HEICO Corp (HEI.A) 2024 Q2 法說會逐字稿

Welcome to the HEICO Corporation Second Quarter 2024 Financial Results Call. My name is Samara, and I will be your operator for today's call. Certain statements in this conference call will constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include the severity, magnitude and duration of public health threats such as the COVID-19 pandemic. HEICO's liquidity and the amount and timing of cash generation, lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services.

歡迎參加 HEICO Corporation 2024 年第二季財務業績電話會議。我叫薩馬拉，我將擔任您今天通話的接線生。本次電話會議中的某些陳述將構成前瞻性陳述，這些陳述受到風險、不確定性和意外事件的影響。 HEICO 的實際結果可能與這些前瞻性陳述中明示或暗示的結果有重大差異。可能導致這種差異的因素包括公共衛生威脅（例如 COVID-19 大流行）的嚴重性、規模和持續時間。 HEICO 的流動性以及現金產生的數量和時間、商業航空旅行的減少、航空公司機隊的變化或航空公司的購買決定，這可能會導致對我們的商品和服務的需求下降。

Product specification costs and requirements, which could cause an increase to our cost to complete contracts, governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales. Our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth, product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales.

產品規格成本和要求，這可能導致我們完成合約的成本增加、政府和監管要求、出口政策和限制、美國和/或外國客戶國防、太空或國土安全支出的減少或來自現有和新產品的競爭競爭對手，這可能會減少我們的銷售額。我們以有利可圖的定價水平推出新產品和服務的能力，這可能會減少我們的銷售或銷售成長、產品開發或製造困難，這可能會增加我們的產品開發和製造成本並延遲銷售。

Our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals and achieve operating synergies from acquired businesses; customer credit risk, interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues.

我們進行收購的能力，包括獲得任何適用的國內和/或外國政府批准以及從收購的業務中實現營運協同效應；客戶信用風險、利息、外匯和所得稅率；和經濟狀況，包括航空、國防、航太、醫療、電信和電子產業內外的通貨膨脹的影響，這可能會對我們的成本和收入產生負面影響。

Parties listening to this call are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to, filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except to the extent required by applicable law. I now turn the call over to Laurans Mendelson, HEICO's Chairman and Chief Executive Officer.

我們鼓勵聽取本次電話會議的各方審查 HEICO 向美國證券交易委員會提交的所有文件，包括但不限於表格 10-K、表格 10-Q 和表格 8-K 上的文件。我們沒有義務公開更新或修改任何前瞻性聲明，無論是由於新資訊、未來事件或其他原因，除非適用法律要求。我現在將電話轉給 HEICO 董事長兼執行長 Laurans Mendelson。

Thank you very much, Samara, and good morning to everyone on the call. We thank you for joining us, and we welcome you to this HEICO Second Quarter Fiscal '24 Earnings Announcement Teleconference. I'm Larry Mendelson, Chairman and CEO of HEICO Corporation. And I'm joined here this morning by Eric Mendelson, HEICO's Co-President and the President of HEICO's Flight Support Group; Victor Mendelson, HEICO's Co-President and President of HEICO's Electronic Technologies Group, and Carlos Macau, our Executive Vice President and CFO.

非常感謝你，薩馬拉，並向參加電話會議的每個人早安。我們感謝您加入我們，並歡迎您參加本次 HEICO 24 年第二季財報電話會議。我是拉里·門德爾森 (Larry Mendelson)，HEICO 公司董事長兼執行長。今天上午，HEICO 聯合總裁兼 HEICO 飛行支援小組總裁 Eric Mendelson 也加入了我的行列。 HEICO 聯席總裁兼 HEICO 電子技術集團總裁 Victor Mendelson 以及我們的執行副總裁兼財務長 CarlosMacau。

Before reviewing our operating results in detail, I would like to take a moment to thank all of HEICO's talented team members for delivering another excellent quarter. Your focus on customers and operational excellence has provided record quarterly results for our shareholders, and I remain extremely optimistic about HEICO's future. I also want to thank everyone on the call, the HEICO team members and our customers and vendors who themselves or family members have served this great country. Some of whom made the ultimate sacrifice for our freedom. I hope you had these patriots in your thoughts on Memorial Day. HEICO is proud of the role we play in support of the armed forces of the United States and our allies.

在詳細回顧我們的經營業績之前，我想花一點時間感謝 HEICO 所有才華橫溢的團隊成員，感謝他們又創造了一個出色的季度。你們對客戶和卓越營運的關注為我們的股東提供了創紀錄的季度業績，我對 HEICO 的未來仍然非常樂觀。我還要感謝參加電話會議的所有人、HEICO 團隊成員以及我們的客戶和供應商，他們本人或家人曾經為這個偉大的國家服務過。他們中的一些人為我們的自由做出了最終的犧牲。我希望在陣亡將士紀念日你能想到這些愛國者。 HEICO 對我們在支持美國及其盟國武裝部隊方面所發揮的作用感到自豪。

I will summarize the highlights of the second quarter fiscal '24 results. Consolidated operating income and net sales in the second quarter of fiscal '24 represent record results for HEICO an improved by 33% and 39%, respectively, as compared to the second quarter of fiscal '23. The results mainly reflect 21% organic net sales growth in the Flight Support aftermarket replacement parts and the impact from our profitable fiscal '23 and '24 acquisitions as well as improved results at ETG.

我將總結 24 年第二季財報的亮點。 24 財年第二季的綜合營業收入和淨銷售額代表 HEICO 創紀錄的業績，與 23 財年第二季相比分別提高了 33% 和 39%。業績主要反映了 Flight Support 售後替換零件 21% 的有機淨銷售額增長、我們 23 財年和 24 財年有利可圖的收購以及 ETG 業績改善的影響。

Consolidated net income increased 17% to a record $123.1 million or $0.88 per diluted share in the second quarter of fiscal '24, and that was up from $105.1 million or $0.76 per diluted share in the second quarter of fiscal '23. Consolidated EBITDA increased 35% to $252.4 million in the second quarter of fiscal '24, and that was up from $187.2 million in the second quarter of fiscal '23. Our consolidated EBITDA margin was a very healthy 26.4% in the second quarter of fiscal '24.

24 財年第二季的合併淨利成長了17%，達到創紀錄的1.231 億美元，即稀釋後每股0.88 美元，高於23 財年第二季的1.051 億美元，即稀釋後每股0.76美元。 24 財年第二季的綜合 EBITDA 成長了 35%，達到 2.524 億美元，高於 23 財年第二季的 1.872 億美元。 2024 財年第二季度，我們的綜合 EBITDA 利潤率為 26.4%，非常健康。

The Flight Support Group set all-time quarterly net sales and operating income records in the second quarter of fiscal '24, improving an enormous of 65% and 49%, respectively, over the second quarter of fiscal '23. The increase principally reflects the impact from our profitable fiscal '23 and '24 acquisitions and strong 12% organic growth mainly attributable to increased demand for Flight Support Group, aftermarket replacement parts and repair and overhaul parts and services.

飛行支援集團在 24 財年第二季創下了歷史季度淨銷售額和營業收入記錄，比 23 財年第二季分別成長了 65% 和 49%。這一增長主要反映了我們 '23 和 '24 財年盈利收購的影響以及 12% 的強勁有機增長，這主要歸因於對飛行支持集團、售後更換零件以及維修和大修零件和服務的需求增加。

Our net debt-to-EBITDA ratio was 2.45x as of April 30, '24 and that was down from 3.04x as of October 31, '23. We remain on track to lower our leverage to 2x within 12 to 18 months post the Wencor acquisition. Cash flow provided by operating activities increased 82% and the $141.1 million in the second quarter of fiscal '24. That was up $77.8 million in the second quarter of fiscal '23.

截至2024年4月30日，我們的淨負債與EBITDA比率為2.45倍，低於截至2023年10月31日的3.04倍。我們仍有望在收購 Wencor 後 12 至 18 個月內將槓桿率降低至 2 倍。 2024 財年第二季度，經營活動提供的現金流量成長 82%，達到 1.411 億美元。 23 財年第二季增加了 7,780 萬美元。

At this time, I would like to introduce Eric Mendelson, Co-President of HEICO and the President of HEICO's Flight Support Group, and he will discuss the second quarter results of the Flight Support Group.

這次我想介紹一下HEICO聯席總裁兼HEICO飛行支援集團總裁Eric Mendelson，他將討論飛行支援集團第二季的表現。

Thank you very much. The Flight Support Group's net sales increased 65% to a record $647.2 million in the second quarter of fiscal '24, up from $392.2 million in the second quarter of fiscal '23. The net sales increase reflects the impact from our fiscal '23 and '24 acquisitions and strong 12% organic growth. The organic net sales growth mainly reflects 21% organic growth within our aftermarket replacement parts product line. Both the legacy hikes in Wencor operations continue to exceed our expectations, and the results prove that Wencor was an excellent investment for HEICO. Both HEICO's and Wencor's entrepreneurial culture and a record of producing high-quality products continues to produce wins in the marketplace. Our customers continue to find great value in our larger aftermarket product offerings for their aerospace parts and component repair and overhaul needs.

非常感謝。 24 財年第二季度，飛行支援集團的淨銷售額成長了 65%，達到創紀錄的 6.472 億美元，高於 23 財年第二季的 3.922 億美元。淨銷售額的成長反映了我們 23 財年和 24 財年收購以及 12% 的強勁有機成長的影響。有機淨銷售額成長主要反映了我們的售後替換零件產品線 21% 的有機成長。 Wencor 業務的遺留成長持續超出我們的預期，結果證明 Wencor 對 HEICO 來說是一項出色的投資。 HEICO 和 Wencor 的創業文化和生產高品質產品的記錄繼續在市場上贏得勝利。我們的客戶繼續在我們更大的售後市場產品中發現巨大的價值，以滿足他們的航空航太零件維修和大修需求。

Consistent with HEICO's time-tested and well-known operating philosophy, we continue to operate Wencor as a stand-alone business operation. However, we have made good progress working together and serving our customers. Some examples of how we are now working together include the utilization of all HEICO and Wencor PMAs and DERs at all repair stations, commercial and defense aftermarket sales cooperation where appropriate, Wencor e-commerce platform lists all HEICO noncompetitive PMAs. Wencor is utilizing HEICO's manufacturing base to quote new products, Engineering and regulatory cooperation that we expect to yield tremendous benefits for our company and sharing best-in-class vendors.

與 HEICO 久經考驗且眾所周知的經營理念一致，我們繼續將 Wencor 作為獨立的業務運作。然而，我們在合作和服務客戶方面取得了良好進展。我們現在合作的一些例子包括在所有維修站使用所有 HEICO 和 Wencor PMA 和 DER，在適當的情況下進行商業和國防售後​​市場銷售合作，Wencor 電子商務平台列出了所有 HEICO 非競爭性 PMA。 Wencor 正在利用 HEICO 的製造基地來報價新產品、工程和監管合作，我們預計這將為我們公司帶來巨大利益，並共享一流的供應商。

The Flight Support Group's operating income increased 49% to a record $148.9 million in the second quarter of fiscal '24, up from $99.9 million in the second quarter of fiscal '23. The operating income increase principally reflects the previously mentioned net sales growth. partially offset by higher as expected intangible asset amortization expense due to the Wencor acquisition. The prior year impact from the amendment and termination of a contingent consideration agreement and increased inventory obsolescence expense.

飛行支援集團的營業收入在 24 財年第二季成長了 49%，達到創紀錄的 1.489 億美元，高於 23 財年第二季的 9,990 萬美元。營業收入的成長主要反映了前面提到的淨銷售額的成長。由於收購 Wencor，預期無形資產攤銷費用增加，部分抵銷了這種影響。上一年的影響來自或有對價協議的修改和終止以及庫存報廢費用的增加。

The Flight Support Group's operating margin was 23% in the second quarter of fiscal '24 as compared to 25.5% in the second quarter of fiscal '23. Given that acquisition-related intangibles amortization in the second quarter of 2024, and consumed around 280 basis points of our operating margin. The FSG cash margin before that amortization, otherwise known as EBITDA, was around 25.8%, which is excellent in absolute terms, and we are extremely pleased with it.

飛行支援集團 24 財年第二季的營業利潤率為 23%，而 23 財年第二季的營業利潤率為 25.5%。鑑於 2024 年第二季與收購相關的無形資產攤銷，消耗了我們約 280 個基點的營業利潤。攤銷前的 FSG 現金利潤率（也稱為 EBITDA）約為 25.8%，從絕對值來看非常出色，我們對此感到非常滿意。

The decrease in operating income as a percentage of net sales principally reflects the prior year impact from the previously mentioned amendment and termination of a contingent consideration agreement and the previously mentioned higher intangible asset amortization expense, partially offset by lower performance-based compensation expense as a percentage of net sales.

營業收入佔淨銷售額百分比的下降主要反映了先前提到的或有對價協議的修訂和終止以及先前提到的較高的無形資產攤銷費用對上一年的影響，部分被基於業績的補償費用的降低所抵銷。

Now I would like to introduce Victor Mendelson, Co-President of HEICO and President of HEICO's Electronic Technologies Group, to discuss the second quarter results of the Electronic Technologies Group.

現在我想介紹HEICO聯席總裁兼HEICO電子技術集團總裁Victor Mendelson，討論電子技術集團第二季業績。

Thank you, Eric. The Electronic Technologies Group's net sales increased 6% to $319.3 million in the second quarter of fiscal '24, up from $301.8 million in the second quarter of fiscal '23. The net sales increase is attributable to 4% organic growth, mainly reflecting double-digit organic net sales growth of defense and aerospace products, partially offset by lower organic net sales of other electronic products. We were very pleased to see this core ETG end market gained traction in the past quarter even sooner than we had previously expected. As we previously thought it would more likely be an early third quarter event when we would see that turn up.

謝謝你，埃里克。電子科技集團 24 財年第二季的淨銷售額成長 6%，達到 3.193 億美元，高於 23 財年第二季的 3.018 億美元。淨銷售額的成長歸因於4%的有機成長，主要反映了國防和航空航太產品兩位數的有機淨銷售額成長，部分被其他電子產品有機淨銷售額的下降所抵消。我們非常高興地看到這一核心 ETG 終端市場在上個季度獲得牽引力，甚至比我們之前預期的還要早。正如我們之前所認為的那樣，這更有可能是第三季初的事件，屆時我們將看到這種情況的出現。

While we continue to expect quarterly variation in lumpiness in our defense net sales, we believe the overall trend over the long term will remain positive.

雖然我們繼續預期國防淨銷售額的季度變化，但我們相信長期的整體趨勢將保持積極。

The Electronic Technologies Group's operating income was $75.3 million in the second quarter of fiscal '24, up from $68 million in the second quarter of fiscal '23. The operating income increase principally reflects an improved gross profit margin and the previously mentioned net sales growth. The improved gross profit margin principally reflects increased net sales of defense products partially offset by our expected decreased other electronics products net sales.

電子科技集團 24 財年第二季的營業收入為 7,530 萬美元，高於 23 財年第二季的 6,800 萬美元。營業收入的成長主要反映了毛利率的提高和前面提到的淨銷售額的成長。毛利率的提高主要反映了國防產品淨銷售額的增加，部分被我們預期的其他電子產品淨銷售額的下降所抵消。

The Electronic Technologies Group's operating margin improved to 23.6% in the second quarter of fiscal '24 up from 22.5% in the second quarter of fiscal '23. Given that acquisition-related intangibles amortization consumes around 400 basis points of our operating margin, the ETG cash margin before that amortization was around 27.5%, which is excellent in absolute terms, and we are very pleased with it. The operating margin increase principally reflects the previously mentioned gross profit margin and net sales growth, partially offset by lower SG&A efficiencies. Growth in net sales of defense and commercial aerospace product sales contributed to a favorable product mix during the second quarter, and we note that we finished the quarter with a record order backlog.

電子科技集團的營業利潤率從 2023 財年第二季的 22.5% 升至 24 財年第二季的 23.6%。考慮到與收購相關的無形資產攤銷消耗了我們約 400 個基點的營業利潤，攤銷前的 ETG 現金利潤率約為 27.5%，從絕對值來看非常出色，我們對此感到非常滿意。營業利益率的成長主要反映了前面提到的毛利率和淨銷售額的成長，但部分被銷售管理、行政管理效率的下降所抵銷。國防和商業航空航太產品銷售淨銷售額的成長促成了第二季有利的產品組合，我們注意到，我們在本季結束時積壓訂單創歷史新高。

I'll turn the call back over to Larry Mendelson.

我會將電話轉回給拉里·門德爾森。

Thank you, Victor. Now for the outlook. As we look ahead to the remainder of fiscal '24, we continue to anticipate net sales growth in both FSG and ETG, principally driven by contributions from our fiscal '23 and '24 acquisitions as well as demand for the majority of our products. Notably, we remain optimistic on the ETG's opportunity to expand and grow its net sales of defense-related products over the next 6 months of fiscal '24 and that is supported by a strong backlog. Additionally, we plan to continue our commitment to developing new products and services, and further market penetration while maintaining our financial strength and flexibility.

謝謝你，維克多。現在展望一下。當我們展望 24 財年的剩餘時間時，我們繼續預期 FSG 和 ETG 的淨銷售額成長，這主要是受到我們 23 財年和 24 財年收購的貢獻以及對我們大多數產品的需求的推動。值得注意的是，我們對 ETG 在 24 財年的未來 6 個月內擴大和增長其國防相關產品淨銷售額的機會仍然持樂觀態度，這得到了強勁積壓訂單的支持。此外，我們計劃繼續致力於開發新產品和服務，並進一步滲透市場，同時保持我們的財務實力和靈活性。

In closing, I would like to thank our dedicated and loyal team members for their continued support and commitment to HEICO. Our dedication to customers, team members and the production of high-quality, highly engineered niche products continues to be a winning strategy in the marketplace. The end markets we serve remain very healthy, and I'm highly optimistic about HEICO'S future. Thanks for all you do to make HEICO a great company.

最後，我要感謝我們敬業且忠誠的團隊成員對 HEICO 的持續支持和承諾。我們對客戶、團隊成員的奉獻以及生產高品質、精心設計的利基產品仍然是我們在市場上的獲勝策略。我們服務的終端市場仍然非常健康，我對 HEICO 的未來非常樂觀。感謝你們為使 HEICO 成為一家偉大的公司所做的一切。

And now I would like to open the floor for questions.

現在我想請大家提問。

(Operator Instructions) And we'll take our first question from Robert Spingarn with Melius Research.

（操作員說明）我們將回答 Melius Research 的 Robert Spingarn 提出的第一個問題。

Good morning, everybody. Congrats on another just excellent quarter. I wanted to dig into the businesses a little bit. So Victor, I would start with you and then Eric, I have something for you as well. But Victor, in -- you just talked about your margins and the mix improvement, and it sounds like the second half should be better, especially based on your prior comments. I think, saying something like 24% for the full year. So that implies a step-up here in the second half. And is that a good number for next year? In other words, are we starting to move back toward the margins of a couple of years ago? Or does that depreciation keep us from getting there?

大家早安。恭喜又一個出色的季度。我想深入研究一下這些業務。維克多，我將從你開始，然後艾瑞克，我也有一些東西給你。但是維克多，您剛剛談到了您的利潤和組合改進，聽起來下半年應該會更好，特別是根據您之前的評論。我想，全年大概是 24%。因此，這意味著下半場的進步。對於明年來說，這個數字合適嗎？換句話說，我們是否開始回到幾年前的邊緣？或者貶值是否會阻礙我們實現這一目標？

Rob, I'm going to dive in here because I've had a bunch of conversations with analysts about this topic, maybe a little confusion. The 24% that's been battered around that is what we aspire the segment's margin to elevate to. I don't know that we'll get there for the full year being an average of 24%. My comments last quarter were that -- yes, my comments last quarter that as the defense came back, that would be accretive to our margin, which we expected to come in the second half. And I thought sometime during this fiscal year, we posted a quarter at 24% plus, and that's kind of where we're at.

羅布，我要深入這裡，因為我已經與分析師就這個主題進行了很多對話，也許有點困惑。我們希望該細分市場的利潤率能提高到24%，而這正是我們所希望的。我不知道全年能否達到平均 24% 的水平。我上個季度的評論是——是的，我上個季度的評論是，隨著防守的回歸，這將增加我們的利潤，我們預計這將在下半年實現。我想在本財年的某個時候，我們公佈的季度增長率為 24% 以上，這就是我們所處的情況。

Okay, thank you for clarifying that. Victor, I have a little bit more qualitative one then for you. And thinking about your Data & Microwave division, you've got Connect Tech there, which is one of NVIDIA's largest global hardware partners and wanted to see if you're seeing an acceleration in orders or RFPs there and other businesses within ETG to support all of this demand for data centers?

好的，謝謝你的澄清。維克多，我有一些更定性的資訊給你。考慮一下您的數據和微波部門，那裡有 Connect Tech，它是 NVIDIA 最大的全球硬體合作夥伴之一，希望了解那裡的訂單或 RFP 以及 ETG 內的其他業務是否有加速增長，以支持所有業務對數據中心的需求如何？

Yes. Rob, it's good question. Connect Tech definitely is seeing increased demand for data centers and on NVIDIA products. And I would expect that to continue. Now while Connect Tech is not a huge part of our company, it's important and it's a great business. In terms of the other companies, I don't think we're seeing a lot related to data centers. It's not a material part of our business in ETG.

是的。羅布，這是個好問題。 Connect Tech 無疑地看到了對資料中心和 NVIDIA 產品的需求不斷增長。我希望這種情況能夠持續下去。現在，雖然 Connect Tech 並​​不是我們公司的重要組成部分，但它很重要，而且是一項很棒的業務。就其他公司而言，我認為我們沒有看到太多與資料中心相關的公司。這不是我們 ETG 業務的重要組成部分。

Okay. And then, Eric, just quickly, in your business, just outstanding organic aftermarket parts growth at 21%. And I asked you this question in the past, but is there any way to parse that in terms of -- for lack of a better expression, sort of same store parts growth, same customers, same parts versus pricing versus market share gains? In other words, what's driving the 21%?

好的。然後，埃里克，很快，在您的業務中，售後市場零件的有機增長非常出色，達到 21%。我過去問過你這個問題，但是有沒有辦法從以下方面來解析這個問題——因為缺乏更好的表達，同店零件的增長，相同的客戶，相同的零件與定價與市場份額的增長？換句話說，是什麼推動了這 21% 的人？

Rob, this is Eric. So as you know, we operate a very decentralized business. And in order to drive -- to capture those numbers from all of the business units, it would be very difficult that we don't capture that. So I don't know the specific finite answer to that. But I can tell you that we've gotten a little bit of pricing. As I've mentioned on prior calls that our customers are very comfortable with our need to pass on our increases in the cost to manufacture and our cost to do business. And so in order to maintain our margins, our prices have to go up by at least that amount. So they understand that, and we've been able to do that. So there has been a certain amount in terms of price increase -- cost increases driving price increases.

羅布，這是艾瑞克。如您所知，我們經營的業務非常分散。為了推動從所有業務部門取得這些數字，我們很難不取得這些數據。所以我不知道具體的有限答案。但我可以告訴你，我們已經得到了一些定價。正如我在之前的電話中提到的，我們的客戶對我們需要將增加的製造成本和業務成本轉嫁給他們感到非常滿意。因此，為了維持我們的利潤，我們的價格必須至少上漲這個金額。所以他們理解這一點，我們也能夠做到這一點。因此，價格上漲了一定程度——成本上漲推動了價格上漲。

And then as far as the balance, I don't have the, as I said, the specific numbers in front of me, but my guess is that it's probably I don't know, half and half, half existing product increased penetration and half the sale of new products that hadn't been sold in the year ago period. That would be might get -- some of the businesses do capture this. So I am able to see it for certain companies. And that's why I'm able to say what I just said but that's sort of my feeling on it. But we are not a price increase story. So it's -- we're not driving these 21% return, a 21% increase is because we're raising price 21%. My guess is that price would be far less than 1/3, maybe even less than -- even less than 1/4 of that number. So most of it would be volume increases.

然後就平衡而言，正如我所說，我面前沒有具體的數字，但我的猜測是，可能我不知道，一半一半一半現有產品的滲透率增加了，去年同期未售出的新產品銷量的一半。這可能是——一些企業確實抓住了這一點。所以我可以看到某些公司的情況。這就是為什麼我能夠說出我剛才所說的話，但這就是我的感覺。但我們不是一個漲價的故事。所以，我們並不是在推動 21% 的回報，21% 的成長是因為我們將價格提高了 21%。我的猜測是，價格將遠低於該數字的 1/3，甚至可能低於 1/4。所以大部分是成交量的增加。

Okay. And then just as a final sort of follow-up to that. We know that turnaround times for LEAP and GTF engines are significantly longer than they are for the prior gen CFM56 and V2500 and part of this is the lack of approved DERs and PMAs for LEAP and GTF. So knowing that these programs are early in their life cycle, I wanted to see if you've started to work on those and what kind of ramp we might expect for HEICO's activity or FSG's activity on these 2 new engine types?

好的。然後作為最後的後續行動。我們知道，LEAP 和 GTF 引擎的周轉時間明顯長於上一代 CFM56 和 V2500，部分原因是 LEAP 和 GTF 缺乏經批准的 DER 和 PMA。因此，知道這些項目還處於其生命週期的早期階段，我想了解一下你們是否已經開始研究這些項目，以及我們對 HEICO 或 FSG 在這兩種新型引擎上的活動的預期會是什麼樣的？

So Rob, that's a great question. And as you know, we're very sensitive about giving specific information due to competitive reasons, as you can imagine, on any particular platform. But I can tell you that we have our eyes on new platform opportunities. Yes, we're willing to develop some product based on speculation that we'll be able to sell it. But we really need to make sure that the customers will be there and commit to us.

羅布，這是一個很好的問題。如您所知，正如您可以想像的那樣，由於競爭原因，我們對在任何特定平台上提供特定資訊都非常敏感。但我可以告訴你，我們著眼於新的平台機會。是的，我們願意根據我們能夠銷售的猜測來開發一些產品。但我們確實需要確保客戶會在那裡並對我們做出承諾。

You pointed out in your question, the basis and the reason why we exist and why our customers want us to exist. And I agree with you. I think that if there were alternative sources of supply, the situation wouldn't be as dire as it is. But at the moment, I'm going to have to pass on really where we are at that point. But needless to say, we've got people focused on all parts of the market.

您在問題中指出了我們存在的基礎和理由，以及為什麼我們的客戶希望我們存在。我同意你的觀點。我認為，如果有替代的供應來源，情況就不會那麼可怕。但目前，我將不得不傳達我們當時的情況。但不用說，我們的人員專注於市場的各個部分。

We'll take our next question from Sheila Kahyaoglu with Jefferies.

我們將回答 Sheila Kahyaoglu 和 Jefferies 提出的下一個問題。

Great quarter. Thank you so much. Eric, just on your prepared remarks, you made a few comments about Wencor and how you're working together and you're starting to see those results. I was wondering if you could quantify that in any way or how you're tracking that internally. Are you looking into a parts sold into a certain customer and the increase as you combine the sales force. Maybe if you could elaborate there.

很棒的季度。太感謝了。 Eric，在您準備好的發言中，您對 Wencor 以及您如何合作發表了一些評論，並且您已經開始看到這些結果。我想知道您是否可以以任何方式量化這一點，或者您如何在內部追蹤這一點。您是否正在研究銷售給特定客戶的零件以及隨著銷售團隊的結合而增加​​的零件。也許你能在那裡詳細說明一下。

Got it. So the answer is we don't specifically capture what those numbers are. It's very hard to capture. And what we're just trying to do is get the businesses to do what's in their interest and to do what's in their customers' interest and the combined HEICO interest. So unfortunately, I don't have a number, but I can tell you that just breaking down, looking at the various areas, the use of the Wencor PMAs, Wencor and HEICO PMAs and DERs at the repair station is very significant. We always said that the product selections from both companies were was extremely complementary. There was not a lot of overlap. So you can just imagine when overhauling an LRU by being able to purchase each other's PMAs, which, to a certain extent, was done pre-acquisition but by being able to use each other's DERs and being able to rationalize where we overhaul these products. We've got multiple repair stations that are obviously strong in certain areas and weaker in other areas, and they've been able to buy themselves and without me orchestrating this they've been able to share technology and figure out where it makes sense to swap product line, swap technologies.

知道了。所以答案是我們沒有具體捕捉這些數字。捕捉起來非常困難。我們只是想做的是讓企業做符合他們利益、客戶利益和 HEICO 綜合利益的事。不幸的是，我沒有具體數字，但我可以告訴您，只要分解一下，看看各個領域，維修站使用 Wencor PMA、Wencor 和 HEICO PMA 和 DER 就非常重要。我們總是說兩家公司的產品選擇非常互補。沒有太多重疊。因此，您可以想像一下，當能夠購買彼此的 PMA 來檢修 LRU 時，這在某種程度上是在購買前完成的，但能夠使用彼此的 DER 並能夠合理化我們檢修這些產品的位置。我們有多個維修站，這些維修站在某些領域明顯較強，而在其他領域較弱，他們能夠自行購買，無需我精心策劃，他們就能夠共享技術並找出有意義的地方互換產品線，互換技術。

And as a result, it's really hard to measure this stuff. So we really don't even try. As far as the aftermarket sales cooperation, I'd say that's been excellent in terms of opening doors for each other. We've had meetings with airlines who are so excited that we have the potential of putting all of these increased number of products together and really provide a very, very unique service. And I can tell you, the airline support has been extraordinary. We thought that it would be good but it is really off the charts outstanding.

因此，測量這些東西真的很困難。所以我們真的不去嘗試。就售後銷售合作而言，我想說，這在為彼此打開大門方面非常出色。我們與航空公司進行了會面，他們對我們有潛力將所有這些增加的產品組合在一起並真正提供非常非常獨特的服務感到非常興奮。我可以告訴你，航空公司的支援非常出色。我們認為這會很好，但它確實非常出色。

In terms of the defense aftermarket, we've already -- that there are all sorts of examples where in the international market, we were procuring parts from other sources. Now we're buying the legacy HEICO companies are buying it from the Wencor companies and vice versa. So that's working extremely well. Having the -- we are able to see when we list the HEICO parts on the Wencor platform, we are able to see what that is, and that's been excellent and very good.

就國防售後市場而言，我們已經在國際市場上有各種各樣的例子，我們從其他來源購買零件。現在我們正在購買傳統的 HEICO 公司，他們從 Wencor 公司購買它，反之亦然。所以這非常有效。當我們在 Wencor 平台上列出 HEICO 零件時，我們能夠看到它是什麼，這非常好。

In terms of manufacturing new products down the road, Wencor has a very aggressive new product development program and having all of the 10 HEICO manufacturing businesses open to manufacture products makes a lot of sense, and I think it's really going to benefit future of course, that hasn't benefited yet. It benefited the numbers.

在未來製造新產品方面，Wencor 制定了非常積極的新產品開發計劃，讓所有 10 家 HEICO 製造企業都開放來製造產品是很有意義的，我認為這當然會讓未來受益，那還沒有受益。這對數字有利。

In terms of engineering and regulatory cooperation, that's substantial by pooling the talents of both businesses we're able to get a lot more done. And I can tell you in discussions also with the FAA, they're very excited about that as well. And then obviously, sharing best-in-class vendors. So I'm sorry that I can't give you a specific number, but I think you see it in our organic growth and in our margin expansion, which is frankly beyond where I thought we would be. And I'm just so happy with the results that I'm letting them speak for themselves.

在工程和監管合作方面，透過匯集兩家公司的人才，我們能夠完成更多工作。我可以在與美國聯邦航空局的討論中告訴你，他們對此也非常興奮。顯然，共享一流的供應商。因此，很抱歉，我無法給您一個具體數字，但我認為您可以從我們的有機成長和利潤率擴張中看到這一點，坦白說，這超出了我的預期。我對結果非常滿意，所以我讓他們自己說話。

No, I really appreciate that, Eric. And then maybe I wanted to ask another one on price. I know you said that top line contribution is about 1/3 or 1/4 of your growth. How do we think about that net price impact? And should we see that discount to the OEM narrow as it widened throughout the last 4 years? Do we see that narrow? And do we see the Wencor coming through in all your efforts coming through with new product development and higher net price even as inflation comes down. Does that make sense?

不，我真的很感激，艾瑞克。然後也許我想問另一位的價格。我知道您說過頂線貢獻約為您成長的 1/3 或 1/4。我們如何看待淨價格影響？我們是否應該看到 OEM 的折扣隨著過去 4 年的擴大而縮小？我們看得那麼窄嗎？我們是否看到 Wencor 在您的所有努力中透過新產品開發和更高的淨價實現，即使通貨膨脹下降。那有意義嗎？

No, yes. I understand your question, and I can tell you that how the prices that we sell as a percentage of OEM, I would say, are unfortunately at an all-time low. So the OEMs have raised prices faster than we have raised prices. We want to make sure that, as I said, we need to pass on -- nobody wants a price increase. And while it appears easy, I must say that I understand, I know what it feels to walk in our sales folks choose trying to get these price increases because even though costs are going up, nobody wants to take a price increase, especially when you're delivering so much value.

不，是的。我理解你的問題，我可以告訴你，不幸的是，我們以 OEM 的百分比出售的價格處於歷史最低水平。所以主機廠漲價的速度比我們漲價的速度快。正如我所說，我們希望確保我們需要傳遞下去——沒有人希望價格上漲。雖然這看起來很容易，但我必須說我理解，我知道走進我們的銷售人員選擇試圖提高價格的感覺，因為即使成本上升，沒有人願意接受價格上漲，尤其是當你正在提供如此多的價值。

So while we have been successful in recapturing our increased costs and plus a little bit in some cases, at the percentage of OEM at which we sell our parts is, as I said, at an all-time low. And we're in the market capture space and we think that we can continue to drive exceptional value for our customers by maintaining this philosophy.

因此，雖然我們成功地收回了增加的成本，並且在某些情況下增加了一點，但正如我所說，我們銷售零件的 OEM 百分比處於歷史最低水平。我們處於市場佔領空間，我們認為透過維持這一理念，我們可以繼續為客戶帶來卓越的價值。

And we'll take our next question from Scott Deuschle with Deutsche Bank.

我們將回答德意志銀行斯科特‧德施勒 (Scott Deuschle) 提出的下一個問題。

Carlos, can you give us an update on the operating margins you think FSG should be able to do this year? It looks like you're tracking a good bit higher than the 21% to 22% range you outlined previously?

卡洛斯，您能否向我們介紹一下您認為 FSG 今年應該能夠實現的營業利潤率的最新情況？您追蹤的追蹤值似乎比您之前概述的 21% 到 22% 的範圍要高一些？

The FSG is performing exceptionally well right now. And the caution I'll throw at you is, number one, obviously, we are a conservative bunch. And I'm not sure at this point once we get through this, what I'll call, exceptional growth period and the mix within the segment kind of flattens out or settles out. I'm still thinking that maybe it's towards the high end of '22 for sort of thinking out long term once we settle in. But I wouldn't -- I don't want to guide or get you guys thinking about us having 23-plus percent margins.

FSG 目前的表現非常出色。我要向你們提出的警告是，第一，顯然，我們是一群保守派。我現在不確定，一旦我們度過了這個時期，我稱之為特殊增長期，該細分市場內的混合會趨於平穩或穩定下來。我仍然在想，也許是在 22 年的高端，一旦我們安頓下來，就可以進行長期的思考。

Now I don't see impediments in front of us to continue to have these strong margins, but I do think that as the footprint settles down, we'll just see a natural tendency to have the margin come down a little. And by the way, the reason for that is during the quarter, we had exceptional growth in our aftermarket parts business. Repair and overhaul was strong, not as strong as a parts business. And specialty products is a little flat on the commercial OEM product build side. So I think as those segments, their growth patterns get back to normal, we might see a slight depression of that 23%, but not a ton. Does that answer your question, Scott?

現在，我不認為我們面前有繼續擁有這些強勁利潤率的障礙，但我確實認為，隨著足跡的穩定，我們只會看到利潤率略有下降的自然趨勢。順便說一句，原因是在本季度，我們的售後零件業務取得了非凡的成長。維修和大修業務強勁，但不如零件業務強勁。而特種產品在商業 OEM 產品製造上則有些平淡。因此，我認為，隨著這些細分市場的成長模式恢復正常，我們可能會看到 23% 的輕微下降，但不會大幅下降。這能回答你的問題嗎，史考特？

Yes, it does. I mean you did 22.5 -- 22.5% in the first half and typically your second half stronger. I'm just trying to figure out what drives it down second half versus first half? It sounds like that's kind of what you're teeing up?

是的，它確實。我的意思是你在上半場的表現是 22.5 - 22.5%，通常你的下半場表現更強。我只是想弄清楚是什麼導致下半場與上半場相比下降？聽起來這就是你所準備的？

At some point, it's going to be mix. I'm not so sure that we are going to lose momentum in what I'll call exceptional growth this year. So we probably will have margins that bounce around. But I can't predict the exceptionalism of our team members. I mean, the operations and the way they're running the business now to keep up with the demand that's out there to deal with this growth and employees and everything. They're just doing an exceptional job. So I hope this margin would continue. I'm just cautioning you that my view is once the mix settles in, if we're running 21% to 22%, we're going to be very happy as a management team.

在某些時候，它會是混合的。我不太確定我們今年是否會失去所謂的超常成長勢頭。因此，我們的利潤率可能會出現反彈。但我無法預測我們團隊成員的例外。我的意思是，他們現在的營運和經營方式是為了跟上應對這種成長、員工和一切的需求。他們只是做得非常好。所以我希望這種利潤能夠持續下去。我只是提醒大家，我的觀點是，一旦混合確定下來，如果我們的比例是 21% 到 22%，我們作為管理團隊將會非常高興。

And Scott, this is Eric. Scott, this is Eric. And I can tell you, this is a shout-out to our many team members who I think are on this call. But HEICO has got the biggest bunch of sandbaggers that you've ever -- that I've ever seen. And one, they're super talented. This is not meant to take away from their achievements because their achievements are nothing short of incredible and amazing.

斯科特，這是埃里克。斯科特，這是埃里克。我可以告訴你，這是對我們許多參加這次電話會議的團隊成員的大聲喊叫。但 HEICO 擁有我所見過的最大的沙袋工群。第一，他們非常有才華。這不是要抹殺他們的成就，因為他們的成就簡直令人難以置信和驚人。

However, having said that, as Carlos said, they tend to be very conservative. We joke around internally, I -- Carlos and I call them sandbaggers. They know who they are.

不過，話雖如此，正如卡洛斯所說，他們往往非常保守。我們在內部開玩笑，我和卡洛斯稱他們為沙袋者。他們知道自己是誰。

I think Carlos (inaudible) sandbagger too?

我認為卡洛斯（聽不清楚）沙袋也是如此？

I understand that we're just taking these numbers and rolling them up and when we go and talk to them about come on, you're performing at this, why is the number going to go down? They got 22 possible reasons, including a meteor strike and all sorts of crazy stuff that could cause it. And as a result, we really take up the numbers and we even had a positive contingency very often to it because we know that they're low. But it is very -- it's very hard to quantify. And the reason I don't if you will, fight the sandbagging is because it encourages them to look at all of the areas of potential risk. There are all sorts of -- there's -- it's a Herculean effort to achieve these numbers. And there are all sorts of things that can go wrong in the supply chain and with technology and processes, all sorts of things. And they are very much focused on what can go wrong.

我知道我們只是把這些數字匯總起來，當我們去和他們談論加油時，你在這方面表現出色，為什麼數字會下降？他們得到了 22 種可能的原因，包括流星撞擊和各種可能導致這種情況的瘋狂因素。結果，我們確實吸收了這些數字，甚至經常採取積極的應急措施，因為我們知道這些數字很低。但這是非常難以量化的。如果你願意的話，我之所以不與沙袋作鬥爭，是因為它鼓勵他們專注於所有潛在風險的領域。要實現這些數字需要付出各種各樣的努力。供應鏈、技術和流程中可能會出現各種各樣的問題。他們非常注意可能出錯的地方。

And as a result, since they work so hard to mitigate those factors, they most of the time, almost always overperform. So that's sort of where we are in it. I mean we're hoping to do better. But based on the numbers that we've gotten, variations in the business cycle, this is what it rolls up to. So we just sort of go with that.

結果，由於他們如此努力地努力減輕這些因素，所以他們在大多數時候幾乎總是表現出色。這就是我們所處的位置。我的意思是我們希望做得更好。但根據我們得到的數據以及商業週期的變化，這就是它的總結結果。所以我們就這樣吧。

Okay. Yes, I appreciate that. Eric, I guess, while I have you, if I go back to 2022 and the first half of '23, the specialty products was growing like crazy. And I guess a lot of that was driven by munitions, but the growth rate has slowed quite a bit since then. So I guess my question is, do you have a sense for when we might expect to see specialty products return to stronger growth profile and then what you need to see in order for that to happen?

好的。是的，我很欣賞這一點。 Eric，我想，當我有你的時候，如果我回到 2022 年和 23 年上半年，特種產品正在瘋狂增長。我猜想其中很大一部分是由彈藥驅動的，但從那時起增長率已經放緩了很多。所以我想我的問題是，您是否知道我們何時會看到特種產品恢復到更強勁的成長態勢，然後您需要看到什麼才能實現這一目標？

Got it. So the short answer to that is in fiscal '25, we think is when it's going to happen. I do want to mention that actually, we don't make -- HEICO doesn't make any munitions I think what you're referring to is missile defense. So we are very active on missile defense interceptors, and we have a high content there on other missile platforms. But typically, it's more in the defense area, although I suppose there is some in the offensive. But we don't make the explosives themselves.

知道了。因此，對此問題的簡短回答是在 25 財年，我們認為這將會發生。我確實想提一下，實際上，我們不製造——HEICO 不製造任何彈藥，我認為你指的是飛彈防禦系統。因此，我們在導彈防禦攔截器方面非常活躍，並且在其他導彈平台上也有很高的內容。但通常情況下，更多的是在防守區域，儘管我認為進攻區域也有一些。但我們自己不製造炸藥。

When you look at the numbers, we're anticipating next year is going to be very strong. We've had significant ramp-ups in a number of businesses. And we have significant orders on the books. And now we've just got to produce.

當您查看這些數字時，我們預計明年將會非常強勁。我們的許多業務都取得了顯著的成長。我們有大量的訂單。現在我們只需要生產。

Record backlog.

記錄積壓。

Record backlog. We're really very, very good in the specialty products area. So I'm anticipating very good results in 2025 on that.

記錄積壓。我們在特色產品領域確實非常非常出色。因此，我預計 2025 年會取得非常好的結果。

But by the way, Scott, one thing to point out with that defense business just like in the ETG, it can be incredibly lumpy. And I think that's what Eric is pointing out, you have to ramp to serve these big projects. And their backlog is at record high, and we do expect good things in '25. Not to say this year, I don't expect growth. I'm just '25 (inaudible) to be big growth for us in that area.

但順便說一句，斯科特，有一點需要指出，國防業務就像 ETG 一樣，可能非常不穩定。我認為這就是埃里克所指出的，你必須努力為這些大型項目提供服務。他們的積壓訂單創歷史新高，我們確實預期 25 年會出現好事情。更不用說今年，我預計不會成長。我才 25 歲（聽不清楚），就可以在該領域為我們帶來巨大的成長。

Got it. And still margin accretive growth like it's historically been?

知道了。利潤成長仍像歷史上那樣嗎？

Yes, on the defense side, that's correct.

是的，在防守方面，這是正確的。

I'll take our next question from Larry Solow with CJS Securities.

我將回答 CJS 證券的拉里·索洛 (Larry Solow) 提出的下一個問題。

First question, just on the disparity between the really great growth on the parts business, 21% and sort of the mid- to high single digits, it sounds like on repair-service and overhaul. Is that different or part of that difference where you're capturing market share gains? Or is that too simplified the way to look at it?

第一個問題，僅就零件業務真正巨大的成長（21％）和中高個位數之間的差距而言，這聽起來像是在維修服務和大修方面。在您獲取市場份額的過程中，這是不同的還是差異的一部分？還是這種看待問題的方式過於簡化了？

Yes. I think there are some market share gains there. Larry, this is Eric. There are market share gains. I think that in the parts area. Remember, our business -- we typically ship discrete parts. So if we've got the part on the shelf, we're able to sell it, whereas in the component repair business, we're really beholden to the supply chain. We can have an LRU that's got a few hundred different part numbers in the bill of material and one part is being held up, which actually is the case in many different businesses, and we can't ship it. And we've got this big backlog, and it's basically just sitting there. And so that's sort of, I think, what's also going on there.

是的。我認為那裡的市場份額有所增加。拉里，這是埃里克。市場佔有率增加。我認為在零件領域。請記住，我們的業務—我們通常會運送離散零件。因此，如果我們將零件放在貨架上，我們就可以將其出售，而在零件維修業務中，我們實際上對供應鏈負有責任。我們可以有一個 LRU，其物料清單中有數百個不同的零件號，而其中一個零件被擱置，這實際上是許多不同企業的情況，而我們無法運送它。我們有大量的積壓訂單，但基本上就放在那裡。我認為這也是那裡正在發生的事情。

Got you. And a question maybe for Carlos. Just I did notice there was a bit of a contingency reversal in the quarter. Was that in FSG?

明白你了。也許還有一個問題想問卡洛斯。只是我確實注意到本季出現了一些意外逆轉。是在FSG嗎？

Yes, it was. Yes, it was. So this quarter, we had about -- it was like a net $4 million. It was a $6 million reduction in the contingency, and then we had some inventory reserves we took for our product line. And so we had about a $4 million net pickup in the margin related to contingent earnout reversal. And that was due to an acquired contingent earnout due to Wencor acquisition.

是的。是的。所以這個季度，我們的淨收入約為 400 萬美元。應急費用減少了 600 萬美元，然後我們為我們的產品線保留了一些庫存儲備。因此，與或有獲利逆轉相關的保證金淨值增加了約 400 萬美元。這是由於收購 Wencor 帶來的或有收益。

Got you. Wencor itself...

明白你了。溫科本身...

Now remember -- remember, that's on our numbers right now. That's maybe 0.5 point to the margin. Last year, we had, if you recall, in the same quarter we had a $9 million reversal for the renegotiations of a contingent earnout. And that was a little bit more impactful to margins. That was maybe 1.5% or something like that of the margin. So Net-net, it was actually a headwind for us this quarter.

現在記住──記住，這就是我們現在的數字。這可能是 0.5 個點的餘裕。如果你還記得的話，去年我們在同一季度因或有收益的重新談判而發生了 900 萬美元的逆轉。這對利潤率的影響更大一些。這可能是 1.5% 或類似的利潤率。因此，Net-net，這實際上對我們本季來說是一個逆風。

Year-over-year, but maybe that gives us a little bit of a reason for a little bit of a sequential decline going to the back half of the year. It was a little bit of a benefit this quarter, I guess. And just in (inaudible) Wencor...

與去年同期相比，但這也許為我們在今年下半年連續下降提供了一些理由。我想這個季度有點好處。就在（聽不清楚）溫科.....

I appreciate. I appreciate you supporting us on that.

我很欣賞。我感謝您對此的支持。

Yes. Yes, absolutely. Just on Wencor, Eric you mentioned sort of this still operating as a stand-alone. And I think that as the beauty of HEICO and most of your subsidiaries kind of run autonomously. Being that Wencor is so large and somewhat -- has a lot of similarities in your core PMA parts business and distribution and whatnot. Are there opportunities to sort of merge -- blend those 2 companies more together than the normal HEICO where you operate?

是的。是的，一點沒錯。就在 Wencor 上，艾瑞克（Eric）您提到了它仍然作為獨立運作。我認為 HEICO 的優點是，你們的大多數子公司都是自主運作的。由於 Wencor 規模如此之大，而且在你們的核心 PMA 零件業務和分銷等方面有很多相似之處。是否有機會進行某種合併——將這兩家公司比您所在的普通 HEICO 更緊密地融合在一起？

Larry, so that's a great question. A lot of people have wondered about that. And as you know, HEICO has the unique ability, which you don't typically find in a company of our size to operate businesses in the similar same spaces and to sort of direct traffic so they don't hurt each other and make sure that we maintain the entrepreneurial spirit. And I think that is the single most important thing that we can do.

拉里，這是一個很好的問題。很多人都想知道這一點。如您所知，HEICO 具有獨特的能力，在我們這種規模的公司中通常找不到這種能力，可以在相似的相同空間中經營業務並引導流量，這樣他們就不會互相傷害並確保我們保持創業精神。我認為這是我們能做的最重要的事。

Just last week, I was at the Aerospace Industries Association Board of Governors meeting. And actually, PwC did a wonderful presentation speaking about what's going on in terms of the employment trends in the aerospace market. And what was interesting is that the lack of interest from people with regard to aerospace is not due to the mission of aerospace or even the defense part because some people are sensitive about that. And it's not due to the earnings level. It's due to the fact that when people join large companies, they feel pigeonhole and they don't feel like they have -- they're able to get a good experience. And I think that, that's the unique thing about HEICO. We recognize that there's no question there's synergy. If we can functionally put things together, we can drive certain processes, eliminate costs and do all that.

就在上週，我參加了航空航天工業協會理事會會議。事實上，普華永道做了一個精彩的演講，講述了航空航太市場的就業趨勢。有趣的是，人們對航空航天缺乏興趣並不是因為航空航天甚至國防部分的使命，因為有些人對此很敏感。這並不是因為收入水平。這是因為，當人們加入大公司時，他們會感到被束縛，而且他們不覺得自己能夠獲得良好的體驗。我認為這就是 HEICO 的獨特之處。我們認識到毫無疑問存在協同效應。如果我們能夠在功能上將東西組合在一起，我們就可以推動某些流程，消除成本等等。

But what it does in the process is it kills the entrepreneurial nature, the enthusiasm, the desire to stay up late, to work late to make sure that you accomplish what your customer needs where you have full responsibility for the product from selecting it, designing it, manufacturing it, procuring and inspecting it, selling it, accounting for it. And this is what is very, very motivational to our team.

但在這個過程中，它會扼殺創業精神、熱情、熬夜、加班的願望，以確保你完成客戶的需求，而你對產品從選擇、設計到承擔全部責任。 ，銷售它，核算它。這對我們團隊來說是非常非常有動力的。

So to answer your question, no, there's no plan to put this together. However, there is the opportunity to cooperate. And frankly, with the organic growth that we've got, if we could just have these businesses work together and become more efficient but still retain their entrepreneurial spirit and their individual focus. There are tremendous cost benefits by just giving our internal people the internal promotional opportunities and not having to go outside and hire more people. So I don't see, if you will, cost synergies in terms of job reductions. But I do see the opportunity for our people to put their heads together and figure out -- we've already gotten to the point where 1 plus 1 equals 2.5 but I think we're going to continue to focus. So 1 plus 1 can equal 3 or 4 or 5. And that's really the focus. And it's not going to be through job cuts, the way some other companies handle this kind of thing.

所以回答你的問題，不，沒有計劃將它們放在一起。不過，有合作的機會。坦白說，隨著我們所獲得的有機成長，如果我們能讓這些企業共同努力並變得更有效率，同時仍保留他們的創業精神和個人關注。只需為我們的內部人員提供內部晉昇機會，而不必去外面僱用更多人，就能帶來巨大的成本效益。因此，如果你願意的話，我認為在裁員方面不會產生成本綜效。但我確實看到了我們的員工齊心協力弄清楚的機會——我們已經達到了 1 加 1 等於 2.5 的地步，但我認為我們將繼續關注。所以 1 加 1 可以等於 3、4 或 5。這不會像其他公司處理此類事情那樣透過裁員來實現。

Got it. I appreciate that color. If I could just slip one in for Victor, if you guys don't mind, just 4% organic growth, double-digit spend on the defense side. What was sort of stand out on the offsets on the negative side that kind of offset some of that growth on the other products. Anything extraordinary there?

知道了。我很欣賞那種顏色。如果我能為維克多插上一腳，如果你們不介意的話，只有 4% 的有機增長，防守方面的支出達到兩位數。負面抵消方面的突出之處在於抵消了其他產品的部分成長。有什麼特別的地方嗎？

Larry, thank you for the question. It's a good question, and I was feeling neglected. So glad to answer a question. But all kidding aside, the weakest part was the other markets, the non-aerospace and defense markets, which you may recall in the last couple or several calls. I said to anticipate that being lower, and I would expect order rates to start to tick up in the back half of the year. I'm not sure whether it's the third or fourth quarter, but we're certainly seeing some green shoots here and there and they're not across the board.

拉里，謝謝你的提問。這是一個很好的問題，我覺得自己被忽略了。很高興回答問題。但拋開開玩笑不談，最薄弱的部分是其他市場，即非航空航天和國防市場，您可能會在過去的幾次或幾次電話會議中回想起這些市場。我說過預計會更低，並且預計訂單率將在今年下半年開始上升。我不確定是第三季度還是第四季度，但我們確實在這裡或那裡看到了一些萌芽，但它們並不是全面的。

But that is the case. And it's really a result of customer inventory channels. They had stocked up and much the same way a lot of companies in our industry have done and our industries have done, and I think they're working off those inventories at this point. And that will continue for little bit longer, then you have a lead timing after the orders start to turn. So we had a little lead time. So I'm optimistic about those businesses, but I think we have probably I don't know, couple of quarters or so left to go on negative comparisons.

但事實就是如此。這實際上是客戶庫存管道的結果。他們已經儲備了庫存，就像我們行業中的許多公司和我們的行業所做的那樣，我認為他們目前正在處理這些庫存。這種情況會持續更長的時間，然後在訂單開始週轉後您就有了交貨時間。所以我們有一點準備時間。因此，我對這些業務持樂觀態度，但我認為我們可能還剩下幾個季度左右的時間進行負面比較，我不知道。

Our next question comes from Peter Arment with Baird.

我們的下一個問題來自 Peter Arment 和 Baird。

Thanks for all the details and great quarter. So Eric, I wondered -- you made in your prepared remarks, you made some comments about kind of the partnership that you -- with Wencor and your traditional PMA business. You mentioned Wencor is utilizing HEICO's manufacturing-based new products. Curious to get more color on that, what kind of opportunity that is for Wencor.

感謝您提供所有細節和精彩的季度。 Eric，我想知道您在準備好的演講中對您與 Wencor 以及您的傳統 PMA 業務的合作關係發表了一些評論。您提到 Wencor 正在利用 HEICO 基於製造的新產品。我很想了解更多關於這方面的信息，這對 Wencor 來說是一個什麼樣的機會。

We think it's pretty substantial. Wencor has an excellent vendor base and they remain loyal to that vendor base. They're not, in general, moving product from established vendors who are making it. However, as you know, the industry supply is very tight right now, even in the HEICO businesses. And we have the opportunity to redirect capacity, frankly, in our Specialty Products Group more towards the HEICO businesses. And I've been out there working with the Head of our Specialty Products Group and I are working with our individual businesses to explain the virtue of manufacturing for HEICO and Wencor as opposed to only third-party customers because when third-party customers, they're great, and we want to stay focused on them as well.

我們認為這是相當可觀的。 Wencor 擁有優秀的供應商基礎，並且他們仍然忠於該供應商基礎。一般來說，他們不會從現有的製造商轉移產品。然而，如您所知，目前行業供應非常緊張，即使在 HEICO 業務中也是如此。坦白說，我們有機會將我們特種產品集團的產能更多地轉向 HEICO 業務。我一直在與我們的特種產品小組負責人合作，並且正在與我們的個體企業合作，向 HEICO 和 Wencor 解釋製造的優點，而不僅僅是第三方客戶，因為當第三方客戶時，他們非常棒，我們也希望繼續關注它們。

But when it's an internal customer, you know very clearly what's going on competitively and we're able to move priorities for them. So and also able to really focus on the quality. I mean, that's been a key focus for HEICO and for Wencor in terms of making sure that the products that we supply are the absolute best in the industry. So I think this is something that will start to pay dividends in 2025 and after, both in terms of more timely deliveries to our internal customers as well as, frankly, a profit margin that our specialty products companies can make by supplying these high-quality parts to the HEICO companies. There's a lot of stuff that we can do. There are 10 different businesses in our specialty products group, and they all have unique capability. And we -- I think there is opportunity in the vast majority of them.

但如果是內部客戶，您就非常清楚競爭情況，我們能夠為他們調整優先順序。因此也能夠真正關注品質。我的意思是，這一直是 HEICO 和 Wencor 的重點關注點，以確保我們提供的產品絕對是業內最好的。因此，我認為這將在2025 年及之後開始帶來紅利，無論是在更及時地向我們的內部客戶交付產品方面，還是在坦率地說，我們的特種產品公司通過提供這些高品質產品可以獲得的利潤率方面。我們可以做很多事。我們的特色產品集團有10個不同的業務，它們都有獨特的能力。我認為他們中的絕大多數都有機會。

Perfect. That's great color. And then just, Eric, just staying with you on just what you're seeing from an international travel perspective, are you seeing any pockets of strength or weakness or anything to call out on a regional basis? Just curious on that.

完美的。那顏色真棒。艾瑞克，從國際旅行的角度來看，您是否看到了任何優勢或劣勢，或者有什麼值得指出的區域基礎？只是對此感到好奇。

It's -- so I spoke with all of our sales heads last week and on overall the details, and we're seeing tremendous strength around the world. The Americas remains strong as well as Europe and Asia, Middle East, China. So we're seeing very good strength across the board. The market seems extremely strong. People want to travel, both for business as well as leisure. So things look good. I wouldn't say there's 1 or 2 areas of particular strength. I'd say it's very broad-based.

所以我上週與我們所有的銷售主管就整體細節進行了交談，我們在世界各地看到了巨大的實力。美洲以及歐洲、亞洲、中東和中國仍然強勁。所以我們看到了全面的良好實力。市場似乎非常強勁。人們想要旅行，無論是商務旅行還是休閒旅行。所以事情看起來不錯。我不會說有 1 或 2 個特別強的領域。我想說它的基礎非常廣泛。

Great. And then just quickly on Victor on you had some, I guess, some timing delays in Q1. Just how is the supply chain are looking for your ETG when you think about, obviously, kind of the back half of the year? How are you thinking about that?

偉大的。然後很快就維克多，我猜你在第一季度有一些時間延遲。顯然，今年下半年，供應鏈正在如何尋找您的 ETG？你覺得怎麼樣？

Yes, this is Victor. So I think our supply chain has pretty much returned mostly to normal. I don't think companies talk too much about and focus too much about supply chain issues, small supply chain issues that were in the noise level then. But certainly, people are no longer afraid to do that. But it seems to me as though things are maybe not quite entirely back to normal, but fairly close. There are still some pockets here and there where some lead times are extended or deliveries are delayed. But again, I -- my sense of it is that wasn't unheard of before the pandemic either. We just didn't really hear much about it.

是的，這是維克多。所以我認為我們的供應鏈基本上已經恢復正常。我認為公司不會過多談論和關注供應鏈問題，以及當時處於噪音水平的小型供應鏈問題。但可以肯定的是，人們不再害怕這樣做。但在我看來，事情似乎還沒有完全恢復正常，但已經相當接近了。仍有一些地區的交貨時間延長或交貨延遲。但我再說一次，我的感覺是，在大流行之前這也不是聞所未聞的。我們只是沒有真正聽到太多關於它的資訊。

Okay. And your R&D efforts, Victor, I know you guys called that out in Q1, just -- is that for existing orders? Or is there new opportunities that really you're pursuing?

好的。維克多，你的研發工作，我知道你們在第一季就指出了這一點，只是－－這是針對現有訂單的嗎？或者您確實正在追求新的機會嗎？

It's a combination. I mean our R&D activities in ETG remain very strong. It's a key part of what we do. And that's for some of its customer funded, it shows up as revenue, NRE and things like that. But a lot of it is related to product development for future products. And in the aerospace industry, generally speaking, R&D expenses to start something today, it takes time years before it turns into revenue or meaningful revenue. So we have to keep that constant investment going. I think it's something we've been very successful with in our subsidiaries have been very successful with over a long period of time.

這是一個組合。我的意思是我們在 ETG 的研發活動仍然非常強勁。這是我們工作的關鍵部分。這是針對一些客戶資助的，它顯示為收入、NRE 等。但其中許多都與未來產品的產品開發有關。在航空航太產業，一般來說，今天開始做某件事的研發費用，需要數年的時間才能轉化為收入或有意義的收入。因此，我們必須保持持續的投資。我認為這是我們在我們的子公司中非常成功的事情，在很長一段時間內都非常成功。

Yes, Peter, we spend roughly 3%, sometimes 4% of sales on R&D. That's pretty consistent. That's what we saw this quarter, in company-wide, I should...

是的，Peter，我們大約將銷售額的 3%，有時 4% 用於研發。這非常一致。這就是我們本季在全公司範圍內看到的情況，我應該…

And ETG is probably higher than that for a variety of reasons because we have some businesses, ETG is probably above 5% on R&D.

由於各種原因，ETG 可能會高於這個數字，因為我們有一些業務，ETG 的研發費用可能會高於 5%。

Appreciate all the details.

欣賞所有細節。

Our next question comes from Bert Subin with Stifel.

我們的下一個問題來自 Bert Subin 和 Stifel。

Victor, maybe just to start with you. You get some good color on ETG, what's in there. You've seen a little bit of volatility in our organic growth over the last several quarters as we think forward, do you expect that to stabilize? And do you still see that group on track for the mid-single-digit growth you thought you would see in '24?

維克多，也許只是從你開始。你在 ETG 上得到了一些很好的顏色，裡面有什麼。在我們展望未來時，您發現過去幾季我們的有機成長出現了一些波動，您預期這種情況會穩定下來嗎？您是否仍然認為該集團有望實現您認為在 24 年會看到的中個位數成長？

Yes. Historically, this has been the case for ETG that it's volatile growth quarter-by-quarter. And I would expect that to continue to be the case. I don't think we've suddenly reached a different run rate. But I think the overall trend is a positive and upward trend, that's supported by the backlog, it's supported by quote activity and other things.

是的。從歷史上看，ETG 的情況就是逐季成長波動。我預計這種情況將繼續下去。我不認為我們突然達到了不同的運行速度。但我認為整體趨勢是積極向上的趨勢，這是由積壓訂單、報價活動和其他因素所支持的。

Got it. Okay. And then, Eric, one for you...

知道了。好的。然後，艾瑞克，給你一個…

And Carlos is going to add to that.

卡洛斯將補充這一點。

I just want to add Bert, we still expect low to mid-single-digit growth in ETG for the year, which that statement implies volatility if you think about what we've done to date versus the next 2 quarters. So I think Victor is right, it's going to be up and down, but we do expect the low to mid-single-digit growth for the year organically.

我只想補充一下Bert，我們仍然預計今年ETG 會出現低至中個位數的增長，如果你考慮一下我們迄今為止所做的事情與未來兩個季度的情況，這一說法就意味著波動性。所以我認為維克多是對的，它會上下波動，但我們確實預計今年的有機成長將是低至中個位數。

Got it. Okay. On the FSG side, just a question for you, Eric, maybe just a little more high level. A lot of what you're seeing would seem like on the volume side for parts and in terms of what you're expecting in repairs has been driven by a variety of macro features. But largely the combination of the aging global fleet air travel demand, what we've seen there and just depressed inventory.

知道了。好的。在 FSG 方面，我想問你一個問題，Eric，也許只是更高層次的問題。您所看到的許多內容看起來像是零件的數量方面，以及您在維修中所期望的內容，這些內容都是由各種宏觀功能驅動的。但這主要是全球機隊航空旅行需求老化、我們所看到的情況以及庫存低迷的綜合影響。

Carlos, you made some comments about some normalization in what you're seeing today over time. Like how do you think about those macro trends as you look out? It sounds like from what you were saying, Eric, you seeing strength across the board. Is there anything concern you that, that might change in the near term?

卡洛斯，您對今天所看到的情況隨著時間的推移而正常化發表了一些評論。就像您在展望時如何看待這些宏觀趨勢？艾瑞克，從你所說的看來，你看到了全面的力量。您是否擔心短期內可能會發生變化？

So Bert, that's something that we think about all the time. However, in order to be in this industry, you've got to really have a long-term view. And we never know what's going to come around the corner, but we've got to be well positioned for everything. So we're fundamental believers in commercial and military aviation. We think that these are really good spaces to be in. We understand them extraordinarily well. We're really appreciated by our customers. Yes, there is tremendous strength, yes, there is a certain percentage of the fleet that's down as a result of issues that are going on but we also have a fleet -- a massive fleet of 20,000 something to aircraft that's aging 1 year per year. And most of the other major players out there increased price very substantially. So we think that we're in a very good area, could there be a little air pocket here or there, sure, that could absolutely happen, but that's why we don't like to be over-levered. And we want to make sure that we've got plenty of cash to always do the right thing to continue our successful acquisition program, which is key to everything we do.

伯特，這是我們一直在思考的事情。然而，為了進入這個行業，你必須真正有長遠的眼光。我們永遠不知道即將發生什麼，但我們必須為一切做好準備。因此，我們是商業和軍用航空的堅定信仰者。我們認為這些都是非常好的空間。我們非常受到客戶的讚賞。是的，有巨大的實力，是的，有一定比例的機隊由於正在發生的問題而減少，但我們也有一支機隊——一支由 20,000 架飛機組成的龐大機隊，每年老化 1 年。大多數其他主要參與者都大幅提高了價格。因此，我們認為我們處於一個非常好的區域，這裡或那裡是否會存在一些氣穴，當然，這絕對可能發生，但這就是為什麼我們不喜歡過度槓桿化。我們希望確保我們有足夠的現金來始終做正確的事情來繼續我們成功的收購計劃，這是我們所做的一切的關鍵。

And we're going to be very strong no matter what happens out there. So and then also to point out the obvious, I mean, every roughly 9 years, 10 years or so, there's always some black swan event. The last one, of course, is the most dramatic but look at how strong we've emerged from it. And when we look at our sales as a percentage of what we were doing in 2019, I mean, this company has absolutely transformed for the better and grown tremendously, both organically and via acquisition since then. So we don't worry about, if you will, the little air pockets or what could be happening down the road. I mean I could paint a scenario where, I mean, look, we hope that the new manufacturer gets strengthened out because we have -- we can benefit very well as a result of that. And we hope the world economy remains strong and people want to travel and all that capacity is soaked up, it becomes impossible for anybody to calculate. So we just keep our heads down and focus on the business, and I'm very confident we're going to do well.

無論外面發生什麼，我們都會非常堅強。然後還要指出一個顯而易見的事實，我的意思是，大約每隔 9 年、10 年左右，總是會發生一些黑天鵝事件。當然，最後一個是最戲劇性的，但看看我們從中脫穎而出的程度。當我們將銷售額佔 2019 年銷售額的百分比來看時，我的意思是，自那時以來，這家公司絕對已經變得更好，並且透過有機成長和收購實現了巨大成長。所以我們不擔心，如果你願意的話，小氣穴或未來可能發生的事情。我的意思是，我可以描繪一個場景，我的意思是，看，我們希望新製造商得到加強，因為我們可以因此受益匪淺。我們希望世界經濟保持強勁，人們想要旅行，所有的容量都被吸收了，任何人都無法計算。因此，我們只需埋頭苦幹，專注於業務，我非常有信心我們會做得很好。

Thank you Eric. Just one quick follow-up for Carlos. On the interest expense side, Eric just mentioned not wanting to over leverage. You guys started to pay down some debt. Should we still expect interest expense to sort of follow the same glide path that you were talking about last quarter?

謝謝埃里克。只是卡洛斯的一個快速跟進。在利息支出方面，Eric剛剛提到不想過度槓桿化。你們開始償還一些債務了。我們是否仍然應該預期利息支出會遵循您上季度談論的相同下滑路徑？

Yes, I think so. I think I'm not counting on any movements really in the interest rate. We probably will wind up running 30 -- I think we ran $38 million this quarter. It's probably going to be down $1 million each quarter after this or so just from debt from principal paydowns. So that's probably what we're going to see this year as we continue to delever that will be the interest expense.

是的，我想是這樣。我認為我並不指望利率會出現任何真正的變動。我們最終可能會運行 30——我認為本季我們運行了 3800 萬美元。在此之後，每季可能會因為還本付息而減少 100 萬美元。因此，隨著我們繼續去槓桿化，這可能是我們今年將看到的情況，這將是利息支出。

We'll take our next question from Kenneth Herbert with RBS (sic) [RBC] Capital Markets.

我們將回答蘇格蘭皇家銀行（原文如此）[RBC] 資本市場部的肯尼斯·赫伯特 (Kenneth Herbert) 提出的下一個問題。

Good morning and a really nice quarter. Eric, maybe just to start off. When we think about your -- the aerospace sales within the FSG segment, can you remind us the mix of what you're selling that's under long-term contracts versus maybe what was more book and ship?

早上好，這是一個非常美好的季度。埃里克，也許只是開始。當我們考慮您的 FSG 部門內的航空航天銷售時，您能否提醒我們，您銷售的產品是長期合同，還是更多的預訂和運輸？

I don't have that information in front of me. But our I'm getting it's in -- when you go across all of the businesses, I'm guessing it's in sort of the 50-50 area. But I don't have that specific information. As a result, as I mentioned earlier, as a result of the decentralized structure. We don't capture a lot of that information. But my guess is it's probably around the half and half area.

我面前沒有這些資訊。但我知道它在——當你瀏覽所有的業務時，我猜它在 50-50 的區域。但我沒有具體資訊。正如我之前提到的，這是分散結構的結果。我們沒有捕獲很多此類資訊。但我的猜測是它可能大約是一半一半的區域。

Okay. And are you maybe organizationally trying to skew maybe one way or the other is you have contracts coming up for renewals, say, with some of your large airline customers are you trying to in the businesses drive them to maybe more of a book-and-ship scenario? Or strategically, is that something you're comfortable to citing the operating units do what's best?

好的。你是否可能在組織上試圖以一種方式或另一種方式傾斜，比如你有一些即將續籤的合同，比如說，與你的一些大型航空公司客戶，你是否試圖在業務中推動他們更多地預訂——船舶場景？或者從戰略上講，您是否願意引用營運部門所做的最好的事情？

Well, so my comment about the 50-50 is looking at our entire parts business, which includes both PMA and distribution. So I think the distribution will probably due to less contracts, in other words, less than 50%, and the PMA would be more than 50%. So that's sort of the dichotomy there that I was looking at.

嗯，所以我對 50-50 的評論是針對我們的整個零件業務，其中包括 PMA 和分銷。所以我認為分配可能是由於合約較少，換句話說，少於 50%，而 PMA 將超過 50%。這就是我所看到的二分法。

Our customers with regard to PMA, they like the idea of having a long-term agreement, and we like that idea too because we can go out and procure the product for them and protect them. Clearly, if they want to be protected on price, we're happy to do that. But in turn, they've got to commit to us. So definitely, on the PMA side, the percentage of contracts would be -- I'm guessing well over 50%.

對於 PMA，我們的客戶喜歡簽訂長期協議的想法，我們也喜歡這個想法，因為我們可以出去為他們採購產品並保護他們。顯然，如果他們想在價格上受到保護，我們很樂意這樣做。但反過來，他們也必須對我們作出承諾。所以，在 PMA 方面，合約的百分比肯定會——我猜遠遠超過 50%。

Okay. Okay. That's helpful. And then maybe just finally, Victor, to put a finer point on sort of the lumpiness. You're up against some pretty tough comps within the Defense and Space sales within ETG in the second half of this year, especially in the fourth quarter. Do you -- is it fair to assume that you're seeing backlog that we should still see growth in the defense businesses into the back half of this year? Or could we maybe see those down a little bit just considering the strength in the back half of '23?

好的。好的。這很有幫助。也許最後，維克多，對這種塊狀現象提出了更明確的觀點。今年下半年，尤其是第四季度，ETG 的國防和航太銷售面臨一些相當艱難的競爭。您是否可以公平地假設您看到積壓的訂單，我們應該在今年下半年仍會看到國防業務的成長？或者考慮到 23 年後半段的實力，我們是否可以看到這些下降了一點？

Yes, I'd like to see how it plays out. I'm feeling good at the moment about the third quarter. And I think the fourth, if I look at the shipment schedules, it's flatter, more challenging. But I think we had like a 6% organic growth. I think in Q4 ETG last year so that's a tough comp. Yes, so it's going to be a tough one. I think we have to let it play out. We'll see where it goes. I don't think it's so easy, but we'll see where it goes.

是的，我想看看結果如何。我現在對第三季的感覺很好。我認為第四個，如果我看看發貨時間表，它更平坦，更具挑戰性。但我認為我們的有機成長約為 6%。我認為去年第四季的 ETG 比賽是一場艱難的比賽。是的，所以這將是一場艱難的比賽。我認為我們必須讓它發揮作用。我們會看看它會去哪裡。我認為這並不容易，但我們會看看它會走向何方。

Next question comes from Sam Struhsaker with Truist Securities.

下一個問題來自 Truist Securities 的 Sam Struhsaker。

(inaudible) nice quester. I was just curious kind of looking at the support -- or sorry, the strength in aftermarket. Could you guys maybe try and break that out a little bit more. Was there any particular areas of strength or weakness, whether it be across Airframe engines interiors or maybe even not weakness, but certain areas that you were seeing more growth from versus others?

（聽不清楚）很好的探索者。我只是好奇地想看看支持——或者抱歉，是售後市場的實力。你們能否嘗試進一步解決這個問題。是否有任何特定的優勢或劣勢領域，無論是機身引擎內部，還是甚至不是劣勢，但您在某些領域看到了與其他領域相比更多的成長？

I would say, overall, it was very broad-based. In the quarter, it's hard to sort of get into it by particular product type and that can be sort of heavily skewed depending on what inventory packages are taking place. So at the moment, I think it would be misleading for me to get into that because people would extrapolate and view it perhaps not correctly.

我想說，總的來說，它的基礎非常廣泛。在本季度，很難按特定產品類型進行分類，而且根據正在進行的庫存包裝，這可能會嚴重傾斜。所以目前，我認為進入這個領域對我來說會產生誤導，因為人們會推斷並認為它可能不正確。

If you don't mind, I'd rather punt and talk about that perhaps next quarter as we start to see some of this. But as I mentioned earlier, it does appear to be very broad-based the support is really broad-based.

如果你不介意的話，我寧願下注並討論這個問題，也許下個季度我們就會開始看到其中的一些情況。但正如我之前提到的，它看起來確實基礎非常廣泛，支援確實基礎廣泛。

Fair enough. And then obviously, you guys are still sort of working on the integration of Wencor, but how are you guys kind of thinking about M&A going forward in the long term?

很公平。顯然，你們仍在致力於整合 Wencor，但從長遠來看，你們對併購有何看法？

We are fully 100% committed to M&A. It is a key part of HEICO's strategy, and it drives a nice chunk of our growth. We -- as you can see, we were over 3x levered after we completed the Wencor acquisition. And then we also purchased the Honeywell display unit product line. Now we're down to 2.45x. Our M&A teams are very, very focused in finding great companies. We're in discussions with many. We work really hard to be the acquirer of choice. I think that we are sort of lucky and fortunate in that our competitive advantage is this decentralized model, which appeals to people very well.

我們百分百致力於併購。這是 HEICO 策略的關鍵部分，在很大程度上推動了我們的成長。正如您所看到的，在完成 Wencor 收購後，我們的槓桿率超過了 3 倍。隨後我們也購買了霍尼韋爾顯示器單元產品線。現在我們已降至 2.45 倍。我們的併購團隊非常非常專注於尋找優秀的公司。我們正在與許多人進行討論。我們非常努力地努力成為首選的收購者。我認為我們是幸運的，因為我們的競爭優勢是這種去中心化的模式，它對人們非常有吸引力。

I mean, I can tell you, when I visit companies, and even in processes, I would say, at least 4 out of 5 leadership teams tell us that HEICO is their preferred acquirer. And of course, who knows what they tell all the different bidders out there. But I really do believe that our approach is unique and people want a part of it, and we are very, very much focused. And also, it's supported by our customers. I mean it was our customers who wanted and we were so excited about the Wencor acquisition because we could put these 2 product lines together and really offer much more of a competitive offering to our airline customers. I mean they were the ones most supportive of doing this. So we're going to remain very, very active in that area.

我的意思是，我可以告訴你，當我訪問公司時，甚至在流程中，我會說，至少五分之四的領導團隊告訴我們，HEICO 是他們的首選收購者。當然，誰知道他們會告訴所有不同的競標者什麼。但我確實相信我們的方法是獨特的，人們想要參與其中，而且我們非常非常專注。而且，它得到了我們客戶的支持。我的意思是，這是我們的客戶想要的，我們對Wencor 的收購感到非常興奮，因為我們可以將這兩條產品線整合在一起，真正為我們的航空公司客戶提供更具競爭力的產品。我的意思是他們是最支持這樣做的人。因此，我們將在該領域保持非常非常活躍。

We'll take our next question from Louis Raffetto with Wolfe Research.

我們將回答沃爾夫研究公司的路易斯·拉菲托提出的下一個問題。

Great. Eric, just a couple for you. I think FSG sales were up about 5% sequentially, but if I look at your acquired growth and thinking about Wencor in the Honeywell product line, it looks like Wencor sales were flat to even down sequentially while legacy was up mid-single digits. Is that sort of the right way to think about it?

偉大的。艾瑞克，只給你幾個。我認為FSG 銷售額環比增長了約5%，但如果我看看您的收購增長並考慮霍尼韋爾產品線中的Wencor，您會發現Wencor 銷售額環比持平甚至下降，而傳統業務則增長了中個位數。這是正確的思考方式嗎？

I mean, we don't get into the specifics, but no. I mean, I wouldn't say that Wencor sales were down. I mean Wencor is performing extremely well. They're way up as compared to last year. So they're performing well. I mean, look at any of the businesses, you've got this -- we're at the mercy of the supply chain. And I can tell you that we've got a lot of suppliers who are very, very late. And that can sway quarters significantly actually. But Wencor is performing extraordinarily well, winning new business, we couldn't be happier.

我的意思是，我們不討論細節，但沒有。我的意思是，我不會說 Wencor 的銷售量下降了。我的意思是 Wencor 的表現非常出色。與去年相比，他們已經上升了很多。所以他們表現很好。我的意思是，看看任何一家企業，你都會發現──我們受到供應鏈的擺佈。我可以告訴你，我們有很多供應商都非常非常晚。實際上，這可能會顯著影響季度。但 Wencor 的表現非常出色，贏得了新業務，我們高興極了。

All right, appreciate the insights. And interesting to hear about -- you're not the only one mentioned the parts supply is sort of limiting the MRO. So just good for that insight. And I guess you would -- I know Eric kind of confirmed the low to -- Carlos confirmed the low to mid-single-digit growth for ETG. I mean, I think you guys kind of laid out high single-digit to low double-digit growth for FSG. I mean it seems like you're certainly going to be at the high end of that, if not above that. Is that a fair assumption?

好吧，欣賞見解。有趣的是，您並不是唯一一個提到零件供應在某種程度上限制 MRO 的人。所以對於這種洞察力來說是有好處的。我想你會——我知道埃里克（Eric）確認了這一低點——卡洛斯（Carlos）確認了 ETG 的低至中個位數增長。我的意思是，我認為你們為 FSG 制定了高個位數到低兩位數的成長。我的意思是，看起來你肯定會處於高端，如果不是高於這個水平的話。這是一個公平的假設嗎？

I think we're going to stick with the high to low double-digit growth for the year. I think that's still a good assumption, Louis.

我認為今年我們將保持兩位數的高到低成長。我認為這仍然是一個很好的假設，路易斯。

And next, we'll take our question from Gautam Khanna with TD Cowen.

接下來，我們將回答 Gautam Khanna 和 TD Cowen 提出的問題。

So I was curious, how far long are you guys on kind of introducing Wencor's product suite to your -- to HEICO's legacy airline customers and vice versa? I know there was a whole the comment when the deal was announced that Wencor was bigger with the MRO facilities than with HEICO and you guys were stronger at the airlines. I'm just curious like how much time does it take to kind of make those introductions and have those -- the product catalog added to the contracts that you guys already have, if you will, each of those companies already have.

所以我很好奇，你們向 HEICO 的傳統航空公司客戶介紹 Wencor 的產品套件需要多長時間，反之亦然？我知道，當交易宣佈時，大家都在評論說 Wencor 的 MRO 設施比 HEICO 的規模更大，而且你們在航空公司的實力更強。我只是好奇需要多少時間來進行這些介紹並將產品目錄添加到你們已經擁有的合約中，如果你們願意的話，這些公司中的每一個都已經擁有了。

Yes. So Gautam, I think what you're referring to is we said that historically, Wencor originally got its it sort of focus was more in the repair stations. They still dealt with the airlines, but more of their focus originally was in the repair stations, and it was sort of vice versa with HEICO. But I can tell you that the cooperation is going extremely well. We are -- both companies are helping each other. And there are airline customers where Wencor had more of a presence in their airline customers where HEICO had more of a presence. And we are introducing the folks on both sides so they can go ahead and take advantage of those relationships in that history and be able to sell the products.

是的。所以 Gautam，我想你指的是我們說，從歷史上看，Wencor 最初的重點更多是在維修站。他們仍然與航空公司打交道，但他們最初的重點更多是在維修站，而 HEICO 則恰恰相反。但我可以告訴你，合作進展得非常順利。我們兩家公司都在互相幫忙。在一些航空公司客戶中，Wencor 的影響力更大，在他們的航空公司客戶中，HEICO 的影響力更大。我們正在介紹雙方的人員，以便他們可以繼續利用歷史上的這些關係並能夠銷售產品。

So I think that, that is happening as we speak. And I anticipate that that's going to continue to occur in 2025. I think we will continue to see the very good results in that area.

所以我認為，就在我們說話的時候，這種情況正在發生。我預計這種情況將在 2025 年繼續發生。

Has there already been traction like commercial traction you guys are already getting sales from some of that cross-selling opportunity? Or is it still on the comp?

是否已經有像商業吸引力一樣的吸引力，你們已經從一些交叉銷售機會中獲得了銷售？或者它仍然在comp上嗎？

No, no. We -- we have received sales on it. And I think that's one of the reasons you see the organic growth rate, and you see the margins that we have because we've already realized the benefits. I think there's a lot more to come. And -- but we recognize them thus far.

不，不。我們——我們已經收到它的銷售了。我認為這是你看到有機成長率的原因之一，你看到我們擁有的利潤率，因為我們已經意識到了好處。我認為還有更多的事情要做。而且——但到目前為止我們已經認識到它們了。

Got you. That's helpful. And then, Carlos, I know you addressed this earlier in the call, but just do you have a better sense of the long-term FSG margin framework? At one point, it was 22% long term. I know there's reasons you guys are over that now. But is that still kind of the right bogey longer term with Wencor? Or do you think it could be structurally higher than that?

明白你了。這很有幫助。然後，卡洛斯，我知道您在電話會議的早些時候談到了這個問題，但是您對長期 FSG 利潤率框架有更好的了解嗎？長期來看，這一比例一度達到 22%。我知道你們現在已經結束了，這是有原因的。但從長遠來看，這對 Wencor 來說仍然是正確的柏忌嗎？或者你認為它在結構上可能比這個更高？

I think the long-term margin probably is around that 22% rate. And I do think that if you look back over the -- if you sort of ignore the COVID period and look back over the decade prior to that, you will see that our margin is pretty consistent and that every year, we get a little improvements in it. I think we're going to be -- we're heading towards that pace to where we get back as I mentioned earlier, to a normal footprint within the segment when the mix is kind of what it used to look like, and then we move forward from there and he got those little efficiencies. That's my expectation long term.

我認為長期利潤率可能在 22% 左右。我確實認為，如果你回顧一下——如果你忽略了新冠疫情時期，回顧一下之前的十年，你會發現我們的利潤率相當穩定，而且每年我們都會取得一些進步在裡面。我認為我們將朝著這樣的速度前進，回到我之前提到的那樣，當混合是以前的樣子時，回到該細分市場中的正常足跡，然後我們從那裡繼續前進，他獲得了一些小小的效率。這是我的長期期望。

And of course, Gautam, this is Eric. We've got, as I mentioned, in the quarter, we had 280 basis points from intangible amortization. So you add that and we're really approaching 25% on an EBITDA basis, which is outstanding.

當然，高塔姆，這是艾瑞克。正如我所提到的，本季我們的無形攤銷有 280 個基點。所以加上這一點，我們的 EBITDA 確實接近 25%，這非常出色。

Yes, absolutely. And then last one, Eric, just in terms of product introductions, I know in the past, you talked about 300 to 500 PMA parts developed each year. What's the right number now that you own Wencor have some experience with them. Is it higher than that? Or is it the same number, 300 to 500.

是的，一點沒錯。最後一位，Eric，就產品介紹而言，我知道過去您談到每年開發 300 到 500 個 PMA 零件。既然您擁有 Wencor，並且已經有了一些使用經驗，那麼正確的數字是多少？比那個高嗎？或是同一個數字，300到500。

Yes. I would think it's closer to the 500 area. Wencor continues to focus and develop a very aggressive number of products. HEICO, obviously, the same. The key is getting all those parts manufactured and getting the airlines to buy them. So we've got the capability, and we continue to -- we're not going to cut back in any of that area.

是的。我認為它更接近500區域。 Wencor 繼續專注並開發大量非常積極的產品。 HEICO，顯然是一樣的。關鍵是製造所有這些零件並讓航空公司購買它們。所以我們有能力，而且我們會繼續下去——我們不會削減任何一個領域的開支。

And we'll take our next question from Louie DiPalma with William Blair.

我們將回答路易·迪帕爾瑪和威廉·布萊爾提出的下一個問題。

Eric, Victor and Carlos, good morning. One of the recurring themes on both FSG and the ETG side of the business is your ability to consistently introduce new products to the market. You just mentioned the target of 500 new PMA parts per year. Similarly, I was wondering what is ETG doing in terms of new products per year. And is there still a long runway? And is the Ukraine more inspiring new ideas and demand for new types of products?

艾瑞克、維克多和卡洛斯，早安。 FSG 和 ETG 業務方面反覆出現的主題之一是您不斷向市場推出新產品的能力。您剛才提到了每年 500 個新 PMA 零件的目標。同樣，我想知道 ETG 每年在新產品方面做了什麼。還有很長的跑道嗎？而烏克蘭是否更能激發人們對新型產品的新創意與需求？

Louie, this is Victor. Thank you. It's a very good question. I don't know the number of new products and new part numbers we actually introduced in the ETG each year because it's a very large number, and we have so many subsidiaries. But one of the things that we do look at when we meet with the company is each year, we do an annual meeting and do a budget review and it's a bottoms-up budget. We do look at with each one their new product introduction. And it is a very active and regular rate. And I think it's -- my sense of it is it's probably higher than most people I see in the industry. So very, very happy with that. And that will continue, and that was my illusion earlier to the R&D spending and why it's so critical for us to do in good times or in bad, we don't cut R&D spending if the business is weaker in a particular moment because ultimately, that's our salvation, right? And that's how we grow the business over time. And we look at it on a very long-term basis.

路易，這是維克多。謝謝。這是一個非常好的問題。我不知道我們每年在 ETG 中實際推出的新產品和新零件號碼有多少，因為這個數字非常大，而且我們有很多子公司。但是，當我們與公司會面時，我們確實會考慮的事情之一是，每年我們都會舉行年度會議並進行預算審查，這是一個自下而上的預算。我們確實會關注每一位新產品的介紹。這是一個非常活躍和定期的利率。我認為，我的感覺是，它可能比我在業界看到的大多數人都要高。對此非常非常高興。這種情況將繼續下去，這是我之前對研發支出的幻想，也是為什麼無論在好時期還是壞時期，這對我們來說都如此重要，如果業務在特定時刻表現疲軟，我們不會削減研發支出，因為最終，這就是我們的救贖，對嗎？這就是我們隨著時間的推移發展業務的方式。我們會從長遠的角度來看待它。

In terms of Ukraine, yes, Ukraine has meant more new product introduction in some of our businesses and has stimulated sales in a number of our businesses as well. And it's -- Ukraine's had an interesting effect because I think it is reminded our allies in Europe, our friends of the need to expand their defense spending sustainably in long term. And that's happened, right? And that's happening, and we're seeing more investment there. The company we acquired, we completed the acquisition in January 23 of Exxelia which is a company headquartered in France with significant operations and sales in Europe.

就烏克蘭而言，是的，烏克蘭意味著我們的一些業務推出了更多新產品，並刺激了我們許多業務的銷售。烏克蘭產生了有趣的影響，因為我認為它提醒了我們在歐洲的盟友、我們的朋友，需要長期可持續地擴大國防開支。那已經發生了，對吧？這種情況正在發生，我們看到那裡有更多的投資。我們收購的公司，我們於1月23日完成了對Exxelia的收購，這是一家總部位於法國、在歐洲擁有重要業務和銷售的公司。

And that was one of the things that attracted us to that business was the opportunity to offer products to our friends and allies as well as, by the way, here in the U.S. and the Ukraine war does have an impact on U.S. companies. And obviously, as we know, what the U.S. supplies. So I would expect that to continue. And then when that conflict ends, and I hope it ends soon, of course, but when that ends, I think it will have an enduring effect on how people look at defending themselves and what they spend to do it.

吸引我們進入該業務的原因之一是有機會向我們的朋友和盟友提供產品，順便說一句，在美國和烏克蘭戰爭確實對美國公司產生了影響。顯然，正如我們所知，美國供應什麼。所以我希望這種情況能夠持續下去。然後，當衝突結束時，我當然希望它盡快結束，但當衝突結束時，我認為它將對人們如何看待自衛以及他們為此花費的費用產生持久影響。

Great. And I think you have a number of microwave product and components. Are you supplying to some of the microwave OEMs in terms of like air defense and counter drone functionality?

偉大的。我認為你們有許多微波產品和組件。您是否向一些微波原始設備製造商提供防空和反無人機功能等產品？

Sure. And of course, as you can imagine, I can't point out specific programs, but I can say that is part of -- that is definitely part of the business and it's within the ambit of what we do.

當然。當然，正如你可以想像的那樣，我不能指出具體的計劃，但我可以說這是業務的一部分——這絕對是業務的一部分，並且在我們所做的範圍之內。

And that concludes today's question-and-answer session. At this time, I'll turn the conference back to you for any additional or closing remarks.

今天的問答環節到此結束。此時，我會將會議轉回給您，請您發表補充或結束語。

So this is Larry Mendelson. I want to thank everybody on this call for their interest in HEICO. We look forward to speaking with you when we report third quarter results and that will be some time about 3 months from now. So meanwhile, have a very good summer, enjoy your summer, be safe. And HEICO will, I believe, do extremely well. Thank you, and that's the end of this call.

這是拉里·門德爾森。我要感謝這次電話會議上的每個人對 HEICO 的興趣。我們期待在報告第三季業績時與您交談，那將是從現在起大約 3 個月後的某個時間。所以同時，祝你度過一個愉快的夏天，享受你的夏天，注意安全。我相信 HEICO 會做得非常好。謝謝，本次通話就到此結束。

Thank you. And this concludes today's call. Thank you for your participation. You may now disconnect.

謝謝。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。