Loar Holdings Inc (LOAR) 2024 Q4 法說會逐字稿

Greetings, and welcome to the Loar Holdings Incorporated fourth quarter and full-year 2024 results call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 Loar Holdings Incorporated 2024 年第四季和全年業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

I would now like to turn the conference over to your host, Mr. Ian McKillop, Director of Investor Relations for Loar Holdings. Thank you. You may begin.

現在，我想將會議交給主持人、Loar Holdings 投資者關係總監 Ian McKillop 先生。謝謝。你可以開始了。

Thank you, Melissa, and good morning, everyone. Welcome to, as Melissa mentioned, the Loar Holdings fourth quarter and full-year 2024 earnings conference call. Presenting on the call this morning are Loar's Chief Executive Officer and Executive Co-Chairman, Dirkson Charles; Executive Co-Chairman, Brett Milgrim; Treasurer and Chief Financial Officer, Glenn D'Alessandro; as well as myself, Ian McKillop, the Director of Investor Relations. Please visit our website at loargroup.com to obtain a slide deck and call replay information.

謝謝你，梅麗莎，大家早安。正如梅麗莎所提到的，歡迎參加 Loar Holdings 2024 年第四季和全年財報電話會議。今天早上參加電話會議的有 Loar 執行長兼執行聯席主席 Dirkson Charles；執行聯席主席 Brett Milgrim；財務主管兼財務長 Glenn D'Alessandro；以及我本人，投資者關係總監 Ian McKillop。請造訪我們的網站 loargroup.com 以取得幻燈片和通話重播資訊。

Before we begin, we at Loar would like to remind you that statements made during this call, which are not historical in fact, are forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to our latest filings with the SEC available through the Investor Relations section of our website or at sec.gov.

在我們開始之前，Loar 想提醒您，本次電話會議所作的陳述並非歷史事實，而是前瞻性陳述。有關可能導致實際結果與前瞻性陳述中表達或暗示的結果存在重大差異的重要因素的更多信息，請參閱我們向美國證券交易委員會 (SEC) 提交的最新文件，可通過我們網站的投資者關係部分或 sec.gov 獲取。

We'd like to also advise you that during the course of the call, we will be referring to adjusted EBITDA, adjusted EBITDA margin and adjusted earnings per share, each of which is a non-GAAP financial measure. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable GAAP measures and applicable reconciliations.

我們也想提醒您，在通話過程中，我們將參考調整後的 EBITDA、調整後的 EBITDA 利潤率和調整後的每股盈餘，它們都是非 GAAP 財務指標。請參閱收益報告中的表格和相關腳註，以了解最直接可比較的 GAAP 指標和適用的對帳。

To begin today, I will now turn the call over to Dirkson.

今天首先，我將把發言權交給德克森。

Thanks, Ian. Good morning. I'm Dirkson, Founder, CEO, and Co-Chairman of Loar. And as always, to respect your time, we will keep our remarks as brief as possible.

謝謝，伊恩。早安.我是 Dirkson，Loar 的創辦人、執行長兼聯合主席。像往常一樣，為了尊重您的時間，我們將盡可能簡短地發言。

So let us start by reminding you who we are. Loar is a family of companies with a very, very simple approach to creating shareholder value. First, we believe that we're providing our business units with an entrepreneurial and collaborative environment to advance their brands, we will generate above-market growth rates. Since our inception in 2012 to the end of calendar year 2024, we've grown sales and adjusted EBITDA at a compound annual growth rate of 37% and 45%, respectively.

首先讓我們回顧一下我們是誰。Loar 是一家家族企業，其創造股東價值的方法非常簡單。首先，我們相信，我們正在為我們的業務部門提供一個創業和協作環境來提升他們的品牌，我們將產生高於市場的成長率。自 2012 年成立至 2024 年底，我們的銷售額和調整後 EBITDA 的複合年增長率分別達到 37% 和 45%。

We execute along four value streams. We identified pain points within the aerospace industry and look to solve those problems through organically launching new products, which we believe over the long term will create 1% to 3% points of top line growth annually.

我們依照四個價值流執行。我們確定了航空航太產業的痛點，並希望透過有機推出新產品來解決這些問題，我們相信從長遠來看，這將每年創造 1% 到 3% 的收入成長。

We focus on optimizing the way we manufacture, go to market and manage our companies to enhance productivity each year will identify initiatives that would allow us to continually improve margins our performance with a focus on one or two major initiatives each year that will improve margins.

我們專注於優化製造、上市和管理公司的方式，以提高生產力，每年都會確定能夠讓我們不斷提高利潤率的舉措，重點關注每年一到兩項能夠提高利潤率的主要舉措。

In addition, across our portfolio of companies, we'll achieve more price than our cost of inflation each year. The result is a continuous improvement in margins year over year with on occasion, a temporary dilution as a result of acquiring a business with dilutive margins or incurring costs as a result of being a public company, all of which we have experienced over the last five years. But regardless of these temporary headwinds, we continue to improve our margins.

此外，在我們的公司組合中，我們每年實現的價格都會高於通貨膨脹的成本。結果是利潤率逐年持續提高，但有時由於收購具有稀釋利潤率的企業而導致利潤率暫時下降，或者由於是上市公司而產生成本，所有這些情況我們都在過去五年中經歷過。但無論這些暫時的不利因素如何，我​​們的利潤率仍會繼續提高。

By the time we end calendar year 2025, we will have improved margins by 660 basis points in five years. This level of margin improvement, we expect to continue for the foreseeable future as we execute on our value drivers.

到 2025 年底，我們的利潤率將在五年內提高 660 個基點。隨著我們執行價值驅動因素，我們預計這種利潤率改善水準將在可預見的未來持續下去。

Most importantly, we are committed to developing and improving the talent of all of our employees because our success is solely a result of their dedication and commitment. This is the value driver that we have doubled down on most recently.

最重要的是，我們致力於培養和提高所有員工的才能，因為我們的成功完全取決於他們的奉獻和承諾。這是我們最近加倍重視的價值驅動因素。

We've hired a Chief Talent Officer whose primary purpose is to ensure that we recruit the best athletes and develop our current mates to ensure that we are more than ready for the outsized gains that we see over the next few years. Again, to all my mates a big thank you for your commitment and hard work.

我們聘請了一位首席人才官，主要目的是確保我們招募到最優秀的運動員並培養我們現有的隊友，以確保我們為未來幾年所看到的巨大收益做好充分的準備。再次向我所有的夥伴們表達衷心的感謝，感謝你們的奉獻和辛勤工作。

With that said, I will now turn it over to Brett to walk you through the key characteristics of our portfolio. Brett?

話雖如此，我現在將交給 Brett 來向您介紹我們投資組合的主要特徵。布雷特？

Thanks, Dirkson. Good morning, everyone. On slide 6, entitled our portfolio, you will see an updated look at how our business has been constructed. As we've said previously, our business is focused on proprietary content across all parts of the aerospace and defense industry. As such, it's worth repeating something I've said in the past, which is that we are relatively agnostic to the end markets, customers, and application of the parts, so long as we maintain a broad, balanced and diverse platform across all the segments.

謝謝，德克森。大家早安。在第 6 張投影片「我們的產品組合」上，您將看到我們業務建置方式的最新情況。正如我們之前所說，我們的業務專注於航空航太和國防工業各領域的專有內容。因此，值得重複我過去說過的話，那就是只要我們在所有領域保持廣泛、平衡和多樣化的平台，我們對終端市場、客戶和零件的應用就相對不可知。

However, what we are very disciplined about is that our platform fits and maintains the business model we like, which is highlighted in those six criteria at the bottom of the page. With all that in mind, given we're approaching the one-year anniversary of our IPO, it's probably worth reminding people where we were about a year ago.

然而，我們非常自律的是，我們的平台適合併維護我們喜歡的商業模式，這在頁面底部的六個標準中突出顯示。考慮到所有這些，鑑於我們即將迎來首次公開募股一周年，可能值得提醒人們一年前我們的狀況。

If you look at the end market pie chart, we are still balanced across our three primary end markets in commercial, business jet and general aviation, and defense. Defense has grown a little bit faster than some of the other markets such that a year ago, it was about 19%, 20% of our business.

如果你看一下終端市場餅圖，你會發現我們在商業、公務機和通用航空以及國防這三個主要終端市場仍然保持平衡。國防業務的成長速度比其他一些市場略快一些，一年前，國防業務約占我們業務的 19% 至 20%。

Today, it's about 24%, of which 3% is only direct to DoD, which is still about the same as it was. But of note in this segment or in this chart, the non-aviation piece of the business, which I think we told people would shrink over time as we continue to do acquisitions that are exclusively A&D focused has dropped from 12% a year ago to about 7% today.

如今，這一比例約為 24%，其中 3% 直接流向國防部，與以前大致相同。但值得注意的是，在這個部分或這張圖表中，非航空業務部分（我想我們告訴人們，隨著我們繼續進行專注於 A&D 的收購，該部分業務將隨著時間的推移而萎縮）已從一年前的 12% 下降到今天的 7% 左右。

On the aftermarket side, our aftermarket business continues to grow very nicely such that a year ago, it represented about 52% of our overall sales. Today, it's about 55%. And we expect that continuing to continue in the future.

在售後市場方面，我們的售後業務繼續保持良好的成長勢頭，一年前，它約占我們整體銷售額的 52%。如今，這一比例約為 55%。我們預計這種情況在未來將持續下去。

Flipping the page, our disciplined approach to acquisitions with the criteria listed here applies to all the deals that we've done, but particularly our most recent one, LMB Fans and Motors, which we announced several weeks ago. As a reminder, LMB is a business headquartered in France. It's a deal that currently is under French regulatory review, which we expect to be completed, hopefully, by the beginning of the third quarter.

翻開新的一頁，我們對收購採取的嚴謹態度和列出的標準適用於我們所做的所有交易，特別是我們最近的交易，即幾週前宣布的 LMB Fans and Motors 交易。提醒一下，LMB 是一家總部位於法國的企業。該交易目前正在接受法國監管機構的審查，我們預計該交易預計將在第三季初完成。

We have a signed purchase agreement. We're very much looking forward to getting started with that business as, again, it fits precisely the types of acquisitions that we like everything from proprietary content, 100% of what they do is their IP. Virtually all LMB's business is A&D focused. So it's right down the middle there. LMB's products frequently get updated, replaced or, in some cases, even repair, so there is meaningful aftermarket to the business. And clearly, the fan market is a niche market where LMB is a very, very strong market position.

我們有一份簽署的購買協議。我們非常期待開展這項業務，因為它完全符合我們喜歡的收購類型，從專有內容到他們所做的一切，100% 都是他們的智慧財產權。LMB 的幾乎所有業務都以 A&D 為中心。所以它就在中間。LMB 的產品經常更新、更換，有時甚至需要維修，因此該業務的售後市場意義重大。顯然，風扇市場是一個利基市場，LMB 在其中佔有非常非常強大的市場地位。

LMB has been around for many decades. It has decades worth of strong customer relationships where their customized products and applications have created enormous opportunities for growth and very good financial performance which we expect to continue well into the future and fits very well into our portfolio of products, which I'll let Ian describe to you on the next slide.

LMB 已經存在幾十年了。它擁有數十年的牢固客戶關係，其客製化產品和應用程式創造了巨大的成長機會和非常好的財務業績，我們預計這種狀況將持續到未來，並且非常適合我們的產品組合，我將讓伊恩在下一張幻燈片中向您描述。

Yeah. Thank you, Brett. One thing I wanted to highlight here is that last year, we closed the acquisition of Applied Avionics and the Loar family now goes to market with an average of more than 20,000 unique parts on an annual basis. Our customers have come to depend on our highly proprietary products, the quality we deliver, on-time performance and engineering capabilities to ensure they're able to maximize their production in aircraft operations.

是的。謝謝你，布雷特。我想在這裡強調的一點是，去年我們完成了對 Applied Avionics 的收購，Loar 家族現在平均每年向市場推出超過 20,000 個獨特零件。我們的客戶依賴我們高度專有的產品、我們交付的品質、準時的性能和工程能力，以確保他們能夠最大限度地提高飛機運作的生產力。

As Brett mentioned, our business model is highly diverse. Nowhere is this more visible than our product offering, where no more than one -- no product makes up more than approximately 3% of our net sales. Whether it's sensors or switches, water purification systems, deicing technologies, human interface devices, ceiling solutions, autothrottle systems or one of our many other products, we continue to believe that we have the capabilities to serve our customers in a way that is unique to Loar.

正如布雷特所說，我們的商業模式高度多樣化。最能體現這一點的就是我們的產品，沒有任何一種產品——沒有任何一種產品的銷售額占我們淨銷售額的 3% 以上。無論是感測器或開關、水淨化系統、除冰技術、人機介面設備、天花板解決方案、自動油門系統或我們的其他眾多產品之一，我們始終相信我們有能力以 Loar 獨有的方式為客戶服務。

I'll now pass the call over to Glenn to walk through end market and financial results.

我現在將電話轉給格倫，讓他介紹終端市場和財務結果。

Thank you, Ian. Good morning, everyone. Let me start by discussing sales by our end markets. This comparison will be on a pro forma basis as each of our businesses were owned as of the first day of the earliest period presented. This market discussion includes the recent acquisition of Applied Avionics in the third quarter of 2024.

謝謝你，伊恩。大家早安。首先讓我討論一下我們的終端市場的銷售情況。由於我們的每項業務均是在所示最早期間的第一天擁有的，因此此比較將以備考為基礎。此次市場討論包括最近在 2024 年第三季收購 Applied Avionics。

We achieved record sales during calendar year '24. In total, our sales increased 15% as compared to the prior year. Our Q4 '24 sales were also a record, also increasing 15% versus the prior year quarter. These increases were driven by strong performances in defense, commercial OEM, and commercial aftermarket.

我們在 24 日曆年實現了創紀錄的銷售額。總體而言，我們的銷售額比上一年增長了 15%。我們的 24 年第四季銷售額也創下了紀錄，比去年同期成長了 15%。這些成長是由國防、商業 OEM 和商業售後市場的強勁表現所推動的。

Our commercial aftermarket sales saw an increase of 15% in calendar year '24 versus '23. This is primarily driven by the continuing strength in demand for commercial air travel. We continue to see strong commercial aftermarket bookings.

與 23 年度相比，24 年度我們的商業售後市場銷售額成長了 15%。這主要是由於商業航空旅行需求持續強勁所致。我們繼續看到強勁的商業售後市場預訂量。

Our commercial aftermarket sales remained strong in Q4 with a 12% increase as compared to the prior year quarter. Our total commercial OEM sales increased by 16% in Q4 '24 as compared to the prior year period.

我們的商業售後市場銷售在第四季度保持強勁，與去年同期相比成長了 12%。與去年同期相比，我們的 24 年第四季商業 OEM 總銷售額成長了 16%。

This increase was driven primarily by higher sales across a significant portion of the platforms we supply, including wide-body and narrow-body aircraft and general aviation aircraft, as we continue to see an improving environment for commercial OEMs.

這一成長主要得益於我們供應的大部分平台的銷售成長，包括寬體飛機、窄體飛機和通用航空飛機，因為我們繼續看到商業原始設備製造商的環境不斷改善。

The increase of 39% in our defense sales was primarily due to strong demand across multiple platforms and an increase in market share as a result of new product launches. Defense sales will continue to be lumpy given the nature of the ordering patterns of our end customers for our products.

我們的國防銷售額成長 39% 主要是由於多個平台的強勁需求以及新產品推出帶來的市場份額的增加。考慮到最終客戶對我們產品的訂購模式，國防銷售將繼續不穩定。

Let me recap our financial highlights for the fourth quarter of '24. Our net organic sales increased 14.9% over the prior period. Our gross profit margin for Q4 '24 increased by 250 basis points as compared to the prior year period. This increase was primarily due to the execution of our strategic value drivers as well as operating leverage.

讓我回顧一下 2024 年第四季的財務亮點。我們的淨有機銷售額較上一季成長了 14.9%。與去年同期相比，我們 24 年第四季的毛利率增加了 250 個基點。這一成長主要歸功於我們策略價值驅動因素以及經營槓桿的執行。

Our margins were slightly diluted in Q4 '24 as a result of the higher mix of defense sales. We also continue to see some dilutive effects related to the move of one of our manufacturing facilities, which should be behind us at the end of the first quarter of '25.

由於國防銷售結構較高，我們的利潤率在 2024 年第四季略有下降。我們也繼續看到與我們的一個製造工廠的搬遷有關的一些稀釋效應，這應該會在2025年第一季末完成。

Our increase in net income of $4 million in Q4 '24 versus the prior period is primarily due to higher operating income and lower income taxes. Adjusted EBITDA was up $11 million in Q4 '24 versus the prior period. Adjusted EBITDA margins remained strong at 36.4% due to the execution of our strategic value drivers and operating leverage. This was partially offset by a higher mix of defense sales and the continued build-out of our infrastructure to support our reporting, governance and control needs as a newly public company.

與上一季相比，我們的淨收入增加了 400 萬美元，這主要是由於營業收入增加和所得稅減少。24 年第四季調整後的 EBITDA 較上一季增加了 1,100 萬美元。由於我們實施了策略價值驅動因素和經營槓桿，調整後的 EBITDA 利潤率仍保持在 36.4% 的強勁水準。這在一定程度上被國防銷售組合的增加和我們作為新上市公司為支持報告、治理和控制需求而持續建設的基礎設施所抵消。

Let me recap our financial highlights for the full-year '24. Our net organic sales increased 15% over the prior period. Our gross profit margin for the full year '24 was 49.4% as we continue to execute our productivity and pricing initiatives. Our net income increased $27 million in calendar year '24. This was driven by higher operating income and lower interest.

讓我回顧一下我們 24 年全年的財務亮點。我們的淨有機銷售額比上一期成長了 15%。由於我們持續執行生產力和定價舉措，我們 24 年全年的毛利率為 49.4%。24 日曆年我們的淨收入增加了 2700 萬美元。這是由於營業收入增加和利息減少所致。

Our adjusted EBITDA was a record $146 million in calendar year '24, which is up $34 million versus $23 million. Our free cash flow conversion was over 200% for calendar year '24. This is defined as cash flow from operations, which equals $55 million, less capital expenditures of $9 million divided by net income of $22 million.

我們調整後的 EBITDA 在 24 日曆年達到創紀錄的 1.46 億美元，比 2,300 萬美元增加了 3,400 萬美元。2024 年度我們的自由現金流轉換率超過 200%。它的定義是經營活動產生的現金流為 5,500 萬美元，減去 900 萬美元的資本支出，再除以 2,200 萬美元的淨收入。

This slide shows what's organic growth drivers: First, secular growth in the aerospace industry: second, winning new profitable business; third, value-based pricing; and fourth, new product introductions. With the accumulation of these drivers, we consistently see mid-teen organic growth, which is shown on this chart.

這張投影片展示了什麼是有機成長動力：首先，航空航太業的長期成長；其次，贏得新的獲利業務；第三，基於價值的定價；第四，新產品推廣。隨著這些驅動因素的積累，我們持續看到中等程度的有機成長，如下圖所示。

Let me turn the call back over to Dirkson to share our outlook for '25.

讓我把電話轉回給德克森，讓他分享我們對 25 年的展望。

We are excited to share our most recent view for calendar year '25. This view is in excess of what we told you last month, as we have made great, great strides executing on our value drivers in the first quarter of '25. Primarily, we are ahead of our plan on our value pricing and productivity initiatives. In addition, we have seen no degradation in demand in any of our end markets. In fact, the challenge we see this year is keeping up with demand.

我們很高興與大家分享我們對 25 日曆年的最新看法。這個觀點超出了我們上個月告訴您的內容，因為我們在 25 年第一季在執行價值驅動因素方面取得了巨大進步。首先，我們在價值定價和生產力措施方面領先於我們的計劃。此外，我們並未發現任何終端市場的需求下降。事實上，我們今年看到的挑戰是滿足需求。

This strong level of demand we see continuing into the foreseeable future driven by airlines extending the life of older aircraft, a trend that should continue into early 2030 as the demand for aircraft will outstrip supply even in the event whereby both Airbus and Boeing reach their monthly production goals.

我們認為，這種強勁的需求水準將在可預見的未來持續下去，因為航空公司延長了老舊飛機的使用壽命，這一趨勢應該會持續到 2030 年初，因為即使空中巴士和波音都達到了他們的月生產目標，飛機的需求仍將超過供應。

Secondly, the continuing geopolitical uncertainty in the world. I mean, who would have ever thought that the European nations would increase their investment in their military at rates that are being discussed today.

第二，世界地緣政治不確定性持續存在。我的意思是，誰會想到歐洲國家會以今天討論的速度增加對軍事的投資。

In addition, the capacity constraints in the supply base created by the strong demand across our end markets, the loss of capabilities throughout the industry, resulting from experienced and talented folks leaving in the aftermath of COVID and the reluctance of some in the supply base to invest given the cash challenges they have been dealing because of the stops and starts of production from the large OEMs.

此外，由於終端市場需求強勁，供應基地的產能受到限制，新冠疫情後，經驗豐富、才華橫溢的人才紛紛離職，導致整個行業能力下降，而且由於大型原始設備製造商停產和重啟，部分供應基地面臨現金挑戰，因此不願投資。

When all combined, this gives us a tremendous amount of opportunity to leverage our increasing capabilities across the group to drive above-industry average organic growth.

綜合起來，這為我們提供了巨大的機會，可以利用整個集團不斷增強的能力來推動高於行業平均水平的有機增長。

With that said, for calendar year 2025, we expect on a pro forma basis, assuming we owned all of our business units since the beginning of 2024, that our end markets will be up as follows, commercial OEM and aftermarket will be up high single digits for 2024, while our defense end markets will be up high double digits, think 17% to 20%.

話雖如此，對於 2025 日曆年，我們預計，假設我們自 2024 年初以來擁有所有業務部門，我們的終端市場將出現以下增長，商業 OEM 和售後市場將在 2024 年實現高個位數增長，而我們的國防終端市場將實現高兩位終端數增長，預計為 17% 至 20%。

These market assumptions, along with our continued execution of our value drivers will allow us to meet or exceed the following for calendar year 2025: Net sales between $480 million to $488 million, up from $470 million to $480 million; adjusted EBITDA between $180 million and $184 million, up from $176 million to $180 million, with adjusted EBITDA margins of approximately 37.5%, which by the way, is a 120 basis points improvement over 2024.

這些市場假設加上我們對價值驅動因素的持續執行將使我們在 2025 日曆年達到或超過以下目標：淨銷售額從 4.7 億美元到 4.8 億美元增加到 4.8 億美元之間；調整後的 EBITDA 在 1.8 億美元至 1.84 億美元之間，高於 1.76 億美元，約 1.84 億美元之間， 2024 年提高了 120 個基點。

Net income between $58 million and $63 million, adjusted EPS between $0.70 and $0.75 per share. In addition, CapEx of approximately $14 million, full-year interest expense of approximately $28 million. Our effective tax rate will be approximately 30% with depreciation and amortization of approximately $51 million. Noncash stock-based compensation approximately $15 million with a fully diluted share count of approximately 97 million shares.

淨收入在 5,800 萬美元至 6,300 萬美元之間，調整後每股收益在 0.70 美元至 0.75 美元之間。此外，資本支出約1,400萬美元，全年利息支出約2,800萬美元。我們的有效稅率約為 30%，折舊和攤提約為 5,100 萬美元。非現金股票薪酬約 1,500 萬美元，完全稀釋後股份數量約 9,700 萬股。

Please note that all of the amounts I've just outlined for you relating to calendar 2025 performance does not include any benefit from our most recently announced pending addition to our family of companies, LMB Fans and Motors. As stated earlier, we expect to close the acquisition of LMB in the third quarter of calendar year 2025.

請注意，我剛剛為您概述的與 2025 年日曆表現有關的所有金額並不包括我們最近宣布即將加入我們的公司家族的 LMB Fans and Motors 的任何收益。如前所述，我們預計將於 2025 年第三季完成對 LMB 的收購。

As we say amen to our first year as a public company, let me just thank our public partners for their support and more importantly, your open communication this past year, which has allowed us to treat every day like a school day. There's nothing, nothing more exciting than building our aerospace and defense cash compounder that we call Loar. We're extremely excited about the future and look forward to future calls.

當我們為上市公司的第一年歡呼時，請允許我感謝我們的公共合作夥伴的支持，更重要的是，感謝你們在過去一年中的開放溝通，這讓我們能夠把每一天都當成上學日。沒有什麼比建立我們稱為 Loar 的航空航天和國防現金複合機更令人興奮的了。我們對未來感到非常興奮，並期待未來的電話。

So with that, Michelle, let's open up the line for questions.

那麼，米歇爾，讓我們開始提問吧。

(Operator Instructions) Sheila Kahyaoglu, Jefferies.

（操作員指示） Sheila Kahyaoglu，Jefferies。

Hey. Good morning guys. Thank you for the time. Dirkson, since you're treating every day as a school day, we expect, and we know we'll get all A-pluses from you. So maybe the first question, you alluded to your aftermarket or all your segments being quite strong, but let's focus on the aftermarket perhaps. As you think about your guidance, what's embedded into your guidance, whether it's price and volume and what you already have booked in your backlog, if you could talk a little bit about that, please?

嘿。大家早安。感謝您抽出時間。德克森，由於你把每一天都當成上學日，我們期望並且知道你會給我們帶來全 A+ 的成績。所以也許第一個問題是，您提到您的售後市場或所有細分市場都非常強勁，但我們也許應該關注售後市場。當您考慮您的指導時，您的指導中包含哪些內容，無論是價格和數量，還是您已經在積壓訂單中預訂的內容，您能否稍微談談？

Sure. In terms -- I think Glenn mentioned this earlier, we have seen strong bookings, right? So backlog is fairly strong. Now with that said, in the aftermarket the lead times on most of our parts are shorter than some of our defense end markets. So think one month, two months, three months in some cases, but the backlog looks really, really strong.

當然。就此而言——我想格倫之前提到過這一點，我們已經看到了強勁的預訂量，對嗎？因此積壓情況相當嚴重。話雖如此，在售後市場中，我們大多數零件的交貨時間比我們的一些國防終端市場要短。因此，在某些情況下需要一個月、兩個月、三個月的時間，但積壓的情況看起來確實非常嚴重。

What we do every quarter, Sheila, is we have conversations with our customers updating what they believe is the forecast for the next 12 months. And that has also led us to be very, very comfortable with what we see going forward.

希拉，我們每季都會與客戶對話，更新他們認為的未來 12 個月的預測。這也讓我們對未來的發展感到非常非常放心。

As I said earlier, I think our challenge this year is going to be really keeping up with demand. There's pockets of demand for certain parts that we make where I see we will need to have to increase our capacity to meet the demand going forward. And we're investing along those lines. And what our expectations are for the year is baked into the guidance. So very, very strong aftermarket.

正如我之前所說，我認為我們今年的挑戰將是真正滿足需求。我認為，我們生產的某些零件有一定的需求，我們需要提高產能才能滿足未來的需求。我們正按照這樣的思路進行投資。我們對今年的期望已包含在指導中。售後市場非常非常強勁。

Okay. And then maybe if I could ask on profitability. You have about 130 basis points of margin expansion in 2025. Our assumptions, say, 120 bps of that perhaps comes from Applied given the strong profitability there. How do we think about the defense mix? How dilutive is it? And just any other contributors to the margin mix?

好的。然後我是否可以詢問一下盈利能力。到 2025 年，利潤率將擴大約 130 個基點。我們的假設是，其中 120 個基點可能來自應用材料公司，因為該公司獲利能力強勁。我們如何看待防禦組合？它的稀釋性如何？還有其他因素對利潤構成有貢獻嗎？

Yeah. So Applied aviation is accretive. I think when we acquired the business, we shared with everyone that their EBITDA margins of approximately 50%, God bless. A day at the time we acquired them, it was around $40 million of revenue. So think of it as 10% of our overall revenues. So accretive, but not by 100 basis points in total for the overall group, but it is accretive.

是的。因此應用航空具有增值性。我想，當我們收購這家企業時，我們與大家分享了他們的 EBITDA 利潤率約為 50%，上帝保佑。我們收購他們的時候，每天的收入大約是 4,000 萬美元。所以可以將其視為我們總收入的 10%。因此是增值的，但對於整個集團來說總共不是 100 個基點，但它是增值的。

We see I guess, I would answer your question this way, Sheila, to lead you in the right direction. When we give guidance, we give it understanding that we want to meet or exceed. The 120 basis points increase that we see for this year, we are highly confident of achieving it.

我們明白了，我想，我會這樣回答你的問題，希拉，以引導你走向正確的方向。當我們給予指導時，我們會使其理解我們想要達到或超越的目標。我們今年預計的 120 個基點的成長目標，我們非常有信心實現它。

So we have answered your question because we know for a fact we've got more price than cost inflation. We know we're getting operating leverage that's going to drop through and improve margins. And there's a number of initiatives that we've been working on that we actually see light at the end of the tunnel that's going to improve margins going forward also.

我們已經回答了您的問題，因為我們知道事實上價格通膨幅度大於成本通膨幅度。我們知道，我們的經營槓桿將會下降，利潤率也會提高。我們一直在努力實施一些舉措，實際上我們已經看到了曙光，這些舉措也將提高未來的利潤率。

So you should see a true reflection of where we believe margins are will be going forward in the second half of this year. But very, very comfortable with the 120 basis points improvement.

因此，您應該看到我們對今年下半年利潤率趨勢的真實反映。但對於 120 個基點的改善，我感到非常非常滿意。

Kristine Liwag, Morgan Stanley.

克莉絲汀‧利瓦格，摩根士丹利。

Hey good morning, everyone. So Dirkson, in your prepared remarks, you said, look, new product launches, you're assuming 1% to 3% of annual growth and this has been part of your playbook in some time. But look, for PMA parts, once you get something adopted, I would have expected that when you get a new part accepted and certified, that you could get a higher growth in that. So I was wondering, can you give us an update in terms of your PMA pipeline? And how conservative is this 1% to 3%.

嘿，大家早安。所以，德克森，在您準備好的發言中，您說，看，新產品的發布，您假設年增長率為 1% 到 3%，這已經成為您劇本的一部分。但是，對於 PMA 部件，一旦您採用了某些東西，我預計當您獲得新部件的接受和認證時，您就可以獲得更高的增長。所以我想知道，您能否向我們提供有關 PMA 管道的最新情況？那麼這個1%到3%到底有多保守呢？

How conservative is the 1 to 3 points. Look, so the 1 to 3 points of improvement every year, we say that over a period of time. You are 100% correct that the way the PMA market, especially the strategic initiatives that we're focused on will work is you get qualified and you should get adopted into the market at a very rapid rate. So you should see a very big job.

1到3點是多保守啊。你看，我們說在一段時間內每年會有 1 到 3 個點的提高。您完全正確，PMA 市場，特別是我們關注的策略舉措的運作方式是您獲得資格，並且您應該以非常快的速度進入市場。所以你應該看到這是一項非常艱鉅的任務。

Now with that said, Glenn said earlier that our organic growth is mid-double digits. I don't think I've seen that from any of our other colleagues in the space, if I can say that way. So there is some of that already baked in. Now with that said, specifically, the key initiatives in PMA that we've been working on is actually still developing. We have made a tremendous amount of progress in terms of getting our parts qualified but not certified yet. So we've gone through a number of tests.

話雖如此，格倫之前說過，我們的有機成長率是兩位數的中等水準。如果可以這麼說的話，我想我還沒有從該領域的其他同事那裡看到過這種情況。因此，其中一些已經融入其中。現在說到這裡，具體來說，我們一直在努力的 PMA 中的關鍵舉措實際上仍在發展中。我們在零件合格但尚未獲得認證方面已經取得了巨大進展。所以我們進行了一系列測試。

On the brake side of it, we're now through dynamometer testing, for a number of the programs that we are looking to implement. So I would say, Kristine, as we think about the latter part of this year going into early next year, we should start to see the adoption of some of those PMA initiatives that we've talked about.

在煞車方面，我們目前正在對一些想要實施的項目進行測功機測試。因此我想說，克里斯汀，當我們考慮今年下半年到明年年初時，我們應該開始看到我們所討論的一些 PMA 舉措的採用。

On the other big piece of the initiative, we have actually just entered into, I won't announce the customer, but entered into an agreement with a customer to market and sell some of those products for us going forward. And again, you should start seeing the benefit of that in the second half of this year going into early next year. So stay tuned.

關於該計劃的另一個重要部分，我們實際上只是達成協議，我不會宣布客戶，但與客戶達成協議，以便我們在未來行銷和銷售其中一些產品。再次強調，您應該會在今年下半年至明年年初開始看到它的好處。敬請關注。

But I think the 1 to 3 points of improvement over intimated period to foreseeable future is a good goal for us.

但我認為，在可預見的未來內，提高 1 到 3 個百分點對我們來說是一個很好的目標。

Great. Looking forward for those certification announcements because, I mean, presumably, there will be a big jump in revenue there. So looking forward to that Dirkson and Glenn.

偉大的。我期待這些認證公告，因為，我的意思是，大概那裡的收入會大幅成長。非常期待 Dirkson 和 Glenn。

(Operator Instructions) Jason Gursky, Citigroup.

（操作員指示）花旗集團 Jason Gursky。

Hey, good morning, everybody. Maybe let me start with just dynamics with your OE customer set and talk a little bit about what you're seeing ordering patterns, inventory levels in the channel, so to speak. You've got Boeing that is trying to lean out inventory, and we've been hearing that their restart after the strike last fall hasn't been all that wholesome from an ordering perspective.

嘿，大家早安。也許讓我先從您的 OE 客戶群的動態開始，然後稍微談談您所看到的訂購模式、頻道中的庫存水準等。波音公司正在努力減少庫存，我們聽說，從訂購的角度來看，他們在去年秋天罷工後重啟的生產情況並不那麼良好。

So I'm just kind of curious, ordering into this, back end of the supply I'm just kind of curious what you all are seeing at this point.

所以我只是有點好奇，訂購這個，供應的後端，我只是有點好奇你們現在看到了什麼。

I'll give you a short answer and a really long one. The short answer is we're seeing all of the above. So it depends on the product, right? We have parts that the orders the level of orders for it is above what we thought it should be. Leading us believe there's less inventory in the supply chain than we would have, okay?

我會給你一個簡短的答案和一個很長的答案。簡短的回答是，我們看到了以上所有情況。所以這取決於產品，對嗎？我們發現部分訂單的訂單水準超出了我們的預期。讓我們相信供應鏈中的庫存比我們實際擁有的庫存少，好嗎？

We have parts where we're still seeing not the level of orders that we think there should be. So leading us to believe there's more inventory in the supply chain. So it's all over the map, Jason, in that regard. But when you add it all up, keeping in mind how we built our original guide, right? We built our original guide now taking you back to November of last year, where we were thinking that Boeing was not really going to get off their strong footing until the latter part of this year.

我們發現部分地區的訂單量仍未達到我們認為應有的水準。這讓我們相信供應鏈中還有更多的庫存。所以傑森，從這方面來說，一切都是那麼的複雜。但是當你把所有這些加起來時，請記住我們是如何建立我們的原始指南的，對嗎？我們制定的原始指南現在將帶您回到去年 11 月，當時我們認為波音公司直到今年下半年才會真正站穩腳跟。

It's a lot stronger than we expected because Boeing is doing a lot better, and folks are starting to believe that they'll actually get there.

它比我們預期的要強勁得多，因為波音的表現要好得多，而且人們開始相信他們實際上會實現目標。

The way we see leaving the year from Boeing is about 30 aircraft a month in terms of narrow body. With Airbus, Airbus has been in line, if not a little bit stronger than we were originally thinking in terms of ordering patterns. Our projections see us leaving the year with about 50 a month for Airbus. So you can compare that to Teal and what other folks are saying. I think we're slightly a little bit conservative.

我們預計波音今年每月將生產約 30 架窄體飛機。就空中巴士而言，空中巴士的訂購模式與我們最初想像的一致，甚至比我們最初想像的還要強一些。我們預計今年空中巴士公司每月的銷售量將達到 50 架左右。因此，您可以將其與 Teal 以及其他人的說法進行比較。我認為我們有點保守。

But again, going to how we think about forecasting. We want to forecast where we'll meet or exceed. So it's choppy, Jason. It's a great question. We depends on the part product.

但再次回到我們如何看待預測。我們想要預測我們將達到或超越的目標。所以這很不順暢，傑森。這是一個很好的問題。我們依賴部分產品。

Right. And that 30 and 50 that you just mentioned, that would be the rate that you're producing, not necessarily with the OEs are producing.

正確的。您剛才提到的 30 和 50 是您的生產率，不一定是 OE 的生產率。

Yes, that would be their production. That's kind of where we're assuming they're going to be at the exiting the year. And again, to Dirkson's point, it's probably a little conservative given their relative strength as they started the year, but that's kind of our current thinking.

是的，那是他們的作品。這就是我們假設他們在今年年底時將會達到的水平。再次，正如德克森所說，考慮到他們今年初的相對實力，這可能有點保守，但這就是我們目前的想法。

Okay. Got it. And while we've got you engaged here, why don't we shift really quickly and Brett to -- I mean everybody chime in here, but I know, Ian, you kind of helped execute on the M&A pipeline. What are you guys seeing at this point in the M&A pipeline? You've obviously been able to successfully get a couple of done here.

好的。知道了。既然我們已經讓你參與進來了，為什麼我們不快速轉移話題，讓布雷特——我的意思是每個人都參與進來，但我知道，伊恩，你在某種程度上幫助執行了併購管道。你們目前在併購通路中看到了什麼？顯然你已經成功完成了一些任務。

Since going public, what should we expect for the next 12 to 18 months from you all?

自從上市以來，我們對你們未來 12 到 18 個月有何期待？

I'd say more of the same. The pipeline is good. I'd say the year really started out very active and working on a number of things. Obviously, we got LMB signed up, and we'll get that closed here in a few months. We'll see what the overall market choppiness what effect that may have on M&A generally speaking.

我想說的更多是同樣的事情。管道很好。我想說，今年的開始確實非常活躍，做了很多事。顯然，我們已經與 LMB 簽約，我們將在幾個月內完成簽約。我們將觀察整體市場波動對併購整體可能產生什麼影響。

But I'd say in our sector, aerospace and defense, given most people's relatively optimistic view of this year going into next year, which certainly we have and we've shown with our upward revision I would expect that there are going to be lots of active sellers.

但我想說，在我們的航空航天和國防領域，鑑於大多數人對今年和明年的看法相對樂觀，我們當然有這種看法，而且我們已經通過上調預期表明了這一點，我預計會有很多活躍的賣家。

So as I've always said, hard to predict what's going to ultimately be executable the pattern for us has been one to two deals a year. Certainly, within the first year of being public, we've executed on two. So I think that's a pretty good pace to consider for the future.

所以正如我一直說的，很難預測最終會執行什麼，我們的模式是每年一到兩筆交易。當然，在上市的第一年，我們已經執行了兩項計畫。所以我認為這對未來來說是一個非常好的步伐。

Okay. And then maybe lastly from me. Let me talk a little bit about tariffs. And your input costs and maybe start it with input costs and talk about any potential impact there and then how you might deal with higher input costs as a result of tariffs?

好的。最後也許由我來發言。讓我稍微談談關稅問題。您的投入成本，也許從投入成本開始，討論那裡的任何潛在影響，然後您如何應對關稅導致的更高的投入成本？

And then with a completed product that you might be either shipping overseas or you've now got a French company in your portfolio here potentially in the next few months, whether the tariffs that have come about, here recently impact the financial model for the acquisition that you just made? Thanks.

然後，當您完成產品並可能將其運送到海外，或者您現在投資組合中已有一家法國公司時，未來幾個月內，最近出現的關稅是否會影響您剛剛收購的財務模型？謝謝。

Dirkson, you want me to take that on LMB or --

德克森，你想讓我在 LMB 上接受這個，或者--

Sure. Since you volunteering, go for it.

當然。既然你是志願者，那就去做吧。

Well, I think, Jason, for LMB, it's not going to have much of an effect. LMB's business primarily the vast majority of it serves the European defense market. So the good news there is, we should have some pretty good tailwinds behind us for quite a while. So shipping to the US as an example, is a very, very, very small portion of the business such that any tariff isn't really going to have any kind of meaningful impact.

嗯，傑森，我認為對於 LMB 來說，它不會產生太大的影響。LMB的業務主要絕大部分服務於歐洲國防市場。因此，好消息是，在相當長的一段時間內，我們應該會有相當好的順風。以運往美國為例，它只佔業務的一小部分，因此任何關稅都不會產生任何實際影響。

As it relates to the rest of our business, Dirkson, I'll let you kind of take that.

德克森，至於這與我們其他業務有關，我讓你來處理。

Yeah, sure. So Jason, I'll say to you this way. Sometimes, it's better to be lucky than good, if I could say it that way. So I'll tell you, and you appreciate why I say that in a second. I'll tell you about a fall.

是的，當然。所以傑森，我會這樣告訴你。有時候，如果我可以這樣說的話，幸運比優秀更重要。所以我會告訴你，你馬上就會明白我為什麼這麼說。我會講一次關於跌倒的事給你。

As you know, we do our calls on Tuesday, we have our KPI calls where we talk to all the business units. And one of the things that our CFO, Glenn goes through with the business units, is what's going on with inventory. And there was a call late last year where Glenn set one of our presidents, what are you thinking? Why do you have so much inventory? Why have you ordered so much steel and aluminum? Why do we need that?

如您所知，我們每週二都會進行電話會議，我們會與所有業務部門進行 KPI 通話。我們的財務長 Glenn 與業務部門一起處理的事情之一就是庫存狀況。去年年底，格倫與我們的一位總統進行了一次通話，您怎麼想？你們為什麼有這麼多庫存？為什麼訂購這麼多鋼材和鋁材？我們為什麼需要它？

And then Trump gets elected, and then we have that same KPI call this year, and our CFO says to that same individual, you're genius ordering those parts in advance. So sometimes it takes a little bit of luck to be good. So yes, we have exposure to steel. We have exposure to aluminum. We expect that if there's tariffs imposed that our costs will go up.

然後川普當選了，今年我們又進行了同樣的 KPI 會議，我們的財務長對那個人說，你真是個天才，提前訂購了這些零件。所以有時候想做好事，需要一點運氣。是的，我們接觸過鋼鐵。我們接觸過鋁。我們預計，如果徵收關稅，我們的成本將會上升。

Now with that said, what we make is proprietary, right?

話雖如此，我們所製造的東西都是專有的，對嗎？

We will pass along any increase in cost, like we said, our portfolio over our portfolio will get more price than inflation. I took tariffs into that. Some people say it's onetime and all of that, whatever it is, we will pass it along. The good news is that there's not going to be a lot of a hit for us this year to given the extra inventory that the genius leaders at our business units have accumulated this year.

我們將轉嫁任何成本增加，就像我們所說的那樣，我們的投資組合將獲得比通貨膨脹更高的價格。我把關稅考慮進去了。有人說這只是一次性的事情，不管它是什麼，我們都會將它傳承下去。好消息是，考慮到我們業務部門的天才領導者今年累積的額外庫存，我們今年不會受到太大的打擊。

And in terms of sourcing parts from folks overseas that we have to bring in, I will say this, we have in 99% of the cases, a second source in the US check. And we are working, like everybody else on the planet in terms of positioning, how we receive our product in such a way that we minimize any impact of tariffs going forward.

就我們必須從海外採購零件而言，我想說的是，在 99% 的情況下，我們在美國都有第二個來源。就像地球上的其他人一樣，我們正在努力定位我們的產品，以便最大限度地減少未來關稅的影響。

So that's a long answer to don't see an impact, a material impact this year and any impact that we see is baked into the guidance that we've shared which, again, we believe we will meet or exceed. So no major impact yet, Jason.

所以，這是一個很長的答案，我們看不到影響，今年不會產生實質影響，我們看到的任何影響都已融入我們分享的指導中，我們再次相信我們將達到或超過這一目標。所以目前還沒有重大影響，傑森。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Charles for any final comments.

女士們、先生們，我們的問答環節到此結束。我將把發言權交還給查爾斯先生，請他發表最後的評論。

I once again would like to thank our mates for everything that you do. I mean you guys see the results. I was just reading one of your reports, and you guys say that we beat and we raise, we beat and we raise like that drumbeat. That's a good jump beat, but that has nothing to do with the four people that are talking here. I should say very little to do.

我再次感謝我們的夥伴們所做的一切。我的意思是你們看到了結果。我剛剛讀了你們的一份報告，你們說我們又打又漲，我們又打又漲，就像鼓聲一樣。這是一個很好的跳躍節拍，但這與在這裡交談的四個人無關。我應該說要做的事情很少。

It's all the other 1,500 that we're working with, who are making this happen. So I want to thank them.

正是與我們一起努力的其他 1,500 人讓這一目標得以實現。所以我要感謝他們。

I also want to thank once again all of our public shareholders and you guys have thought us a lot. And Sheila, yes, every day has been a school day for us, and we're enjoying it. And we hope to speak to you guys again, I guess, now in about six weeks. So stay tuned. So thanks for joining the call.

我還要再次感謝我們所有的公眾股東，你們給了我們很多幫助。希拉，是的，對我們來說，每一天都是上學日，我們很享受。我想，我們希望大約六週後能再次與你們交談。敬請關注。感謝您參加此次電話會議。

Thanks for taking the time. We'll talk soon. Thank you.

感謝您抽出時間。我們很快就會談。謝謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。