亨廷頓·英格爾斯工業 (HII) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the second quarter 2024 HII earnings conference call. (Operator instructions) Please be advised that today's conference is being recorded (Operator instructions) I would now like to hand the call over to Christie Thomas, Vice President of Investor Relations. Mrs. Thomas, you may begin.

女士們、先生們，感謝大家的支持，歡迎參加 2024 年第二季 HII 收益電話會議。（操作員指示） 請注意，今天的會議正在錄音（操作員指示） 我現在想將電話轉給投資者關係副總裁克里斯蒂·托馬斯 (Christie Thomas)。托馬斯夫人，您可以開始了。

Thank you, operator, and good morning. I'd like to welcome everyone to the HII second quarter 2024 earnings conference call. Joining me today on the call are Chris Kastner, our President and CEO, and Tom Stiehle, Executive Vice President and CFO.

謝謝您，接線員，早安。我歡迎大家參加 HII 2024 年第二季財報電話會議。今天與我一起參加電話會議的有我們的總裁兼執行長 Chris Kastner 和執行副總裁兼財務長 Tom Stiehle。

As a reminder, statements made today that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from future results expressed or implied by these forward-looking statements.

提醒一下，今天發表的不屬於歷史事實的陳述屬於 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些陳述與未來事件或我們未來的財務表現有關，涉及已知和未知的風險、不確定性和其他因素，可能導致我們的實際結果與這些前瞻性陳述所表達或暗示的未來結果有重大差異。

Please see our SEC filings for important factors that could cause our actual results to differ materially from expected results. Also in our remarks today, Chris and Tom will refer to certain non-GAAP measures, for reconciliations of these metrics to the comparable GAAP measures. Please see the slides that accompany this webcast, which are available on our website's investor relations page at ir.hii.com.

請參閱我們向 SEC 提交的文件，以了解可能導致我們的實際結果與預期結果有重大差異的重要因素。同樣在我們今天的演講中，克里斯和湯姆將提及某些非公認會計原則衡量標準，以便將這些指標與可比較的公認會計原則衡量標準進行協調。請參閱本網路廣播隨附的投影片，這些投影片可在我們網站的投資者關係頁面 ir.hii.com 上找到。

With that I would like to turn the call over to our President and CEO, Chris Kastner, Chris?

我想將電話轉給我們的總裁兼執行長克里斯·卡斯特納 (Chris Kastner)，克里斯？

Thanks Christie, and good morning, everyone. The HII team remains focused on executing our programs and meeting our commitments to our customers. In the second quarter, our shipbuilding division delivered two ships and our mission Technologies business achieved another quarter of strong performance. The alignment of our products and services to the United States national security strategy continues to provide strong visibility to our long term revenue forecast.

謝謝克里斯蒂，大家早安。HII 團隊仍然專注於執行我們的計劃並履行我們對客戶的承諾。第二季度，我們的造船部門交付了兩艘船，我們的任務技術業務又實現了一個季度的強勁業績。我們的產品和服務與美國國家安全戰略的一致性繼續為我們的長期收入預測提供強大的可見性。

To start, I'd like to discuss our results. Record second quarter revenue was $3 billion, up 6.8% from a year ago. And diluted earnings per share was $4.38 for the quarter, up from $3.27 in the second quarter of 2023. New contract awards during the quarter were $3.1 billion, which resulted in backlog of $48.5 billion at the end of the quarter, of which $27 billion is currently funded.

首先，我想討論一下我們的結果。第二季營收創歷史新高，達 30 億美元，年增 6.8%。該季度攤薄後每股收益為 4.38 美元，高於 2023 年第二季的 3.27 美元。本季新授予合約金額為 31 億美元，導致季末積壓 485 億美元，其中目前已融資 270 億美元。

Admission technologies, we had the seventh consecutive quarter of record revenue with sales of $765 million 19% over the second quarter of 2023. In addition to very strong revenue mission technologies, trailing 12 month book-to-bill is 1.15 and its new business opportunity pipeline is over $83 billion. Mission technologies continues to offer leading edge technologies aligned with the capabilities our customers need. And this growth in a competitive sector confirms for us that our technology portfolio is ideal for today's market requirements.

在入場技術方面，我們連續第七個季度營收創紀錄，銷售額為 7.65 億美元，比 2023 年第二季成長 19%。除了非常強大的收入任務技術外，過去 12 個月的訂單出貨比為 1.15，其新商機通路超過 830 億美元。Mission Technologies 繼續提供與客戶所需功能一致的領先技術。在競爭激烈的行業中的這種成長向我們證實，我們的技術組合非常適合當今的市場需求。

In shipbuilding, we remain focused on directing our resources toward meeting our delivery commitments to the Navy. Significant efforts continue in each of our shipyards to create labor stability, improved proficiency and increased capacity, all aimed at meeting our throughput goals. The long-term investments we are making in capital and employee development, coupled with Navy industrial base investments will stabilize and improve performance as our portfolio shifts towards new contracts.

在造船方面，我們仍然專注於將我們的資源用於履行我們對海軍的交付承諾。我們的每個造船廠都在繼續做出重大努力，以創造勞動力穩定性、提高熟練程度和增加產能，所有這些都是為了實現我們的吞吐量目標。隨著我們的投資組合轉向新合同，我們在資本和員工發展方面進行的長期投資，加上海軍工業基地投資，將穩定並提高績效。

And our ability to meet schedule projections and performance goals will support the achievement of our financial commitments to our shareholders and the second quarter at Ingalls, we delivered LPD 29, Richard M. McCool Jr. and are looking forward to launching LPD 30 Harrisburg later this year.

我們滿足進度預測和績效目標的能力將支持我們實現對股東和英格爾斯第二季度的財務承諾，我們交付了 LPD 29、Richard M. McCool Jr.，並期待今年晚些時候推出 LPD 30 Harrisburg年。

Other milestones including the launch of DDG 129 Jeremiah Denton and the delivery of LHA 8 Bougainville have been adjusted based on workforce availability. The most efficient utilization of shipyard facilities and levels of system completion to support predictable downstream execution of future milestones.

其他里程碑，包括 DDG 129 Jeremiah Denton 的下水和 LHA 8 Bougainville 的交付，已根據勞動力可用性進行了調整。最有效地利用造船廠設施和系統完成水平，以支援未來里程碑的可預測的下游執行。

At Newport News, in the second quarter, we delivered SSN 796 New Jersey and continued to make progress toward our remaining milestones that are planned for later this year.

在紐波特紐斯，我們在第二季度交付了 SSN 796 新澤西號，並繼續朝著計劃在今年稍後實現的剩餘里程碑取得進展。

During the quarter, SSN 798 construction team experienced a minor disruption to Massachusetts test program due to some equipment replacement identified during testing. The disruption has been resolved and the team is back into the test program, making steady progress.

本季度，由於測試期間發現了一些設備更換，SSN 798 施工團隊的馬薩諸塞州測試計劃受到了輕微幹擾。中斷問題已解決，團隊已重新投入測試計劃，並取得穩步進展。

It does, however, shift delivery from late 2024 to early 2025. We are reaffirming our shipbuilding margin outlook for the year. And as we've discussed, we are already in negotiations and expect several significant contract awards by the end of this year, including Block VI Virginia-class submarines, build to Columbia class submarines and additional on previous ships.

不過，它確實將交貨時間從 2024 年底推遲到 2025 年初。我們重申今年的造船利潤率展望。正如我們所討論的，我們已經在進行談判，並預計到今年年底將獲得幾項重要合同，包括第六座弗吉尼亞級潛艇、哥倫比亞級潛艇的建造以及之前船舶的附加合同。

Turning to activities in Washington, we continue to see bipartisan support for our programs reflected in the fiscal year [2025 cents] appropriations and authorization bills as they progress through both chambers of Congress. We are pleased that the two authorization committees have shown strong support for shipbuilding, including support for additional advanced procurement funding authority for CVN 82.

談到華盛頓的活動，我們繼續看到兩黨對我們的計劃的支持反映在財政年度 [2025 美分] 撥款和授權法案中，因為這些法案在國會兩院取得進展。我們很高興兩個授權委員會對造船業表現出強有力的支持，包括支持CVN 82的額外預採購融資授權。

Additional funding authority to support Virginia-class construction and a multi-ship procurement of amphibious ships, the Senate authorizers also included additional funding authority for LPD flight two and DDG 51 flight three ships. The House appropriations bill continues to support our major shipbuilding programs and notably includes investment of $4 billion into the submarine industrial base. We await Senate appropriations positions, and the final outcomes will depend on eventual respective conference negotiations by the appropriations and authorization committees.

額外的撥款授權用於支持維吉尼亞級建造和多艦採購兩棲艦艇，參議院授權者還包括為兩棲船塢登陸艦和DDG 51三航艦提供額外的撥款授權。眾議院撥款法案繼續支持我們的主要造船項目，特別是包括對潛艇工業基地的 40 億美元投資。我們等待參議院的撥款立場，最終結果將取決於撥款和授權委員會最終各自的會議談判。

Now turning to labor, positive trends continue [Intellon] acquisition as we have hired over 38 hundred craft personnel year to date, which keeps us on track to achieve our full year plan of approximately 6,000.

現在轉向勞動力，積極的趨勢仍在繼續收購 [Intellon]，因為我們今年迄今已僱用了 3800 多名技術人員，這使我們有望實現約 6,000 名的全年計劃。

In summary, I'm confident that the team's focus on the execution of the fundamentals and our progress positions as positively for the future and look forward to the second half of the year as we meet more milestones and deliver on our commitments to our customers and shareholders.

總而言之，我相信團隊對基本原則的執行和我們的進展的關注對未來持積極態度，並期待下半年我們實現更多里程碑並兌現對客戶和客戶的承諾。

And now I will turn the call over to Tom for some remarks, on our financial results. Tom?

現在我將把電話轉給湯姆，請他就我們的財務表現發表一些評論。湯姆？

Thanks, Chris, and good morning. Today. I'll briefly review our second quarter results for more detail on the segment results, please refer to the earnings release issued this morning and posted to our website. Beginning with our consolidated results on slide 6, of the presentation, our second quarter revenues are approximately $3 billion, increased 6.8% compared to the same period last year and represent a record second quarter results for HII. This increased revenue was attributable to very strong year over year revenue growth of nearly 19% admission technologies, as well as growth at Ingalls and Newport News.

謝謝克里斯，早安。今天。我將簡要回顧我們的第二季度業績，以了解有關部門業績的更多詳細信息，請參閱今天早上發布並發佈在我們網站上的收益報告。從簡報第 6 投影片中的綜合業績開始，我們第二季的營收約為 30 億美元，與去年同期相比成長 6.8%，代表 HII 第二季業績創紀錄。營收成長歸因於入場技術收入年增近 19%，以及英格斯和紐波特紐斯的成長。

Shipbuilding operating income for the quarter of $189 million increased by $33 million or 21.2% from the second quarter of 2023 and operating margin of 6.3% compares to operating margin of 5.6% in the same period last year. Net earnings in the quarter were $173 million compared to $130 million in the second quarter of 2023.

該季度造船營業收入為 1.89 億美元，較 2023 年第二季增加 3,300 萬美元，或 21.2%，營業利潤率為 6.3%，而去年同期營業利潤率為 5.6%。該季度淨利潤為 1.73 億美元，而 2023 年第二季淨利為 1.3 億美元。

Diluted earnings per share in the quarter were $4.38 compared to $3.27 in the second quarter of the prior year, representing a year over year growth of approximately 34%. Backlog increased slightly to end the quarter at $48.5 billion, up approximately $100 million from Q1's close.

本季稀釋後每股收益為 4.38 美元，而去年第二季為 3.27 美元，年增約 34%。本季末積壓訂單略有增加，達 485 億美元，比第一季末增加約 1 億美元。

Moving to slide 7. Ingalls revenues of $712 million in the quarter increased $48 million or 7.2% from the same period last year, driven primarily by higher volumes in previous assault ships and surface combatants, partially offset by lower volumes in the national security cutter program.

轉到投影片 7。英格爾斯本季營收為7.12 億美元，比去年同期增加4,800 萬美元，即7.2%，這主要是由於以前的攻擊艦和水面戰鬥艦艇銷量增加，部分被國家安全巡邏艦項目銷售減少所抵消。

Ingalls operating income for the quarter was $56 million, an operating margin of 7.9% compared to $65 million and 9.8%, respectively, from the same period last year. The decreases were primarily due to lower risk retirement on surface combatants, partially offset by delivery contract incentive on LPD 29, Richard M. McCool Jr. At Newport News, revenues of $1.5 billion were up $26 million or 1.7% from the same period last year.

英格斯本季營業收入為 5,600 萬美元，營業利潤率為 7.9%，而去年同期分別為 6,500 萬美元和 9.8%。減少的主要原因是水面戰鬥艦退役風險較低，部分被LPD 29 的交付合約激勵所抵消，紐波特紐斯的Richard M. McCool Jr. 收入為15 億美元，比去年同期增長了2600 萬美元，即1.7% 。

Newport News operating income for the quarter was $111 million and operating margin was 7.2% compared to $95 million and 6.3%, respectively in the prior year period. The increases were primarily driven by favorable contract adjustments, incentives and volume on the RCOH, program partially offset by lower performance on aircraft carrier construction and the VCS program. Shipbuilding operating margin in the second quarter was 7.4%, up from 6.8% in Q1 of this year.

紐波特紐斯本季營業收入為 1.11 億美元，營業利潤率為 7.2%，而去年同期分別為 9,500 萬美元和 6.3%。成長主要是由於有利的合約調整、激勵措施和換料大修項目的數量，部分被航空母艦建造和 VCS 項目的業績下降所抵消。第二季造船營業利益率為 7.4%，高於今年第一季的 6.8%。

We are pleased to exceed the shipbuilding margin guidance we previously provided for the quarter, and we continue to see significant opportunity in the second half of the year for margin enhancement. Admission technologies revenues of $765 million increased $120 million or 18.6% compared to the second quarter of 2023, primarily due to higher volumes and C5ISR and cyber electronic warfare and space. A portion of Mission technologies overperformance in the quarter was driven by material and work that may not reoccur on a consistent basis, and we have factored that into our guide going forward.

我們很高興超過我們之前為該季度提供的造船利潤率指引，並且我們繼續看到下半年利潤率提高的重大機會。入場技術收入為 7.65 億美元，與 2023 年第二季度相比增加了 1.2 億美元，即 18.6%，這主要是由於銷量增加以及 C5ISR 以及網路電子戰和太空。本季任務技術超額表現的一部分是由材料和工作驅動的，這些材料和工作可能不會在一致的基礎上重複出現，我們已將其納入我們的未來指南中。

We are obviously very pleased with the growth in the quarter, and we are raising the mission Technologies revenue guidance range for the year by $50 million. Mission technology operating income for the quarter was $36 million and operating margin was 4.7%, compared to $9 million and 1.4% respectively in the second quarter of last year.

顯然，我們對本季的成長感到非常滿意，並且我們將 Mission Technologies 今年的收入指導範圍提高了 5000 萬美元。該季度任務技術營運收入為 3,600 萬美元，營運利潤率為 4.7%，而去年第二季分別為 900 萬美元和 1.4%。

The increases were driven primarily by higher volumes, I just mentioned as well as stronger performance in fleet sustainment. In addition, in the second quarter of 2023, we recorded a $6 million loss related to the sale of a joint venture interest which also helps the year-over-year comparison.

我剛才提到的成長主要是由銷量增加以及機隊維護性能更強推動的。此外，在 2023 年第二季度，我們因出售合資企業權益而錄得 600 萬美元的虧損，這也有助於同比比較。

Second quarter results for Mission Technologies included approximately $25 million of amortization of purchased intangible assets. Mission Technology EBITDA margin in the second quarter was 8.5% compared to 6.7% in the second quarter of 2023 and 7.7% last quarter.

Mission Technologies 第二季業績包括約 2,500 萬美元的購買無形資產攤銷。Mission Technology 第二季 EBITDA 利潤率為 8.5%，而 2023 年第二季為 6.7%，上季為 7.7%。

Turning to slide 8. Cash used in operations was $9 million in the quarter. Net capital expenditures were $90 million or 3% of revenues. Free cash flow in the quarter was negative $99 million, consistent with the guidance we provided in the first quarter call.

轉到投影片 8。本季營運使用的現金為 900 萬美元。淨資本支出為 9,000 萬美元，佔收入的 3%。本季自由現金流為負 9,900 萬美元，與我們在第一季電話會議中提供的指導一致。

Cash contributions to our pension and other post-retirement benefit plans were $14 million in the quarter. Also during the quarter, we paid dividends of $1.30 per share or $51 million aggregate, we also repurchased approximately 250,000 shares during the quarter at a cost of approximately $65 million.

本季我們的退休金和其他退休後福利計畫的現金繳款為 1,400 萬美元。此外，在本季度，我們支付了每股 1.30 美元的股息，即總計 5,100 萬美元，我們還在本季以約 6,500 萬美元的成本回購了約 25 萬股股票。

Moving to slide 9, we have summarized our expectations for the third quarter and the year. For the third quarter, we expect shipbuilding revenue of approximately $2.2 billion and shipbuilding margin or approximately 7.8% with margin continuing to ramp in the fourth quarter.

轉到投影片 9，我們總結了對第三季和今年的預期。對於第三季度，我們預計造船收入約為 22 億美元，造船利潤率約為 7.8%，第四季利潤率將繼續上升。

For Mission Technologies, we expect revenues of approximately $650 million and operating margin of approximately 2.5%. For the year, we are reaffirming our shipbuilding revenue and margin expectations. And as I previously noted, we are raising mission technologies revenue guidance range. We are also updating our interest expense expectation to $95 million based on the phasing of our latest cash flow forecast.

對於 Mission Technologies，我們預計營收約為 6.5 億美元，營業利潤率約為 2.5%。今年，我們重申了造船收入和利潤率預期。正如我之前指出的，我們正在提高任務技術的收入指導範圍。我們也根據最新現金流量預測的分階段將利息支出預期更新為 9,500 萬美元。

We are reiterating our free cash flow outlook for 2024 of $600 million to $700 million, as well as our five year free cash flow outlook of $3.6 billion. As we have noted, we expect free cash flow to be weighted towards the [latter] part of the year, which is not unusual. We currently expect third quarter free cash flow to be near zero preceding expected strong cash collections in the fourth quarter.

我們重申 2024 年自由現金流前景為 6 億至 7 億美元，以及五年自由現金流前景為 36 億美元。正如我們所指出的，我們預計自由現金流將在今年下半年加權，這並不罕見。我們目前預計，在第四季現金回籠強勁之前，第三季自由現金流將接近零。

To summarize, we delivered another quarter of strong year over year revenue growth and met our shipbuilding expectations, while Mission Technologies portfolio continues to perform very well. Additionally, we are pleased to raise our Mission Technologies, revenue guidance and reaffirm our shipbuilding financial outlook for the year.

總而言之，我們又實現了一個季度同比強勁的收入成長，並達到了我們的造船預期，而 Mission Technologies 產品組合繼續表現出色。此外，我們很高興提高我們的任務技術、收入指導並重申我們今年的造船財務前景。

With that, I'll turn the call back over to Christine, to manage Q&A.

這樣，我會將電話轉回給 Christine，以管理問答。

Thanks, Tom. As a reminder to everyone on the call, please limit yourself to one initial question and one follow-up so that we can get as many people through the queue as possible. Operator, I will turn it over to you to manage the Q&A.

謝謝，湯姆。提醒所有參加電話會議的人，請將自己限制在一個初始問題和一個後續問題上，以便我們可以讓盡可能多的人通過隊列。接線員，我將把問答交給您來管理。

(Operator instructions)

（操作員說明）

Myles Walton, Wolf Research.

邁爾斯·沃爾頓，沃爾夫研究中心。

Thanks. Good morning. (multiple speakers) I'll start with labor. It sounds like you continue to have good traction on the hiring front, but it's not clear to me if you're net debt increasing your headcount to where you want, so maybe just touch on attrition hiring goals, I guess are good, but attrition goals for the year at both shipyards and if that's meaningful driver to some of the milestones [slippages]?

謝謝。早安.（多位發言者）我將從勞動開始。聽起來你在招聘方面繼續擁有良好的吸引力，但我不清楚你的淨債務是否將員工人數增加到你想要的水平，所以也許只是觸及自然減員招聘目標，我想這很好，但自然減員兩家造船廠今年的目標以及這是否對某些里程碑有意義的推動因素[失誤]？

Yeah, sure. Thanks Myles, thanks for question. Yeah, we are achieving our hiring goals in both shipyards. So we think we've made significant progress on ensuring that we can get the people to execute the work, attrition is not materially improving, but we're thinking about it more broadly from a labor standpoint and execution standpoint attrition -- excuse me, attendance that overtime both have recovered, were performing well there.

好，當然。謝謝邁爾斯，謝謝提問。是的，我們正在實現兩個造船廠的招募目標。因此，我們認為我們在確保員工能夠執行工作方面取得了重大進展，人員流失並沒有實質改善，但我們正在從勞動力的角度和執行的角度更廣泛地考慮人員流失——請原諒，加時賽雙方的出席率都已經恢復，表現也不錯。

Our outsourcing programs are executing well, an industrial base funding is being applied where it's necessary to increase the industrial base so, it's not just labor. We have to execute on our programs independent of how our attrition is working, we'll continue to work on our attrition issues. We'll work on salary, flexibility, recruiting in the right places.

我們的外包計劃執行得很好，工業基礎資金正在用於有必要擴大工業基礎的地方，因此，這不僅僅是勞動力。我們必須獨立於人員流失的情況來執行我們的計劃，我們將繼續解決人員流失問題。我們將致力於薪資、靈活性以及在合適的地方進行招募。

We're having to go where labor is. We've got some interesting stuff going on and in Hampton Roads where we're actually creating manufacturing footprint in areas we hadn't before to attract labor. I'm sort of thinking about it more holistically now, it's not just simply labor and attrition in order to meet our throughput goals.

我們必須去有勞動力的地方。我們在漢普頓路發生了一些有趣的事情，我們實際上在以前沒有的地區創造了製造足跡，以吸引勞動力。我現在正在更全面地考慮這個問題，這不僅僅是為了實現我們的吞吐量目標而需要的勞動力和消耗。

And in terms of its effect on the milestones, I understand the Massachusetts sounds more like a technical discovery or those are the angles milestone slippages, more workforce limitations driven?

就其對里程碑的影響而言，我理解馬薩諸塞州聽起來更像是一項技術發現，或者這些角度是里程碑滑移、更多勞動力限制驅動的？

Well, it's both, actually it's unallocated. It's just significant amount of volume and labor and application of labor to achieve those milestones. So we move that DDG 129 is a little different, there's sequencing involved in getting to that launch, but also some impact related to labor. Now all of that is included in our financials and in our guidance and we're comfortable with where we are.

好吧，兩者都是，實際上它是未分配的。實現這些里程碑需要大量的工作量、勞動力和勞動力的應用。因此，我們認為 DDG 129 有點不同，發射涉及排序，但也有一些與勞動力相關的影響。現在，所有這些都包含在我們的財務狀況和指導中，我們對自己的現狀感到滿意。

Okay. Thank you.

好的。謝謝。

Sure.

當然。

Robert Spingarn, Melius Research.

羅伯特‧斯賓加恩 (Robert Spingarn)，Melius 研究中心。

Good morning. This is Scott Mike on for Rob Spingarn. Tom or Chris, I wanted to ask, based on the guidance you need to generate about $1 billion of free cash flow in the fourth quarter. I'm just wondering if you could talk about your level of visibility into that kind of cash generation? And then if possible, can you quantify how much of the fourth quarter free cash kind to working capital that could move in early '25?

早安.我是斯科特·麥克 (Scott Mike)，代表羅布·斯賓加恩 (Rob Spingarn) 發言。我想問湯姆或克里斯，根據您需要在第四季度產生約 10 億美元自由現金流的指導。我只是想知道您是否可以談談您對這種現金產生的了解程度？然後，如果可能的話，您能否量化第四季度自由現金中有多少可以用於 25 年初的營運資本？

Yeah. Thanks for the question. I'll start and then Tom, can finish it off with some details here, but I hate to give the answer of timing because it's just not specific enough for you all, but there is a lot of timing in the back half of the year for margin and cash. In order to achieve that progress over the back half of the year, we need to make our milestones that are shifts, we need to achieve contract incentives.

是的。謝謝你的提問。我先開始，然後湯姆，可以在這裡用一些細節來結束它，但我不想給出時間的答案，因為它對你們來說不夠具體，但下半年有很多時間安排保證金和現金。為了在今年下半年取得這一進展，我們需要實現里程碑，即轉變，我們需要實現合約激勵。

And it's not just one. It's we risk-adjust all of our programs over the back half of the year to ensure that we can make guidance and we have a line of sight to it. So yes, it is over the back half of the year. There is some timing there, some unwind in working capital, but we do have line of sight to it, Tom?

而且它不僅僅是一個。我們在下半年對所有計劃進行風險調整，以確保我們能夠做出指導並且我們有一個視線。是的，現在已經是下半年了。那裡有一些時機，一些營運資金的放鬆，但我們確實有視線，湯姆？

Yeah, I'll provide some more color on that to. hey Scott, appreciate the question. It's not a comment from where we are right now, I mean, we usually use cash to begin at the beginning of the year than we have guided both [200-minus, 100-minus] for Q1 and Q2, respectively. We find ourselves right now through the quarter through the first half of the year at 274-minus honest broken, it was about $100 million that moved from Q1 to Q2 in a payment.

是的，我會提供更多的顏色。嘿斯科特，感謝這個問題。這不是我們現在的評論，我的意思是，我們通常在年初開始使用現金，而不是我們分別為第一季度和第二季度指導的[200-負，100-負]。我們發現我們現在整個季度到今年上半年的業績都處於 274 負的誠實水平，從第一季到第二季的支付額約為 1 億美元。

And then we close Q2 kind of missing a $75 million payment. So I mean from performance and where we thought we'd be we're kind of right where we guided. From my perspective, the year had a shape to it. It was back-end loaded anyway, it was more back-end loaded in 2014 than it was in 2023, when you get the Q and you can take a look at this comparison in there from '23 to '24 that we've done operationally in cash about $28 million. And then we have another $54 million of CapEx spending in '24 over '23. So that constitutes about $330 million down '24 over '23.

然後我們在第二季結束時缺少了 7500 萬美元的付款。所以我的意思是，從表現來看，我們認為我們的目標是正確的。從我的角度來看，這一年已經成形。無論如何，它都是後端加載的，2014 年的後端加載量比 2023 年要多，當你得到 Q 時，你可以看看我們在 23 到 24 年間所做的比較運營現金約2800萬美元。然後，與 23 年相比，24 年我們的資本支出又增加了 5,400 萬美元。因此，24 年比 23 年減少了約 3.3 億美元。

But again, in line with where we thought we'd be in the plan the portfolio, I would tell you a couple of the milestones we had the end of '23 that drag into '24, although it's only a couple of ships, LPD 29, the SSN 796, and then the [margins] 798 or just brought that work into 2024 in credit, just a little bit of a draw on making kind of cost and progress and headway on the existing portfolio we have here.

但同樣，根據我們認為我們在計劃組合中的位置，我會告訴你一些我們在 23 年末拖到 24 年的里程碑，儘管只有幾艘船，LPD 29、SSN 796，然後是[利潤] 798，或者只是將這項工作以信貸方式帶到2024 年，只是對我們現有的投資組合的成本、進度和進展產生了一點影響。

But the guides that we have we provided zero on free cash flow for Q3, which has some variability to it, there's a lot of activity that milestones that you have on major milestones, smaller milestones underneath capital incentives, you know that the capital is a little bit slower than we guided to get to 5.3% for the year, was 2.6% in Q1 and 3% for Q2. But as that comes online on the back half of the year the progress that we want to make to close out the work packages that are in play right now will allow us to fully build all the cost that you see on the on the balance sheet, you can see the contract liabilities and a [AIP].

但是，我們提供的指南為第三季度的自由現金流提供了零，這有一些可變性，有很多里程碑活動，您在主要里程碑上有里程碑，在資本激勵下有較小的里程碑，您知道資本是一個比我們今年達到 5.3% 的目標稍慢一些，第一季為 2.6%，第二季為 3%。但隨著今年下半年的上線，我們希望在完成目前正在進行的工作包方面取得進展，這將使我們能夠完全建立您在資產負債表上看到的所有成本，您可以看到合約負債和[AIP]。

So there's some net working capital if that's going to burn itself that out, we finished last year at 5% of working capital at the end of 2023. We said just under 9% right now. And I kind of foreshadow at the beginning of the year that we were going to have this shape.

因此，如果淨營運資本會自行耗盡，我們去年的目標是到 2023 年底，淨營運資本為 5%。我們現在說的是略低於 9%。我在今年年初就預言我們會有這樣的形狀。

And by the end of the year because of the capital incentives we'd actually have a little bit of an advancement and we'll work ourselves down to the 2% to 3% range in working capital. And that's aligned with our plan, it's aligned not only with the free cash flow perspective, we gave you for [600 to 700] this year. But in the five year gold, I told you that had some shape into two and that working capital level exiting 2024 into 2025, is planned in the guidance that I gave you for $3.6 billion kind of go in total. I think we have a we understand where we are.

到今年年底，由於資本激勵措施，我們實際上會取得一點進步，我們將把營運資本降低到 2% 到 3% 的範圍。這與我們的計劃一致，不僅與自由現金流的觀點一致，我們今年為您提供了 [600 至 700]。但在五年期黃金中，我告訴過你，它有某種形狀，分為兩種，從2024 年退出到2025 年的營運資本水平，是在我給你的指導中計劃的，總共36 億美元。我認為我們了解我們所處的位置。

We aligned with the plan that we had this year, the increases on the back half year between the progressing milestones, incentives, capital incentives, and then we have some new contract awards that introduce some alignment with the business environments that we have here that itself, if it does at the beginning of those contracts, we anticipate them to be what it is not at the end of Q3 and Q4. A little variability of the effect is that going to be less sharp in Q3 or Q4, but it will end by the end of the year, we'll have new awards that will assist both in margin and cash as well.

我們與今年的計劃保持一致，下半年進展里程碑、激勵措施、資本激勵之間的增長，然後我們授予了一些新的合同，這些合同與我們本身的業務環境保持一致，如果在這些合同開始時確實如此，我們預計它們在第三季和第四季末將不會出現這種情況。影響的一個小變化是，第三季或第四季的影響不會那麼嚴重，但它將在年底結束，我們將有新的獎勵，這也將有助於利潤和現金。

Okay. That gets into my next question. So I wanted to ask just high level, a big part of the margin story, at least for shipbuilding is putting new ships and boats on contract. It has better pricing compared to some of your older contracts. So can you give us an update on how many ships and boats you put on contract so far this year, and how many you expect to put on contract in the next 12 to 18 months?

好的。這就是我的下一個問題。所以我想問高層，利潤故事的一個重要部分，至少對於造船業來說是簽訂新船和船隻合約。與一些舊合約相比，它的定價更優惠。那麼，您能否向我們介紹今年到目前為止您簽訂了多少艘船舶的最新情況，以及您預計在未來 12 至 18 個月內簽訂合約的船舶數量？

Yeah. So we expect to put under contract over the next 6 to 12 months and probably before the year expires actually another 21 boats, with pricing that reflects the current macro economic environment. So it's a significant amount of work that we intend to put under contract over the back half of the year.

是的。因此，我們預計在未來 6 至 12 個月內，甚至可能在今年到期之前，再簽訂合約 21 艘船，其定價反映了當前的宏觀經濟環境。因此，我們打算在今年下半年簽訂合同，完成大量工作。

Thanks. I'll stop there.

謝謝。我就到此為止。

Pete Skibitski, Alembic Global.

Pete Skibitski，Alembic Global。

Hey Good morning, guys. Nice quarter.

嘿，早上好，夥計們。不錯的季度。

Good morning Pete.

早安，皮特。

I did have a question on Ingalls margin. I know you've touched on a little bit because it's clear for the first time in almost a couple of years, the release talked about lower risk retirement on surface combatants.

我確實有一個關於英格爾斯邊際的問題。我知道你已經觸及了一些內容，因為近年來第一次很清楚，該新聞稿談到了水面戰鬥人員的低風險退休。

And I wasn't sure if that's kind of your you've got some early DDG [51's] in the yard and you're booking conservatively or I wasn't sure if that was if the DDG 129 pushout next year impacted this quarter, can you maybe talk through that a little bit with us a little more deeply.

我不確定這是否屬於您的情況，您院子裡有一些早期的 DDG [51's]，並且您的預訂比較保守，或者我不確定明年 DDG 129 的推出是否會影響本季度，您能否與我們更深入討論一下這個問題？

Sure I can start and I think you probably have a little bit of a comparison issue from last year and that language about obviously, you move to two milestones cost goes with schedule. So that impacted the quarter. And then 129 had a bit of -- excuse me LPD 29 at delivery had a little bit less risk retirement than we usually have. So angles are going to continue to execute on the suggests a bit of a quiet quarter for them, and I expect them to recover very quickly here.

當然，我可以開始，我認為您可能與去年相比有一點比較問題，並且顯然，您轉向兩個里程碑的成本與時間表一致。這影響了本季。然後 129 有一點——對不起，LPD 29 在交付時的退休風險比我們通常的要低一些。因此，角度將繼續按照建議執行，這對他們來說是一個安靜的季度，我預計他們會很快在這裡恢復。

Okay. And I appreciate just one follow-up. I know some of the there's been some supply chain issues on the Virginia, I think and the carriers, I think one of the issues has been development of the new electric generators. Do you guys have a time line of when that new system is expected to arrive in the yard?

好的。我只欣賞一次後續行動。我知道弗吉尼亞號上存在一些供應鏈問題，我認為還有運營商，我認為問題之一是新型發電機的開發。你們有新系統預計何時到達現場的時間表嗎？

Yeah. So I'm probably not the right person to talk about that depending on what program you're referencing. We have our estimates have not changed for 80 if that's what you're referencing. And our schedules have not changed materially, either. They're making good progress on 80.

是的。因此，我可能不是談論這個問題的合適人選，這取決於您引用的程式。如果您引用的是 80，我們的估計值沒有改變。我們的日程安排也沒有發生重大變化。他們在80分上取得了很大的進步。

They're doing some very interesting things relative to ensuring that we hold onto the schedule for 81 and how we're going to build those. But I'm not really comfortable because there's been no material change between Q1 and Q2 relative to those delivery requirements.

他們正在做一些非常有趣的事情，以確保我們堅持 81 的時間表以及我們將如何建立這些時間表。但我不太舒服，因為相對於這些交付要求，第一季和第二季之間沒有重大變化。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Sure.

當然。

David Strauss, Barclays.

大衛‧史特勞斯，巴克萊銀行。

Hey good morning. Chris, can you talk about where you are in terms of Block IV, Block V work and then negotiating Block VI on ECS.

嗨，早安。Chris，您能談談您在 ECS 上的 Block IV、Block V 工作以及 Block VI 的進度嗎？

Sure, Block IV we're marching towards delivery on 798, we did have that minor move on the milestones that they're making progress on the test program now and to good team on its good crudes, good leadership. So I fully expect 798 will resolve at the beginning of next year, 800's making progress that milestone is holding the float off the back half of this year.

當然，我們正在向798 的第四區塊交付邁進，我們確實在里程碑上取得了微小的進展，他們現在在測試計劃上取得了進展，並在良好的原油和良好的領導力方面建立了良好的團隊。因此，我完全預計 798 將在明年初解決，800 的里程碑進展將在今年下半年結束。

And then we have one more module that we have to deliver to general dynamics and then were making progress on Block V and they'll start to fill in behind Block IV, in those getting into the integrate delivery test to the Block V, Virginia-class boats.

然後我們還有一個模組必須交付給一般動態，然後我們在 Block V 上取得進展，他們將開始在 Block IV 後面填充，在那些進入弗吉尼亞州 Block V 的集成交付測試的模組中 -類船。

Block VI we're in discussions with the government relative to negotiation of that block. I expect that to resolve this year working closely, I think it will be a fair deal, dealing and with this macroeconomic environment, we talk about inflation and supply chain insurance, we have all that risk protected. The good news is we're making investments.

第六區塊，我們正在與政府討論該區塊的談判事宜。我預計今年要密切合作解決這個問題，我認為這將是一項公平的交易，應對這種宏觀經濟環境，我們談論通貨膨脹和供應鏈保險，我們對所有風險都進行了保護。好消息是我們正在進行投資。

The Navy is making investments in the industrial base in order to get at this throughput issue. And we fully expect that when we do Block VI, all of that will be wrapped into that deal and it will be a fair deal. And so that's where we stand on Virginia-class.

為了解決吞吐量問題，海軍正在對工業基地進行投資。我們完全期望，當我們進行第六區塊時，所有這些都將包含在該交易中，這將是一個公平的交易。這就是我們在維吉尼亞級的立場。

Thanks for that. What is your revenue mix right now between Block IV and Block V.

感謝那。目前您在 Block IV 和 Block V 之間的收入組合是多少？

The vast majority of that talent here, the details, but the vast majority of it is headed in the Block V now.

這裡的絕大多數人才，細節，但其中絕大多數現在都在第五區。

So, we're at 95%-plus or a complete update on Block IV and then Block V, I know it's not the exact answer to your question, but we're at 95%-plus of the contract completed on Block IV and Block V were in the mid 20% range. And we're spending it, we crossed over about six quarters ago that Block V has high revenue then Block IV.

所以，我們在區塊 IV 和區塊 V 上完成了 95% 以上或完整更新，我知道這不是你問題的確切答案，但我們在區塊 IV 上完成了 95% 以上的合同， V 區處於20 % 的中間範圍。我們正在花費它，大約六個季度前我們就跨越了第五區塊的收入高於第四區塊的收入。

Okay, thank you. And then Tom, as a follow-up on on working capital [day] here correctly now it's going to drop to you're saying 2% by the end of this year and where does that go in 2025?

好的謝謝。然後湯姆，作為營運資本 [day] 的後續行動，現在它將會下降到你所說的到今年年底 2%，到 2025 年會去哪裡？

So a couple of things. We got I think the last couple of calls, we've been been talking about that right and that the for the 600 to 700 [day] and where the working capital is right now, the capital incentives pop in here, we will burn down the 9% that we see through Q2 to that level going forward, lower than what we traditionally guided to between 4% and 5% because what's going on the capital front. We haven't guided both for free cash flow specifically for 2025.

有幾件事。我想我們接到了最後幾通電話，我們一直在談論這一點，對於 600 到 700 [天]，以及目前的營運資金，資本激勵措施在這裡出現，我們將燒毀我們預計第二季度將達到9%的水平，低於我們傳統上指導的4% 到5% 之間的水平，因為資本方面的情況。我們沒有專門為 2025 年的自由現金流提供指導。

And I would be, I don't want to get into specifics targets going forward, but I will tell you that we're kind of on plan on that front relative to its implications to the five year free cash flow guidance. And as we close out the year for Q3 and Q4, lot of activity has to happen and how that's going to fall with everything around above fall on how we're going to make the 600 to 700, but prefer to hang on to the exact working capital guidance at the back half of the year as we set the trajectory and the targets for next year on the February's call.

我不想討論未來的具體目標，但我會告訴你，相對於其對五年自由現金流指導的影響，我們在這方面已經制定了計劃。當我們結束第三季和第四季的年度時，必鬚髮生很多活動，以及這些活動將如何發生，上面的一切都取決於我們將如何使 600 到 700，但更願意堅持到底我們在2 月份的電話會議上設定了明年的軌跡和目標，並制定了下半年的營運資本指引。

All right. Thank you.

好的。謝謝。

Gautam Khanna, TD Cowen.

高塔姆·卡納，TD·考恩。

Yeah, thanks. I have two questions. First, just on the Q4 cash flow was there, are there any major like lumpy events, that you could, that might actually move that number materially if they were to slip out and belatedly to be delivery milestone slips have any impact on that whatsoever? And then I have a follow-up.

是的，謝謝。我有兩個問題。首先，就第四季度的現金流而言，是否有任何像波動性事件這樣的重大事件，如果它們滑出並且遲來的交付里程碑滑落會對這個數字產生任何影響，那麼實際上可能會實質性地改變這個數字？然後我有一個後續行動。

Yes, I would tell you the ramp that we're going to see here between Q3, Q4. Again, we can certainly guided to zero for Q3, but that could be 100 to 200 higher, it could be 1500 less than just depending on everything that I said earlier kind of falls out, but the ramp from now where we are to Q3 and Q4, it's a composite of improved trade working capital between AP and AR progressing and closing our bill, you can see you have a cost in the balance sheet.

是的，我會告訴你我們將在第三季和第四季之間看到的斜坡。再說一遍，我們當然可以將第三季的目標引導為零，但這可能會高出100 到200，也可能會少1500，這取決於我之前所說的一切，但從現在到第三季的坡道和第四季度，它是 AP 和 AR 之間改進的貿易營運資金的綜合體，進展並結清我們的賬單，您可以在資產負債表中看到您的成本。

So it's just getting the right progressing as we make headway on schedule, to be able to build the costs, the major milestones that add into that. We talked about it out and we have a slide on the PowerPoint briefing that you can see the ones that we have to hit the on the deliveries. And then we kind of work ourselves through both incentives and programs, contract incentives and then capital incentives.

因此，當我們按計劃取得進展時，它就取得了正確的進展，能夠增加成本，以及增加成本的主要里程碑。我們對此進行了討論，並且我們在 PowerPoint 簡報中提供了一張幻燈片，您可以在其中看到我們必須在交付時達成的目標。然後我們透過激勵和計劃、合約激勵和資本激勵來自己工作。

And then the new awards kind of contribute that rise and lift on the back half of the year, too so. It's all of it, I don't think, missing one milestone here there is not going to drive the preponderance of the lift that we see kind of going forward. But we'll keep you informed and we'll give you an update on the November call. And the part two of your question.

然後新的獎項也會在今年下半年有所上升和提升。我認為，這就是全部，錯過一個里程碑就不會推動我們所看到的未來​​發展的優勢。但我們會隨時通知您，並向您提供 11 月份電話會議的最新情況。還有你問題的第二部分。

Great. Thank you. And, Chris, I'm just wondering what's your appetite for acquisitions at this point? Yeah, you could just talk about that.

偉大的。謝謝。克里斯，我只是想知道您目前對收購的興趣是什麼？是的，你可以談論這個。

Yeah. So capital allocation has been fairly consistent here for the last year after we started to pay down the debt, we like to be investment grade. We think that's where we need to be and where we want to be, we're going to continue to invest in our shipyards. We're going to pay a dividend.

是的。因此，在我們開始償還債務後，去年的資本配置相當一致，我們希望達到投資等級。我們認為這就是我們需要達到的目標，也是我們想要達到的目標，我們將繼續投資我們的造船廠。我們將支付股息。

And then with excess cash, we're going to provide it back to shareholders. But we'll continue to evaluate M&A opportunities as they present themselves. And if it makes strategic and financial sense, we'll evaluate it and entertain it. So there's not really a change in our capital allocation philosophy.

然後用多餘的現金，我們將把它還給股東。但我們將繼續評估出現的併購機會。如果它具有戰略和財務意義，我們將對其進行評估並予以考慮。因此，我們的資本配置理念並沒有真正改變。

Thank you.

謝謝。

Sure.

當然。

Jason Gursky, Citi.

賈森古爾斯基，花旗銀行。

Okay. Good morning, everybody. Can you hear me?

好的。大家早安。你聽得到我嗎？

Morning Jason. Yes.

早上好，傑森。是的。

Great, the operator struggling there a bit. And Chris, just a quick question first on Mission Technologies. You mentioned the trailing 12 months book-to-bill of 1.15 and the quantum of the pipeline that you have there in that business.

太好了，操作員有點掙扎。克里斯，首先問一個關於任務技術的簡單問題。您提到了過去 12 個月的訂單出貨比為 1.15，以及您在該業務中擁有的管道數量。

I'm wondering if you can step back for a minute and just talk a little bit about that 1.15 and kind of when you can execute on that backlog and the pipeline that you we have available to you. And what that means for growth rates beyond 2024, we are obviously up to, the solid start here in the first half of this year. I'm just kind of curious how this growth rate settles out over the next couple of years?

我想知道您是否可以退後一步，談談 1.15 以及您何時可以執行積壓工作以及我們為您提供的管道。這對 2024 年以後的成長率意味著什麼，我們顯然已經做好準備，在今年上半年取得良好的開端。我只是有點好奇未來幾年的成長率如何？

Yeah. So thanks, Jason. We're still comfortable with our 5% growth rate in Mission Technologies it. A bit of a conservative guide, we've increased it for the year and beyond that if we can execute on the $83 billion pipeline and the book-to-bill continues to be very good. It could be north of that, and it's really quite broad-based across the business at each one of those business areas is executing very well.

是的。謝謝，傑森。我們仍然對 Mission Technologies 5% 的成長率感到滿意。有點保守的指導，如果我們能夠執行 830 億美元的管道，並且訂單出貨比繼續非常好，我們就增加了今年及之後的預算。它可能超出了這一範圍，而且它在整個業務中的基礎非常廣泛，每個業務領域都執行得很好。

I would like to point out that there's a lot of interesting things going on in Mission Technologies. This is the first time that the Navy is going deploy Virginia-class submarine with launch and recovery all autonomously of the [remits] vehicle. And it's not just an exercise that's full deployment of CLO Moray.

我想指出，Mission Technologies 正在發生很多有趣的事情。這是海軍首次部署維吉尼亞級潛艦，其發射和回收全部由車輛自主完成。這不僅僅是一次全面部署 CLO Moray 的演習。

It's a great product and it demonstrates the kind of demand and autonomous and man teaming, that we really think about provides a lot of value for our customer. So if they continue to execute like this, they continue to execute on that backlog and they take advantage of that pipeline. It could be north of that, but we wouldn't want to get too far over our skis.

這是一款很棒的產品，它展示了我們真正認為可以為我們的客戶提供大量價值的需求、自主性和團隊合作。因此，如果他們繼續這樣執行，他們就會繼續執行積壓的工作，並利用該管道。可能會超出這個範圍，但我們不想超出滑雪板太遠。

We're going to be relatively conservative as you would expect for us to be. But I'm very encouraged by how Mission Technologies is developed.

正如您所期望的那樣，我們將相對保守。但 Mission Technologies 的開發方式讓我深受鼓舞。

Okay, great. That's helpful. I appreciate that. And then secondarily, just on labor productivity in the shipyards. I know you talked a little bit earlier during the Q&A session about attrition rates and hiring and all that kind of stuff, which is great. But I think they probably just as important vacates for those numbers, kind of the learning curve of the employees.

好的，太好了。這很有幫助。我很感激。其次，就是造船廠的勞動生產力。我知道您在問答環節早些時候談到了員工流失率和招聘以及所有此類內容，這很棒。但我認為他們對於這些數字可能同樣重要，就像員工的學習曲線一樣。

And what if you have the ability. Maybe just from a big-picture perspective to talk about labor productivity where you are today relative to maybe where you were pre-pandemic. Just wondering if we're still down relative to pre-pandemic levels from a labor productivity perspective and kind of what you would expect over the next couple of years and maybe we can return back to kind of pre-pandemic productivity? Thanks

如果你有能力呢？也許只是從大局的角度來談論今天相對於大流行前的勞動生產力。只是想知道，從勞動生產力的角度來看，我們是否仍然低於疫情前的水平，以及您對未來幾年的預期，也許我們可以恢復到疫情前的生產力？謝謝

Great question, Jason. So productivity is not as it was before the pandemic. There's no getting around that and it's sort of related to the experience level of the team now, do I expect it to improve? Absolutely.

好問題，傑森。因此，生產力已不如疫情大流行之前。這是無法迴避的，這與現在團隊的經驗水平有關，我希望它能有所改善嗎？絕對地。

And both teams Ingalls a o Newport News making investments to ensure it does and the sub the specific investments that you see coming out of the Navy are focused on that as well, not just infrastructure, it's targeted at the proficiency of the workforce as well. So I do have get to improve we're investing against it. We've done it before, we've seen it before, and I expect it to continue to improve as we stabilize moving forward.

英格爾斯和紐波特紐斯的兩個團隊都進行了投資以確保這一點，而且你看到的海軍的具體投資也集中在這一點上，而不僅僅是基礎設施，它還針對勞動力的熟練程度。所以我確實需要改進我們的投資。我們以前已經做到過，我們以前見過它，我希望隨著我們穩定前進，它會繼續改進。

Great. Thanks.

偉大的。謝謝。

Sure.

當然。

Seth Seifman, JPMorgan.

賽斯‧塞夫曼，摩根大通。

Hey, thanks very much and good morning. I wonder in the slides, I think you talk about a reduction year on year in Virginia sub profitability, should we attribute that to what's happening on Massachusetts? Or was there a reduction in expected profitability on a Block V?

嘿，非常感謝，早安。我想知道在幻燈片中，我認為您談到了弗吉尼亞州盈利能力同比下降，我們是否應該將其歸因於馬薩諸塞州發生的事情？或者 Block V 的預期獲利能力是否有所下降？

Yeah. So I think that's probably a comparison issue related to last year. There's no material issue that we can note related to that is kind of broadly across across the blocks. We assess our EACs every quarter. We have to make an adjustment, we do that plus or minus. So it's not anything individually material there.

是的。所以我認為這可能是與去年相關的比較問題。我們沒有註意到與跨區塊廣泛相關的重大問題。我們每季都會評估我們的 EAC。我們必須做出調整，我們會加減。所以它不是什麼單獨的材料。

Okay. I think you mentioned earlier about the carrier. So with both the carrier and Virginia Block V, their weren't meaningful changes to the estimated profitability?

好的。我想你之前提到過運營商。那麼對於該營運商和 Virginia Block V 來說，他們對預計獲利能力的改變並沒有什麼意義？

No, not material enough to know. But we as I said, we assess our EACs every quarter, we make those adjustments dictated by our evaluation in that quarter.

不，材料不足以了解。但正如我所說，我們每季都會評估我們的 EAC，並根據該季度的評估進行調整。

Okay. Great. And then just on for Ingalls, I guess should we expect profitability there, too, we've seen typically kind of solidly double-digit margin for Ingalls. Is that something kind of going forward, that Ingalls can still be kind of at the high end of kind of good shipyard margins?

好的。偉大的。然後就英格爾斯而言，我想我們也應該期望那裡的獲利能力，我們通常會看到英格爾斯的利潤率穩定在兩位數。英格斯公司仍然可以維持較高的造船廠利潤率，這是否是一種進步？

Yeah. So we don't guide by shipyard, but I fully expect and goals to continue to execute on our programs very well. But yeah, we don't provide guidance, by our shipyard.

是的。因此，我們不以造船廠為指導，但我完全期望並目標繼續很好地執行我們的計劃。但是，是的，我們的造船廠不提供指導。

Okay, great. Thanks very much.

好的，太好了。非常感謝。

Sure.

當然。

George Shapiro, Shapiro Research.

喬治·夏皮羅，夏皮羅研究。

Yes, good morning. Tom, I wanted to pursue a little bit the free cash flow needs for the fourth quarter. I mean, obviously, we can all do the arithmetic [973 to 1.73 billion]. Now if I look back, that's nearly twice what you've ever done before the last highest year in the last five was $539 million in the fourth quarter of 18.

是的，早安。湯姆，我想稍微了解一下第四季的自由現金流需求。我的意思是，顯然，我們都可以做算術[973 至 17.3 億]。現在，如果我回頭看，這幾乎是過去五年中最高的一年（18 年第四季的 5.39 億美元）之前所做的事情的兩倍。

In addition, you've never had three quarters in a row where no quarters generated positive cash flow. So my question is, what has changed in the last five years in terms of contracts that you have or what to suggests such a dramatic swing this year from what we've seen before.

此外，您從來沒有連續三個季度沒有季度產生正現金流。所以我的問題是，過去五年中你們所擁有的合約發生了哪些變化，或者表明今年與我們之前看到的情況相比發生瞭如此巨大的變化。

Yes. So I think we had a couple of quarters that were negative, so we can catch up offline on that, George, but this isn't an idea because it's back-loaded, one. Two is I would tell you that pre-COVID, as we're executing these contracts right now, we have seen a draw in the schedules over the last three or four years. And that just changes the construct of us, as well get progress, in collect costs and what we're allowed to bill creates a little bit of a drawn that we still manage it annually.

是的。所以我認為我們有幾個季度的表現是負面的，所以我們可以在線下趕上，喬治，但這不是一個想法，因為它是後載的。第二，我想告訴你，在新冠疫情爆發之前，當我們現在正在執行這些合約時，我們看到過去三四年的時間表有所減少。這只是改變了我們的結構，並在收取費用方面取得了進展，我們被允許開立的帳單產生了一點吸引力，我們仍然每年進行管理。

And as you know, we've been pretty good at providing a five year target back in '19, providing a guidance annually for each of the years. And we've met or exceeded that. So I mean, we're in the lane right now, we've actually increased that to [$2.9] billion to $3 billion, [$100] billion at it. We given the next five years at 20% more. So we have pretty good visibility into the portfolio.

如您所知，我們早在 19 年就非常擅長提供五年目標，每年為每年提供指導。我們已經達到或超過了這個目標。所以我的意思是，我們現在已經步入正軌，我們實際上已將其增加到 [29] 億美元至 30 億美元，甚至 [100] 十億美元。我們預計未來五年將成長 20%。所以我們對投資組合有很好的了解。

Yeah, it's a relatively, I'm sorry. Yes, there is some there's some feedback here. It's a relatively mature portfolio that's going on that we have here. So we have line of sight as far as what we have to build program plans, the expected cost and then all that rolls in once we come to our quarterly EACs into the guidance of free cash flow guidance going forward here. It is backloaded and as I commented earlier, I did a comparison you could take a peek at the Q there on what's driving that?

是的，這是相對的，對不起。是的，這裡有一些回饋。這是我們這裡正在進行的一個相對成熟的投資組合。因此，我們已經了解了必須制定的計劃計劃、預期成本，以及一旦我們將季度 EAC 納入未來自由現金流指導的指導中，所有這些都會滾滾而來。它是後載的，正如我之前評論的那樣，我做了一個比較，你可以看看那裡的問題是什麼在驅動它？

A little bit more CapEx that we've seen last two years has been to [2.6% to 2.4%] of sales respectively. And already we saw a 3% quarter last year, and that's going to ramp in the back half of the year. But there's capital incentives that come along with that, as we continue to make progress on the cost that you can see that's on the books and the balance sheet there. We plan to liquidate that and mix and really drive that working capital.

過去兩年我們看到的資本支出分別佔銷售額的 [2.6% 至 2.4%]。去年我們已經看到了 3% 的季度成長率，而這一數字將在今年下半年繼續上升。但隨之而來的是資本激勵，因為我們在成本方面不斷取得進展，你可以在帳簿和資產負債表上看到這一點。我們計劃清算並混合併真正推動營運資金。

That's going to be the catalyst, the working capital coming down milestones and deliveries and additional awards as well as on contract performance and capital incentives are going to drive the back half of the year. The guided 3% was probably on the conservative side. We did want to say, it could be $100 million or $200 million higher or $50 million to $100 million less.

這將成為催化劑，里程碑、交付和額外獎勵的營運資金以及合約履行和資本激勵將推動今年下半年的發展。3% 的指導值可能偏保守。我們確實想說，可能多出 1 億美元或 2 億美元，也可能少 5,000 萬至 1 億美元。

And we didn't want to provide a number that we leaned into for Q3. The events and criteria's and milestones that we see have to happen are right in that end of September, October and November timeframe that we guided conservatively, which does make the Q4 look like it's a larger lift than it may be as it plays out.

我們不想提供我們傾向於第三季的數字。我們認為必鬚髮生的事件、標準和里程碑恰好在我們保守指導的 9 月底、10 月和 11 月時間範圍內，這確實使第四季度看起來比實際情況有更大的提升。

Okay. Just one comment, what I meant to say if I didn't say it properly on the cash flow was there hasn't been if you look at quarter by quarter, there's been no time in the last five years where you one quarter hasn't had at least positive cash flow of the three, there's been several quarters with two looks to have been negative to that, but not zero in the third.

好的。只是一個評論，如果我在現金流方面沒有正確表達的話，我的意思是，如果你逐季查看的話，過去五年中從來沒有一個季度沒有出現過。有幾個季度有兩個季度的現金流為負，但第三個季度的現金流並非為零。

And a follow-up I had was in Mission Technologies. The guide for this second quarter was like 650, you did 750, which is it 765, which was similar to the first quarter. And you had mentioned and that material and that may drop down in the third quarter. Can you just be a little clearer is kind of what actually drove it in the materials, comment that you made?

我的後續工作是在 Mission Technologies。第二季的指引是 650，你做了 750，就是 765，這與第一季類似。您已經提到過，該資料可能會在第三季下降。您能否更清楚地說明一下材料中實際推動它的因素以及您所做的評論？

You saw a material comment that I said in my opening statement that was more applicable to Q1. So there was some sales that we had, which are not going that we don't envision to be on a recurring basis were not included in the Q2 or the guide kind of going forward. The Q2 revenue that we had at Mission Technologies was driven by strong performance in C5ISR and CEWS, and we continue we believe that will continue going forward.

您看到了我在開場白中所說的更適用於第一季的重要評論。因此，我們有一些銷售，但我們預計這些銷售不會經常出現，因此沒有包含在第二季或未來的指南中。Mission Technologies 第二季度的營收是由 C5ISR 和 CEWS 的強勁表​​現推動的，我們仍然相信這種情況將繼續向前發展。

We have normalized out for the book of business on contract right now. So we know what contracts we have are executing and we see the, how we load that out. And we have a clear sight on expectations of the revenues for the last two quarters as well as there's still awards happen every month. And this even though we're in the back half of the year, this several, tens of millions of dollars of potential sales that happen on awards. So we have to execute our plan that we have an existing contracts.

我們現在已經正常化了合約業務簿。所以我們知道我們正在執行哪些合同，並且我們看到如何加載它。我們對過去兩個季度的收入預期有清晰的認識，每個月仍然有獎勵發生。即使我們已經進入下半年，獎項的潛在銷售額也將達到數千萬美元。所以我們必須執行現有合約的計劃。

Those awards have to play out, and we've got it rightfully probably on the conservative side of where we stand. The run rate admission technologies between the first two quarters at 750 and 765 is 15, 15 on an annual basis, over $3 billion. We've consistently taken the beginning of the year guidance and [270 to 27.50] up to [27.50 to 280]. So let's see how it plays out, we don't want to get ahead of ourselves.

這些獎項必須發揮作用，而我們的立場可能是保守的，這是理所當然的。前兩季的運行率分別為 750 和 765 項，每年 15 項，超過 30 億美元。我們一直採用年初的指導，並且 [270 至 27.50][27.50 至 280]。所以讓我們看看結果如何，我們不想超前。

Chris made a comment earlier about the growth. We saw some good growth in '21 to '22 at 4% and '22 to '23 at 12.7%. And that both Q1 and Q2 respectively, has seen 20% and 18% growth. But we don't want to only guide.

克里斯早些時候就增長發表了評論。我們在 21 至 22 年看到了良好的成長，成長了 4%，而 22 至 23 年則成長了 12.7%。第一季和第二季分別成長了 20% 和 18%。但我們不想只是提供指導。

Obviously, we've got get the people and win those contracts and continue to have good performance. But I'm feeling really strong about the Alion acquisition. The business proposition that we set that MT would be a $200 million cash generated, which it is. And I feel really good about the portfolio of contracts we have in that pipeline growing.

顯然，我們已經找到了人才並贏得了這些合約並繼續保持良好的表現。但我對 Alion 的收購感覺非常強烈。我們設定的 MT 業務主張將產生 2 億美元現金，事實也確實如此。我對我們在該管道中的合約組合的增長感到非常滿意。

So just one last one. So why guide to only 650 in the third quarter.

所以只有最後一張。那為什麼第三季的指導只有650。

I said we have a lot of work to do going forward here. We don't want to over guide and miss and it's still a function of a couple of awards that will have a minor impact on the revenue for the rest of the year here.

我說過我們這裡還有很多工作要做。我們不想過度引導和錯過，這仍然是幾個獎項的功能，這些獎項將對今年剩餘時間的收入產生輕微影響。

Okay. Thanks very much for all the color.

好的。非常感謝所有的顏色。

It's, all right.

沒關係。

It's, all right.

沒關係。

Jordan Liani, Bank of America.

喬丹·利亞尼，美國銀行。

Hey good morning.

嗨，早安。

Good morning Joseph.

早上好，約瑟夫。

On CapEx, the sequential uptick that you guys had, is there a percentage or a portion of that you could give color on that you'd expect to get back from the Navy CapEx incentives?

在資本支出方面，你們所經歷的連續上升，您是否可以對您期望從海軍資本支出激勵中獲得的回報給出百分比或一部分？

Yeah, we always invest with our partner with the Navy on this. And depending on what the CapEx is and the timing and value equation, what that adds and the design that of getting in the yard, whether it's for operational here or our Navy sales and things that nature. There's a there's a mix there of investment, we don't get into that. I mean that's just part of the business case.

是的，我們總是與我們的海軍合作夥伴在這方面進行投資。取決於資本支出是什麼、時間和價值等式、增加的內容以及進入院子的設計，無論是用於這裡的運營還是我們的海軍銷售以及其他性質的事情。投資是混合的，我們不討論這個。我的意思是這只是商業案例的一部分。

And I will tell you that any capital projects that we do add value, we get a return on that our capital and it goes into the business construct and how we choose which projects we bid, we approve and we execute your site. And I leave it at that, it was 2.6% in Q1, 3% in Q2 guide, still 5.3% for this year with a 5% CapEx over the next three years.

我會告訴你，我們所做的任何增加價值的資本項目，我們都會從我們的資本中獲得回報，它會進入業務結構以及我們如何選擇我們投標的項目，我們批准並執行您的網站。我就這樣說吧，第一季為 2.6%，第二季為 3%，今年仍為 5.3%，未來三年資本支出為 5%。

Got it. Okay. And then also to the contract that one that's for Navy shipbuilding. Do you have any sense of the scope for a while, like Mission Tech was impacts or you guys in general.

知道了。好的。然後還有一份海軍造船合約。你們對這個範圍有什麼感覺嗎，例如 Mission Tech 的影響或是你們一般。

I can't necessarily hear the question. Is there some feedback? Can you repeat that?

我不一定能聽到這個問題。有反饋嗎？你可以再說一次嗎？

Yeah. So the line that it was $2.4 billion, Navy contract for -- it seems like in Asia contract on the Navy shipbuilding base.

是的。因此，價值 24 億美元的海軍合約——看起來像是亞洲海軍造船基地的合約。

Yeah, I think they're supporting their identification, allocation of investments to support where they should make investments. So yes, we were not involved in that contracting process.

是的，我認為他們正在支持他們的投資識別和分配，以支持他們應該在哪裡進行投資。所以是的，我們沒有參與這個簽約過程。

Okay. Got it. Thank you so much.

好的。知道了。太感謝了。

Sure.

當然。

Thank you. I am not showing any further questions at this time. I would now like to hand the call back over to Mr. Kastner for any closing remarks.

謝謝。我目前不會提出任何進一步的問題。現在我想將電話轉回給卡斯特納先生，讓他發表結束語。

Thanks, everybody, for joining today. Before we go, I'd like to extend my thanks to the entire HII team for their continued focus, we look forward to speaking with you on our next earnings call. Thank you.

謝謝大家今天的加入。在我們離開之前，我要感謝整個 HII 團隊的持續關注，我們期待在下一次財報電話會議上與您交談。謝謝。

That does conclude today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。