L3Harris Technologies Inc (LHX) 2024 Q3 法說會逐字稿

Good morning, everyone. Welcome to the L3Harris Technologies' third-quarter 2024 earnings call. (Operator Instructions) Also today's call is being recorded. And if you should need any operator assistance during the call today, please press star zero. Now at this time, I'll turn things over to Mr. Dan Gittsovich, Vice President, Investor Relations. Please go ahead, sir.

大家早安。歡迎參加 L3Harris Technologies 的 2024 年第三季財報電話會議。（操作員說明）今天的通話也正在錄音。如果您在今天的通話過程中需要任何接線員幫助，請按星號零。現在這個時候，我會把事情交給投資者關係副總裁 Dan Gittsovich 先生。請繼續，先生。

Thank you, Bob. Good morning, and welcome to our third quarter 2024 earnings call. Joining me this morning are Chris and Ken. Yesterday, we published our third quarter earnings release detailing our financial results and guidance. We've also provided a supplemental earnings presentation on our website.

謝謝你，鮑伯。早上好，歡迎參加我們的 2024 年第三季財報電話會議。今天早上和我一起來的是克里斯和肯。昨天，我們發布了第三季財報報告，詳細介紹了我們的財務表現和指導。我們還在我們的網站上提供了補充收益演示。

Today's discussion will include certain matters that constitute forward-looking statements. These statements involve risks, assumptions and uncertainties that could cause actual results to differ materially. For more information, please reference our earnings release and SEC filings. We will also discuss non-GAAP financial measures, which are reconciled to GAAP measures in the earnings release. With that, I'll turn it over to Chris for some opening remarks.

今天的討論將包括構成前瞻性陳述的某些事項。這些陳述涉及風險、假設和不確定性，可能導致實際結果有重大差異。欲了解更多信息，請參閱我們的收益發布和 SEC 文件。我們還將討論非公認會計原則財務指標，這些指標與收益發布中的公認會計原則指標一致。接下來，我將把它交給克里斯做一些開場白。

Good morning, everyone, and thanks, Dan. We had a very strong quarter, and our strategy is delivering results. We achieved record order volume, an impressive book-to-bill, robust segment operating margins and solid free cash flow. We're proud of the progress we've made so far this year and are confident that we are on track to deliver on the commitments we made to our stakeholders. Our customers tell us that we're agile, fast, and fully aligned with their priorities.

大家早安，謝謝丹。我們度過了一個非常強勁的季度，我們的策略正在取得成果。我們實現了創紀錄的訂單量、令人印象深刻的訂單出貨比、強勁的部門營業利潤率和穩定的自由現金流。我們對今年迄今所取得的進展感到自豪，並相信我們有望兌現對利害關係人所做的承諾。我們的客戶告訴我們，我們敏捷、快速且完全符合他們的優先事項。

This empowers us to deliver the right capabilities at the right time, meeting the evolving needs of our nation and its allies. Our business model enables us to operate as either a prime, a sub or a merchant supplier, offering commercial pricing or utilizing the traditional government acquisition approach. This flexibility in our platform-agnostic approach gives us a unique advantage in rapidly adapting to the changing threat environment and addressing our customers' mission-critical needs. It also enables us to effectively partner with new entrants and nontraditional contractors. We've made key acquisitions, including Aerojet Rocketdyne and tactical data links while simultaneously divesting noncore assets.

這使我們能夠在正確的時間提供正確的能力，滿足我們國家及其盟友不斷變化的需求。我們的商業模式使我們能夠作為主要供應商、次級供應商或商業供應商運營，提供商業定價或利用傳統的政府收購方式。這種與平台無關的方法的靈活性使我們在快速適應不斷變化的威脅環境和滿足客戶的關鍵任務需求方面具有獨特的優勢。它還使我們能夠有效地與新進入者和非傳統承包商合作。我們進行了關鍵收購，包括 Aerojet Rocketdyne 和戰術資料鏈，同時剝離了非核心資產。

These moves have allowed us to further hone our portfolio to reinforce our national security focus. Our capabilities in areas like resilient communications, munition space, ISR, and passive sensing are innovative, allowing us to deliver solutions across all domains and providing our customers with superiority across the entirety of the electromagnetic spectrum. Our diversified portfolio limits our reliance on a single program, enabling steady growth with lower variability and a greater ability to manage risk over the long term. Partnerships are a hallmark of our trusted disruptor strategy. On Wednesday, we announced a strategic partnership with Palantir working together to deliver advanced solutions to our customers.

這些措施使我們能夠進一步完善我們的產品組合，以加強我們對國家安全的關注。我們在彈性通訊、彈藥空間、情監偵和無源感測等領域的能力具有創新性，使我們能夠提供跨所有領域的解決方案，並為我們的客戶提供整個電磁頻譜的優勢。我們的多元化投資組合限制了我們對單一計劃的依賴，從而實現了穩定成長、較低的波動性和更強的長期管理風險的能力。合作夥伴關係是我們值得信賴的顛覆者策略的標誌。週三，我們宣布與 Palantir 建立策略合作夥伴關係，共同為我們的客戶提供先進的解決方案。

In fact, yesterday, the White House ordered the Pentagon and the Intel agencies to increase the use of AI. So I feel we're well positioned in this evolving market. We continue to focus on profitable growth. This approach allows us to grow while delivering sustained margin improvement, which will drive financial outperformance.

事實上，昨天，白宮命令五角大廈和英特爾機構增加人工智慧的使用。所以我覺得我們在這個不斷發展的市場中處於有利地位。我們持續關注獲利成長。這種方法使我們能夠在實現利潤率持續提高的同時實​​現成長，從而推動財務表現優異。

Growth for growth's sake is not our strategy. We prioritize profitable growth that drives appropriate returns and cash generation. Our strategy to act as a sub or merchant supplier also enables us to participate in key strategic programs even when we choose not to prime. I'm pleased to report that we've made considerable progress on our innovative LHX NeXt program to transform L3Harris and how we operate. Ken, would you like to elaborate?

為了成長而成長不是我們的策略。我們優先考慮可帶來適當回報和現金產生的獲利成長。我們作為子供應商或商業供應商的策略也使我們能夠參與關鍵的策略計劃，即使我們選擇不啟動。我很高興地報告，我們在創新的 LHX NeXt 計劃上取得了相當大的進展，以改變 L3Harris 和我們的運作方式。肯，你想詳細說明一下嗎？

Thanks, Chris. We're on track to exceed our 2024 run rate cost savings target of $400 million and now expect to achieve at least $600 million by the end of the year. We are also confident in our ability to reach our $1 billion cost savings target a year early and our pipeline provides opportunity for additional cost savings to exceed the $1 billion target. The accelerated savings give us confidence that we will surpass the segment operating margin target of 16% and that we said at our Investor Day, and we now expect to achieve at least 16% in 2026.

謝謝，克里斯。我們預計將超越 2024 年運行成本節省 4 億美元的目標，現在預計到年底至少實現 6 億美元。我們也對提前一年實現 10 億美元成本節省目標的能力充滿信心，並且我們的管道為進一步節省成本以超過 10 億美元目標提供了機會。加速節省讓我們有信心，我們將超越我們在投資者日上所說的 16% 的部門營業利潤率目標，我們現在預計在 2026 年將實現至少 16%。

This performance highlights our ongoing commitment to transforming the way we work improving operational efficiency and program management as well as aggressively managing all costs, delivering value to our shareholders. We are realizing the power of real-time data across all of our systems, ERP, manufacturing, engineering to name a few and even our products for better decision making. Moving into the next phase of LHX NeXt, our primary focus has shifted from workforce optimization to strengthening supply chain management and modernizing our digital infrastructure. By leveraging the scale of our enterprise using modern AI-enabled tools from partners like Palantir, we are improving cost, quality, and delivery times for our customers. At the same time, this creates demand stability for our suppliers, giving them the opportunity to grow alongside us. Supply chain management is becoming a competitive differentiator.

這項績效凸顯了我們對改變工作方式、提高營運效率和專案管理以及積極管理所有成本、為股東創造價值的持續承諾。我們正在認識到即時數據在我們所有系統、ERP、製造、工程（僅舉幾例）甚至我們的產品中的力量，以便做出更好的決策。進入 LHX NeXt 的下一階段，我們的主要重點已從勞動力優化轉向加強供應鏈管理和現代化我們的數位基礎設施。透過使用 Palantir 等合作夥伴提供的現代化人工智慧工具，利用我們的企業規模，我們正在為客戶提高成本、品質和交付時間。同時，這為我們的供應商創造了需求穩定性，讓他們有機會與我們一起成長。供應鏈管理正成為一個競爭優勢。

Back to you, Chris.

回到你身上，克里斯。

We had several key wins during the quarter. In our communications segment, we won a $600 million next-generation jammer contract. Following the cost-plus development phase, it will enable L3Harris to establish a long-term jamming franchise worth billions of dollars in high-margin production of airborne pods. These types of wins are critical to driving sustained long-term profitable growth and reinforce the strength and diversity of our technology portfolio.

我們在本季度取得了幾項關鍵勝利。在我們的通訊領域，我們贏得了價值 6 億美元的下一代乾擾機合約。在成本加成開發階段之後，L3Harris 將能夠建立價值數十億美元的長期幹擾專營權，生產高利潤的機載吊艙。這些類型的勝利對於推動持續的長期獲利成長並增強我們技術組合的實力和多樣性至關重要。

Another highlight this quarter was securing one of two positions on a $1.2 billion IDIQ contract with the US Navy to provide support for the P-8A Poseidon fleet. This contract strengthens our relationship with the Navy within the ISR sector. On the international front, we were awarded three contracts for software-defined tactical radios by NATO allies totaling over $400 million. We began deliveries in the quarter, again, displaying the speed at which we can provide capabilities to our customers.

本季度的另一個亮點是獲得了與美國海軍簽訂的價值 12 億美元的 IDIQ 合約中的兩個職位之一，為 P-8A 海神艦隊提供支援。該合約加強了我們與海軍在情監偵領域的關係。在國際方面，我們獲得了北約盟國授予的三份軟體定義戰術無線電合同，總價值超過 4 億美元。我們在本季開始交付，再次展示了我們為客戶提供功能的速度。

The international demand for these resilient software-defined radios with our proprietary wave forms highlights our leading capability and low probability of detect and low probability of intercept communications. This is driving our allies to choose L3Harris solutions over indigenous products within frequency. Over the last several years, we have strategically invested in a new mission set, bringing important capabilities in space-based missile warning and missile tracking, leading to orders for 50 satellites, 5 of which are in orbit.

國際對這些具有我們專有波形的彈性軟體定義無線電的需求凸顯了我們的領先能力以及低檢測機率和低攔截通訊機率。這促使我們的盟友經常選擇 L3Harris 解決方案而不是本土產品。在過去的幾年裡，我們對新的任務集進行了戰略投資，帶來了天基飛彈預警和飛彈追蹤方面的重要能力，從而獲得了 50 顆衛星的訂單，其中 5 顆在軌道上運行。

Our advanced solid rocket motor technology also plays a critical role in this mission set, demonstrating our leadership in advanced missile and missile defense technology, including hypersonics, counter hypersonics, and precise attitude control. This is illustrated by our recent win on the Glide Phase Interceptor contract as part of an industry team, where we will provide two cripple propulsion systems including a large solid rocket motor for the first stage and an advanced motor to power the third stage of the interceptor missile. This interceptor will defend against hypersonic glide vehicles, a real threat in today's environment. The Glide Phase Interceptor award establishes another long-term propulsion franchise alongside our next-generation interceptor win earlier this year, where we were part of a different industry team.

我們先進的固體火箭引擎技術也在這項任務中發揮關鍵作用，展示了我們在先進飛彈和飛彈防禦技術（包括高超音速、反高超音速和精確姿態控制）方面的領先地位。This is illustrated by our recent win on the Glide Phase Interceptor contract as part of an industry team, where we will provide two cripple propulsion systems including a large solid rocket motor for the first stage and an advanced motor to power the third stage of the interceptor飛彈.該攔截器將防禦高超音速滑翔飛行器，這是當今環境中的真正威脅。滑翔階段攔截器獎與我們今年早些時候贏得的下一代攔截器獎一起建立了另一個長期推進專營權，當時我們是不同行業團隊的一部分。

With that, I'd like to turn it back to Ken.

說到這裡，我想把它轉回給肯恩。

As we look ahead to next year, we anticipate growth across key financial metrics, including revenue, segment operating margin, EPS, and free cash flow. We're on track to achieve our 2026 framework of $23 billion in revenue, at least 16% segment operating margin and $2.8 billion in free cash flow. We do expect the growth rate in '26 to exceed 2025, given budgetary and political dynamics over the next few months. We'll provide more detailed 2025 guidance in January, but these commitments are a testament to our ongoing focus on disciplined growth and profitability.

展望明年，我們預期關鍵財務指標將成長，包括營收、部門營業利潤率、每股盈餘和自由現金流。我們預計將實現 2026 年收入 230 億美元、部門營業利潤率至少 16% 和自由現金流 28 億美元的框架。考慮到未來幾個月的預算和政治動態，我們預計 26 年的成長率將超過 2025 年。我們將在 1 月提供更詳細的 2025 年指導，但這些承諾證明了我們持續專注於嚴格的成長和獲利能力。

Our financial framework anticipates mid-single-digit organic revenue growth, continued margin expansion and low double-digit free cash flow growth as we achieve our targets. As we reach our near-term target debt leverage ratio of 3.0 and deploy excess capital to repurchase shares our free cash flow per share growth will accelerate into the mid-double digits over a 2023 baseline.

我們的財務框架預計，隨著我們實現目標，有機收入將實現中個位數成長，利潤率將持續擴張，自由現金流將實現低兩位數成長。隨著我們達到 3.0 的近期目標債務槓桿率並部署多餘資本回購股票，我們每股自由現金流的成長將在 2023 年基準上加速至中兩位數。

Let's dive into consolidated results for the third quarter. Our fifth straight quarter of strong delivery of financial results versus expectations. We're continuing to see strong demand across the board with new awards totaling over $7 billion this quarter. This allowed us to achieve an overall company booked bill of $1.4 million with all four segments delivering book-to-bill of at least 1.

讓我們深入了解第三季的合併業績。我們連續第五個季度實現了強勁的財務業績，超越了預期。我們繼續看到全面的強勁需求，本季新獎項總額超過 70 億美元。這使我們的公司整體預訂帳單達到 140 萬美元，所有四個部門的預訂帳單比至少為 1。

Our Aerojet Rocketdyne and communication systems segments had particularly strong bookings this past quarter with both recording book-to-bill well above 1.5. Our total backlog has now reached a new record of $34 billion.

我們的 Aerojet Rocketdyne 和通訊系統部門上個季度的預訂量尤其強勁，訂單出貨比均遠高於 1.5。我們的積壓總額現已達到 340 億美元的新紀錄。

Turning to the financials. Consolidated revenue increased by 8% in the third quarter. Operating margins improved to 15.7%, an impressive 70 basis point increase driven by continuing program execution and operational performance with strong contributions from LHX NeXt. Non-GAAP EPS grew by 5% and on a pension-adjusted basis, our EPS increased by 8%.

轉向財務。第三季綜合營收成長8%。在 LHX NeXt 的大力貢獻下，持續的計畫執行和營運績效推動營運利潤率提高至 15.7%，成長了 70 個基點，令人印象深刻。非 GAAP 每股盈餘成長了 5%，在退休金調整後的基礎上，我們的每股盈餘成長了 8%。

Our performance so far in '24 puts us on track to achieve the top end of our full year guidance range of 9% to 11% pension-adjusted EPS growth. We believe this is the best economic measure of our earnings per share, highlighting how our disciplined focus is delivering strong bottom line results. We recognize the need to take on risk to grow. And as you can see from this quarter's results, we are managing our portfolio to enable profitable growth and limit risk to digestible single-digit and low double-digit millions. We generated over $700 million of free cash flow this quarter, with adjusted free cash flow of $728 million, primarily driven by increased operating income and effective working capital management. And we reduced overall debt by $325 million during the quarter, reducing our net leverage to 3.1, nearing our target.

24 年迄今的業績使我們預計將實現全年指導範圍的上限，即退休金調整後每股收益成長 9% 至 11%。我們相信，這是衡量我們每股盈餘的最佳經濟指標，突顯了我們嚴謹的工作重點如何帶來強勁的獲利結果。我們認識到需要承擔風險才能成長。正如您從本季度的業績中看到的那樣，我們正在管理我們的投資組合，以實現盈利增長並將風險限制在可消化的個位數和低兩位數的數百萬美元內。本季我們產生了超過 7 億美元的自由現金流，其中調整後的自由現金流為 7.28 億美元，這主要是由於營業收入增加和有效的營運資本管理所推動的。本季我們的整體債務減少了 3.25 億美元，淨槓桿率降至 3.1，接近我們的目標。

Turning to segment performance. We saw strong growth in CS with revenue up 10% supported by increased domestic and international demand for resilient communications equipment and related waveforms as well as higher volumes for night vision devices. At IMS, revenue was up 7% year over year. This was driven by increased volume of avionics products, higher aircraft integration volume for international and domestic customers, and increased volume for advanced electronics for space and munitions programs.

轉向細分市場表現。我們看到 CS 業務強勁成長，營收成長了 10%，這得益於國內和國際對彈性通訊設備和相關波形的需求增加以及夜視設備銷量的增加。IMS 的營收年增 7%。這是由於航空電子產品數量的增加、國際和國內客戶的飛機整合量的增加以及用於航太和彈藥項目的先進電子產品的數量的增加所推動的。

SAS revenue was about flat due to the divestiture of the antenna business in Q2, lower F-35 related volumes as TR-3 development ramps down and a few challenges on classified development programs in our space business. This was offset by classified program growth in intel and cyber and increased volume supporting FAA mission-critical safety of flight networks. On an organic basis, revenue growth for SAS was 2%. Aerojet Rocketdyne contributed approximately $600 million to our overall revenue this quarter. We are pleased with the segment's performance and have booked significant new business to support future profitable growth, as Chris mentioned.

由於第二季天線業務的剝離、TR-3 開發進度放緩導致 F-35 相關銷售下降以及我們的航太業務分類開發項目面臨一些挑戰，SAS 收入基本上持平。這被英特爾和網路機密項目的增長以及支持美國聯邦航空管理局飛行網路關鍵任務安全的數量增加所抵消。在有機基礎上，SAS 的營收成長率為 2%。Aerojet Rocketdyne 本季為我們的總收入貢獻了約 6 億美元。正如克里斯所提到的，我們對該部門的業績感到滿意，並已預訂了重要的新業務以支持未來的獲利成長。

All right. Turning our attention to margins. CS delivered excellent margins of 26%, a 350 basis point improvement year-over-year, driven by strong performance from higher volumes favorable high-margin international mix, proprietary Waveform license sales, and LHX NeXt cost savings.

好的。將我們的注意力轉向利潤。CS 的利潤率高達 26%，年增 350 個基點，這得益於銷量增加、有利的高利潤國際組合、專有的 Waveform 許可銷售以及 LHX NeXt 成本節約帶來的強勁業績。

Waveform sales, a focused effort in the last few years are demonstrating our effective transition from hardware-centric to software-enabled products. IMS also performed well, reporting margins of 12.2%, up 30 basis points from the previous year, primarily due to improved program execution driving net positive EAC adjustments in the quarter as well as LHX NeXt contributions and favorable mix in our commercial aviation solutions business.

波形銷售是過去幾年的重點工作，它證明了我們從以硬體為中心的產品到以軟體為中心的產品的有效轉變。IMS 也表現良好，利潤率為12.2%，比上年增長30 個基點，這主要是由於項目執行的改善推動了本季度EAC 的淨正調整，以及LHX NeXt 的貢獻和我們商用航空解決方案業務的有利組合。

SAS margins declined to 11.6%, largely due to a onetime license sale in the prior year and the previously mentioned challenges on classified development programs in our space business, partially offset by LHX NeXt savings. Aerojet Rocketdyne delivered margins of 12.6%, which included $11 million of benefit from amortization of off-market purchase price adjustments. I'll remind you that these adjustments were always considered in our guidance. As PPA amortizes off, we continue to expect economic profit of new programs to fill in the gap.

SAS 利潤率下降至 11.6%，這主要是由於上一年的一次性許可證銷售以及先前提到的我們航太業務中分類開發計劃的挑戰，但部分被 LHX NeXt 節省的費用所抵消。Aerojet Rocketdyne 的利潤率為 12.6%，其中包括來自場外購買價格調整攤銷的 1,100 萬美元收益。我要提醒您的是，我們的指南始終考慮了這些調整。隨著購電協議攤銷，我們繼續預計新項目的經濟利潤將填補缺口。

Turning to guidance. Given our strong performance so far this year, we are increasing guidance again. We now expect total company revenue of $21.1 billion to $21.3 billion, segment operating margin of approximately 15.5%, EPS in the range of $12.95 to $13.15 per share, and we're reiterating free cash flow guidance of $2.2 billion. You can find additional segment guidance details in the earnings release and presentation on our website.

轉向指導。鑑於我們今年迄今為止的強勁表現，我們再次增加指導。我們目前預計公司總收入為 211 億美元至 213 億美元，部門營業利潤率約為 15.5%，每股收益為 12.95 美元至 13.15 美元，我們重申自由現金流指引為 22 億美元。您可以在我們網站上的收益發布和演示中找到更多細分指導詳細資訊。

Overall, we're extremely pleased with our strong performance so far this year. Reflecting on the progress the team has made since I joined L3Harris nearly a year ago, I'm truly impressed by how we've built on our strengths. Our agility and ability to make fast informed decisions are clear differentiators and it's this culture of innovation, responsiveness, decisive leadership, and being a platform-agnostic honest broker that enables this company to deliver on our customers' most mission-critical needs while staying fully aligned with the commitments we have made to our stakeholders. Looking ahead, I'm more and more confident about L3Harris' trajectory.

總體而言，我們對今年迄今的強勁表現感到非常滿意。回顧自我近一年前加入 L3Harris 以來團隊所取得的進步，我們如何發揮自己的優勢給我留下了深刻的印象。我們的敏捷性和快速做出明智決策的能力是我們的明顯優勢，正是這種創新、響應能力、果斷領導力以及成為與平台無關的誠實經紀人的文化，使該公司能夠在充分滿足客戶最關鍵任務的需求的同時符合我們對利害關係人所做的承諾。展望未來，我對 L3Harris 的發展軌跡越來越有信心。

We've established ourselves as the trusted disruptor in the industry continually pushing to disrupt through innovation while maintaining a trusted and disciplined focus on operational excellence and financial performance. The future of L3Harris is bright, and this team will continue to unlock new opportunities to drive sustained value. With that, back to you, Chris.

我們已成為業界值得信賴的顛覆者，不斷透過創新推動顛覆，同時保持對卓越營運和財務績效的值得信賴和嚴格的關注。L3Harris 的未來是光明的，該團隊將繼續釋放新的機會來推動持續價值。說到這裡，回到你身邊，克里斯。

I want to reinforce that our mission is clear. We are here to deliver for our customers' mission-critical needs. In an increasingly complex global threat environment, we are proud to be at the forefront, helping to build our nation's next arsenal democracy. Unlike World War II, it's more than just building platforms. It's the convergence of hardware, software, and AI and we're uniquely positioned for the future.

我想強調的是，我們的使命是明確的。我們致力於滿足客戶的關鍵任務需求。在日益複雜的全球威脅環境中，我們很自豪能夠走在最前沿，幫助建立我們國家的下一個軍火庫民主。與第二次世界大戰不同，它不僅僅是建造平台。這是硬體、軟體和人工智慧的融合，我們在未來擁有獨特的定位。

Our team's work is vital to help in the war fighter ensure the safety and security of our nation and its allies and we remain fully committed to delivering the technologies and solutions that will protect and defend democracy. So, let's open the line for questions.

我們團隊的工作對於幫助戰士確保我們國家及其盟友的安全至關重要，我們仍然完全致力於提供保護和捍衛民主的技術和解決方案。那麼，讓我們打開提問熱線。

(Operator Instructions) Sheila Kahyaoglu, Jefferies.

（操作員說明）Sheila Kahyaoglu，Jefferies。

Good morning, Chris and Ken, thank you so much. Maybe, Chris, if we could start big picture. You reiterated the long-term target of $23 billion of revenue, which implies an acceleration of organic growth from '24 levels and '25 to '26. So can you maybe talk about the biggest drivers of the acceleration? What's left to capture? What are opportunities that you're looking at given the strong book-to-bill this quarter.

早安，克里斯和肯，非常感謝你們。也許，克里斯，如果我們能開始大局的話。您重申了 230 億美元收入的長期目標，這意味著有機成長從「24」水準和「25」水準加速到「26」水準。那麼您能談談加速的最大驅動因素嗎？還剩下什麼要捕捉？鑑於本季的訂單出貨量強勁，您正在尋找哪些機會？

Alright. Good morning, Sheila and thanks for the question. Yeah, if you recall in 2023, we had a book-to-bill of 1.21. We're sitting at 1.14 after nine months. And as Ken said, we have a record backlog I believe when I look at our portfolio that we are aligned with the important areas of the US budget, and that will allow us to grow and meet our $23 billion commitment. When I look at CF, we talked about the NATO software-defined radios.

好吧。早安，希拉，謝謝你的提問。是的，如果你還記得 2023 年，我們的訂單出貨比為 1.21。九個月後，我們的股價為 1.14。正如 Ken 所說，我們的積壓訂單創歷史新高，我相信，當我審視我們的投資組合時，我們與美國預算的重要領域保持一致，這將使我們能夠發展並實現 230 億美元的承諾。當我看 CF 時，我們談論了北約軟體定義無線電。

There are other opportunities in Europe that we're looking at right now. And just like we talked about last time, we still have a $10 billion international pipeline in CS alone. On the space side, I think there's some well-documented budget pressures here in the near term. But I think given the threat environment and as the customer continues to move missions from air to space, by 2026, we should be able to see more growth in -- to the out years.

我們現在正在歐洲尋找其他機會。就像我們上次談到的那樣，光在 CS 領域我們就有 100 億美元的國際儲備。在太空方面，我認為短期內存在一些有據可查的預算壓力。但我認為，考慮到威脅環境，隨著客戶繼續將任務從空中轉移到太空，到 2026 年，我們應該能夠看到未來幾年的更多成長。

In Aerojet Rocketdyne, the operations are improving. We're investing in the supply chain. We're investing in capacity. That expansion should hit us in 2026, which will enable us to accelerate growth. I mentioned the Glide Phase Interceptor and the next-gen interceptor as well. So those are large solid rocket motor opportunities that are very, very significant.

Aerojet Rocketdyne 的營運正在改善。我們正在投資供應鏈。我們正在投資產能。這種擴張應該會在 2026 年實現，這將使我們能夠加速成長。我還提到了滑翔階段攔截器和下一代攔截器。因此，這些都是大型固體火箭引擎的機會，非常非常重要。

And then, of course, in IMS, we always have international ISR opportunities which are a little lumpy. But given our good performance so far in that market, I think that can provide us upside as well.

當然，在 IMS 中，我們總是有國際 ISR 機會，但有些不穩定。但鑑於我們迄今為止在該市場的良好表現，我認為這也能為我們帶來上漲空間。

Thank you.

謝謝。

Myles Walton, Wolfe Research.

邁爾斯·沃爾頓，沃爾夫研究中心。

Thanks. Good morning. I was hoping you could touch on the cost reduction effort coming in a year ahead of time. I think in the Investor Day, you talked about when that $1 billion cost reduction efforts was accomplished, that $400 million benefit through the margins. Are you at or near that in '25? And if so, why aren't you knocking on the door of 16% margins in '25?

謝謝。早安.我希望您能提前一年談談即將開展的成本削減工作。我想在投資者日，您談到了當 10 億美元的成本削減工作完成時，4 億美元的利潤將透過利潤帶來。25 年你達到或接近這個水準嗎？如果是這樣，為什麼不在 25 年敲開 16% 利潤率的大門呢？

Yeah. Let me start with that, Myles, good morning. Then I'll let Ken give a little more detail. So this is the top priority for me and the entire leadership team. I've talked in the past as to how we did the easy part of integration shortly after the merger, and we were disrupted with the pandemic. And this is really a Phase 2 of the integration, which we've now talking about the transformation of L3Harris.

是的。讓我開始吧，邁爾斯，早安。然後我會讓 Ken 提供更多細節。所以這是我和整個領導團隊的首要任務。我過去曾談到我們如何在合併後不久完成整合的簡單部分，但我們因疫情而受到干擾。這實際上是整合的第二階段，我們現在正在談論 L3Harris 的轉型。

We are looking at every single function, every line of business. We're down to policies, systems, and really just focused on eliminating non-value or waste in the systems. So we've been very aggressive. We have a dedicated leader and team focused on this 24/7 and you're starting to see the results. I think there was a lot of skepticism.

我們正在關注每一項職能、每一項業務。我們注重政策、系統，實際上只專注於消除系統中的無價值或浪費。所以我們一直都非常積極。我們有專門的領導者和團隊專注於此 24/7，您已經開始看到結果。我認為有很多懷疑。

I'm proud of the team. I'm proud of the fact we're ahead of schedule, and it's quite exciting, and we're going to continue to push to achieve that $1 billion next year. and more thereafter. But I'll let Ken talk about the margin impact.

我為我們的團隊感到自豪。我為我們提前完成計劃而感到自豪，這非常令人興奮，我們將繼續努力，爭取明年實現 10 億美元的目標。以及此後更多內容。但我會讓肯談談利潤影響。

Yeah. Thanks, Chris, and thanks for the question, Myles. Good morning. In terms of the margin flow-through, I would say we are absolutely tracking to the target that we set. And I think the team is working aggressively to try to realize additional margin opportunity out of the savings either through or through a combination of over delivery of the ultimate target as well as making sure that we can realize as much of the opportunity in turning the savings into margins as possible. We'll give more detail on 2025 guidance in January.

是的。謝謝克里斯，也謝謝邁爾斯的提問。早安.就保證金流入而言，我想說我們絕對正在追蹤我們設定的目標。我認為團隊正在積極努力，試圖透過或透過超額交付最終目標的組合，從節省中實現額外的利潤機會，並確保我們能夠實現盡可能多的機會來扭轉節省的成本盡可能進入利潤空間。我們將在 1 月提供有關 2025 年指導的更多詳細資訊。

We mentioned in the remarks that 2026 margin target has moved from approximately 16% to at least 16%. And as we think about that, it won't necessarily be a linear path, but we certainly see opportunity for margin improvement in '25 as well. Remember, these are run rate savings, so we expect them to recur and certainly have long-term benefit. We're certainly focused on the long term, but we will see benefit in '25 flow-through.

我們在評論中提到，2026 年的利潤率目標已從大約 16% 提高到至少 16%。正如我們所思考的那樣，這不一定是一條線性路徑，但我們當然也看到了 25 年利潤率改善的機會。請記住，這些都是運行率節省，因此我們預計它們會重複出現，並且肯定會帶來長期利益。我們當然專注於長期目標，但我們將在 25 年的流動中看到好處。

And just as we look at it, again, the program is really performing well. The team is firing on all cylinders and really feel like it's delivering the results that we need.

正如我們再次看到的，該程序確實表現良好。該團隊正在全力以赴，並且確實感覺它正在提供我們需要的結果。

Sure. Thank you.

當然。謝謝。

Richard Safran, Seaport Research Partners.

理查德·薩夫蘭，海港研究合作夥伴。

Chris, Ken, good morning. I'd like to ask you about Palantir, if I might, the partnership that you talked about. So two things here. First, what's -- if you could tell us what's the investment and profit-sharing arrangement between the two of you?

克里斯，肯，早安。如果可以的話，我想向您詢問有關 Palantir 的情況，以及您談到的合作夥伴關係。所以這裡有兩件事。首先，您能否告訴我們你們兩人之間的投資和利潤分享安排是什麼？

And second, could you go into a little bit about the strategic rationale for doing this? I mean you mentioned complementary capabilities. It seems to me maybe you're looking to avoid a huge technology R&D spend here. But that was my view. I thought we'd get your take on it.

其次，您能談談這樣做的戰略理由嗎？我的意思是你提到了互補能力。在我看來，也許您希望避免在這裡投入巨額技術研發支出。但這是我的觀點。我想我們會了解你的看法。

Yeah. No, Richard, thanks. There is no upfront investment or capital for this. This relationship goes back about five years. And before we signed a strategic relationship with another company, we wanted to make sure that the cultures are aligned, our focus on mission was aligned, and there's just a lot of great teamwork, not only at the top of the two organizations but throughout the organization.

是的。不，理查德，謝謝。對此沒有任何前期投資或資本。這段關係可以追溯到大約五年前。在我們與另一家公司簽署策略關係之前，我們希望確保文化一致，我們對使命的關註一致，並且不僅在兩個組織的高層，而且在整個組織中都有很多出色的團隊合作。

So based on that, we wanted to take it to the next level. This will be both teams looking for opportunities to bid. We have one program where Palantir is the prime Titan. It's a mobile vehicular mobile network where we're a sub providing the resilient comms, the comms architecture, the comm hardware. There are other programs where we're going to prime and then there's R&D projects we're working on together.

因此，基於此，我們希望將其提升到一個新的水平。這將是兩隊都在尋找機會競標。我們有一個項目，其中 Palantir 是首要泰坦。這是一個行動車載行動網絡，我們是提供彈性通訊、通訊架構和通訊硬體的子系統。我們還將啟動其他項目，然後我們正在共同進行研發項目。

So I would say it's businesses as usual, and it's really putting the two capabilities together. As far as the strategic rationale, I mean, could not have timed to the White House announcement any better that I referenced, if you hadn't had a chance to look at it. I mean they are really putting the pressure on the DoD and the Intel agencies to use AI more. And I think what our secret sauce is there's no one company that can do it all. They may think they can, but there really isn't.

所以我想說，一切照常進行，它確實將兩種功能結合在一起。就戰略原理而言，我的意思是，如果您沒有機會查看我提到的白宮聲明，那麼它的時機就不會更好。我的意思是，他們確實向國防部和英特爾機構施加壓力，要求他們更多地使用人工智慧。我認為我們的秘訣是什麼，沒有一家公司可以做到這一切。他們可能認為他們可以，但實際上做不到。

And our strategy of partnering and working with the best companies in a platform-agnostic manner, I think, is a key differentiator. And to have the AI skills and the algorithms and the large language models that they have is literally billions of dollars. I don't have billions of dollars in 5 or 10 years to build it. So we ought a team and work collaboratively and could not be more excited about that. Maybe I'll let Ken -- and I talked about the customer side, and we also received a few calls from customers as early as yesterday, shortly after the announcement.

我認為，我們以與平台無關的方式與最好的公司合作的策略是關鍵的差異化因素。擁有人工智慧技能、演算法和大型語言模型實際上需要數十億美元。我沒有在 5 或 10 年內投入數十億美元來建造它。因此，我們應該成為一個團隊並協同工作，對此感到無比興奮。也許我會讓肯恩——我談到了客戶方面，早在昨天，就在公告發布後不久，我們也接到了一些客戶的電話。

There's a lot of excitement about this and couldn't be more proud of the team, but we're also using their products internally as part of LHX NeXt. I don't know, Ken, do you want to give just a couple of examples of how that's helping us.

對此我們感到非常興奮，並且為團隊感到無比自豪，但我們也在內部使用他們的產品作為 LHX NeXt 的一部分。肯，我不知道你是否願意舉幾個例子來說明這對我們有何幫助。

Sure. Thanks. Yeah, we're using a Palantir product. We call it the unified data layer, as I mentioned in my remarks, and enables us to look across all of our systems, whether those are ERP systems, manufacturing systems, engineering, labor, other, even to the point Chris talked about in terms of some of the customer opportunities looking across the data generated out of our products in order to do some of the advanced targeting, real-time targeting and things like that, that are subject to the strategic partnership. But again, back to some of the internals, we're using that data to make real-time, data-driven decisions to drive cost down.

當然。謝謝。是的，我們正在使用 Palantir 產品。正如我在演講中提到的，我們將其稱為統一資料層，使我們能夠查看所有系統，無論是 ERP 系統、製造系統、工程、勞動力還是其他系統，甚至是 Chris 所說的一些客戶機會查看我們產品產生的數據，以便進行一些進階定位、即時定位等，這些都取決於策略合作夥伴關係。但再次回到一些內部原理，我們正在使用這些數據來做出即時的、數據驅動的決策，以降低成本。

We've seen that as a contributor in identifying not only areas for labor efficiencies factory efficiencies, process improvements, but it is contributing significantly to the supply chain effort as well. So really excited about the partnership. I think it's one of these where there's certainly benefit on the customer side, and we are realizing that benefit upfront in our internal operations to really show how it will actually operationalize itself for our customers.

我們已經看到，它不僅在確定勞動力效率、工廠效率、流程改進方面做出了貢獻，而且還對供應鏈工作做出了重大貢獻。對這次合作感到非常興奮。我認為這對客戶來說肯定是有好處的，而且我們正在意識到，我們的內部營運可以預先帶來好處，以真正展示它如何為我們的客戶實際運作。

And I'll just chime in. We recently rolled out a -- for our program managers and their financial analysts the ability to get data even more timely, real time. And at the end of the day, Rich, it's all about managing your programs. And the earlier you can get the data, the earlier you can identify opportunities and risks, the easier it is to either realize those opportunities or mitigate the risks. And it's always been a struggle in this industry to get timely data and it's exciting. Our 800 financial analysts have real-time data, and I think it's going to make a difference in our operations in a positive way.

我就插話一下。我們最近推出了一項功能——讓我們的專案經理和財務分析師能夠更及時、即時地獲取數據。歸根結底，Rich，這一切都與管理您的程式有關。越早取得數據，就能越早辨識機會和風險，就越容易實現這些機會或減輕風險。在這個行業中，及時獲取數據一直是一項艱鉅的任務，但這是令人興奮的。我們的 800 名財務分析師擁有即時數據，我認為這將對我們的營運產生積極的影響。

Appreciate all the color. Thanks, guys.

欣賞所有的顏色。謝謝，夥計們。

Doug Harned, Bernstein.

道格·哈內德，伯恩斯坦。

Good morning. Thank you. In CS you had good results with native demand for radios. When you look at the outlook here, and I would say first on the army and marines' side in the US and then on NATO, I guess since its World Series Day, what inning are we in outfitting the army and marines in the US with next-gen radios? And then how do you see that playing out with NATO countries as well?

早安.謝謝。在電腦科學領域，您憑藉對無線電的本地需求取得了良好的成績。當你看到這裡的前景時，我首先會說美國陸軍和海軍陸戰隊方面，然後是北約，我想自世界職業棒球大賽日以來，我們正在為美國陸軍和海軍陸戰隊配備哪一局下一代收音機？那麼您如何看待北約國家的情況？

Yeah. Let me -- we'll start with the US, where we can't agree whether we're in the bottom of the third or the top of the fourth, but somewhere between those two is where I think we're positioned here with the DoD. There's still a lot of strong demand. I'm proud of the team. We're now upselling our latest waveforms.

是的。讓我——我們將從美國開始，我們無法就我們是否處於第三名的底部或第四名的頂部達成一致，但我認為我們處於這兩者之間的位置國防部。仍然有很多強勁的需求。我為我們的團隊感到自豪。我們現在正在追加銷售最新的波形。

In addition, to just the software-defined radios, sometimes thought of as hardware, although it's all about the waveforms. That gives us a great, great market opportunity. And every time there's an annual buy. We continue to win. So I'm pretty excited there.

此外，對於軟體定義的無線電，有時被認為是硬件，儘管它都是關於波形的。這給了我們一個非常非常好的市場機會。而且每次都有年度購買。我們繼續獲勝。所以我對此非常興奮。

I'd say on NATO, it's probably even earlier or maybe the second inning. And what we're really seeing is the interoperability absolutely critical within the NATO countries, our resilience, our crypto mods. These are all reasons why NATO countries are selecting us over their indigenous radio providers, it's a huge, huge opportunity. In fact, we recently won a program with the Netherlands for $1.4 billion over 10 years. That's going through the congressional US Congressional notification process.

我想說的是，在北約，可能會更早，也可能是第二局。我們真正看到的是北約國家內部絕對重要的互通性、我們的彈性、我們的加密貨幣模組。這些都是北約國家選擇我們而不是其本土無線電提供者的原因，這是一個巨大的機會。事實上，我們最近贏得了荷蘭的一項為期 10 年價值 14 億美元的計畫。這正在通過美國國會通知程序。

I think one of the key lessons learned coming out of Ukraine is the need for this interoperability and the need for resilient comms. And majority of the NATO countries are, in fact, not only signing up but spending the 2% of GDP that they committed to. We have a couple of opportunities that we won here in Q4 already in Eastern Europe. The pipeline is healthy, and we're real, real excited about the software-defined tactical radio business. And as I said, $10 billion international pipeline. Ken?

我認為從烏克蘭學到的重要教訓之一是需要這種互通性和有彈性的溝通。事實上，大多數北約國家不僅簽署了協議，而且還支出了其承諾的 GDP 的 2%。我們在第四季已經在東歐贏得了一些機會。管道很健康，我們對軟體定義的戰術無線電業務感到非常非常興奮。正如我所說，價值 100 億美元的國際管道。肯？

YeAH, Doug, just to put a couple of numbers on the US side, to your question about army and marine corps, in particular, the DoD has a modernization cycle. We think that's just shy of 500,000 radios in the current cycle. And almost 150,000 of those have been awarded. We have seen about three-quarters of those about 75% coming to L3Harris, that leaves somewhere shy of 300,000 radios to go.

是的，道格，對於你關於陸軍和海軍陸戰隊的問題，我只想提供美國方面的一些數字，特別是國防部有一個現代化週期。我們認為目前週期中的無線電數量略低於 50 萬台。其中近 15 萬人已獲獎。我們已經看到大約四分之三的人（約 75%）來到了 L3Harris，這使得還有不到 30 萬部收音機可供使用。

So just put a little bit of numbers behind Chris' comments on the US market, I feel really good about that modernization cycle and how we're doing against the competitive landscape there. You may remember, there's a competitor or two in the handhelds as well as a different set of manpack and vehicular.

因此，只要用一些數字來支持克里斯對美國市場的評論，我對現代化週期以及我們在當地競爭格局中的表現感到非常滿意。您可能還記得，手持裝置上有一兩個競爭對手，還有一套不同的背負式和車載式。

And if I can, as a follow-on. In CS, on ENVG, this is something where it seems like we're on the edge of funding being stopped like every time we turn around, but then you get a next award. How do you see the outlook for the night vision goggles there?

如果可以的話，作為後續。在 CS 和 ENVG 中，我們似乎處於資金被停止的邊緣，就像每次我們轉身時一樣，但隨後你會獲得下一個獎項。您如何看待那裡的夜視鏡前景？

Yeah. We're optimistic on the night vision goggles. I think they actually put money in the budget for a change. Usually, it's a zero. And then we go to DC and try to get the money put back in. This time, the money is actually in there. I think it's ultimately going to be how high VAS and the virtual reality, augmented reality plays out. I think it's pretty well documented that they're behind schedule and they're struggling. And the ENVG is a superior product for war fighters.

是的。我們對夜視鏡持樂觀態度。我認為他們實際上在預算中投入了資金來進行改變。通常，它是零。然後我們去華盛頓試著把錢拿回來。這次，錢真的在裡面了。我認為最終取決於增值服務和虛擬實境、擴增實境的表現。我認為有充分的證據表明他們落後於計劃並且正在苦苦掙扎。ENVG 是戰士的優質產品。

So I think the two are ultimately going to be used, and there's going to be a convergence. But I think it's safe to say we feel a lot better about the night vision goggle business now than maybe a year or two ago. And again, some of these DoD procurements are split buys, and we've been winning the majority by a fair amount as we are meeting our commitments we're delivering, and our competitor is behind. So the army is always going to award the business to the company that's delivering and performing. That's what we're doing. And we'll watch it closely, but feel pretty good about it, Doug.

所以我認為這兩者最終將會被使用，並且將會有所融合。但我認為可以肯定地說，我們現在對夜視鏡業務的感覺比一兩年前好多了。再說一次，國防部的一些採購是分開購買的，我們在履行我們正在履行的承諾時以相當大的優勢贏得了大部分採購，而我們的競爭對手則落後了。因此，軍隊總是會將業務授予那些提供服務和執行任務的公司。這就是我們正在做的事情。我們會密切關注，但感覺很好，道格。

Great. Thank you.

偉大的。謝謝。

Matt Akers, Wells Fargo.

馬特·埃克斯，富國銀行。

Yeah. Hey, good morning. Thanks for the question. Chris, I want to talk about the progress you guys are making on the cost savings. And obviously, that -- a lot of that goes to L3, but a lot of it also goes to your customers and sort of how they're responding to that? Are they taking notice and better competitiveness maybe helping you convert on some of those orders you got this quarter?

是的。嘿，早安。謝謝你的提問。克里斯，我想談談你們在節省成本方面的進展。顯然，其中許多都流向了 L3，但也有很多也流向了您的客戶，他們對此有何反應？他們是否注意到了，更好的競爭力可能會幫助您轉換本季收到的一些訂單？

Yeah. Thanks, Matt. As you would imagine, I and my team spend a lot of time in DC and with the customers, and it's always flattering when they ask you how things are going and how LHX NeXt is going or looking at it not only is it cost savings but a transformation, the use of digital engineering, the ability to make data-driven decisions more timely. I think it gives Ken and I and the team the flexibility as we roll up our new bids.

是的。謝謝，馬特。正如您所想像的那樣，我和我的團隊在DC 與客戶一起度過了很多時間，當他們詢問您事情進展如何以及LHX NeXt 進展如何或查看它時，您總是感到受寵若驚，這不僅節省了成本，而且一個轉型，利用數位工程，能夠更及時地做出數據驅動的決策。我認為這為肯和我以及團隊在我們進行新投標時提供了靈活性。

We know what our labor costs are. We know what our materials, we know what our overhead are, and it allows us to either share some of that with the customer or bid higher-margin programs. We try to split the two. And based on these book-to-bill rates and the win rates, is clearly giving us an advantage and couldn't be more excited about it. But it's definitely front and center with everybody we meet with.

我們知道我們的勞動成本是多少。我們知道我們的材料是什麼，我們知道我們的管理費用是多少，這使我們能夠與客戶分享其中一些或投標更高利潤的項目。我們試圖將兩者分開。根據這些訂單出貨率和獲勝率，顯然為我們帶來了優勢，對此我們感到非常興奮。但它絕對是我們遇到的每個人的首要和中心。

Thank you.

謝謝。

David Strauss, Barclays.

大衛‧史特勞斯，巴克萊銀行。

Thanks. Good morning. Chris, so far, the margin progress we've seen has been pretty ratable across the individual segments. As you progress from here up about 16%, how do you see that kind of playing out? Do you still see a kind of similar margin opportunity across the individual segments?

謝謝。早安.克里斯，到目前為止，我們所看到的各個細分市場的利潤率進展相當可觀。當您從這裡進步約 16% 時，您如何看待這種情況的發生？您是否仍在各個細分市場中看到類似的利潤機會？

Yeah. We do, David. We see it at the segment level. And of course, we see it at the sector level, we have 13 sectors. And the mantra has been everybody has to improve their margins. We have a toolbox on how to do that. As Ken mentioned, the next phase is on supply chain, both indirect and direct costs. I'm really excited about that. We've had some early progress, and I think the opportunities are great.

是的。我們願意，大衛。我們在細分層面上看到了這一點。當然，我們從部門層級來看，我們有 13 個部門。口頭禪是每個人都必須提高利潤。我們有一個關於如何做到這一點的工具箱。正如肯所提到的，下一階段是供應鏈，包括間接和直接成本。我對此感到非常興奮。我們已經取得了一些早期進展，我認為機會很大。

Again, the hard part is getting all the data. And once we know how much we spend with each supplier, we're able to sit down and negotiate kind of a win-win situation. So I'm excited about that. 16 is an interesting number. If we look at our 13 sectors, I don't think there's anybody really close to 16 or 10. There's a bunch of people well above 16 and a bunch of people below 16. So the guys making 11 need to get to [11, 2; 11, 5; 11, 8] and the people making 25 or 30 need to go to 26 and 32. So everybody is going forward, LHX NeXt is an enterprise-wide initiative, the benefits are spread across the company. And I'm excited about the progress. I don't know, Ken, anything you want to add?

同樣，困難的部分是獲取所有數據。一旦我們知道了與每個供應商的花費，我們就可以坐下來進行談判，以實現雙贏。所以我對此感到很興奮。 16是一個有趣的數字。如果我們看看我們的 13 個部門，我認為沒有人真正接近 16 或 10 個部門。有很多人超過 16 歲，也有很多人低於 16 歲。所以製造 11 的人需要達到 [11, 2; 11、5； 11, 8] 而製作 25 或 30 的人需要去 26 和 32。所以每個人都在前進，LHX NeXt 是一項企業範圍的計劃，好處遍及整個公司。我對所取得的進展感到興奮。我不知道，肯，你還有什麼要補充的嗎？

Yeah. I was just going to say, in terms of the margin progress, LHX NeXt is certainly a big part of that. But I think at the end of the day, it's also the investments we've made in the team and the tools are performance on our programs, I think one of the big contributors is just solid performance, getting some of the negative impacts out of the system.

是的。我只是想說，就利潤率進展而言，LHX NeXt 無疑是其中的重要組成部分。但我認為歸根結底，這也是我們在團隊中所做的投資，工具是我們程式的效能，我認為最大的貢獻者之一就是穩定的效能，消除了一些負面影響系統。

We talk about bidding discipline, and I don't want that message to come across as that means we're not bidding new work. We are bidding. We think we have a more effective cost structure than our peers, and that gives us the ability to win and determine what the right amount of margin opportunity is for us and what the right amount of lower cost is for the customers.

我們談論投標紀律，我不希望傳達這樣的訊息，因為這意味著我們不會投標新工作。我們正在投標。我們認為我們擁有比同行更有效的成本結構，這使我們有能力贏得勝利並確定對我們來說合適的利潤機會以及對客戶來說合適的較低成本。

So as I look at it, certainly, a piece of it is avoiding some of the lower margin negative program issues we saw in the past. Certainly, working with the supply chain, pricing and inflation. We sort of had to deal with some of the inflationary pressures as an industry back during the pandemic, but we're now -- our new programs are able to reflect that more appropriate cost.

因此，在我看來，其中的一部分當然是避免我們過去看到的一些利潤率較低的負面計劃問題。當然，要與供應鏈、定價和通貨膨脹合作。在大流行期間，作為一個行業，我們必須應對一些通膨壓力，但現在我們的新計劃能夠反映更合適的成本。

And again, really focusing on kind of bid to win and knowing what our cost is, and I think having a better view that we are more competitive than many of the peers. So it's kind of that combination of all those various pieces that I think help us drive to the margin upside, and that's what gives us the confidence in saying we're going to get to at least that 16% in 2026.

再說一遍，真正專注於獲勝的投標並了解我們的成本是多少，我認為有更好的觀點，我們比許多同行更具競爭力。因此，我認為所有這些不同因素的結合有助於我們實現利潤率上升，這讓我們有信心說我們將在 2026 年至少達到 16%。

Great. That's helpful. And a quick follow-up for you, Ken. I think you talked about a low double-digit free cash flow per share growth out through '26. It would imply a pretty significant pivot back to share repo kind of soon here as you approach your target leverage, as I just wanted to kind of confirm that.

偉大的。這很有幫助。肯，請快速跟進您的情況。我認為您談到了 26 年每股自由現金流的低兩位數增長。這意味著當您接近目標槓桿時，很快就會出現相當重大的轉向共享回購協議，因為我只是想確認這一點。

Yeah. Thanks, David. That's confirmed. We talked about $500 million in share repurchases in 2025. We have now hit that target year-to-date -- I'm sorry, 2024. We have now hit that target year to date.

是的。謝謝，大衛。這已得到證實。我們討論了 2025 年回購 5 億美元的股票。我們現在已經實現了年初至今的目標——抱歉，是 2024 年。今年迄今為止，我們已經實現了這一目標。

In terms of leverage, we're at 3.1, which is near that 3.0 target that we talked about. That should enable us to get back to more value-creating share repurchase levels in '25 and '26. '24, we mentioned we would be at least kind of offsetting dilution from our equity incentive plans and that sort of thing. So absolutely, I think you're thinking about it right, and we're excited about this as really what we see as one of the contributors to value creation for our shareholders, that growing free cash flow per share at solid mid-teen double-digit clip.

就槓桿而言，我們的槓桿率為 3.1，接近我們談到的 3.0 目標。這應該使我們能夠在 25 年和 26 年恢復到更具創造價值的股票回購水準。 '24，我們提到我們至少會抵消股權激勵計劃之類的稀釋。所以絕對，我認為你的想法是正確的，我們對此感到興奮，因為我們認為這確實是為股東創造價值的貢獻者之一，每股自由現金流以穩定的中青少年兩倍的速度增長-數字剪輯。

Sure. Thank you.

當然。謝謝。

Michael Ciarmoli, Truist.

邁克爾·恰莫利，真理主義者。

Hey, good morning, guys. Thanks for taking the question. Ken, just maybe one quick clarification on the margin performance. Any EACs in the quarter? And then just on the competitive environment, I guess, specifically as it relates to solid rocket motors. There's been some new entrants. It looks like you've got a collaboration going on with GD and Lockheed and maybe that's targeting your GMLRS program.

嘿，早上好，夥計們。感謝您提出問題。肯，也許只是對利潤率表現的一個快速澄清。本季有 EAC 嗎？我想，然後就是競爭環境，特別是與固體火箭引擎相關的競爭環境。有一些新的進入者。看起來你們正在與 GD 和洛克希德公司進行合作，也許是針對你們的 GMLRS 專案。

I mean, I guess I'm just trying to get an update on your sense of confidence in maintaining or even growing some of your share in Aerojet where you've got seemingly, like I said, some new start entrants, some existing players. So just a general update there.

我的意思是，我想我只是想了解您對維持甚至增加您在 Aerojet 的部分份額的信心的最新情況，就像我說的，您似乎有一些新的進入者，一些現有的參與者。所以只是一般性更新。

Yeah. Great. Thanks, Michael. I'll start and then I'll turn it over to Chris on some of the new entrant question as well. Look, from a margin perspective and the question about EAC adjustments, we are, as I mentioned, delivering on our programs talked about we did realize some program pressures, in particular, in the space area on a couple of classified programs that we bid a number of years ago.

是的。偉大的。謝謝，麥可。我將開始，然後我也會將一些新進入者的問題轉交給克里斯。看，從利潤的角度和有關EAC 調整的問題來看，正如我所提到的，我們正在實施我們所討論的計劃，我們確實意識到了一些計劃壓力，特別是在我們投標的幾個機密計劃的太空領域。

These are very important programs to our customers. I think they enable critical missions, and we're proud of the work that our team does in that area, certainly realizing some schedule pressure and working to accelerate, and that's been driving a little bit of cost on us. But I think it also represents the power of our portfolio where we were able to work on some of our other programs, realize some upside to more than offset that pressure and still generate 70 basis points of growth in margin rate year over year.

這些對我們的客戶來說是非常重要的計劃。我認為它們能夠完成關鍵任務，我們為我們的團隊在該領域所做的工作感到自豪，當然意識到了一些進度壓力並努力加速，這給我們帶來了一些成本。但我認為這也代表了我們投資組合的力量，我們能夠開展其他一些項目，實現一些優勢，足以抵消這種壓力，並且仍能實現利潤率同比增長 70 個基點。

In terms of the EACs, we were positive in three of the four segments. As I mentioned, IMS was positive this quarter. I take that as a real good sign about the performance on their programs and the stability that, that team is generating on their performance. SAS, as I mentioned, did realize some challenges and ended up in the red for the third quarter. But again, we're happy that the team is working together, all growing in the same direction to offset, again, what are those manageable pressures that we see in a significant growth area for this company.

就 EAC 而言，我們在四個細分市場中的三個領域表現積極。正如我所提到的，IMS 本季表現樂觀。我認為這是一個真正的好兆頭，表明他們的專案表現以及該團隊在表現上所產生的穩定性。正如我所提到的，SAS 確實意識到了一些挑戰，並最終在第三季出現了虧損。但我們再次感到高興的是，團隊正在共同努力，所有人都朝著同一個方向發展，以抵消我們在該公司的重要成長領域看到的那些可管理的壓力。

In terms of the question on Aerojet and new entrants, I would say, look, we recognize what's going on. Chris has talked about the importance of partnering with new entrants as a part of our trusted disruptor strategy. We certainly are doing that in Aerojet as well. And we've got a few partnerships that we're working to see if there's more upside than risk in terms of the new entrants.

關於 Aerojet 和新進入者的問題，我想說，看，我們認識到正在發生的事情。克里斯談到了與新進入者合作作為我們值得信賴的顛覆者策略的一部分的重要性。我們在 Aerojet 中當然也在這樣做。我們正在與一些合作夥伴合作，看看對於新進入者來說，好處是否大於風險。

To the question on GMLRS specifically, we see that as a significant growth opportunity in terms of the customer need, and there's been discussion of significant increases in capacity needed there. We are working hard at Aerojet to increase our capacity and as the customer there is looking at how they get there, they're looking at other opportunities, we're figuring out how we maximize our share of that opportunity. And that's a significant growing market for us, more than we ever anticipated at the time of acquisition and certainly at the time of diligence and the team is working hard to make sure we get at least our fair share of that opportunity.

具體到關於 GMLRS 的問題，我們認為這是滿足客戶需求的一個重大成長機會，並且已經討論了那裡所需容量的顯著增加。我們在 Aerojet 正在努力提高我們的產能，當客戶考慮如何實現這一目標時，他們正在尋找其他機會，我們正在研究如何最大限度地提高我們在該機會中的份額。這對我們來說是一個顯著成長的市場，超越了我們收購時以及盡職調查時的預期，團隊正在努力確保我們至少獲得公平的機會。

I'll just -- Mike will give you a little more GMLRS specifically, which I think is with that joint venture teaming arrangement that you mentioned. The army has recently been talking about a need for 32,000 solid rocket motors a year. We're currently producing based on our capacity, 8,000. We're making investments to ramp to 10 to 14, call it 12 in the midpoint there's just more demand there, and there is supply. So we welcome the competition.

我只是——麥克會給你更多 GMLRS，我認為這與你提到的合資團隊安排有關。陸軍最近一直在談論每年需要 32,000 台固體火箭發動機。目前我們的產能為 8,000 件。我們正在將投資增加到 10 到 14 個，中間稱為 12，那裡的需求更多，而且供應也有。所以我們歡迎競爭。

We think we have the best technology. We have the infrastructure. We're building new buildings. We've already bought equipment to ramp up. And just to put it in perspective, just out of our Camden, Arkansas facility, we deliver 100,000 solid rocket motors a year, 100,000 solid rocket motors.

我們認為我們擁有最好的技術。我們有基礎設施。我們正在建造新建築。我們已經購買了設備來提高產量。客觀地說，就在我們阿肯色州卡姆登的工廠，我們每年交付 100,000 個固體火箭發動機，100,000 個固體火箭發動機。

So that's just a data point. It takes a long time to develop new rockets, to get them qualified, get them tested. We welcome the competition, but more pleased with the acquisition of Aerojet today than I was a couple of years ago. the demand is strong, and the team is performing.

所以這只是一個數據點。開發新火箭、使其合格並進行測試需要很長時間。我們歡迎競爭，但與幾年前相比，我對今天收購 Aerojet 更加滿意。需求強勁，團隊表現優異。

Great color. Thanks, guys.

顏色很棒。謝謝，夥計們。

Gautam Khanna, TD Cowen.

高塔姆·卡納，TD·考恩。

Hey. Thanks, and great results. I wanted to ask just if you can give us an update on Tech Refresh 3, where that stands? And then if you could also just opine on the margin progress you've made at IMS and getting some of those challenges that were there last year under control? Thanks.

嘿。謝謝，結果很好。我想問一下您是否可以向我們介紹一下 Tech Refresh 3 的最新情況，具體情況如何？然後，您是否也可以談談您在 IMS 所取得的利潤進展以及去年所面臨的一些挑戰所控制的情況？謝謝。

Yeah. On F-35, I know there's been a lot of discussion on TR-3 in the last several days. I just want to clarify that we're under contract with Lockheed Martin through Lot 19. So we are not experiencing any financial headwinds or impact from their negotiations. But I will say it's a great team effort.

是的。關於 F-35，我知道過去幾天有很多關於 TR-3 的討論。我只是想澄清一下，我們與洛克希德馬丁公司簽訂了第 19 批合約。因此，我們沒有遇到任何財務阻力或談判帶來的影響。但我想說這是團隊的偉大努力。

We're all working together on this from the prime to the subs and ourselves to make sure these aircraft get delivered and field it as soon as possible. Overall, we're meeting our commitments on TR-3, whether you look at the core processor or the memory system or the cockpit display. So it's been a good effort to get weekly updates on the progress from the team. And I think the customers end user and the prime are happy with what we're doing. So pretty good in that regard.

從主力飛機到潛水艇，我們所有人都在共同努力，以確保這些飛機盡快交付並投入使用。總的來說，無論是核心處理器、內存系統還是駕駛艙顯示屏，我們都在履行對 TR-3 的承諾。因此，每週從團隊獲取最新進展是一項很好的努力。我認為客戶最終用戶和主要客戶對我們所做的事情感到滿意。在這方面非常好。

Relative to IMS, you've seen the improvement. They are clearly performing well. We're getting new leadership in place a few years ago. We're investing in systems. The customer relationship is improving. And we're seeing pretty good progress. So pleased with the margins on IMS and they're kind of getting back to where they were just a few years ago, which again, I don't think anyone thought was possible.

相對於 IMS，您已經看到了改進。他們顯然表現良好。幾年前我們就任命了新的領導階層。我們正在投資系統。客戶關係正在改善。我們看到了相當好的進展。對 IMS 的利潤率非常滿意，他們已經回到了幾年前的水平，我認為這也是不可能的。

But to deliver -- to elaborate on what Ken was saying it's more than LHX NeXt, it's program execution, it's negotiation. It's identifying when the customer wants changes and getting change orders, they don't want it. We don't get paid for it; we don't do it. But that goes across the board. So good progress all the way around.

但要交付——詳細說明 Ken 所說的，它不僅僅是 LHX NeXt，它是程序執行，它是談判。它可以識別客戶何時需要更改並在他們不想要時收到更改訂單。我們不為此獲得報酬；我們不這樣做。但這是全面的。一路上都取得了良好的進展。

Thank you.

謝謝。

Pete Skibitski, Alembic Global.

Pete Skibitski，Alembic Global。

Hi, good morning, guys. Nice quarter.

嗨，早上好，夥計們。不錯的季度。

Great. Thank you, Pete.

偉大的。謝謝你，皮特。

Just wondering at CS, you guys, obviously, kind of broke the year out between first half heavy, domestic mix at tactical radios, second half heavy international and we're seeing that playing out with the margins. Can you give us a sense of how 2025 might play out just versus '24? Do you expect a similar mix, domestic international in '25 versus '24? Or will it shift one way or another? Thanks.

只是想知道CS，顯然，你們在上半年重型戰術無線電的國內混合和下半年重型國際之間突破了這一年，我們看到了這種利潤的發揮。您能否讓我們了解 2025 年與 24 年相比會如何發展？您預計 25 年與 24 年的國內國際比賽會出現類似的組合嗎？或者它會以某種方式改變嗎？謝謝。

Thanks, Pete. In terms of CS and the margin, I would say a couple of things. One, in terms of '24, we did talk about a profile that was a bit more domestic in the first half, international in the second half, and that's planned out as we expected. Some of the first half domestic header mix was a catch-up from a number of international deliveries made in late '23.

謝謝，皮特。就 CS 和利潤而言，我想說幾件事。一，就24年而言，我們確實討論了上半場更多國內、下半場更多國際的形象，這是按照我們的預期計劃的。上半年的一些國內標頭組合是對 23 世紀末的一些國際交付的追趕。

And then I think the team did a great job in responding quickly to some of the international demand that we saw. And a number of the awards that CS received in the third quarter were actually not just booked into opportunities, but they were able to ship products to international customers in the same quarter. I should make sure to highlight that Waveform strategy is working, and we saw that play through as a driver of the 26% margins at CS and over 300 basis point increase in margin year over year.

然後我認為該團隊在快速回應我們看到的一些國際需求方面做得很好。CS在第三季度獲得的許多獎項實際上不僅僅是預訂了機會，而是他們能夠在同一季度向國際客戶發貨。我應該確保強調 Waveform 策略正在發揮作用，我們看到這項策略推動了 CS 利潤率達到 26%，且利潤率同比增長超過 300 個基點。

To 2025, I would say, look, we'll give more guidance for '25 in January. But I don't necessarily expect to see as much of timing delta between domestic and international quarter-to-quarter, first half, second half. We've got growing demand, both domestically and internationally.

到 2025 年，我想說，看，我們將在 1 月份為 '25 提供更多指導。但我並不一定期望看到國內和國際季度間、上半年、下半年之間有這麼大的時間差。我們的國內和國際需求不斷增長。

And as the team has expanded capacity, expanded testing ability, one of the things that they've done that I think is great at CS is invested in some test capability where they can test multiple radios on single stands, whether those are for domestic customers or international customers that's driving some efficiency. And because of that I think we'll be able to see both growing domestic and international in 2025. Again, as we think about that profile, we'll give you more information in January, but it should be, I would think, a bit more stable in the mix as we look forward.

隨著團隊能力的擴大、測試能力的擴大，我認為他們在CS 方面所做的一件很棒的事情就是投資於一些測試能力，他們可以在單個支架上測試多個無線電，無論這些無線電是針對國內客戶的或提高效率的國際客戶。正因為如此，我認為我們將在 2025 年看到國內和國際市場的成長。同樣，當我們考慮該概況時，我們將在一月份向您提供更多信息，但我認為，隨著我們的期待，它應該在組合中更加穩定。

Yeah, I'll just chime in. Our confidence in '25, which we'll talk about in January is probably going to be better than it has the last couple of years on CS and in particular, the software-defined radio business. If you recall, in '21, '22, the supply chain was really a headwind as we talked about and kind of hard to deliver a radio if you don't have all the parts. But Ken and I were going through some things earlier this week and I know you're going to find this hard to believe. But Pete, we actually are confident today that our supply chain is in better shape today than it was before the pandemic.

是的，我就插話一下。我們對 '25 的信心（我們將在 1 月份討論）可能會比過去幾年對 CS（特別是軟體定義無線電業務）的信心更好。如果你還記得，在 21 年、22 年，供應鏈確實是我們談到的逆風，如果你沒有所有零件，就很難交付收音機。但是肯和我本週早些時候經歷了一些事情，我知道你會發現這很難相信。但是皮特，我們今天實際上有信心，我們的供應鏈今天的狀況比大流行之前更好。

So you talk about looking for a silver lining in the pandemic, we have a much more resilient supply chain. We have alternate parts. We've entered long-term strategic agreements where it makes sense. And I think that's going to give us confidence in that particular sector that we didn't have not only during the pandemic, but before the pandemic. So pretty exciting progress.

所以你談到在大流行中尋找一線希望，我們擁有更有彈性的供應鏈。我們有備用零件。我們已經簽訂了有意義的長期策略協議。我認為這將使我們對這個特定領域充滿信心，而我們不僅在大流行期間而且在大流行之前都沒有信心。如此令人興奮的進展。

We don't go back to the norm. It's the new norm, and it's much better in supply chain than it ever was. So I thought I'd share that insight.

我們不會回到常態。這是新的規範，而且它的供應鏈比以往任何時候都要好得多。所以我想我應該分享這項見解。

Yeah. No, that's great. I appreciate it. A quick follow-up. So guys, Waveforms -- are Waveforms now even higher margin than international at this point? I don't know if you want to answer that or not, but the way you're talking it almost seems like it is.

是的。不，那太好了。我很感激。快速跟進。那麼各位，Waveforms——目前 Waveforms 的利潤率是否比國際公司還要高？我不知道你是否想回答這個問題，但從你說話的方式來看，似乎就是這樣。

Yes, they are.

是的，他們是。

Okay. Appreciate it. Thanks guys.

好的。欣賞它。謝謝你們。

Seth Seifman, JPMorgan.

賽斯‧塞夫曼，摩根大通。

Thanks very much and good morning.

非常感謝，早安。

Good morning.

早安.

Definitely appreciate all the investment that you guys made in Aerojet and the demand there. Just looking specifically at the cadence and in the fourth quarter and just kind of, again, to the low end of the range there requires a pretty big step-up sequentially and year over year. I guess, what kind of gives you the confidence in that? And then to what degree do we think of that as something that's maybe a seasonal impact versus something that's kind of breaking free in terms of the pace of sales there?

非常感謝你們對 Aerojet 的所有投資以及那裡的需求。只要具體看看第四季度的節奏，再一次，到該範圍的低端，需要連續和逐年大幅提升。我想，是什麼給了你這樣的信心？那麼我們在多大程度上認為這可能是季節性影響，而不是銷售速度的突破？

Yeah. Thanks, Seth. I appreciate the question. At AR, we are making really good progress, as we mentioned, I think, in really operationalizing for the capacity and to realize the opportunities that we see. In terms of revenue growth, it does take time to get some of that capacity increase in place. We're starting to see some of the investments that we made pay off and that should start to kick in from a revenue perspective.

是的。謝謝，塞思。我很欣賞這個問題。在 AR，我們正在取得非常好的進展，正如我們所提到的，我認為，在真正發揮能力並實現我們所看到的機會方面。就收入成長而言，部分產能增加確實需要時間。我們開始看到我們的一些投資得到了回報，並且從收入的角度來看，這應該會開始發揮作用。

They have been working hard on integration and their own piece of cost management, whether that's integration or LHX -- next and driving that cost down has been a little bit of a headwind on revenue as well as some of the -- just the legacy contracts that were in place at the time of the acquisition, hanging around for a little longer than we expected that's also been a little bit of a headwind.

他們一直在努力進行整合和自己的成本管理，無論是整合還是 LHX - 接下來，降低成本對收入以及一些 - 只是遺留合約來說有點不利這些在收購時就已經存在，存在的時間比我們預期的要長一些，這也有點不利。

But as we look forward to the fourth quarter, there's some timing of supply chain cost flow-through and things like that, that we see giving us confidence to the full year AR revenue range for the 2024 guide. So we're feeling pretty good about both. I think most importantly, the long-term trajectory and the investments that we're making to drive our ability to realize that as well as the full year guide on revenue and margin rate at AR.

但當我們展望第四季度時，供應鏈成本流動的一些時間安排以及類似的事情讓我們對 2024 年指南的全年 AR 收入範圍充滿信心。所以我們對兩者都感覺很好。我認為最重要的是，我們為提高實現這一目標的能力而進行的長期發展軌跡和投資，以及 AR 的全年收入和利潤率指南。

Peter Arment, Baird.

彼得·阿門特，貝爾德。

Thanks. Good morning, Chris and Ken. Really nice results. Hey Chris, maybe just get your latest thoughts on just any sort of updated thoughts on portfolio shaping. You've talked about some businesses that maybe you wanted to potentially divest and just given all the progress that you're doing there? Just your latest thoughts there. Appreciate it.

謝謝。早上好，克里斯和肯。真的很好的結果。嘿克里斯，也許只是了解您對投資組合塑造的任何最新想法的最新想法。您談到了一些您可能想要剝離的業務，並且只是考慮到您在那裡所做的所有進展？只是您的最新想法。欣賞它。

Yeah. Thanks, Peter. No, we continue to process. We have a couple of smaller properties that are in the market. So I don't know if we'll be able to get anything closed in Q4, we might announce something and we have a process that we're following.

是的。謝謝，彼得。不，我們繼續處理。我們在市場上有一些較小的房產。所以我不知道我們是否能夠在第四季度完成任何事情，我們可能會宣布一些事情，我們有一個正在遵循的流程。

None of these would really, I don't think be viewed materially $50 million here, $100 million there type thing. But no, we're really refining the portfolio and the amount of management oversight, the time and effort with these small entities and the strategic value to us sometimes doesn't align. But these are good businesses in the right hands. It's always who's the best owner and we have a handful that we think others would be better owners of. And we'll keep you informed, but I think of it in a couple of hundred million here or there range. I hope that helps, Peter.

我認為這些都不會被視為這裡 5000 萬美元、那裡 1 億美元之類的事情。但不，我們確實正在完善投資組合和管理監督的數量，這些小實體的時間和精力以及對我們的策略價值有時並不一致。但如果掌握得當，這些都是好生意。誰是最好的所有者始終是問題，我們認為其他人會是更好的所有者。我們會隨時通知您，但我認為這個或那裡的數字在幾億範圍內。我希望這有幫助，彼得。

Yeah, I appreciate that. And just a quick follow-up, Ken. Just since you've been now at L3 for just about a year, just how you're thinking about the opportunities with working capital, and I know you touched upon the free cash flow growth and -- just your latest thoughts there? Have you seen any opportunities without LHX NeXt, et cetera?

是的，我很欣賞這一點。肯，請快速跟進。自從您在 L3 工作了大約一年以來，您是如何考慮營運資金的機會的，我知道您談到了自由現金流的增長，以及您的最新想法？您是否在沒有 LHX NeXt 等的情況下看到了任何機會？

Yeah. Thanks. From a working capital perspective, we certainly want to be effective managers of the capital required to run the business. That being said, we are working on our plan for profitable growth, and that takes some investment. And at times, that means now kind of investing in the business, whether that's CapEx or working capital to drive those growth opportunities.

是的。謝謝。從營運資本的角度來看，我們當然希望成為營運業務所需資本的有效管理者。話雖如此，我們正在製定獲利成長計劃，這需要一些投資。有時，這意味著現在要對業務進行投資，無論是資本支出還是營運資本，以推動這些成長機會。

And we're willing to make those investments. We look at that and we see it as being a part of this free cash flow growth that we drive, probably with growth in operating income, driven by, again, that profitable growth at the top line flowing through with increasing margins as the biggest contributor to the free cash flow growth, but then also effective working capital management being a part of that. But I want to be clear, we are not short-termist in terms of working capital. We think about the health of this business for the long term, and we make those important and hard decisions to invest. And that is enabled by LHX NeXt, managing every dollar of cost.

我們願意進行這些投資。我們對此進行了研究，並將其視為我們推動的自由現金流增長的一部分，可能與營業收入的增長有關，而營業收入的增長又是由盈利的盈利增長推動的，而利潤率的提高是最大的貢獻者自由現金流成長，但有效的營運資本管理也是其中的一部分。但我想澄清的是，就營運資金而言，我們並不是短期主義者。我們從長遠角度考慮這項業務的健康狀況，並做出這些重要且艱難的投資決定。這由 LHX NeXt 實現，管理每一美元的成本。

And as we've made difficult decisions around our workforce, around our infrastructure, around the tools that we're investing in to drive benefits and supply chain. All of those things enable us to make the investments needed to drive profitable growth. So we feel really good about it. The team certainly knows how to do effective working capital management. But really, the growth in the income profit is the the biggest contributor to that growing working -- I'm sorry, growing free cash flow that we see.

我們圍繞著我們的勞動力、我們的基礎設施、以及我們為推動效益和供應鏈而投資的工具做出了艱難的決定。所有這些使我們能夠進行推動獲利成長所需的投資。所以我們對此感覺非常好。團隊當然知道如何進行有效的營運資金管理。但實際上，收入利潤的成長是工作成長的最大貢獻者——對不起，我們看到自由現金流的成長。

Appreciate all the color. Thanks guys.

欣賞所有的顏色。謝謝你們。

Let's take the last question.

我們來看最後一個問題。

Jason Gursky, Citi.

賈森古爾斯基，花旗銀行。

Hey guys. This is Jeremy Jason for Jason Gursky today. Thanks for taking me in. I was just wondering if you could provide an update on the trends going on with TDL, Link 16, and your efforts with the proliferated water fighter space architecture programs. You guys have made some like good strides here and have been investing in facilities to support them. So I was just kind of curious if things have been tracking as planned? Or what do you think might be next for the company in this area? Thanks.

嘿夥計們。我是今天的傑森古斯基的傑瑞米傑森。謝謝你帶我進去。我只是想知道您是否可以提供有關 TDL、Link 16 的最新趨勢以及您在激增的水上戰鬥機太空架構專案方面所做的努力。你們在這裡已經取得了一些不錯的進步，並且一直在投資設施來支持他們。所以我只是有點好奇事情是否照計劃進行？或者您認為公司在這一領域的下一步可能是什麼？謝謝。

Okay. Thanks for the question. We actually just reviewed the TDL business case with our Board of Directors. We're actually a little ahead of the business case that we presented. We successfully moved everything into our Salt Lake City facility. As part of that process, we streamlined the flow in the operations, hours are down, supply chain leverage improving and we've received significant orders. There's a product called BATS-D, it's a handheld Link 16 sold the first one in a long, long time or actually lots of them in a while.

好的。謝謝你的提問。實際上，我們剛剛與董事會一起審查了 TDL 業務案例。實際上，我們比我們提出的業務案例稍微領先一些。我們成功地將所有東西搬到鹽湖城工廠。作為該流程的一部分，我們簡化了營運流程，縮短了工作時間，提高了供應鏈槓桿率，並且收到了大量訂單。有一種產品叫做 BATS-D，它是一款手持式 Link 16，在很長一段時間內售出第一款，或實際上是在一段時間內售出的第一款產品。

So we're really happy with the progress we've made there, Link 16 demos and space are going well. And I talked earlier about making acquisitions that align with national defense and security and being aligned with the budget and the customer. And here's a perfect example, resilient communications. You've heard us say it for years. I'm telling you that's the future.

因此，我們對所取得的進展感到非常滿意，Link 16 演示和空間進展順利。我之前談到了進行符合國防和安全、符合預算和客戶的收購。這是一個完美的例子，彈性溝通。你已經聽我們說過很多年了。我告訴你這就是未來。

we're in the sweet spot. We have the technology. We got the workforce, we've got the capability, and we're starting to see it pay off. So I think with that, I'll just wrap up before concluding and take a moment to acknowledge the efforts of the team, their dedication and innovation continue to drive our success and transform not only our country, but the industry. This quarter, in particular, we faced significant challenges from tornadoes to hurricanes, yet our teams have consistently risen to the occasion.

我們正處於最佳狀態。我們有技術。我們擁有勞動力，我們擁有能力，我們開始看到它的回報。因此，我想，在結束之前我會先總結一下，並花點時間感謝團隊的努力，他們的奉獻和創新繼續推動我們的成功，不僅改變我們的國家，而且改變整個產業。特別是本季度，我們面臨著從龍捲風到颶風的重大挑戰，但我們的團隊始終挺身而出。

This resilience of overcoming obstacles is a testament to the strength and adaptability of the workforce, could not be prouder of what we've accomplished together. So despite these challenges, we've made tremendous progress. I'm confident that we're well positioned to build on this momentum in the years ahead. And I thank everybody for joining the call, and we'll talk to you again in January.

這種克服障礙的韌性證明了員工隊伍的力量和適應能力，我們對共同達成的成就感到無比自豪。因此，儘管面臨這些挑戰，我們還是取得了巨大的進步。我相信，我們有能力在未來幾年繼續保持這一勢頭。我感謝大家加入這次電話會議，我們將在一月再次與您交談。

Thank you, Mr. Kubasik. Ladies and gentlemen, again, that does conclude the L3Harris Technologies third-quarter earnings call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

謝謝你，庫巴斯克先生。女士們先生們，L3Harris Technologies 第三季財報電話會議到此結束。再次非常感謝大家加入我們，祝大家有個愉快的一天。再見。