Graham Corp (GHM) 2025 Q1 法說會逐字稿

Greetings, and welcome to Graham Corporation first quarter fiscal year 2025 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded It is now my pleasure to introduce your host, Ms. Deborah Pawlowski, Investor Relations for Graham Corporation.

您好，歡迎參加格雷厄姆公司 2025 財年第一季財務業績電話會議。（操作員說明） 提醒一下，本次會議正在錄製中。

Thank you. Ms. Pawlowski, you may begin.

謝謝。帕夫洛夫斯基女士，您可以開始了。

Thank you, [Ringue], , and good morning, everyone. We certainly appreciate your time today and your interest in Graham Corporation. Here with me on the call are Dan Thoren, our President and CEO; Chris Thome, our Chief Financial Officer; and Matt Malone, Vice President of Graham Corporation and General Manager of Barber-Nichols. Dan, Chris and Matt are going to provide their formal remarks after which we will open the line for questions.

謝謝你，[Ringue]，大家早安。我們非常感謝您今天抽出時間以及您對格雷厄姆公司的興趣。與我一起參加電話會議的是我們的總裁兼執行長 Dan Thoren； Chris Thome，我們的財務長；以及 Graham Corporation 副總裁兼 Barber-Nichols 總經理 Matt Malone。丹、克里斯和馬特將發表正式講話，然後我們將開放提問熱線。

You should have a copy of the first quarter fiscal year 2025 financial results that were released this morning. I will also note that you will be seen momentarily a corrected release crossing the wires. It is correcting the fiscal year 2025 ending date to read March 31, 2025.

您應該有一份今天早上發布的 2025 財年第一季財務業績的副本。我還要指出的是，您將立即看到經過電線的修正版本。它將 2025 財政年度結束日期更正為 2025 年 3 月 31 日。

If you don't have the release, the corrected release is on our website at ir.grahamcorp.com, along with slides that will accompany today's discussion.

如果您沒有該版本，可以在我們的網站 ir.grahamcorp.com 上找到更正後的版本，以及今天討論中附帶的幻燈片。

If you turn to slide 2, I will review the Safe Harbor statements. You should be aware that we may make some forward-looking statements during the formal discussion as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated here today.

如果您翻到投影片 2，我將回顧安全港聲明。您應該知道，我們可能會在正式討論以及問答環節中做出一些前瞻性陳述。這些陳述適用於受風險和不確定性以及其他可能導致實際結果與今天所述結果有重大差異的因素影響的未來事件。

These risks and uncertainties and other factors are provided in the earnings release, as well as with other documents filed by the company with Securities and Exchange Commission. You can find those documents on our website or at sec.gov.

這些風險和不確定性以及其他因素在收益報告以及公司向證券交易委員會提交的其他文件中提供。您可以在我們的網站或 sec.gov 上找到這些文件。

During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

在今天的電話會議中，我們還將討論一些非公認會計準則財務指標。我們相信這些將有助於評估我們的績效。但是，您不應考慮單獨提供此附加信息，也不應將其視為根據 GAAP 準備的結果的替代品。

We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. We also use key performance indicators to help gauge the progress and performance of the company. These key performance metrics are orders, backlog and a book-to-bill ratio.

我們在今天發布的新聞稿和投影片所附的表格中提供了非公認會計準則衡量指標與可比較公認會計準則衡量指標的調節表。我們也使用關鍵績效指標來幫助衡量公司的進展和績效。這些關鍵績效指標是訂單、積壓訂單和訂單出貨比。

Their operational measures and a quantitative reconciliation of each of these is not required or provided. You can find the disclaimer regarding our use of key performance metrics at the back of our slide deck. So with that, if you would please advance to slide 3. I'll turn it over to Dan to begin. Dan?

不要求或提供他們的操作措施和每一項的定量調節。您可以在投影片後面找到有關我們使用關鍵績效指標的免責聲明。那麼，如果您願意的話，請前進到幻燈片 3。我將把它交給丹開始。擔？

Thanks, Debbie. Good morning to everyone. The first quarter can be characterized by solid growth, consistent improvement, and strengthened profitability as demonstrated by our robust order flow, record revenue, expanded gross margin and improved bottom line.

謝謝，黛比。大家早安。第一季的特點是穩健成長、持續改善和獲利能力增強，我們強勁的訂單流量、創紀錄的收入、擴大的毛利率和改善的利潤證明了這一點。

Additionally, we have enhanced our balance sheet through strong cash generation, which provides us with the financial flexibility to support future growth opportunities.

此外，我們透過強大的現金產生能力增強了資產負債表，這為我們提供了財務靈活性來支持未來的成長機會。

It is also worth noting that the expansion of our defense business has reduced our economic sensitivity, with a steady flow of program renewals in new opportunities, our total backlog is nearly $400 million. These results are a testament to the dedication and discipline of the Graham team, the confidence our customers have in us and the effectiveness of our strategy to build better companies.

另外值得注意的是，我們國防業務的擴張降低了我們的經濟敏感性，隨著新機會中的計畫更新源源不斷，我們的積壓總額已接近4億美元。這些結果證明了格雷厄姆團隊的奉獻精神和紀律、客戶對我們的信心以及我們打造更好公司的策略的有效性。

Later this month, we will break ground on a new 29,000 square foot facility in Batavia, New York. This expansion will enhance our capacity and production efficiencies ensure that we can consistently meet our commitments, particularly to the US Navy.

本月晚些時候，我們將在紐約巴達維亞建造一座佔地 29,000 平方英尺的新工廠。此次擴建將提高我們的產能和生產效率，確保我們能夠始終如一地履行我們的承諾，特別是對美國海軍的承諾。

Additionally, as announced a few weeks ago, we have been awarded $2.1 million by the BlueForge Alliance, a nonprofit neutral integrator supporting the US Navy submarine industrial base initiatives. This funding will enable us to expand our defense welder training programs and acquire equipment needed to support the programs.

此外，正如幾週前宣布的那樣，我們已獲得 BlueForge Alliance 的 210 萬美元獎勵，該聯盟是一家支援美國海軍潛艇工業基地計劃的非營利中立整合商。這筆資金將使我們能夠擴大我們的國防焊工培訓計劃併購買支持該計劃所需的設備。

One of our more exciting projects, which we announced in June is our involvement in the world's first net zero carbon emissions integrated ethylene cracker and derivative site being developed in North America. Our state of the art surface condensers equipped with custom venting will optimize turbine drive efficiency. This project is designed to enhance the eco friendliness of gas refining with the overarching goal of minimizing carbon emissions throughout the production process.

我們在 6 月宣布的更令人興奮的項目之一是參與在北美開發的世界上第一個淨零碳排放綜合乙烯裂解裝置和衍生品工廠。我們配備客製化通風裝置的最先進的表面冷凝器將優化渦輪機驅動效率。該項目旨在提高天然氣精煉的生態友善性，總體目標是最大限度地減少整個生產過程中的碳排放。

The acquisition of P3 Technologies is progressing as expected delivering both on revenue and profitability. The integration of their engineering and analysis capabilities have been smooth with their team effectively supporting both operating companies.

對 P3 Technologies 的收購正在按預期進行，帶來收入和獲利能力。他們的工程和分析能力的整合非常順利，他們的團隊有效地支援了兩家營運公司。

Now let me hand it over to Matt, who will provide details on the three project awards valued at over $65 million that we announced earlier this week. Matt?

現在讓我將其交給 Matt，他將提供我們本週早些時候宣布的價值超過 6500 萬美元的三個項目獎項的詳細資訊。馬特？

Thank you, Dan. We believe that our strong customer relationships, coupled with our investments in expanding engineering capabilities and increasing capacity, has enabled us to both continue serving existing customers and secure new business.

謝謝你，丹。我們相信，我們強大的客戶關係，加上我們在擴大工程能力和提高產能方面的投資，使我們能夠繼續為現有客戶提供服務並獲得新業務。

Our solutions stand out do the engineering expertise, precision manufacturing capabilities and rigorous testing and qualification processes, all of which meet the high performance requirements for mission critical applications.

我們的解決方案在工程專業知識、精密製造能力以及嚴格的測試和鑑定流程方面脫穎而出，所有這些都滿足關鍵任務應用的高效能要求。

We highlighted the three awards on slide 4, securing a follow-on option year award to supply alternators and regulators for the MK48 Mod 7 heavyweight torpedo program underscores our trusted partnership and sustained excellence in the defense sector. This contract, which covers 100 units with deliveries due to calendar year 2027, adds to our existing backlog of over 200 units for this program.

我們在幻燈片4 上強調了這三個獎項，獲得了為MK48 Mod 7 重量級魚雷項目提供交流發電機和調節器的後續選項年獎項，強調了我們在國防部門值得信賴的合作夥伴關係和持續的卓越表現。該合約涵蓋 100 台，將於 2027 年交付，增加了我們該計劃現有 200 多台的積壓訂單。

We are also excited to have won a competitive bid for the MK19 air turbine pumps, used in the torpedo injection system of the Columbia-class submarine. This project leverages lessons learned from completing first article units, demonstrating our capability to produce these precision units. We are contracted to deliver 10 units for five both through calendar year 2032.

我們也很高興贏得了 MK19 空氣渦輪泵的競標，該泵用於哥倫比亞級潛艇的魚雷噴射系統。該專案利用了完成首件裝置的經驗教訓，並展示了我們生產這些精密裝置的能力。我們簽訂的合約是到 2032 年交付 10 台，其中 5 台。

Additionally, we have secured a contract to supply a second stage cryogenic recirculation pumps essential for thermal conditioning of upper stage engines on launch vehicles for space. With deliveries extending through calendar year 2027.

此外，我們還獲得了一份供應第二級低溫再循環泵的合同，該泵對於太空運載火箭上級發動機的熱調節至關重要。交付期延長至 2027 年。

In connection with this order, we will be expanding our liquid nitrogen testing capabilities in Arvada, which will support our cryogenic pump business. We are grateful for our customers' trust in selecting us for these high value projects and remain committed to delivering exceptional results.

根據該訂單，我們將擴大在阿瓦達的液態氮測試能力，這將支援我們的低溫泵業務。我們感謝客戶選擇我們參與這些高價值項目的信任，並將繼續致力於提供卓越的成果。

With that, I will turn it over to Chris for the first quarter financial details. Chris?

這樣，我將把第一季的財務細節交給克里斯。克里斯？

Thank you, Matt, and good morning, everyone. As a reminder, our results include P3 Technologies for the full quarter. We acquired P3 in November of 2023, and this impacts the year-over-year comparisons.

謝謝你，馬特，大家早安。提醒一下，我們的業績包括 P3 Technologies 整個季度的業績。我們在 2023 年 11 月收購了 P3，這影響了同比比較。

I will begin on slide 5. As you can see, we had another record quarter achieving sales of $50 million, this represents a 5% increase or $2.4 million over the prior year and includes $1.6 million of incremental sales from P3.

我將從幻燈片 5 開始。正如您所看到的，我們的季度銷售額再次創紀錄，達到 5000 萬美元，比上年增長 5%，即 240 萬美元，其中包括來自 P3 的 160 萬美元增量銷售額。

Sales to the defense market reached $29.1 million, marking a 28% increase and setting a new quarterly record. Another contributor to our overall sales growth was a 20% rise in refining sales, which totaled $8.2 million.

國防市場銷售額達到 2,910 萬美元，成長 28%，創下季度新紀錄。我們整體銷售額成長的另一個貢獻者是煉油銷售額成長了 20%，總計 820 萬美元。

The decline in our other revenue was due to the timing of projects with multiple customers across various markets. It is worth noting that while aftermarket sales were down compared with the record levels of the prior year. They remain robust overall, this demonstrates the ongoing strength of our aftermarket business. US sales accounted for 82% of our total revenue this quarter, which reflects the size and scope of our domestic defense business.

我們其他收入的下降是由於各市場的多個客戶的專案時間表所致。值得注意的是，儘管售後市場銷量與上一年的創紀錄水平相比有所下降。它們總體保持強勁，這表明了我們售後市場業務的持續實力。本季美國銷售額占我們總收入的82%，反映了我們國內防務業務的規模和範圍。

On slide 6, you could see that our gross margin reached 24.8% for the quarter, an expansion of 170 basis points over the prior year. I should point out that this quarter's gross margin benefited $480,000 from the BlueForge alliance grant that Dan discussed earlier, which is a strategic investment in our workforce development, ensuring we have the skilled labor necessary for future growth.

在投影片 6 上，您可以看到我們本季的毛利率達到 24.8%，比上年增長 170 個基點。我應該指出，本季度的毛利率受益於 Dan 之前討論的 BlueForge 聯盟撥款，這是對我們勞動力發展的戰略投資，確保我們擁有未來成長所需的熟練勞動力。

Additionally, P3 continued to provide margin accretive sales, reinforcing the value of this acquisition, and we benefited from improved execution and pricing at our defense contracts.

此外，P3 持續提供利潤增值的銷售，增強了此次收購的價值，我們也受惠於國防合約執行和定價的改善。

It is also worth noting that we are beginning to see improved profitability in our recent refinery projects in India. A promising development driven by new leadership and localized engineering efforts that enhance our efficiency and cost effectiveness.

還值得注意的是，我們最近在印度的煉油廠計畫開始看到獲利能力的提高。新領導層和本地化工程工作推動了這一充滿希望的發展，提高了我們的效率和成本效益。

On slide 7, you can see how our strong performance is translating into our improving bottom line. We continued to trend upward both quarter by quarter and year over year. Net income for the first quarter was $3 million, a 12% increase compared with $2.6 million for the same period in 2024. This translates to $0.27 per share.

在幻燈片 7 上，您可以看到我們強勁的業績如何轉化為不斷提高的利潤。我們繼續逐季和逐年呈上升趨勢。第一季淨利潤為 300 萬美元，比 2024 年同期的 260 萬美元成長 12%。這相當於每股 0.27 美元。

Adjusted net income saw an even higher increase, up 20% to $3.6 million, equating to $0.33 per share. Our lower tax rate for the quarter reflected a discrete tax benefit related to the vesting of restricted stock awards. For the full year, we still expect an effective tax rate of 20% to 22%.

調整後淨利增幅更大，成長 20% 至 360 萬美元，相當於每股 0.33 美元。我們本季較低的稅率反映了與限制性股票獎勵的歸屬相關的離散稅收優惠。全年，我們仍預期有效稅率為20%至22%。

Slide 8 shows our adjusted EBITDA, which was $5.1 million for the first quarter and represented a 10.3% margin. Expenses were higher this quarter with SG&A inclusive of amortization increasing by $2 million year-over-year. This rise was largely due to our continued investment in our operations, our people and our technologies. This included $0.3 million increase in the supplemental performance bonus from the Barber-Nichols acquisition.

幻燈片 8 顯示了我們調整後的 EBITDA，第一季為 510 萬美元，利潤率為 10.3%。本季費用較高，SG&A（含攤銷）年增 200 萬美元。這一成長主要歸功於我們對營運、人員和技術的持續投資。其中包括因收購 Barber-Nichols 而增加的 30 萬美元補充績效獎金。

A $0.3 million, of incremental costs associated with the P3 acquisition. $0.3 million of expenses for the ERP conversion at Batavia and $0.4 million of increased investment in R&D. I should point out that SG&A expenses were down versus the sequential fourth quarter due to lower performance based compensation and professional services fees.

與 P3 收購相關的增量成本為 30 萬美元。 Batavia 的 ERP 轉換費用為 30 萬美元，研發投資增加為 40 萬美元。我應該指出，由於基於績效的薪酬和專業服務費較低，銷售、管理及行政費用較上一季下降。

Turning to slide 9, we had another quarter of strong cash generation totaling $8.7 million. Our balance sheet remains very strong, with $21.6 million in cash and no debt. The $29 million of availability on our senior revolving credit facility at June 30 provides additional financial flexibility to support our strategic initiatives and operational needs.

轉向幻燈片 9，我們又一個季度產生了強勁的現金，總計 870 萬美元。我們的資產負債表仍然非常強勁，擁有 2,160 萬美元現金，沒有債務。6 月 30 日，我們的高級循環信貸額度可獲得 2,900 萬美元，這為支援我們的策略計劃和營運需求提供了額外的財務靈活性。

Capital expenditures for the quarter were $3 million directed towards capacity expansion and productivity improvements such as automated welding equipment and new machining centers. For fiscal 2025, we still expect CapEx to be between $10 million to $15 million. Approximately half of this amount is related to the customer supported expansion of our Batavia facility, which will accommodate an accelerated shipbuilding schedule for the US Navy.

本季的資本支出為 300 萬美元，用於擴大產能和提高生產率，例如自動化焊接設備和新加工中心。對於 2025 財年，我們仍預期資本支出在 1,000 萬美元至 1,500 萬美元之間。其中大約一半與客戶支援的巴達維亞工廠擴建有關，該工廠將適應美國海軍加快造船計劃。

Turning to slide 10, you'll see that we achieved orders of $55.8 million in the quarter, resulting in a book-to-bill ratio of 1.1. Approximately half of these orders were for the defense sector, including the award for the MK48 program that Matt discussed.

翻到投影片 10，您會發現我們在本季實現了 5,580 萬美元的訂單，訂單出貨比為 1.1。這些訂單中大約有一半是針對國防部門的，包括馬特討論過的 MK48 項目的授予。

Another significant driver was the 53% increase in chemical and petrochemical orders, which included the order for the ethylene cracker that Dan mentioned.

另一個重要推動因素是化學和石化訂單增加了 53%，其中包括 Dan 提到的乙烯裂解裝置訂單。

Slide 11 shows that our backlog has been consistently around the $400 million level for the past three quarters. Further, underscoring our consistent demand and strong market position. This stable backlog provides us with good visibility into the future and ensures a level of operational stability.

投影片 11 顯示，過去三個季度我們的積壓訂單一直在 4 億美元左右。此外，強調了我們持續的需求和強大的市場地位。這種穩定的積壓為我們提供了對未來的良好洞察力，並確保了一定程度的營運穩定性。

Overall, our backlog increased 23% year-over-year, with defense backlog up 29% or $74.5 million. And our chemical, petrochemical backlog, up 82% for $10.5 million. Approximately 35% to 45% of our backlog is expected to convert to sales within the next 12 months with an additional 25% to 30% expected to convert over the following 12 months. The majority of our orders expected to convert beyond 12 months are from the defense industry, specifically for the US Navy.

總體而言，我們的積壓訂單年增 23%，其中國防積壓訂單增加 29%，即 7,450 萬美元。我們的化學品、石化產品積壓訂單成長了 82%，達到 1,050 萬美元。我們預計約 35% 至 45% 的積壓訂單將在未來 12 個月內轉化為銷售額，另外 25% 至 30% 預計將在接下來的 12 個月內轉化為銷售額。我們預計 12 個月後轉換的訂單大部分來自國防工業，特別是美國海軍。

On slide 12, you can see that we are reiterating our guidance for fiscal 2025, that we provided last quarter. We continue to expect revenue to be between $200 million and $210 million dollars, indicating top line growth of 11% over fiscal 2024 at the midpoint of this range. We have accounted for the seasonal cadence in our projections with historically lighter second and third quarters due to holidays and direct labor vacations.

在投影片 12 上，您可以看到我們重申了上季提供的 2025 財年指引。我們仍然預計營收將在 2 億美元至 2.1 億美元之間，這表明 2024 財年營收將成長 11%（處於該範圍的中點）。我們在預測中考慮了季節性節奏，由於假期和直接勞動假期，第二和第三季的歷史數據較少。

From a margin perspective, we continue to expect our gross margin to range from 22% to 23% for the full year and our SG&A including amortization to be between 16.5% to 17.5% of sales. Our SG&A guidance includes costs associated with the Barber-Nichols supplemental bonus from the acquisition, equity-based compensation and ERP conversion costs of approximately $6.5 million to $7.5 million.

從利潤率角度來看，我們繼續預計全年毛利率將在 22% 至 23% 之間，SG&A（包括攤提）將佔銷售額的 16.5% 至 17.5%。我們的 SG&A 指引包括與收購產生的 Barber-Nichols 補充獎金相關的成本、基於股權的薪酬以及約 650 萬至 750 萬美元的 ERP 轉換成本。

The net result is that we expect adjusted EBITDA for fiscal year 2025 to be between $16.5 million to $19.5 million, which implies a 35% increase at the midpoint. The range also implies an adjusted EBITDA margin of about 9% at the midpoint. Or a nearly 200 basis points improvement over fiscal 2024.

最終結果是，我們預計 2025 財年調整後 EBITDA 將在 1,650 萬美元至 1,950 萬美元之間，這意味著中點成長 35%。該範圍也意味著調整後的 EBITDA 利潤率中點約為 9%。或比 2024 財年提高近 200 個基點。

With that, I will pass the call back to Dan.

這樣，我會將電話轉回給丹。

Thanks, Chris. On slide 13, I will highlight our strategic and operational priorities that we expect to enable us to deliver on our long-term goals. Our focus on developing full lifecycle product opportunities ensures that we remain a trusted partner throughout the entire operational lifespan of our customers' facilities or products.

謝謝，克里斯。在投影片 13 中，我將強調我們的策略和營運優先事項，我們希望這些優先事項能幫助我們實現長期目標。我們專注於開發全生命週期產品機會，確保我們在客戶設施或產品的整個營運生命週期中始終是值得信賴的合作夥伴。

For example, the longevity of operations in the refining and petrochemical market has driven strong demand for our aftermarket services, highlighting the importance of maintenance and upgrades and extending the life of existing facilities.

例如，煉油和石化市場的長期營運帶動了對售後服務的強勁需求，凸顯了維護和升級以及延長現有設施壽命的重要性。

Additionally, we are making significant progress with our defense aftermarket business, for instance, we are supporting overhauls of air turbine pumps for the navies of Canada and Australia in addition to performing complete overhauls for the US Navy.

此外，我們的國防售後市場業務正在取得重大進展，例如，除了為美國海軍進行全面大修外，我們還為加拿大和澳洲海軍的空氣渦輪泵大修提供支援。

In our research and development efforts, we are dedicated to creating products that enable our customers to reduce energy consumption. This not only helps them lower production costs, but also supports their sustainability goals.

在我們的研發工作中，我們致力於創造能夠幫助客戶減少能源消耗的產品。這不僅有助於他們降低生產成本，還支持他們的永續發展目標。

On the sustainability front, we are witnessing an expanding pipeline of new energy projects, and we are confident that our solutions are aligned with these emerging opportunities. With no debt, we are well positioned to drive growth both organically and inorganically.

在永續發展方面，我們目睹了新能源項目的不斷擴大，我們相信我們的解決方案與這些新興機會一致。由於沒有債務，我們有能力推動有機和無機成長。

Our upcoming expansion in Batavia exemplifies our organic growth strategy, while our ongoing evaluation of acquisition targets aligns with our organizational goals and investment criteria. For fiscal 2025, our CapEx plans remain consistent with an anticipated investment of approximately 5% to 7% of revenue.

我們即將在巴達維亞的擴張體現了我們的有機成長策略，而我們對收購目標的持續評估符合我們的組織目標和投資標準。2025 財年，我們的資本支出計畫與佔收入約 5% 至 7% 的預期投資保持一致。

Each initiative will be required to deliver an expected ROI of over 20% reflecting our dedication to growth, profitability and enhancing shareholder value. We are actively engaging all stakeholders to improve our operations. Our expansion in Batavia has been bolstered by government support and an investment from a key customer.

每項措施都需要實現超過 20% 的預期投資回報率，反映我們對成長、獲利和提高股東價值的奉獻精神。我們正在積極吸引所有利害關係人來改善我們的營運。我們在巴達維亞的擴張得到了政府的支持和主要客戶的投資的支持。

To sustain our growth, we are focusing on training, apprenticeship programs and management development, which will necessitate strong community involvement. Additionally, we anticipate that developing our suppliers, both domestically and internationally, we'll open up new opportunities across the markets we serve.

為了維持我們的成長，我們專注於培訓、學徒計劃和管理發展，這需要社區的大力參與。此外，我們預計，透過發展國內和國際供應商，我們將在我們所服務的市場中開闢新的機會。

As I have mentioned before, and continue to believe this is an exciting time to be part of the Graham team. We are making steady progress, meeting our targets and strategically positioning ourselves for sustained growth, all while staying on track to achieve our long-term financial goals for fiscal 2027.

正如我之前提到的，我仍然相信這是成為 Graham 團隊一員的激動人心的時刻。我們正在穩步取得進展，實現我們的目標，並為持續成長進行策略性定位，同時繼續實現 2027 財年的長期財務目標。

I want to extend my heartfelt thanks to all of our associates whose dedication and passion are driving our success and shaping a bright future. With that [Ringue], we can open the call for questions.

我要向所有員工致以衷心的感謝，他們的奉獻和熱情推動著我們的成功並塑造了光明的未來。有了這個[Ringue]，我們就可以開始提問了。

(Operator Instructions) Joe Gomes, Noble Capital Markets.

（操作員說明）Joe Gomes，Noble Capital Markets。

Good morning. Thanks for taking my questions.

早安.感謝您回答我的問題。

Hi Joe.

嗨喬。

I wanted to first touch base here on the air turbine pump program that you guys recently won here. You talked about was a competitive bid as wondering give us a little more color on, who's kind of the competition out there, what the process was? What kind of stood out that Graham was the winner this of this bid?

我想先談談你們最近在這裡贏得的空氣渦輪泵專案。您談到的是競爭性投標，想給我們提供更多信息，誰是競爭對手，流程是什麼？格雷厄姆是這次競標的獲勝者，這有什麼突出之處？

Yeah, Joe, this is Matt. There's portions of that, that I'll not disclose, but certainly it was a competitive bid. We've been working on air turbine pump program specifically for the Virginia-class at Barber-Nichols for several decades from a component level, that experience base is directly transferable to the Columbia-class air turbine pump, which well positioned us.

是的，喬，這是馬特。其中有一部分我不會透露，但可以肯定的是，這是一次有競爭力的投標。幾十年來，我們一直在巴伯-尼科爾斯專門為弗吉尼亞級建造空氣渦輪泵項目，從組件層面來看，該經驗基礎可以直接轉移到哥倫比亞級空氣渦輪泵，這使我們處於有利地位。

And the short takeaway is, we have been manufacturing, setting up the supply chain and delivering several first article units for this program for various customers over the last three years. And so this is a follow-on extension of the great work that's been done to date and with successful units completed, it was a clear demonstration that we're capable to provide long term.

簡而言之，在過去的三年裡，我們一直在為不同的客戶製造、建立供應鏈並交付該專案的幾個首件產品。因此，這是迄今為止所做的偉大工作的後續延伸，並且成功完成了單元，這清楚地表明我們有能力提供長期服務。

Great. Thanks for that. And on the aftermarket side, you talked about the revenues were down, although still relatively strong. I know you guys have talked about making some efforts in putting together some databases, let's call them, of where your products are the life cycles et cetera. I was wondering maybe you could give us some more color on where you stand on that project?

偉大的。謝謝你。在售後市場方面，您談到收入下降，儘管仍然相對強勁。我知道你們已經討論過要努力整合一些資料庫，讓我們稱之為你的產品的生命週期等等。我想知道您是否可以向我們提供更多關於您對該專案的立場的資訊？

Yeah. So Graham has a as an amazing database of all the equipment where it's installed when it was installed, et cetera. And so our team has really developed that to the point that we can use it on a more active sales approach. The challenge with that is, as you can imagine, turnover within plants, refineries, petrochemical plants, over the years and especially through COVID kind of kills your contact information within that database.

是的。因此，格雷厄姆擁有一個令人驚嘆的資料庫，其中包含安裝時安裝的所有設備等。因此，我們的團隊確實將其開發到了可以將其用於更積極的銷售方法的程度。正如您可以想像的那樣，這樣做的挑戰是，多年來工廠、煉油廠、石化廠內部的人員流動，尤其是透過新冠疫情，會破壞您資料庫中的聯絡資訊。

So we're going through the process of updating that and also evaluating the ability for us to more automatically update that. So there's actually several databases out there, several services out there that have up-to-date contact information for the purchasing folks and the maintenance folks, et cetera, that we're looking at, trying to more automate that process up to speed that up.

因此，我們正在經歷更新的過程，並評估我們更自動更新的能力。因此，實際上有幾個資料庫，有幾個服務，其中有採購人員和維護人員的最新聯繫信息，等等，我們正在研究，試圖使該過程更加自動化，以加快速度向上。

And then there's a couple of other things that we've got in the works to really more proactively go after that, that aftermarket business domestically, we're the majority of our equipment is along the Gulf Coast. And so you'll be hearing more about that in future calls. But we look at that as a very significant piece of our business and something that we really want to continue to leverage. So hopefully that answers your question.

然後，我們正在做一些其他事情，以便真正更積極地開展國內售後業務，我們的大部分設備都位於墨西哥灣沿岸。因此，您將在以後的電話會議中聽到更多有關此內容的資訊。但我們認為這是我們業務的一個非常重要的部分，也是我們真正希望繼續利用的部分。希望這能回答你的問題。

Yes, thank you. And on the facility, I think last quarter your expectations were to break ground in July obviously, it's not August. Now terribly delayed, was just wondering anything pop up that cause that moved from July to August or just your typical run of the mill with these types of projects?

是的，謝謝。關於設施，我認為上個季度您的預期是在 7 月破土動工，顯然不是 8 月。現在嚴重延遲了，只是想知道從 7 月到 8 月發生的任何事情，或者只是您對這些類型項目的典型運作？

Yeah. Typical run of the mill, we're still very confident in our overall schedule, and we'll be announcing more on that relatively soon. But the I haven't been at Batavia for a few weeks. I'm not sure if ground actually has been broken. But we're -- we'll be doing a ceremonial groundbreaking here in the next couple of weeks.

是的。按照慣例，我們對整體時間表仍然非常有信心，我們很快就會宣布更多相關內容。但我已經好幾個星期沒去巴達維亞了。我不確定地面是否真的被破壞了。但我們將在接下來的幾週內在這裡舉行奠基儀式。

Okay. And then one more for me, and I'll get back in queue. And one of the things you talked about also last quarter was labor additions, I think you were talking about -- you're looking to increase your labor force by 10% in fiscal 2025. And just wondering how your efforts are going there. Are you seeing any potential hiccups or pushbacks that could make that more challenging than originally thought?

好的。然後再給我一張，然後我就重新排隊。上個季度您談到的一件事就是增加勞動力，我認為您正在談論 — 您希望在 2025 財年將勞動力增加 10%。只是想知道你的努力進展如何。您是否發現任何潛在的問題或阻力可能使事情比最初想像的更具挑戰性？

Chris, you want to take that or you want me to?

克里斯，你想接受還是希望我接受？

No, I could take it, Dan. So Joe, I have said this on the last several calls, I feel like a broken record, but our HR teams continue to do an excellent job in recruiting talent. Our workforce was up by '23 during the quarter and is up year over year by 13%.

不，我可以接受，丹。所以喬，我在最近幾次電話中說過，我感覺自己的記錄被打破了，但我們的人力資源團隊在招募人才方面繼續做得非常出色。本季我們的員工人數增加了 23 人，年增了 13%。

we have seen a slight softening in the labor markets. So we are finding it easier to come across a little bit easier, but it is still challenging to get that direct labor. And with the announcement of the BlueForge grant, we are now have that program funded for the entire year, and we just graduated a class of 10 this past month, and we have a class of 16 that just started. So things are going well with recruiting.

我們看到勞動力市場略有疲軟。因此，我們發現更容易遇到一些更容易的事情，但獲得直接勞動力仍然具有挑戰性。隨著 BlueForge 補助金的宣布，我們現在為該計劃提供了全年資助，上個月我們剛畢業了 10 名學生，還有 16 名學生才剛開始。所以招募工作進展順利。

Great. Thanks for taking my questions. I'll get back in queue. Nice quarter.

偉大的。感謝您回答我的問題。我會回到隊列中。不錯的季度。

Thanks, Joe.

謝謝，喬。

Thanks, Joe.

謝謝，喬。

Ric Ryan, Oak Ridge Financials.

里克‧瑞安 (Ric Ryan)，橡樹嶺金融公司。

Thank you, guys, and also congratulations on the continued strong execution, Dan. You guys have put together a nice track record.

謝謝你們，夥伴們，也祝賀丹，持續強勁的執行力。你們已經創造了良好的記錄。

I guess a couple of my questions I'll geared towards Matt and Matt, you got some nice wins in the Barber-Nichols side. Do you have any capacity issues on the B&A side, you need any kind of extra capacity or human resources to deliver on these contracts?

我想我的幾個問題將針對馬特和馬特，你們在巴伯-尼科爾斯方面取得了一些不錯的勝利。您在 B&A 方面是否有任何能力問題？

Yeah, great question. The answer is these programs do fit nicely into our long-term capacity plans. With that being said, MK48, as you can imagine, bolt-on to the back end of the existing contracts, so utilizes the same equipment and facilities. MK19 flattened a production capability that we have, and capacity that we have as well as the Blue Origin program or the --

是的，很好的問題。答案是這些計劃確實非常適合我們的長期產能計劃。話雖如此，正如您可以想像的那樣，MK48 是附加到現有合約的後端，因此使用相同的設備和設施。MK19 扁平化了我們擁有的生產能力，以及我們擁有的能力以及藍色起源計劃或--

And so on that we do have a lot of investments that are forthcoming and specifically that's to support other programs. The cryogenic facility that was discussed is very critical. We need to be able to test that capability on site and ensure that the product meets expectations.

等等，我們確實有很多即將到來的投資，特別是為了支持其他項目。所討論的低溫設施非常關鍵。我們需要能夠現場測試該功能並確保產品符合預期。

So with that being said, that is the major investments that needed to support these programs.

話雖如此，這就是支持這些計劃所需的主要投資。

I would just add to that, that these programs is all consistent with our CapEx guidance of $10 million to $15 million for the year, as well as our long-term guidance of 5% to 7% of revenue for the next several years as we invest in these types of things.

我想補充一點，這些計劃都符合我們今年 1000 萬至 1500 萬美元的資本支出指導，以及我們未來幾年佔收入 5% 至 7% 的長期指導，因為我們投資這些類型的東西。

Sure. Thanks, Chris. So when you look at, you know, you've had P3 not quite a year from and other programs that are opening up. What's -- how would you -- how can you provide some color for us on the pipeline of opportunities, Matt, and maybe specifically on P3 since it's been under your umbrella now since November, what do you seeing from the customer side for P3?

當然。謝謝，克里斯。因此，當您查看 P3 和其他正在開放的專案時，您就會知道，P3 專案已經啟動不到一年了。你會如何為我們提供一些關於機會管道的信息，Matt，也許特別是 P3，因為它自 11 月以來一直在你的保護下，你從客戶方面看到 P3 的什麼？

Yeah. So P3 really as an extension of Barber-Nichols, we're seeing a lot of opportunities that could flow into Barber-Nichols or P3 they continue to excel in the opportunities that they had in their backlog prior to acquisition.

是的。因此，P3 實際上是 Barber-Nichols 的延伸，我們看到很多機會可以流入 Barber-Nichols 或 P3，他們在收購之​​前積壓的機會中繼續表現出色。

They're also supporting quite a few R&D efforts at both Barber-Nichols and Graham Corporation, which is fantastic because it can stimulate new business. But what we're seeing in particular is quite a few space programs that would either flow through Barber-Nichols with content to P3 or go directly to P3. So knocking on the door, a lot of opportunities, and we're just harvesting them. But yeah, it's a continued strong pipeline, just timing of projects, landing.

他們還支持 Barber-Nichols 和 Graham Corporation 的相當多的研發工作，這非常棒，因為它可以刺激新業務。但我們特別看到的是，有相當多的太空項目要么透過 Barber-Nichols 將內容傳送到 P3，要么直接傳送到 P3。所以敲門的時候，有很多機會，我們只是在收穫它們。但是，是的，這是一個持續強大的管道，只是專案落地的時機。

Okay.

好的。

So at least on the gross margin, 22% to 23% dealers, you're getting a little bit of a kicker from the brand. But either anymore first article issues that weigh on the gross margin anymore or you're putting beyond those?

因此，至少在毛利率（22% 到 23%）經銷商方面，你從品牌那裡得到了一點好處。但是，要么是第一篇文章的問題不再影響毛利率，要么是您超出了這些範圍？

Yeah, [Rick], we did ship all the major first article units last year, we do have some lower margin articles that are still in the pipeline that combined with the seasonally lower Q2 and Q3 due to vacations and holidays, is kind of why we left the guidance where it is on. But yeah, that's -- we do have a small amount of lower margin work in the pipeline is still, but it's lower as an overall percentage of our backlog as compared to previous years,.

是的，[Rick]，我們去年確實發貨了所有主要的首篇文章，我們確實有一些利潤較低的文章仍在醞釀中，再加上由於假期和節假日而導致的第二季度和第三季度的季節性較低，這就是原因我們將指南留在了原來的位置。但是，是的，我們確實還有少量利潤率較低的工作仍在進行中，但與前幾年相比，它占我們積壓訂單的總體百分比較低。

Sure. Okay. Great. That's it from me. Congratulations again, guys.

當然。好的。偉大的。這就是我說的。再次恭喜你們。

Thanks, Rick.

謝謝，瑞克。

Gary Schwab, Valley Forge Capital Management.

施瓦布 (Gary Schwab)，福吉谷資本管理公司。

Yeah. Hi, guys. Likewise, a good quarter. I had some questions on the plant expansion. I don't know either Dan or Chris on this one. When you first applied for the plant expansion last December, the proposal was $13.9 million of investment to build an 18,900 square foot building.

是的。嗨，大家好。同樣，這是一個不錯的季度。我對工廠擴建有一些疑問。我不認識丹或克里斯。當您去年 12 月首次申請工廠擴建時，您提議投資 1,390 萬美元，建造一座 18,900 平方英尺的建築。

Today, you announced that you increase that from $13.9 million to $17.6 million and you increased the size by over 10,000 square feet to almost 29,000. So just wondering how should we look at that? What changed your thinking basically in the last six months that caused you to redesign and make such a significant increase in the size of the new facility?

今天，您宣布將資金從 1,390 萬美元增加到 1,760 萬美元，並將面積增加了 10,000 多平方英尺，達到近 29,000 平方英尺。所以只是想知道我們應該如何看待這一點？在過去的六個月裡，是什麼基本上改變了您的想法，導致您重新設計並大幅增加新設施的規模？

Yeah. Gary I would say that, when you first propose something, especially on the order of a grant to the to the government, for a $13 million, you kind of [up], I wonder if there's any chance at all, we're going to get this. And so you apply for it and surprise you with it. And it's like holy mackerel, this is awesome.

是的。蓋瑞，我想說的是，當你第一次提出一些建議時，特別是向政府撥款 1300 萬美元時，你有點[向上]，我想知道是否有任何機會，我們要去得到這個。所以你申請了它，並給你帶來了驚喜。就像神聖的鯖魚一樣，這太棒了。

Now let's really think about the what is the best use of this money and, should Graham be also kicking in some money to really get something that we want out of it. And so we kind of took a step back and said, strategically, what do we need to enable us to continue to win maybe business and win more of it in the future.

現在讓我們真正考慮一下這筆錢的最佳用途是什麼，格雷厄姆是否也應該投入一些錢來真正從中獲得我們想要的東西。因此，我們退後一步，從策略角度思考，我們需要什麼才能繼續贏得業務，並在未來贏得更多業務。

So we're able to put together a plan that includes this first bay, if you will, and have the opportunity in the future to add additional bays onto it. So it really was a, originally kind of thought of as a let's kind of upgrade our facilities here and there to, let's build a bespoke facility for that Navy program that we can really excel at and have a vision for longer term beyond that and hopefully, business continues to come and allows us to continue to expand our facility there in Batavia.

因此，如果您願意的話，我們可以製定一個包含第一個海灣的計劃，並且將來有機會在其中添加更多海灣。所以這確實是一個最初的想法，讓我們在這裡和那裡升級我們的設施，讓我們為海軍計劃建造一個定制設施，我們可以真正擅長並有一個更長期的願景，希望，業務不斷增加，使我們能夠繼續擴大我們在巴達維亞的設施。

But long story, but it was just exactly that, where we just took a step back and said, what do we really want.

說來話長，但正是如此，我們只是退後一步說，我們真正想要什麼。

Did suspecting that you would be getting this BlueForge award with the opportunity to boost your workforce that have anything to do with that change?

您是否懷疑您將獲得 BlueForge 獎項，並有機會提升您的員工隊伍，這與這項變更有關？

I would say probably not. We applied for a lot of different things, we -- and it's not really clear what we're going to win and win we're going to win. And so we tend to take one at a time, but have a long term vision of where we wanted to take it and keep applying for those types of things sort of support the vision.

我想說可能不會。我們申請了很多不同的東西，我們 - 目前還不清楚我們將贏得什麼以及我們將贏得什麼。因此，我們傾向於一次採取一項行動，但對我們想要採取的行動有一個長期的願景，並不斷申請這些類型的事情來支持這個願景。

Thank you. There are no more questions at this time. So we have reached the end of question-and-answer session. I would now like to turn the floor over to Dan Thoren, closing comments.

謝謝。目前沒有更多問題。我們的問答環節已經結束了。我現在想請 Dan Thoren 發言，結束評論。

Thank you all for joining us today. If you would like an opportunity to speak with us in more detail we will be participating in two upcoming conferences, the Midwest Ideas Conference on August 29 in Chicago and the Gabelli Aerospace and Defense Conference in New York City on September 5. As always, please feel free to reach out to us at any time and we look forward to talking with you all again in November after our second quarter fiscal '25 results. Enjoy your day.

感謝大家今天加入我們。如果您想有機會與我們進行更詳細的交談，我們將參加即將舉行的兩場會議，即8 月29 日在芝加哥舉行的中西部創意會議和9 月5 日在紐約舉行的加貝利航空航天與國防會議。像往常一樣，請隨時與我們聯繫，我們期待在 11 月公佈 25 年第二季財報後再次與大家交談。享受你的一天。

Thank you. This concludes our teleconference. Today, you may disconnect your lines at this time. Thank you for your participation.

謝謝。我們的電話會議到此結束。今天，您可以在此時斷開線路。感謝您的參與。