋利潤。我會繼續說，我們看到對這些引擎的需求非常高，而且我們也看到引擎通過商店的周轉時間很好。因此，我們繼續預計這將與 CFM 方面相同、一樣好或更好。

Thank you for that, Joe. I'll leave it at one.

謝謝你，喬。我會把它保留為一。

Thanks.

謝謝。

Sheila Kahyaoglu, Jefferies.

希拉·卡哈奧格魯，杰弗里斯。

Hi team, this [Colin Koliyak] on for Sheila. Hi guys. Very nice quarter here and first half really in aero products not just the EBITDA growth, but the margins, like you just said, kind of trending towards 40% is now kind of the watermark.

大家好，這位 [Colin Koliyak] 代表 Sheila。嗨，大家好。這個季度和上半年的航空產品非常好，不僅是 EBITDA 成長，而且還有利潤率，就像您剛才所說，趨向 40%，現在已經是水位線了。

So maybe just drilling in on your comments Joe about the Lockheed facility. How are you thinking about the model -- the margin opportunity within that facility as that deal's going to close in the second half and kind of what it means for the productivity, the throughput and the piece part opportunity there for that module?

所以也許只是深入了解喬對洛克希德設施的評論。您如何看待該模型——該設施內的利潤機會，因為該交易將在下半年完成，以及它對該模組的生產力、吞吐量和零件機會意味著什麼？

Yeah, so good question. I think that we've indicated we expect about $30 million of savings per annum once we close on initially on just on the CFM56 overhaul operations. So that should add three to four percentage points to the margins just from that closing. Then I think the efficiency, we haven't really baked that in yet, but we did see quite an improvement when we took control of the Miami facility.

是的，很好的問題。我認為，我們已經表示，一旦我們最初完成 CFM56 大修業務，我們預計每年將節省約 3000 萬美元。因此，截至收盤後，利潤率應該會增加三到四個百分點。然後我認為效率，我們還沒有真正實現這一點，但當我們控制邁阿密設施時，我們確實看到了相當大的進步。

We've seen a pretty significant increase in throughput per person. So we expect a similar trend in that facility, although we don't yet have our hands on it. So it's something we think we'll be able to accomplish and we don't see any reason because we've done it before.

我們發現人均吞吐量顯著增加。因此，我們預計該設施也會出現類似的趨勢，儘管我們尚未實際操作。所以這是我們認為我們能夠完成的事情，但我們看不到任何理由，因為我們以前已經做到了。

And then lastly, incremental of that is the piece part repair business, which we've talked about for quite some time and there's a lot of capability in the Lockheed Martin facility that was not really been fully developed. So we're going to accelerate the development of the piece part of their business. We do more repairs for our own engines, repairs for third parties, and then we'll develop new repairs.

最後，增量是零件維修業務，我們已經討論了相當長一段時間，洛克希德馬丁工廠有很多能力尚未真正充分開發。所以我們要加速他們這部分的業務發展。我們為自己的引擎進行更多的維修，為第三方進行維修，然後我們將開發新的維修。

And so that I've indicated we expect to generate probably an incremental $10 million to $15 million of EBITDA from that over, but not really starting until probably 2025 and then potentially growing from there we'll update you on that.

因此，我已經表示，我們預計從那時起，我們的EBITDA 可能會增加1000 萬至1500 萬美元，但要到2025 年才能真正開始，然後可能會從那時開始增長，我們將向您通報最新情況。

But we see this every time we look at the engine and we look at something new, we find millions of dollars lying on the floor. So it's there's so many opportunities that we can pursue that are big dollars. So we're very optimistic that we're going to keep, this is continuous improvement is what we've always said over the last five, six years, and we're nowhere near the end of our list of opportunities.

但每次我們檢查引擎和新東西時，我們都會看到這一點，我們發現數百萬美元躺在地板上。因此，我們可以追求很多機會，這些機會都是大筆資金。因此，我們非常樂觀地認為，我們將保持這種持續改進，這是我們在過去五、六年一直在說的，而且我們的機會清單還遠遠沒有結束。

Great. Super helpful. I'll leave it that one. Thanks guys.

偉大的。超有幫助。我就留下那個吧。謝謝你們。

Thanks.

謝謝。

Josh Sullivan, The Benchmark Company.

喬許·沙利文，基準公司。

Hey, good morning. Congratulations on the quarter here. What is the turnaround time for an airline or lease or using the module factory versus the open market at this point?

嘿，早安。在此恭喜本季。目前，與公開市場相比，航空公司、租賃或使用模組工廠的周轉時間是多少？

Yes, I can take that. This is David. So the typical industry term time, what we're seeing is anything from 120 days to 180 days. Our turn time on modules is about 30 to 60 days to do mode to (inaudible) build a module, right. And then to actually executed module depends on the module is anywhere from 5 to 25 days. So for customer's perspective, they're doing the module swapping 5 to 25 days versus 120 to 180 days.

是的，我可以接受。這是大衛。因此，我們看到的典型行業術語時間是從 120 天到 180 天不等。我們的模組週轉時間約為 30 到 60 天，以進行模式（聽不清楚）建立模組，對吧。然後到實際執行的模組取決於該模組的時間為 5 到 25 天。因此，從客戶的角度來看，他們的模組更換週期為 5 至 25 天，而不是 120 至 180 天。

And again, we're seeing industry turn times that are long and getting longer. And I think we're in a much better positions predominately for four reasons, right. Number one is we have capacity up in Montreal and in Miami, so we have the capacity and the workforce. Number two is we have access to used serviceable material via our AR program.

我們再次看到產業週轉時間越來越長。我認為我們處於更好的位置主要有四個原因，對吧。第一是我們在蒙特婁和邁阿密都有產能，所以我們有能力和勞動力。第二是我們可以透過我們的 AR 程式存取使用過的可用資料。

Number three is what Joe mentioned is we have access to repairs at Lockheed where we can repair parts. And number four, we have the flexibility since it's our fleet of mixing and matching modules as well as planning. So as we see turn times go down industry-wide, I think it is accelerating more and more demand for modules because one of the key attributes of modules is it's a faster product, that is traditional MRO.

第三，喬提到我們可以在洛克希德公司進行維修，在那裡我們可以修理零件。第四，我們具有靈活性，因為它是我們的混合和匹配模組以及規劃的組合。因此，當我們看到全行業的周轉時間縮短時，我認為這正在加速對模組的越來越多的需求，因為模組的關鍵屬性之一是它是更快的產品，即傳統的MRO 。

Got it. And then just as a follow-up on the piece part repair business expansion. Is that an organic effort or do you see opportunities to bolt-on inorganically at Montreal?

知道了。然後只是作為零件維修業務擴展的後續。這是有機的努力還是你認為有機會在蒙特利爾進行無機補充？

Bose, I think that our base cases organic, but we have a lot of conversations that have we've been engaging with different parties in that business for the last two years, looking at different alternatives and there might be some combination of the two, which is organic plus working with another player in the industry. So we are always open-minded and flexible.

Bose，我認為我們的基本案例是有機的，但我們進行了很多對話，在過去的兩年裡我們一直在與該行業的不同各方進行接觸，尋找不同的替代方案，並且可能會將兩者結合起來，這是有機的加上與業內其他參與者的合作。所以我們始終保持開放和靈活的態度。

And whatever the math and the operations would support, we'll take a look at it. There's not enough capacity in the piece part repair business globally. And we realize that last year, I think we spent $50 million on with third parties where we were a pretty big buyer of repair services and no one had ever called on us and marketed as a product to us. It's amazing. It's the industry is it's all order takers. So there's a lot of things that we think we can do to grow and increase that business that are -- we're just at the very, very beginning of that.

無論數學和運算支持什麼，我們都會研究一下。全球零件維修業務產能不足。我們意識到去年我們花了 5000 萬美元與第三方合作，我們是維修服務的大買家，但沒有人打電話給我們並將其作為產品推銷給我們。太棒了。這個行業全都是訂單接受者。因此，我們認為我們可以做很多事情來發展和增加業務——我們才剛剛開始。

Great. Thank you for the time.

偉大的。謝謝你的時間。

Hillary Cacanando, Deutsche Bank.

希拉蕊·卡卡南多，德意志銀行。

Thank you. Good morning. You had previously mentioned that savings this year from internalization would be about $30 million. So given that you're raising guidance, does that number change? And do you now expect more savings from internalization for 2024? And how should we think about that number for 2025 and beyond?

謝謝。早安.您之前曾提到，今年透過內部化可節省約 3,000 萬美元。那麼考慮到您正在提高指導意見，這個數字會改變嗎？您現在預計 2024 年內部化會帶來更多節省嗎？我們該如何看待 2025 年及以後的這個數字？

Yes, it will go up as we've increased our expectations for this year and for the out year 2026. So we had indicated at the time of the internalization that we would save $30 million annually, which we think will do at least that this year and that number will grow to $40 million or $50 million in the next couple of years and then potentially higher than that. So it's a -- I mean, we're very confident that the numbers that will save are better than what we had thought of what we expected a couple of months ago.

是的，隨著我們提高對今年和 2026 年的預期，該數字將會上升。因此，我們在內部化時表示，我們每年將節省 3000 萬美元，我們認為至少今年會做到這一點，並且這個數字將在未來幾年內增長到 4000 萬美元或 5000 萬美元，然後可能會高於那。所以我的意思是，我們非常有信心節省的數字比我們幾個月前的預期要好。

Okay. So then we should probably assume for modeling purposes and probably assume like $30 million this year and then maybe like $40 million to $50 million next year and then maybe even higher in 2026, kind of head of a public funding in terms of the savings?

好的。那麼，出於建模目的，我們可能應該假設今年為3000 萬美元，然後明年可能為4000 萬至5000 萬美元，然後到2026 年甚至可能更高，就節省而言，公共資金的負責人是什麼？

Yes.

是的。

Okay. Perfect. And then in slide number eight, in the leasing segment, it says that (inaudible) engine exchanges for aircraft leases year to date. I think this is the first time to discuss engine exchanges with (inaudible) could you just go over exactly what that is and if there is 10 engine exchanges are included in the 82 modules sold number and you'd argue that engine exchanges with your lessees one-offs or do you have contracts with them to do more?

好的。完美的。然後在第八張幻燈片的租賃部分中，它表示今年迄今為止，（聽不清楚）引擎已更換為飛機租賃。我認為這是第一次與（聽不清楚）討論引擎更換，您能否詳細說明一下這是什麼？是一次性的還是您與他們簽訂了合約以做更多事情？

I'll let David walk through that.

我會讓大衛來解釋一下。

So the answer is in addition to the 82, so on our entire aircraft portfolio, we manage the shop visits via exchanges. So we're manufacturing engines ahead of removals and providing exchanges instead of lessees doing shop visits, which is typically how these contracts are written. So it's a value add. The reason why we like it is because we're able to charge OEM rates per the contract for every hour and cycle flown, and then we're able to manufacture those engines for a lot less.

所以答案是除了 82 之外，所以在我們的整個飛機組合中，我們透過交換來管理車間訪問。因此，我們在拆除之前製造引擎並提供交換，而不是承租人進行車間參觀，這通常是這些合約的撰寫方式。所以這是一個增值。我們之所以喜歡它，是因為我們能夠按照合約規定的每小時和飛行週期收取 OEM 費率，然後我們就能夠以低得多的價格製造這些引擎。

So that margin is going to show up through the maintenance of revenue on our financial statements. The reason why airlines like it is because they're able to avoid the major shop visits. So they don't -- they have zero turn time. Typically, they have to lease an engine during that interim period, which can be very expensive as well as they are responsible for the most part on all negative surprises.

因此，該利潤率將透過我們財務報表中收入的維持來反映。航空公司之所以喜歡它，是因為他們能夠避免去主要的商店。所以他們沒有——他們的周轉時間為零。通常，他們必須在過渡期間租用一台發動機，這可能非常昂貴，而且他們要對所有負面意外事件負責。

So if the shop visit overruns, typically the airline would be in charge of that over and above. So they really like that service and its value added as part of our aircraft leasing business,.

因此，如果商店訪問量超支，航空公司通常會負責超支。因此，他們非常喜歡這項服務及其作為我們飛機租賃業務的一部分的附加價值。

(inaudible) Thank you so much, thank you Joe (inaudible) .

（聽不清楚）非常感謝，謝謝喬（聽不清楚）。

Yeah, it goes to the when we talk about our business model is basically we are in the engine maintenance business. Most lessors are in maintenance avoidance business and then they force it onto the airline and we're the opposite.

是的，當我們談論我們的商業模式時，基本上我們從事的是引擎維護業務。大多數出租人從事避免維修業務，然後將其強加給航空公司，而我們則相反。

So we want to do the maintenance and we want the airlines to get out of the maintenance business because we're better at it. So it's really the -- we're providing an outsourced opportunity for airlines to not have to manage shop visits, which for the most part, most airlines are not particularly good at.

因此，我們想要進行維護，我們希望航空公司退出維護業務，因為我們更擅長。所以這實際上是——我們為航空公司提供了一個外包機會，讓他們不必管理商店訪問，而大多數航空公司在這方面並不是特別擅長。

And I'm sure when you're talking to potential like potential lessees, this is something that you pitch as well, like as we continue to equity exchanges as well, and that's probably a selling point solutions (multiple speakers)

我確信，當您與潛在承租人等潛在客戶交談時，您也會推銷這一點，就像我們繼續進行股權交易一樣，這可能是賣點解決方案（多個發言者）

We're saving them time and money and eliminating a major portion of negative surprise in a lease.

我們為他們節省了時間和金錢，並消除了租賃中大部分負面意外。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Thanks.

謝謝。

Giuliano Bologna, Compass Point.

朱利亞諾·博洛尼亞，指南針點。

Good morning (inaudible) and congratulations on an another incredible quarter, especially on the product side of the business. The first question, I'd be curious looking at the leasing side of the business, you outperformed pretty strongly, especially on your non-core leasing. I'm curious what drove leasing outperformance. And I feel that's a trend that we should expect to continue going forward?

早安（聽不清楚），祝賀又一個令人難以置信的季度，特別是在業務的產品方面。第一個問題，我很好奇看看業務的租賃方面，你們的表現相當強勁，尤其是在非核心租賃方面。我很好奇是什麼推動了租賃業務的出色表現。我覺得我們應該期待這種趨勢繼續向前發展？

Yeah, the two big drivers are rent and ours flowing. And so both of those are up. It's very the rent market, as you probably are obviously aware with the demand for equipment, particularly older equipment that we own is quite high. Airlines around the world are extending leases and not giving those back given that they can't get -- they can't fly a lot of GTF powered engine aircraft and they can't get deliveries from Boeing on time.

是的，兩個主要驅動力是租金和我們的流動。所以這兩個都上升了。這是租賃市場，因為您可能顯然意識到對設備的需求，特別是我們擁有的舊設備的需求非常高。世界各地的航空公司都在延長租約，但由於無法獲得租約，因此不再退還租約——他們無法駕駛大量採用 GTF 發動機的飛機，也無法按時從波音公司獲得交付。

So the old -- the demand for older equipment and engines related to those is very high. And then typically the second quarter and really the third quarter are very high utilization quarters for airlines because the demand is there for flying. So we see it in the maintenance revenues as well. So it's both rent and maintenance reserves are up.

因此，對舊設備和與之相關的引擎的需求非常高。通常，第二季度和第三季度對於航空公司來說是利用率非常高的季度，因為飛行需求存在。所以我們在維護收入中也看到了這一點。因此，租金和維護儲備金都增加了。

That's very helpful. And then, thinking about the (inaudible) engines globally and there are a lot of the supply chain issues that are out there. There are a few industry leaders have suggested that the industry will take to normalize (inaudible) won't normalize until somewhere between late 2026 and the reports and 2030.

這非常有幫助。然後，考慮全球範圍內的（聽不清楚）發動機，存在許多供應鏈問題。有一些行業領導者表示，該行業將在 2026 年底、報告和 2030 年之間實現正常化（聽不清楚）。

I'm curious, how you think about what that means for the opportunity for uptime and also what normalization would mean or look like on the other side of that, they realize it's pretty far out. So it's a pretty good run later.

我很好奇，您如何看待這對正常運行時間的機會意味著什麼，以及標準化意味著什麼或在另一方面意味著什麼，他們意識到這還很遙遠。所以後來的表現還是不錯的。

Yeah, so we've always thought or run our business, assuming normalization. This is just an unexpected gift that we got. So we think we have a great business even in an environment where everything is smooth and running and functioning well, having said that, the -- it is difficult to project, but I also would point out that it's not going to be a cliff. You're not going to wake up in 2027 and all of a sudden everything is good. So it will be a gradual return to normalization over some extended period of time.

是的，所以我們一直在假設正常化的情況下思考或經營我們的業務。這只是我們收到的一份意想不到的禮物。因此，我們認為，即使在一切順利、運作良好的環境中，我們的業務也很棒，話雖如此，這很難預測，但我也想指出，這不會是懸崖。2027 年你不會一覺醒來，突然間一切都變好了。因此，這將在一段較長的時間內逐步恢復正常化。

Because you see fixing supply chains, hiring people back is a very lengthy process, and it only takes one part of that supply chain to negatively affect the entire supply chain. So I think it will be probably what everybody -- you generally the extremes are not right at somewhere in the middle. Somebody says 2030, some is 2026 is probably in the middle, but I'd say, it's a gradual return to normal, not a -- not at all of a sudden bright-line event.

因為你會看到修復供應鏈、重新僱用員工是一個非常漫長的過程，而且只需要供應鏈的一部分就會對整個供應鏈產生負面影響。所以我認為這可能是每個人的情況——一般來說，極端並不在中間的某個地方。有人說 2030 年，有人說 2026 年可能在中間，但我想說，這是逐漸恢復正常，而不是——一點也不突然的明線事件。

That's very helpful. And then one last one thing about the product segment and kind of the demand for CFM56s and V2500. I'm curious what the pipeline or the order backlog looks like in the third quarter and fourth quarter relative to the second quarter and how we should think about what that pipeline's already indicated for (inaudible)

這非常有幫助。最後一件事是關於產品領域以及對 CFM56 和 V2500 的需求。我很好奇第三季和第四季相對於第二季的管道或訂單積壓情況如何，以及我們應該如何考慮該管道已經指示的用途（聽不清楚）

So we're getting I mean, we have some long-term contracts like if you talk about WestJet and LATAM or Avianca where we have seven -- six to eight year deal so often, so we have very good visibility on that type of business. The other more transactional is probably we have three to six month visibility. We're getting people to give us forecasts of when they're going to need equipment earlier so that we can, as David said, we can order material. We can plan better. We can have the modules ready.

所以我們得到了我的意思是，我們有一些長期合同，就像你談論西捷航空和拉美航空或阿維安卡航空一樣，我們經常有七年至六到八年的合同，所以我們對此類業務有很好的了解。另一個更具交易性的可能是我們有三到六個月的可見性。我們讓人們提前向我們預測他們何時需要設備，以便我們可以，正如大衛所說，我們可以訂購材料。我們可以更好地計劃。我們可以準備好模組。

So I would say it's our visibility is getting longer than it was even a year ago. And we're encouraging airlines to really be to once they've tasted and experienced the product and they like it, they say well okay, now give us should -- give us all your business and give us your program to give us your profile when you're going to need it. So I think we're going to continue to push for more programs more visibility, longer time, we get ready and everybody benefits from that.

所以我想說的是，我們的能見度甚至比一年前還要長。我們鼓勵航空公司真正做到，一旦他們品嚐和體驗了產品並且喜歡它，他們說好吧，現在給我們應該——給我們你所有的業務，給我們你的計劃，讓我們知道你的個人資料當你需要它的時候。因此，我認為我們將繼續推動更多計劃，提高知名度，延長時間，我們做好準備，每個人都會從中受益。

That is very helpful. I appreciate it. And congrats on the quarter and I will jump back in the queue.

這非常有幫助。我很感激。恭喜這個季度，我將重新加入隊列。

Thanks.

謝謝。

Ken Herbert, RBC.

肯·赫伯特，加拿大皇家銀行。

Okay. Hey, Joe. Good morning.

好的。嘿，喬。早安.

Good morning.

早安.

Hey, I just wanted to ask you on, you did 82 modular swaps this quarter. What percentage of the global sort of CFM56 operator universe are you currently working with? And how quickly is that expanding? And what's sort of the timeframe as you think about an airline today with everything going on, that may not have been a customer that comes to you and ultimately becomes a customer sort of how is that sales cycle compressing?

嘿，我只是想問你，本季你進行了 82 次模組化交換。您目前合作的 CFM56 營運商在全球範圍內佔了多少比例？其擴張速度有多快？當你想到今天的航空公司時，在所有事情都在發生的情況下，可能沒有一個客戶來找你並最終成為一個客戶，銷售週期是如何壓縮的？

Lots of aspects to that question, but just if you start off and you said we indicated that we have now 50 customers in our module factory. And if you think back in 2022, and we certainly rolled out our math for getting to $1 billion. We were forecasting 50 by 2026. So we're now at 50 in 2024. So things are moving quickly. And part of what happens in a crisis is when people need something then they're more receptive to changing their business model.

這個問題有很多方面，但如果你一開始就說我們表示我們的模組工廠現在有 50 個客戶。如果你回想 2022 年，我們一定會推出達到 10 億美元的數學模型。我們預計到 2026 年將達到 50 個。到 2024 年，我們現在已經是 50 歲了。所以事情進展很快。危機中發生的部分情況是，當人們需要某些東西時，他們會更願意改變他們的商業模式。

And so we see that the current environment is accelerating people's transitioning to outsourcing maintenance engine maintenance, which is what we're offering the customer. Those 50 represent what you say, 300 total potential. So maybe we're one-sixth of the operator base, and we're not getting with a couple of exceptions.

因此，我們看到當前的環境正在加速人們向外包維護引擎維護的轉變，這正是我們為客戶提供的服務。這 50 代表了你所說的 300 總潛力。因此，也許我們是營運商群體的六分之一，而且我們不會有幾個例外。

We're not getting 100% of people's business yet. But we're aspiring to because we don't see any reason why we shouldn't once people realize they can save -- they save money, they save time and they eliminate negative surprises, like how hard, what else do you need me to tell you.

我們還沒有獲得 100% 的人們的業務。但我們渴望這樣做，因為一旦人們意識到他們可以儲蓄，我們就沒有任何理由不這樣做——他們省錢，他們節省時間，他們消除負面的意外，比如有多難，你還需要什麼告訴你。

So I think it's still growing. It's a huge market, the total universe, if you think about 3,000 shop visits a year and you can argue whether it's 4,000 or 2,500 or something, but roughly 3,000. That's 9,000 modules moving through a maintenance facility somewhere in the world per year. And we're talking about doing 400, 500 is still less than 10% -- missed half of 10%.

所以我認為它仍在增長。這是一個巨大的市場，整個宇宙，如果你考慮每年 3,000 次商店訪問，你可以爭論是 4,000 次還是 2,500 次還是其他什麼，但大約是 3,000 次。也就是說，每年有 9,000 個模組通過世界某個地方的維護設施。我們談論的是做 400、500 仍然不到 10%——錯過了 10% 的一半。

So we're not anywhere near where we think the penetration could get to. And we have our own maintenance capacity. We can do 300 shop visits in Montreal a year, which is 900 modules and 150 in Miami, which is 450 modules. So we have 1,315 module rebuilt capacity that we own now. So if you think about [4, 500] is what we're shooting for, that's 5% market penetration, we can handle 15% today based on what we own. We're in a pretty good position to keep growing that. We haven't had anybody that use the product that didn't want to do it again.

因此，我們認為滲透率遠未達到預期目標。而我們有自己的維修能力。我們每年可以在蒙特利爾進行 300 次商店訪問，即 900 個模組，在邁阿密每年可以進行 150 次商店訪問，即 450 個模組。因此，我們現在擁有 1,315 個模組的重建產能。因此，如果你認為 [4, 500] 是我們的目標，那就是 5% 的市場滲透率，我們今天可以根據我們擁有的資源處理 15% 的市場滲透率。我們處於一個非常有利的位置，可以繼續發展這一點。我們沒有任何人在使用產品後不想再這樣做。

So that to me is one of the main litmus test that people like it and they have a good experience, and that's what we're trying to foster, so that the word of mouth spreads. People put, testimonials up on their Instagram accounts and they talked about how great this is. We have photos of people and maintenance facilities like and say, I just did a LPT swap in two weeks and that engine would have been in the shop for six months if I haven't done that.

所以對我來說，這是主要的試金石之一，人們是否喜歡它，他們有良好的體驗，這就是我們正在努力培養的，以便口碑傳播。人們在他們的 Instagram 帳戶上發表感言，並談論這有多棒。我們有人員和維修設施的照片，例如，我剛剛在兩週內更換了 LPT，如果我沒有這樣做，那台引擎可能已經在商店裡待了六個月了。

So those are the kind of things were the viral marketing that we're using to accelerate even more. So I might have missed that. There are a lot of elements to your question, but I don't know if I got all of them, but.

這些就是我們用來加速病毒式行銷的東西。所以我可能錯過了。你的問題有很多要素，但我不知道我是否得到了所有這些要素，但是。

No, that's great. If I could just one follow up. I mean, obviously, you're benefiting from the supply chain disruptions and turnaround times and lead times on material, but you obviously also buy a lot of material to fulfill demand. And what we're waiting for PMA parts and other stuff.

不，那太好了。如果我能跟進一下就好了。我的意思是，顯然，您受益於供應鏈中斷、週轉時間和材料的交貨時間，但您顯然也購買了大量材料來滿足需求。我們正在等待 PMA 零件和其他東西。

Are you seeing an extension in the material, you're looking to buy the new OEM material or even on the USM side. And it's it may be a headwind to some of the throughput?

您是否看到了材料的擴展，您是否希望購買新的 OEM 材料，甚至是 USM 方面的材料。這可能會阻礙某些吞吐量？

It's like, I mean, there's two parts. There's the CFM part and the Pratt part. You're talk about the CFM part. I'll talk about Pratt.

我的意思是，這就像有兩個部分。有CFM部分和Pratt部分。你說的是CFM部分。我來談談普拉特。

Sure. So on the CFM side, yes, we are seeing a delay for, let's say, repair & parts. I think we're well positioned because we have the inventory ahead of time, right? So we are carrying down 40 to 50 engines per year with AR, we're able to recall those parts and used them ahead of time. So really it's having the USM available.

當然。因此，在 CFM 方面，是的，我們看到維修和零件方面的延遲。我認為我們處於有利位置，因為我們提前擁有庫存，對吧？因此，我們每年透過 AR 減少 40 到 50 台發動機，我們能夠召回這些零件並提前使用它們。所以確實是 USM 可用。

And then number two is planning, right. So before module comes in the shop, we understand and we have a kitting process ahead of time. So we've produced the kit on what exactly is needed in that module. So we're able to be one step ahead in that process, right.

第二是計劃，對吧。因此，在模組進入商店之前，我們會了解並提前進行配套流程。因此，我們根據該模組的具體需求製作了該套件。所以我們能夠在這一過程中領先一步，對吧。

Typically, what would happen is it engaging third party work and engine would show up and you have a very limited amount of time to react in order parts, right? So that's all happening ahead of time. So we feel like we're well positioned and that's why our turn times have not been impacted.

通常情況下，如果它涉及第三方工作並且引擎會出現，而您對訂購零件做出反應的時間非常有限，對嗎？所以這一切都提前發生了。所以我們覺得我們處於有利位置，這就是為什麼我們的周轉時間沒有受到影響。

And on the V2500, I mean, we just spent time with Pratt last week and we're talking about material availability and turn times, and they're very confident. I mean, earlier this year, they had some sort of delays in producing some of the V2500 parts and material. But they are on top of it now, they're very confident and we are, I would say, a high priority customer.

關於 V2500，我的意思是，我們剛剛在上週與 Pratt 進行了交流，我們正在討論材料可用性和周轉時間，他們非常有信心。我的意思是，今年早些時候，他們在生產某些 V2500 零件和材料方面出現了某種延遲。但他們現在已經掌握了一切，他們非常有信心，我想說，我們是一個高度優先的客戶。

So with an order of 100 shop visits, we get -- they're going to put us at the top of the list. So they're very confident that the -- what they've indicated to us the 90 day turn times, they're going to deliver on that. And it's also -- it's helpful from our point of view that we -- we're very flexible and they can put those engines into whatever net, whatever shop in their network they want to. And that (technical difficulty) was very helpful because they can use our orders to fill in shops that don't have enough (technical difficulty)

因此，如果訂單達到 100 次商店訪問，我們就會得到——他們會將我們排在清單的首位。因此，他們非常有信心——他們向我們表明的 90 天週轉時間，他們將兌現。從我們的角度來看，我們非常靈活，他們可以將這些引擎放入任何網絡，無論他們想要在網絡中的任何商店。這（技術難度）非常有幫助，因為他們可以使用我們的訂單來填補沒有足夠貨源的商店（技術難度）

Great. Thank you very much.

偉大的。非常感謝。

Thanks.

謝謝。

Brandon Oglenski, Barclays.

布蘭登·奧格倫斯基，巴克萊銀行。

Hey, good morning, everyone, and thanks for taking my question. Joe, I appreciate the updated guidance for this year and longer-term outlook on the business, I guess, though, with how tight the market is, I mean, I know you're generating better margins now, but when we think of acquisition cost, especially for new engines. Does this get more challenging looking ahead? Or is it the swap asset that makes this so viable?

嘿，大家早上好，感謝您提出我的問題。喬，我很欣賞今年的最新指導和業務的長期前景，但我想，隨著市場的緊張，我的意思是，我知道你現在正在產生更好的利潤，但是當我們考慮收​​購時成本，特別是對於新引擎。展望未來，這會變得更具挑戰性嗎？還是掉期資產讓這一切如此可行？

Yes, that's a great question. And we've been pretty good at sourcing engines. And I think the main reason is we tend to excel when an engine is in need of a shop visit in the immediate or near future. So if you think about most buyers, when a portfolio or an aircraft comes up and they do their model and they have to do a shop visit in the next 18 -- 6 to 24 months.

是的，這是一個很好的問題。我們非常擅長採購引擎。我認為主要原因是當引擎需要在近期或不久的將來進行維修時，我們往往會表現出色。因此，如果你考慮大多數買家，當他們提出一個投資組合或一架飛機並製作模型時，他們必須在接下來的 18 - 6 到 24 個月內去商店參觀。

That's a huge negative to them. So we are one of the few buyers that actually when we see a shop visit in the near future like this is great. We love this because we know we're going to, a we can do the shop visit generally for less than other people can be, we can also optimize by doing module swaps. We can sometimes do hospital shop repairs. We can generate more if we can burn off some of the green time that other people can't value.

這對他們來說是一個巨大的負面影響。因此，我們是為數不多的買家之一，實際上，當我們在不久的將來看到像這樣的商店參觀時，感覺很棒。我們喜歡這個，因為我們知道我們將會這樣做，我們通常可以比其他人更少地進行商店訪問，我們還可以透過進行模組交換來優化。我們有時可以進行醫院商店維修。如果我們能夠消耗掉一些其他人無法珍惜的綠色時間，我們就能創造更多。

So we have so many ways to make that into a better deal and virtually anybody else that we win a disproportionate amount of that business and there's a lot of engines out there that during COVID, people didn't do any maintenance on. So we're seeing a lot of a very good pipeline of acquisition opportunities, and that is one of our core strengths is sourcing run out engines.

因此，我們有很多方法可以使其成為更好的交易，幾乎任何其他人都可以讓我們贏得不成比例的業務，而且有很多引擎在新冠疫情期間，人們沒有進行任何維護。因此，我們看到了很多非常好的收購機會，而我們的核心優勢之一就是採購耗盡的引擎。

So that's the first part of our business model, which is to buy run out engines, then we fix them up and then we lease them, sell them or exchange them. And we love the exchange option to because then you're getting another engine back that's run out generally had a very good price because you're solving somebody's problem and you also then get to do it all over again. So it's a virtuous circle for us in sourcing.

這就是我們商業模式的第一部分，即購買用完的發動機，然後我們修理它們，然後租賃、出售或交換它們。我們喜歡交換選項，因為這樣你就可以得到另一台已經用完的引擎，通常價格非常好，因為你正在解決某人的問題，然後你也可以重新做一遍。所以這對我們的採購來說是一個良性循環。

Okay, appreciate that, Joe. And then I guess as you transition more earnings in respect to aviation products, how should investors think about free cash flow in the business? And maybe (inaudible) term, where do you want to see leverage on the balance sheet too? Thank you, Joe.

好的，謝謝你，喬。然後我想，當你將更多的收益轉移到航空產品方面時，投資人應該如何考慮該業務的自由現金流？也許（聽不清楚）術語，您還希望在資產負債表上看到槓桿率嗎？謝謝你，喬。

So the second question, we've just did a $800 million high yield deal. And we indicated that our goal is to be strong, DD by all agencies and have debt to total EBITDA in the 3 to 3.5 times range. And this quarter we're at 3.4 times, the bonds have traded up. I think we're trading pretty much like a BB -- strong BB at the moment. And that's something we think is achievable this year in the near future. So we're going to maintain that leverage and that rating.

那麼第二個問題，我們剛完成了一筆 8 億美元的高收益交易。我們表示，我們的目標是讓所有機構都變得強大、DD，債務總額達到 EBITDA 的 3 至 3.5 倍。本季我們的本季度我們的本益比為 3.4 倍，債券交易量有所上升。我認為我們的交易非常像 BB——目前是強 BB。我們認為在不久的將來今年就可以實現這一目標。因此，我們將維持這一槓桿率和評級。

In terms of free cash flow, what we do is we take the EBITDA, subtract corporate and interest and then we use a number for maintenance CapEx, what we would use -- what we needed to invest each year to maintain the engines, so that they can fly forever ad infinitum in that number, it tends to be between $60 million and $80 million a year of maintenance CapEx.

就自由現金流而言，我們所做的就是計算 EBITDA，減去公司和利息，然後我們使用一個數字用於維護資本支出，我們將使用 - 我們每年需要投資來維護引擎，以便如果按照這個數字，它們可以永遠飛翔，每年的維護資本支出往往在6,000 萬至8,000 萬美元之間。

So when you get -- when you run the math will generate hundreds of millions of free cash flow in the near future. And that's been our goal since, as you remember, back from 2022, when we set those targets is not to be it a perpetual cycle of always buying more equipment, but just turning it faster and generating a lot of cash.

因此，當你進行數學計算時，將在不久的將來產生數億的自由現金流。正如您所記得的，這一直是我們的目標，從 2022 年開始，我們設定的目標並不是總是購買更多設備的永久循環，而是更快地運轉並產生大量現金。

Thank you for that. Appreciate it.

謝謝你。欣賞它。

Thanks.

謝謝。

Stephen Trent, Citi.

史蒂芬‧特倫特，花旗銀行。

Good morning, everybody, and thanks very much for taking my question. The first, I recall you commented about your global footprint and the opportunities you saw to expand, for example, and I believe you previously called out Southeast Asia geographically. And I was wondering since that time what sort of elements you've seen in the market that might be reinforcing your view on that being an attractive footprint? Thank you.

大家早安，非常感謝您提出我的問題。首先，我記得您評論了您的全球足跡以及您看到的擴張機會，我相信您之前在地理上提到了東南亞。我想知道從那時起您在市場上看到的哪些元素可能會強化您對這個有吸引力的足跡的看法？謝謝。

Thanks.

謝謝。

I mean I can take that question, this is David. So yeah, Southeast Asia is a very important region for us. It has a high concentration of 737 NGs and 8320s. And typically that fleet has been open has been newer and now with time, it's maturing and the engines or do shop visits. So it's an area that we're keenly focused on.

我的意思是我可以回答這個問題，這是大衛。所以，是的，東南亞對我們來說是一個非常重要的地區。它具有高濃度的 737 NG 和 8320。通常，已經開放的車隊都是較新的，現在隨著時間的推移，它正在成熟，引擎或進行商店訪問。所以這是我們非常關注的領域。

Recently, we started working with an airline by doing all module swaps at their hangar facility. So they have a hangar where they do airframe work and light engine work as well. So we started doing module swaps on LPTs. We have a large program with that airline.

最近，我們開始與一家航空公司合作，在他們的機庫設施中進行所有模組交換。所以他們有一個機庫，在那裡進行機身工作和輕型引擎工作。所以我們開始在 LPT 上進行模組交換。我們與該航空公司有一個大型項目。

And then we've also then recently started offering that as a third party business. So now we have airlines coming in with aircraft that have engines that need module swaps. We are performing those module swaps for those -- for that airline and the aircraft is going back in the air in 15 to 20 days. So it's operating like a pit stop. So we've started with a few third party customers, and we're very excited to grow that presence in Southeast Asia.

然後我們最近也開始將其作為第三方業務提供。因此，現在航空公司引進的飛機配備了需要模組交換的引擎。我們正在為該航空公司執行這些模組交換，飛機將在 15 到 20 天內重返空中。所以它的運作就像一個進站。因此，我們已經開始與一些第三方客戶合作，我們非常高興能夠擴大在東南亞的業務。

Appreciate that, David, very helpful. And just as a follow-up, on the M&A side, you guys seem to be really putting together a potent story on MRE. And I know you've done your own acquisitions like a quick turn and what have you long term? Would you ever consider a larger competitor acquiring you?

大衛，非常感謝，非常有幫助。作為後續行動，在併購方面，你們似乎確實在 MRE 上整理了一個強而有力的故事。我知道你已經完成了自己的收購，就像快速轉變一樣，你有什麼長期目標？您會考慮更大的競爭對手收購您嗎？

Well, that's I mean, it's up to the shareholders we're always -- we're very shareholder oriented. So we all own a lot of stock. And if the right offer came in and somebody was interested, we would certainly entertain it. It's also that's a Board-level call, not just individuals so.

嗯，我的意思是，這始終取決於股東——我們非常以股東為導向。所以我們都擁有大量股票。如果有合適的報價並且有人感興趣，我們肯定會接受。這也是董事會層級的呼籲，而不僅僅是個人的呼籲。

Fair enough, and I appreciate that Joseph Thank you for the time.

很公平，我很感激約瑟夫，謝謝你抽出時間。

Thanks.

謝謝。

Brian McKenna, Citizen's GMP.

Brian McKenna，公民 GMP。

All right. Great. Thanks. Good morning, everyone. Most questions have been asked, but it would be great just to get an update on capital management. I'm assuming returns on new investments today are quite high. So I suspect your top priority for capital is investing back into the business for longer term growth. But can you just walk through your capital priorities today as it relates to new investments, further deleveraging, strategic M&A and dividends or buybacks?

好的。偉大的。謝謝。大家早安。大多數問題都被問到了，但如果能了解資本管理的最新情況就太好了。我假設今天新投資的報酬率相當高。因此，我懷疑您的資本首要任務是重新投資於業務以實現長期成長。但您今天能否簡單介紹一下與新投資、進一步去槓桿化、策略併購以及股利或回購相關的資本優先事項？

Yes. So we first priority is to is to achieve and maintain a strong BB rating, which I mentioned and maintain debt at 3 to 3.5 times debt to total EBITDA. So that we're on course, we were in that zone in Q2, and we expect by the end of the year to be solidly in that. So that's priority number one.

是的。因此，我們的首要任務是實現並維持強勁的 BB 評級，即我提到的並將債務維持在債務與 EBITDA 總額的 3 至 3.5 倍。因此，我們正在步入正軌，我們在第二季度就處於這個區域，我們預計到今年年底將穩固在這個區域。所以這是第一要務。

Priority number two, as you mentioned is investments. We do have a good pipeline of acquisitions. We also returning that by selling modules and engines quicker. So our goal is not to have a huge increase in net assets owned this year. Having said that, it would be a year we did indicate with the V2500 program. We expected to increase our engine count from roughly 60 V2500 at the beginning of this year to about 150 to 200 by the end of this year.

正如您所提到的，第二要務是投資。我們確實有良好的收購管道。我們也透過更快地銷售模組和引擎來回報這一點。所以我們的目標是今年擁有的淨資產不要大幅增加。話雖如此，我們確實在 V2500 計劃中指出了這一年。我們預計到今年年底將引擎數量從今年年初的約 60 台 V2500 增加到約 150 至 200 台。

We're well on our way were at 130 now. And so we expect to achieve that and that, if you think of an average engine being $5 million or so adding 100 engines adds about $500 million of capital. So that's been a focus this year is to have the V2500. But once we achieve now having 400 to 500 CFM56 engines and 150 to 200 V2500. We don't need to grow that number significantly. So after that, it then becomes a question for shareholder returns and dividends and stock buybacks would be the third priority.

我們現在已經130了，進展順利。因此，我們希望實現這一目標，如果您認為一台發動機的平均成本為 500 萬美元左右，那麼添加 100 台發動機將增加約 5 億美元的資本。因此，今年的焦點是 V2500。但一旦我們現在擁有 400 至 500 台 CFM56 發動機和 150 至 200 台 V2500。我們不需要大幅增加這個數字。那麼在那之後，就變成了股東回報和股利的問題，股票回購將是第三要務。

Okay, great. Helpful. And then just one more follow-up for you, Joe, just given how much the business has grown over the past couple of years? How are you splitting your time between managing the two segments? And then somewhat related, is there an opportunity to lean in on hiring here, just given the broader macro environment, further accelerate growth in some of the emerging opportunities within aerospace products?

好的，太好了。有幫助。喬，考慮到過去幾年業務成長了多​​少，還有一個後續行動嗎？您如何分配管理這兩個部分的時間？然後，在某種程度上相關的是，考慮到更廣泛的宏觀環境，是否有機會依靠這裡的招聘，進一步加速航空航太產品中一些新興機會的成長？

Well, I spend 100% of my time on FTAI whatever's needed. So I don't think of it as like splitting, I have said to people like My dream is that one day people will not do a sum-of-the-parts calculation and think of this as we do as an integrated product and we go to the airlines and we say, look, we can provide your engine maintenance without you having to do it, you outsource it to us and will always have an engine for you.

好吧，我把 100% 的時間花在 FTAI 上，無論需要什麼。所以我不認為它像分裂，我對像這樣的人說過我的夢想是有一天人們不會進行部分總和計算並將其視為我們作為一個集成產品所做的事情，我們去航空公司，我們說，看，我們可以為您提供引擎維護，而您不必這樣做，您將其外包給我們，並將永遠為您提供引擎。

And we'll save you time and money and provide you a lot of flexibility. And that's our pitch. And so what we do is we go buy run out engines, we rebuild them and then we can offer either a lease sale or an exchange to an airline. And so the leasing is just one spoke one arm and what we offer, but it's an important one because having that ability gives the airline the flexibility say, well, what I only want three years that I think is what I'm going to need and somebody else is on six years.

我們將為您節省時間和金錢，並為您提供很大的靈活性。這就是我們的主張。因此，我們所做的就是購買用完的發動機，進行重建，然後我們可以向航空公司提供租賃銷售或交換服務。因此，租賃只是我們提供的服務，但它很重要，因為擁有這種能力可以讓航空公司具有靈活性，比如說，我只想要三年，我認為這就是我需要的。年了。

And so you have the ability to customize and say, whatever you want, we will deliver that for you. And that integrated product is extremely, powerful. So we don't think of it as two different businesses. We reported that way. But someday we'll know hopefully people will stop doing some of the parts and they'll say this is just a -- this is a great product, is an outsourced engine maintenance business for aftermarket for the most popular engines in the world.

因此，您可以進行定制，並說，無論您想要什麼，我們都會為您提供。該集成產品非常強大。所以我們不認為這是兩個不同的業務。我們就是這樣報道的。但有一天我們會知道，希望人們會停止做一些零件，他們會說這只是一個——這是一個很棒的產品，是一個針對世界上最受歡迎的發動機售後市場的外包發動機維護業務。

Yeah got it. Makes sense. I'll leave it there and congrats on another great quarter.

是的，明白了。有道理。我將把它留在那裡並祝賀又一個偉大的季度。

Thanks.

謝謝。

Myles Walton, Wolfe Research.

邁爾斯·沃爾頓，沃爾夫研究中心。

Thanks. Good morning. Hey Joe, I was wondering if you could maybe decompose the $700 million of EBITDA in '26. The $500 million previously, I think had $50 million of PMA third party parts and a couple of $100 million have a better drop-through in the module business. Is the PMA contribution at $700 million about the same and the remainders better business elsewhere, plus the V2500?

謝謝。早安.嘿喬，我想知道你是否可以分解 26 年 7 億美元的 EBITDA。我認為之前的 5 億美元有 5,000 萬美元的 PMA 第三方零件，還有 1 億美元在模組業務上有更好的投資。PMA 貢獻的 7 億美元是否大致相同，其餘的在其他地方（加上 V2500）業務更好？

Yes. So there are similar PMA, USM each about 50. And then we've added probably between 100 to 150 for the V2500 program. And then the rest is just higher margins and more volume on CFM modules.

是的。所以類似的PMA、USM各有50個左右。然後我們為 V2500 計劃添加了大約 100 到 150 個。剩下的就是 CFM 模組更高的利潤和更大的銷量。

Is that higher margin volume on CFM require that PMA because that was sort of the selling point to get to that higher margin or is the market now so robust that you don't need the PMA for that drop there?

CFM 的較高保證金量是否需要 PMA，因為這是獲得較高保證金的賣點，或者市場現在如此強勁，以至於您不需要 PMA 來應對該下降？

We're going to get it. So I don't think of it as the PMA will come and that will increase the margins. I think we're going to increase margins even without PMA. But definitely we're planning on PMA and PMA increasing margins.

我們會得到它。所以我不認為 PMA 會到來並會增加利潤。我認為即使沒有 PMA，我們也會增加利潤。但我們肯定正在計劃 PMA 和 PMA 增加利潤。

Okay. And there's been a lot of news about airlines and clearly yields are working against them and they're running more into cost questions about containment. Are you finding that this business that you have has more durability in a market where airlines are cost cutting, where are your weak points where your strengths if we go into that cash conservation mode that sometimes cyclically happens with airlines?

好的。有很多關於航空公司的消息，顯然收益率對他們不利，而且他們更多地陷入了有關遏制的成本問題。您是否發現，在航空公司削減成本的市場中，您所擁有的這項業務更具耐用性？ ？

Yes, it does help us. And we're providing, as I said, cost savings. So when everybody is told to look at every line item in the P&L, one of the line items that always pops up is engine maintenance as a big one and one that they seem to never be able to get it to go down.

是的，它確實對我們有幫助。正如我所說，我們正在節省成本。因此，當每個人都被告知要查看損益表中的每一項時，總是彈出的一項是發動機維護，這是一項重要的項目，而且他們似乎永遠無法將其降低。

So we can provide a flattening out of that in savings. And so when people do have an intense focus on cost savings and outsourcing of these types of activities is a goes up the demand for that goes up. So we're happy in any environment, but particularly when people are focusing on those, that's what we're providing is expense management reduction.

因此，我們可以將節省的資金壓平。因此，當人們確實非常關注成本節約和此類活動的外包時，對此的需求就會增加。因此，我們在任何環境中都很高興，但特別是當人們關注這些時，這就是我們提供的減少費用管理。

Yeah, okay, great. I'll leave it there. Thank you.

是的，好的，太好了。我會把它留在那裡。謝謝。

Thanks.

謝謝。

Sherif Elmaghrabi, BTIG.

謝里夫·埃爾馬格拉比，BTIG。

Hey, good morning. I want to start with an update on PMA. How is the industry acceptance going for your first part? And can you talk through what the second PMA part does have in the engine and timing for approval there, please?

嘿，早安。我想從 PMA 的更新開始。你的第一部分的行業接受度如何？您能否談談引擎中的第二個 PMA 部件以及批准的時間？

Yeah, the timing we've said is shortly. We, obviously, we're closer today than we were last quarter. We don't have any -- we don't forecast specific timing, but very good progress made on all fronts on that. So we're very confident.

是的，我們所說的時間很快。顯然，我們今天比上個季度更接近了。我們沒有——我們沒有預測具體的時間，但在這方面的所有方面都取得了非常好的進展。所以我們非常有信心。

The first part, we have installed in 15 engines has been flying with another airline and no issues vary a high quality product, as always with [conway], and we think the industry acceptance is going to grow. There is a school of thought on for many airlines. If they're going to put PMA, they want more than one part.

第一部分，我們已經安裝在 15 台發動機上，並與另一家航空公司一起飛行，沒有任何問題改變高品質的產品，一如既往地與 [conway] 一起，我們認為行業的接受度將會提高。許多航空公司都有自己的一套思想流派。如果他們要放置 PMA，他們想要的不僅僅是一個零件。

So there are airlines that will wait till there's more parts approved and once those are available, then we expect the industry takeup to be quite robust. It's also there's an additional element today and supply chain availability in that, it's not just cost savings for PMA it's availability, which is also important that you have another alternative, if you can't get in a timely manner, the OEM parts.

因此，有些航空公司會等到更多零件獲得批准，一旦這些零件可用，我們預計行業採用率將相當強勁。今天還有一個額外的因素和供應鏈可用性，這不僅僅是 PMA 的成本節省，它的可用性也很重要，如果您無法及時獲得 OEM 零件，您還有另一種選擇。

That's good color. And then on the corporate side, both of the well intervention vessels are now on charter and it looks like the rate that they're earning has melted up nicely. Is that how are you progressing on the sale of these vessels? And are there any recent transactions you can point you to give us a sense of how their -- how they're valued?

這顏色真好啊然後在公司方面，兩艘油井幹預船現在都已租用，看起來他們的收入已經很好地融化了。你們這些船隻的銷售進度如何？您最近是否有任何交易可以讓我們了解它們的估值？

Yes. So you're right, the market is improving nicely. We have a handshake deal on both vessels today, which we expect to close in the -- by the end of the year, subject to a couple of conditions that we think will be met, but the market is -- has strengthened. And we expect for the next few years, it's going to be a strong market.

是的。所以你是對的，市場正在良好改善。今天我們就兩艘船達成了握手協議，預計在今年年底前完成，但前提是我們認為會滿足一些條件，但市場已經走強。我們預計未來幾年，這將是一個強勁的市場。

So the vessels are both on charter doing well generating EBITDA and the values have gone up. We originally said we thought we would get approximately $150 million, and we're in that zip code. So we're very happy with the end of that chapter is close.

因此，這兩艘船都在租賃狀態下，產生的 EBITDA 表現良好，而且價值也有所上升。我們最初說我們認為我們會獲得大約 1.5 億美元，而我們就在那個郵遞區號中。所以我們對這一章即將結束感到非常高興。

Thanks for taking my questions, Joe.

謝謝你回答我的問題，喬。

Thanks.

謝謝。

I show no further questions at this time. I would now like to turn the call back over to Alan Andreini for closing remarks.

我目前沒有提出任何進一步的問題。我現在想將電話轉回給艾倫·安德烈尼 (Alan Andreini)，讓其致閉幕詞。

Thank you all for participating in today's conference call. We look forward to updating you after Q3.

感謝大家參加今天的電話會議。我們期待在第三季之後向您更新。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。