Moog Inc (MOG.A) 2024 Q2 法說會逐字稿

Good morning, and welcome to the Moog Second Quarter Fiscal Year 2024 Earnings Conference Call. Today's conference is being recorded.

早安，歡迎參加穆格 2024 財年第二季財報電話會議。今天的會議正在錄製中。

At this time, I would like to turn the conference over to Mr. Aaron Astrachan. Please go ahead, sir.

現在，我想把會議交給Aaron Astrachan先生。請繼續，先生。

Good morning, and thank you for joining Moog's Second Quarter 2024 Earnings Release Conference Call. I am Aaron Astrachan, Director of Investor Relations. With me today is Pat Roche, our Chief Executive Officer; and Jennifer Walter, our Chief Financial Officer.

早安，感謝您參加穆格 2024 年第二季財報發布電話會議。我是投資者關係總監 Aaron Astrachan。今天與我在一起的是我們的執行長 Pat Roche；以及我們的財務長 Jennifer Walter。

Earlier this morning, we released our results and our supplemental slides, both of which are available on our website. Our earnings press release, our supplemental slides and remarks made during our call today contain adjusted non-GAAP results. Reconciliations for these adjusted results to GAAP results are contained within the provided materials.

今天早些時候，我們發布了我們的結果和補充幻燈片，兩者都可以在我們的網站上找到。我們的收益新聞稿、補充投影片以及今天電話會議的演講均包含調整後的非公認會計準則績效。這些調整後的結果與 GAAP 結果的調整包含在所提供的資料中。

Lastly, our comments today may include statements related to expected future results and other forward-looking statements, which are not guarantees. Our actual results may differ materially from those described in our forward-looking statements and are subject to a variety of risks and uncertainties that are described in our earnings press release and in our other SEC filings.

最後，我們今天的評論可能包括與預期未來結果相關的陳述和其他前瞻性陳述，這些陳述不是保證。我們的實際結果可能與我們的前瞻性陳述中所述的結果有重大差異，並受到我們的收益新聞稿和其他 SEC 文件中所述的各種風險和不確定性的影響。

Now I'm happy to turn the call over to Pat.

現在我很高興將電話轉給帕特。

Good morning, and welcome to the call. Today, we report on an exceptionally strong second quarter of fiscal '24, and our progress in driving performance improvements across our businesses.

早安，歡迎您的來電。今天，我們報告了 24 財年第二季的異常強勁表現，以及我們在推動整個業務績效改進方面取得的進展。

Sales were at a record level in the quarter, well ahead of expectations and delivering double-digit growth relative to prior year. In addition, our backlog hit record levels. Commercial aircraft recovery and defense demand are fueling this growth.

本季銷售額創歷史新高，遠超預期，較上年實現兩位數成長。此外，我們的積壓訂單達到了創紀錄的水平。商用飛機的復甦和國防需求正在推動這一成長。

Adjusted operating margin for the quarter came in very strong relative to prior year, due to our margin enhancement plans and an employee retention credit. Earnings per share grew due to profit associated with our sales growth and the employee retention credit. It was well above our guidance range. Our strong business growth contributed to the use of cash in the quarter.

由於我們的利潤提升計劃和員工保留信貸，本季度調整後的營業利潤率與前一年相比非常強勁。每股收益的成長得益於我們的銷售成長和員工保留信用相關的利潤。它遠高於我們的指導範圍。我們強勁的業務成長推動了本季的現金使用。

With two very solid quarters behind us, we remain confident that we will deliver adjusted operating margin enhancement for the full year that is in line with our Investor Day plan, and we're increasing revenue, adjusted operating margin and earnings per share guidance.

兩個非常穩定的季度過去了，我們仍然有信心，我們將根據我們的投資者日計劃實現全年調整後營業利潤率的提高，並且我們正在增加收入、調整後營業利潤率和每股收益指導。

Now I'll provide some highlights on our operational performance. Starting with customer focus. I'm happy to announce that our construction business recently received an innovation gold medal at the Intermat Construction Exhibition in Paris, France. Our TerraTech electric ecosystem received the top award in the decarbonization and energy transition category.

現在我將重點介紹我們的營運績效。從以客戶為中心開始。我很高興地宣布，我們的建築業務最近在法國巴黎舉行的 Intermat 建築展上獲得了創新金獎。我們的 TerraTech 電力生態系統獲得了脫碳和能源轉型類別的最高獎項。

I'm also pleased to share that our first 4 Meteorite space vehicles were launched from Cape Canaveral on February 14 and are now on orbit. The satellites flew as part of U.S. Space Force Mission 124. This is a very significant milestone for our business, as we move from being a space component supplier with 50 years of heritage, to a flight-proven space vehicle provider.

我還很高興地告訴大家，我們的首批 4 艘隕石太空飛行器已於 2 月 14 日從卡納維拉爾角發射，現已進入軌道。這些衛星是作為美國太空部隊124 號任務的一部分進行飛行的。太空飛行器供應商。

Now back on Earth, we received a best-in-class performance award from Applied Materials. They are a leader in materials engineering solutions used to produce semiconductor chips and advanced displays. Our recognition is part of their Supplier Excellence Awards that acknowledge outstanding technical and operational performance in areas including quality, service, lead time, delivery, cost and responsiveness.

現在回到地球，我們獲得了應用材料公司頒發的最佳性能獎。他們是用於生產半導體晶片和先進顯示器的材料工程解決方案的領導者。我們的認可是其供應商卓越獎的一部分，該獎項表彰在品質、服務、交貨時間、交付、成本和響應能力等領域的傑出技術和營運績效。

Now moving to People Community and Planet. We focus on being a great place to work at our locations throughout the world. I recently had the opportunity to visit and see firsthand our operations in India.

現在轉向人民社群和星球。我們致力於在全球各地打造一個理想的工作場所。我最近有機會參觀並親眼目睹了我們在印度的業務。

In a highly competitive labor market, our culture helps us attract and retain a very stable and highly engaged workforce. Whether delivering engineering solutions for commercial aircraft programs or developing and producing world-class electric motors, our teams relentlessly pursue continuous improvement. This has been recognized by numerous national awards from the Confederation of Indian Industry, including several platinum awards.

在競爭激烈的勞動市場中，我們的文化幫助我們吸引並留住非常穩定且高度敬業的員工隊伍。無論是為商用飛機專案提供工程解決方案，還是開發和生產世界一流的電動馬達，我們的團隊都堅持不懈地追求持續改進。這已獲得印度工業聯合會頒發的眾多國家獎項的認可，其中包括多個白金獎。

Our focus on supporting the communities in which we operate continued, with the donation of a kidney dialysis machine to a local hospital for the underserved in Bangalore, India. This donation is immensely important in this community, and it adds to our prior year donations of both dialysis machines and anesthesia machine.

我們繼續致力於支持我們經營所在的社區，向印度班加羅爾當地一家醫院捐贈了一台腎臟透析機，幫助服務不足的人群。這筆捐贈對這個社區非常重要，它增加了我們前一年對透析機和麻醉機的捐贈。

On the environment, we're making progress towards our greenhouse gas emission reduction targets. We use baseline emission data from all our manufacturing facilities to prioritize detailed energy audits. These have been completed at 6 of our top sites.

在環境方面，我們正在朝著溫室氣體減排目標取得進展。我們使用所有製造設施的基線排放資料來確定詳細能源審核的優先順序。這些已在我們的 6 個頂級站點完成。

Renewables formed part of the solution, and we've completed installation of solar panels at 3 facilities, namely Tewkesbury and Wolverhampton in the United Kingdom and Taichang in China. We're in the final stage of planning for Baguio in the Philippines. These actions are important initial steps in reducing our greenhouse gas emissions.

再生能源是解決方案的一部分，我們已經在 3 個工廠完成了太陽能板的安裝，即英國的圖克斯伯里和伍爾弗漢普頓以及中國的泰昌。我們正處於菲律賓碧瑤規劃的最後階段。這些行動是減少溫室氣體排放的重要初步步驟。

And finally, financial strength. We continue to drive margin enhancement through both pricing and simplification, which each contributing equally to our operational improvements this quarter. We are excited to see the growing traction around 80/20, which is central to enabling us to systematically reduce unnecessary complexity and to make better business decisions.

最後，財務實力。我們繼續透過定價和簡化來推動利潤率的提高，這兩者對我們本季的營運改進做出了同等的貢獻。我們很高興看到 80/20 的吸引力不斷增長，這對於我們能夠系統地減少不必要的複雜性並做出更好的業務決策至關重要。

Our business leaders continue to work through the remaining book of business in pursuit of pricing that reflects the value we create. To this end, 80/20 is helping as they drill down through the organization, highlighting specific customer and product lines in need of attention.

我們的業務領導者將繼續努力完成剩餘的業務，以追求反映我們創造的價值的定價。為此，80/20 正在幫助他們深入組織，突出顯示需要關注的特定客戶和產品線。

We expanded our 80/20 implementation by adding 2 more sites, bringing the total to 14. Collectively, these sites account for approximately 40% of our revenue. We expect the coverage to increase to about 50% in the next quarter. Additionally, we've continued to invest in our leaders training more than 80 this quarter, which brings our total to over 550 leaders.

我們透過增加 2 個站點來擴大 80/20 實施範圍，使總數達到 14 個。我們預計下一季覆蓋率將增加至 50% 左右。此外，我們繼續投資領導者，本季培訓了 80 多名領導者，這使我們的領導者總數超過 550 名。

Also, in further support of this deployment, we moved staff into full-time 80/20 champion roles. We are proactively addressing customers and products that are no longer commercially attractive.

此外，為了進一步支援這項部署，我們將員工調入全職 80/20 冠軍角色。我們正在積極應對不再具有商業吸引力的客戶和產品。

Our Military Aircraft group sold our C-5 transport aircraft aftermarket product line. It is notable that Lockheed ended production of this aircraft over 25 years ago. We anticipate that this simplification will have a positive impact on our operations, allowing us to focus resources on more impactful lines of business.

我們的軍用飛機集團出售我們的 C-5 運輸機售後產品線。值得注意的是，洛克希德公司在 25 年前就停止了這架飛機的生產。我們預計這種簡化將對我們的營運產生積極影響，使我們能夠將資源集中在更具影響力的業務領域。

Our work on portfolio rationalization, footprint and focused factories continues at pace. We've launched a sales process for our motor manufacturing facility in Brno, the Czech Republic. We are aiming to complete this and the previously announced sale of our Hydraulic Manifold business in Luxembourg within the coming quarter.

我們在投資組合合理化、佔地面積和重點工廠方面的工作仍在繼續進行。我們已經為位於捷克共和國布爾諾的電機製造工廠啟動了銷售流程。我們的目標是在下個季度完成這項工作以及先前宣布的盧森堡液壓歧管業務的出售。

We will close our motor manufacturing facility in Radford, Virginia within the next 9 months, and transfer the product to other existing locations.

我們將在未來 9 個月內關閉位於維吉尼亞州雷德福的電機製造工廠，並將產品轉移到其他現有地點。

Also, we have started to notify staff and customers of our intent to wind down production of a legacy hydraulic pump product line and close our pump manufacturing facility in Nuremberg, Germany during 2026. These consolidations and divestitures when concluded are on target with the footprint rationalization plan outlined at Investor Day.

此外，我們已開始通知員工和客戶，我們打算在 2026 年期間減少傳統液壓泵產品線的生產，並關閉我們位於德國紐倫堡的泵製造工廠。者日概述的計劃。

Now turning to macroeconomic and end market conditions. The geopolitical environment has become even more tense over the past months. The war in Ukraine appears to be without end in sight, and the conflict in the Middle East risks expanding to a wider regional war.

現在轉向宏觀經濟和終端市場狀況。過去幾個月，地緣政治環境變得更加緊張。烏克蘭戰爭似乎沒有結束的跡象，中東衝突有可能擴大為更廣泛的區域戰爭。

Investing in our defense is a clear and pressing priority for the U.S. and its global allied nations. Consequently, we're seeing a broad-based increase in demand across our defense applications, notably missile components, space components and space vehicles. And this demand is not just U.S.-based.

對美國及其全球盟國來說，投資國防是明確而緊迫的優先事項。因此，我們看到國防應用的需求廣泛增長，特別是導彈部件、太空部件和航天器。這種需求不僅來自美國。

Our European defense business is growing strongly, with positions on new and established artillery and turret systems, such as Krauss-Maffei Wegmann and Nexter Defense Systems, remote-controlled Howitzer 155 that the German government is sending to the Ukraine.

我們的歐洲國防業務正在強勁成長，在新的和已建立的火砲和砲塔系統上佔據一席之地，例如克勞斯瑪菲韋格曼和Nexter防禦系統，以及德國政府向烏克蘭派遣的遙控榴彈砲155。

In addition, the shift in defense posture is pushing the development of new capabilities in our core business. Although the Department of Defense 2025 budget increased by just 1%, it does protect strategic investment in next-generation air defense, collaborative combat aircraft and hypersonics.

此外，國防態勢的轉變正在推動我們核心業務新能力的發展。儘管國防部2025年預算僅成長1%，但確實保護了對下一代防空、協同作戰飛機和高超音速技術的戰略投資。

In addition, the recently approved foreign aid package funds additional near-term production. The cancellation of future attack and reconnaissance aircraft enables a redeployment of resources to programs, such as the future long-range assault aircraft or FLRAA and potentially greater aftermarket on existing platforms.

此外，最近批准的外國援助計劃為額外的近期生產提供了資金。取消未來的攻擊機和偵察機可以將資源重新部署到專案中，例如未來的遠端攻擊機或FLRAA，以及現有平台上潛在的更大的售後市場。

Commercial Aviation continues to recover strongly. Increased fleet utilization and limited availability of new aircraft is driving higher aftermarket activity, which we expect to continue at elevated levels for some time. In addition, wide-body production plans from Boeing and Airbus continue to drive significant growth in our OEM business.

商業航空持續強勁復甦。機隊利用率的提高和新飛機的供應有限正在推動售後市場活動的增加，我們預計這種活動將在一段時間內繼續保持在較高水準。此外，波音和空中巴士的寬體生產計劃繼續推動我們的 OEM 業務顯著成長。

Industrial output in Europe continues to soften. The Purchasing Managers Index for both the Euro area and especially Germany has indicated contraction since as far back as June 2022. Our industrial automation orders have slowed, although later than anticipated.

歐洲工業產出持續疲軟。早在 2022 年 6 月以來，歐元區（尤其是德國）的採購經理人指數就顯示出收縮。

We are now beginning to see revenues slow, following a period of high demand in which our revenue was $1 billion over the last 4 quarters. We've adjusted our business in response to these demand changes, and we continue to monitor the situation. Other industrial subsegments such as Flight Simulation and Energy are stronger.

在過去 4 個季度我們的收入為 10 億美元的高需求時期之後，我們現在開始看到收入放緩。我們已根據這些需求變化調整了業務，並將繼續監控情況。其他工業細分領域，例如飛行模擬和能源，則更為強勁。

Now turning to guidance for '24 and considering our second quarter performance and the current end market conditions, we're increasing our full year guidance for revenue, adjusted operating margin and earnings per share.

現在轉向 24 世紀的指導，考慮到我們第二季度的業績和當前的終端市場狀況，我們正在提高對收入、調整後的營業利潤率和每股收益的全年指導。

Now let me hand over to Jennifer for a more detailed breakdown of the quarter and our guidance.

現在讓我向 Jennifer 詳細介紹本季的情況和我們的指導。

Thanks, Pat. I'll begin with our second quarter financial performance. I'll then provide an update on our guidance for all of FY '24.

謝謝，帕特。我將從我們第二季的財務業績開始。然後，我將提供 24 財年全年指導的最新資訊。

It was an exceptional quarter from a sales and earnings perspective. Sales of $930 million were at a record high. Adjusted operating margin of 13.6% was well above plan and adjusted earnings per share of $2.19 significantly exceeded the high end of our guidance range.

從銷售和盈利的角度來看，這是一個非凡的季度。 9.3 億美元的銷售額創下歷史新高。調整後營業利潤率為 13.6%，遠高於計劃，調整後每股收益為 2.19 美元，大大超出了我們指導範圍的上限。

We recognized a $14 million benefit from government incentives associated with the CARES Act. The employee retention credit contributed 150 basis points to our adjusted operating margin and $0.33 to our adjusted earnings per share this quarter.

我們認識到與 CARES 法案相關的政府激勵措施帶來了 1,400 萬美元的收益。員工保留信用為本季調整後營業利潤貢獻了 150 個基點，為調整後每股收益貢獻了 0.33 美元。

Excluding this benefit, our adjusted operating margin was still above plan, despite 50 basis points of pressure from disruptions to our operations at our headquarter site during a winter storm early in the second quarter.

排除這項收益，儘管第二季初的冬季風暴給總部基地的營運帶來了 50 個基點的壓力，但我們調整後的營運利潤率仍高於計畫。

Our adjusted earnings per share without this credit was above the high end of our guidance and reflects earnings associated with our very strong sales this quarter.

沒有這項信用的調整後每股收益高於我們指引的上限，反映了與我們本季非常強勁的銷售相關的收益。

Sales in the second quarter of $930 million were 11% higher than last year's second quarter, with each of our segments contributing to that growth. The largest increase in segment sales was in Commercial Aircraft. Sales of $208 million increased 26% over the same quarter a year ago. Growth in wide-body platforms for both the OE production ramp and growing aftermarket demand drove the sales increase.

第二季的銷售額為 9.3 億美元，比去年第二季成長 11%，我們的每個部門都對這一成長做出了貢獻。商用飛機部門銷售額增幅最大。銷售額為 2.08 億美元，比去年同期成長 26%。寬體平台的成長推動了原廠產量的成長和售後市場需求的成長，推動了銷售量的成長。

Sales in Space and Defense of $267 million increased 9% over the second quarter last year. There's strong defense demand across our portfolio with new defense work ramping up, including on ground vehicles serving European defense needs as well as emerging defense priorities in the U.S.

太空和國防領域的銷售額為 2.67 億美元，比去年第二季成長 9%。隨著新的國防工作的不斷增加，我們的產品組合中存在著強勁的國防需求，包括滿足歐洲國防需求的地面車輛以及美國新興的國防優先事項。

Military Aircraft sales of $203 million were up 11% over the second quarter of last year. Activity on the FLRAA program continued to ramp up over the past 4 quarters, driving OE sales higher. Aftermarket sales included the sale of a mature product line as part of our simplification efforts.

軍用飛機銷售額為 2.03 億美元，比去年第二季成長 11%。 FLRAA 計畫的活動在過去 4 個季度持續增加，推動原配設備銷售上升。售後市場銷售包括銷售成熟的產品線，作為我們簡化工作的一部分。

Industrial sales of $253 million increased 4% over last year's second quarter. Demand for flight simulation systems continues to be strong, and is associated with recovery in commercial aircraft flight hours and the related demand for pilot training.

工業銷售額為 2.53 億美元，比去年第二季成長 4%。對飛行模擬系統的需求持續強勁，這與商用飛機飛行時間的恢復以及飛行員訓練的相關需求有關。

Energy sales also grew over the same quarter a year ago.

能源銷售也較去年同期成長。

Industrial Automation sales declined from the record high of the same quarter a year ago, reflecting the slowdown in orders we've seen in recent quarters.

工業自動化銷售額較去年同期的歷史新高有所下降，反映出我們最近幾季看到的訂單放緩。

Now shifting over to operating margins. Adjusted operating margin of 13.6% in the second quarter increased 320 basis points from the second quarter last year. Adjustments this quarter were $14 million of asset impairment and restructuring charges largely in our Military Aircraft segment. We took charges associated with our decision to discontinue a product development effort, the write-off of a minority interest investment and the cancellation of the FARA program.

現在轉向營業利潤率。第二季調整後營業利益率為13.6%，較去年第二季提高320個基點。本季調整了 1,400 萬美元的資產減損和重組費用，主要涉及我們的軍用飛機部門。我們承擔了與停止產品開發工作、沖銷少數股權投資和取消 FARA 計畫的決定相關的費用。

Adjustments for last year's second quarter were $3 million of restructuring and other charges.

去年第二季的調整包括 300 萬美元的重組費用和其他費用。

Adjusted operating margins increased over the second quarter of last year in each of our segments. In Space and Defense, operating margin increased 420 basis points to 15.9%. This increase is associated with improved performance on space vehicle programs and the benefit associated with the employee retention credit.

我們每個部門的調整後營業利潤率均較去年第二季增加。在太空和國防領域，營業利益率成長了 420 個基點，達到 15.9%。這一增長與航天器專案績效的提高以及與員工保留積分相關的福利有關。

The operating margin for Military Aircraft was 13.4%, up 400 basis points. The increase was driven by the sale of a mature product line that we exited as part of our simplification efforts, and, to a lesser extent, the employee retention credit.

軍用飛機的營業利益率為 13.4%，上升 400 個基點。這一增長是由我們作為簡化工作的一部分而退出的成熟產品線的銷售以及在較小程度上的員工保留信用所推動的。

Commercial Aircraft operating margin was 12.0%, up 250 basis points over the second quarter last year. We saw benefits from pricing as well as higher volume across our entire book of business.

商用飛機營運利潤率為 12.0%，比去年第二季成長 250 個基點。我們看到了定價帶來的好處以及整個業務範圍內銷售的增加。

Industrial operating margin was 12.5% in the second quarter, up 210 basis points. This increase was attributable to the employee retention credit and, to a lesser extent, benefits from pricing initiatives.

第二季工業營業利益率為12.5%，上升210個基點。這一增長歸因於員工保留信用，以及在較小程度上得益於定價舉措的好處。

Nonoperating expenses are also impacting our financial results this quarter. Interest expense and corporate expenses were up a combined $6 million over the same period last year. Interest expense increased due to higher average borrowings and, to a lesser extent, higher interest rates. Corporate expenses increased due to the timing of certain expenses.

非營業費用也影響了我們本季的財務表現。利息支出和公司支出總計比去年同期增加了 600 萬美元。由於平均借款增加以及較小程度的利率上升，利息支出增加。由於某些費用的時間安排，公司費用增加。

Putting it all together, adjusted earnings per share came in at $2.19, considerably above the high end of the range we provided a quarter ago. Removing the benefit of the employee retention credit, earnings per share was up 31% over the same quarter a year ago. Operating profit associated with increased sales, partially offset by increased interest in corporate expenses, drove the increase in earnings per share.

總而言之，調整後每股收益為 2.19 美元，遠高於我們一個季度前提供的區間上限。除去員工保留信用的好處，每股盈餘比去年同期成長了 31%。與銷售額增加相關的營業利潤（部分被公司支出利息增加所抵銷）推動了每股收益的成長。

Let's now shift over to cash flow. Free cash flow for the second quarter was an $84 million use of cash. Our use of cash this past quarter was driven by growth in net working capital. Billed receivables increased due to timing, as we had accelerated collections late in the first quarter and experienced delayed collections late in the second quarter.

現在讓我們轉向現金流。第二季的自由現金流為 8,400 萬美元的現金使用。上個季度我們的現金使用是由淨營運資本的成長所推動的。由於時間安排，應收帳款增加，因為我們在第一季末加速了收款，並在第二季末經歷了延遲收款。

Customer advances also used cash, with a work down of advances across several defense programs. Growth in physical inventories, which is associated with our very strong level of sales, also contributed to the increase in working capital.

客戶預付款也使用現金，並減少了多個國防項目的預付款。實體庫存的成長與我們非常強勁的銷售水準相關，也促進了營運資本的增加。

Capital expenditures were $40 million in the second quarter and include investments in our facilities to support our growth.

第二季的資本支出為 4,000 萬美元，其中包括支持我們成長的設施投資。

Our leverage ratio calculated on a net debt basis as of the end of the second quarter was 2.3x, which is within our target range. Our capital deployment priorities, both long term and near term, are unchanged. Our current priority continues to be investing in organic growth.

截至第二季末，我們以淨負債計算的槓桿率為2.3倍，在我們的目標範圍內。我們的資本部署優先事項，無論是長期或近期，都沒有改變。我們目前的首要任務仍然是投資於有機成長。

We'll now shift over to our updated guidance for this year. We're raising our sales, adjusted operating margin and adjusted earnings per share guidance for FY '24 based on the strong sales level we achieved in the second quarter, and the incorporation of the employee retention credit into our operating margin and earnings per share results.

我們現在將轉向今年的更新指南。基於我們在第二季度實現的強勁銷售水平，以及將員工保留信用納入我們的營業利潤率和每股收益業績，我們正在提高24 財年的銷售額、調整後營業利潤率和調整後每股收益指引。

Fiscal year 2024 is shaping up to be another great year of financial performance, and we're on track to achieve our long-term financial targets. This year, our sales will grow by 7%, adjusted operating margin will expand by 150 basis points and adjusted earnings per share will increase by 18%.

2024 財年將成為財務表現又一個偉大的一年，我們有望實現長期財務目標。今年，我們的銷售額將成長 7%，調整後的營業利潤率將擴大 150 個基點，調整後的每股盈餘將成長 18%。

We're projecting sales of $3.55 billion in FY '24, with sales growth in 3 of our 4 segments. Commercial Aircraft sales will grow related to the production ramp on wide-body and other programs. Military Aircraft sales will increase due to having a full year's worth of FLRAA sales. Space and Defense sales will increase due to strong defense demand. Sales in Industrial will decrease, associated with the softening industrial automation market.

我們預計 24 財年的銷售額將達到 35.5 億美元，其中 4 個細分市場中的 3 個細分市場的銷售額將實現成長。商用飛機的銷售量將隨著寬體機和其他項目的產量增加而成長。由於 FLRAA 全年銷量，軍用飛機銷量將會增加。由於國防需求強勁，太空和國防銷售將增加。由於工業自動化市場疲軟，工業銷售將下降。

We're increasing our guidance for FY '24 sales by $50 million from 90 days ago. We're increasing our sales guidance for Military Aircraft by $30 million to reflect the current run rate of sales for the segment.

我們將 24 財年的銷售額指引比 90 天前增加了 5,000 萬美元。我們將軍用飛機的銷售指導增加了 3000 萬美元，以反映該細分市場當前的銷售運行率。

For Industrial, we're increasing our sales guidance by $25 million to reflect the strong level of sales in the second quarter, while still allowing for the expected softness in industrial automation in the back half of the year.

對於工業，我們將銷售指導提高了 2500 萬美元，以反映第二季度的強勁銷售水平，同時仍考慮到下半年工業自動化的預期疲軟。

For Commercial Aircraft, we're increasing our sales guidance by $10 million to reflect the strength of our aftermarket business.

對於商用飛機，我們將銷售指導提高了 1000 萬美元，以反映我們售後市場業務的實力。

We're reducing our sales guidance for Space and Defense by $15 million due to program timing and supply chain constraints.

由於專案時間表和供應鏈限制，我們將太空和國防領域的銷售指導減少了 1500 萬美元。

Let's shift over to operating margins. We're projecting our operating margin in FY '24 to be 12.4%. We're increasing our guidance by 40 basis points to reflect the benefit associated from the employee retention credit.

讓我們轉向營業利潤率。我們預期 24 財年的營業利益率為 12.4%。我們將指導值提高了 40 個基點，以反映與員工保留積分相關的收益。

We're also adjusting our guidance between segments, with a lift in Commercial Aircraft due to a more favorable sales mix, offset by a decrease in Space and Defense to reflect current financial performance. This results in operating margins of 13.4% in Space and Defense, 12.0% in Military Aircraft, 11.1% in Commercial Aircraft and 12.6% in Industrial.

我們也正在調整細分市場之間的指導，商用飛機由於更有利的銷售組合而有所提升，但被航太和國防領域的下降所抵消，以反映當前的財務表現。這導致航太和國防領域的營業利潤率為 13.4%，軍用飛機領域為 12.0%，商用飛機領域為 11.1%，工業領域為 12.6%。

For FY '24, we're projecting adjusted earnings per share of $7.25 plus or minus $0.20. We've increased our guidance from 90 days ago by $0.35, of which $0.33 relates to the employee retention credit. Our earnings per share guidance also reflects earnings associated with now higher forecasted sales, partially offset by increases in nonoperating expenses.

對於 24 財年，我們預計調整後每股收益為 7.25 美元上下 0.20 美元。我們將 90 天前的指導意見增加了 0.35 美元，其中 0.33 美元與員工保留積分相關。我們的每股盈餘指引也反映了與目前較高的預測銷售額相關的收益，部分被非營業費用的增加所抵銷。

For the remaining quarters this year on average, earnings per share will be roughly in line with that of the second quarter after adjusting for the benefits associated with the employee retention credit and the sale of -- associated with a mature military aircraft platform as well as pressures from the winter storm.

今年剩餘季度的平均每股收益將與第二季度大致持平，調整了與員工保留信貸和銷售相關的福利——與成熟的軍用飛機平台以及來自冬季風暴的壓力。

We're projecting third quarter earnings per share to be $1.70 plus or minus $0.10.

我們預計第三季每股收益為 1.70 美元上下 0.10 美元。

Compared to FY '23, earnings per share will be up 18%. This reflects growth in the business, strong operational performance and the employee retention credit, partially offset by higher nonoperating expenses and a higher effective tax rate.

與 23 財年相比，每股收益將成長 18%。這反映了業務的成長、強勁的營運業績和員工保留信用，但部分被較高的非營運費用和較高的有效稅率所抵消。

Finally, turning to cash. We're projecting free cash flow for FY '24 to be modest as previously guided, though the situation is more pressured than it was 90 days ago.

最後，轉向現金。我們預計 24 財年的自由現金流將按照先前的指導保持適度，儘管情況比 90 天前面臨更大的壓力。

In the back half of the year, we'll see relief in physical inventories with increased billing opportunities, in particular within Commercial Aircraft. This will put pressure on billed receivables. We'll continue to work down customer advances, and we're not anticipating significant advances from customers in the remainder of this year.

今年下半年，我們將看到實體庫存隨著計費機會的增加而減少，特別是在商用飛機領域。這將對應收帳款造成壓力。我們將繼續減少客戶預付款，我們預計今年剩餘時間內客戶不會出現重大預付款。

For all of FY '24, we're projecting capital expenditures of $165 million, down somewhat from our previous guidance.

對於 24 財年，我們預計資本支出為 1.65 億美元，略低於我們先前的指引。

Overall, our second quarter financial performance was strong, and we're confident in our outlook for the year.

整體而言，我們第二季的財務表現強勁，我們對今年的前景充滿信心。

And now I'll turn it over to Pat.

現在我會把它交給派特。

Thank you, Jennifer. I am really very pleased with our exceptional performance this quarter, and I look forward to continued strength through the year. We continue to deliver improved financial performance. Now let's take your questions.

謝謝你，詹妮弗。我對我們本季度的出色表現感到非常滿意，並期待在這一年中繼續保持強勁勢頭。我們持續改善財務表現。現在我們來回答大家的問題。

(Operator Instructions) And our first question today will come from Michael Ciarmoli, with Truist Securities.

（操作員說明）今天我們的第一個問題將來自 Truist Securities 的 Michael Ciarmoli。

Nice results. I just -- maybe -- you talked a lot about the 80/20. Can you kind of put that maybe or give us a little bit more tangible detail or quantify what you're seeing, learning or realizing? And I guess you called out the credit as a driver to margins, but maybe on that core margin expansion, is there any way to attribute what's coming directly from 80/20? What's coming from pricing or any additional detail you could provide us there?

不錯的結果。我只是——也許——你談論了很多關於 80/20 的事情。你能說一下或給我們一些更具體的細節或量化你所看到的、學到的或意識到的嗎？我猜您將信貸稱為利潤率的驅動因素，但也許在核心利潤率擴張方面，有什麼方法可以直接歸因於 80/20 的結果嗎？您可以在那裡向我們提供什麼定價或任何其他詳細資訊？

Yes, absolutely, Michael, welcome. Thanks for the question. I've used the language in the call that 80/20 is central to what we're doing on our improvement activities. And I think it influences our business decisions and our use of other tools to drive improvement within the organization.

是的，當然，邁克爾，歡迎。謝謝你的提問。我在電話會議中使用了這樣的語言：80/20 是我們改善活動的核心。我認為它會影響我們的業務決策以及我們使用其他工具來推動組織內部的改進。

If I think about this quarter, and aside from the ERC boost that we had in the quarter, the rest of the improvement I can contribute to equally about pricing and on the other hand, simplification. So it is making a real impact on our business.

如果我考慮這個季度，除了我們在本季度獲得的 ERC 提升之外，我可以在定價和簡化方面做出同樣的貢獻。因此，它對我們的業務產生了真正的影響。

If I think about some of the business decisions we've made based on it, the decision to exit the C-5 transport aircraft aftermarket is a result of taking a look at the business through an 80/20 lens, and defining which are the customers that are really impactful and important to us as a business and the product lines that they are driving demand for, and then trying to make sure we are able to put the resources we need into those A customers and A products. And in this case, it meant that we decided to sell that C-5 product line. So I think that's one example of a business decision arising from taking an 80/20 lens to look at the business.

如果我考慮一下我們在此基礎上做出的一些業務決策，退出 C-5 運輸機售後市場的決定是透過 80/20 視角審視業務並確定哪些業務的結果。重要的客戶以及他們推動需求的產品線，然後努力確保我們能夠將我們需要的資源投入這些A 客戶和A 產品。在這種情況下，這意味著我們決定出售 C-5 產品線。所以我認為這是以 80/20 的視角來看待業務所做的業務決策的一個例子。

I think in other parts of the organization, as we've deployed 80/20, it has allowed us to create segmented P&Ls where we take a look at the operations within that facility and without having to do activity-based costing, we are actually beginning to attribute costs much more accurately to the product lines and the customers that we're supporting and in some cases, identifying opportunities to highlight areas of weakness, maybe that we didn't see previously with our cost allocation system. So we're getting a truer reflection of what it actually costs to support businesses and then we're making decisions on those. That, I think, is helping drive our margin improvement.

我認為在組織的其他部分，由於我們部署了 80/20，它使我們能夠創建分段損益表，我們可以在其中查看該設施內的運營情況，而無需進行基於活動的成本核算，我們實際上開始更準確地將成本歸因於我們所支援的產品線和客戶，在某些情況下，識別機會來突出弱點領域，這也許是我們之前在成本分配系統中沒有看到的。因此，我們正在更真實地反映支持企業的實際成本，然後我們就這些做出決策。我認為，這有助於推動我們的利潤率提高。

Got it. That's really good color. And then just shifting on to commercial aircraft and production rates. Obviously, you're not as exposed to the MAX, given your shipset. But any color you can maybe provide us in terms of where you're shipping? It certainly sounds like in the near term, maybe 787 is a bit weaker. I think we've got some positive signals out from Airbus yesterday where they want to take A350 rate, but maybe any color you could provide us on current shipping rates and if there's any risk of maybe just some near-term inventory to build as some of these issues are kind of sorted out between maybe on the narrow-body side and that 87 (sic) [787].

知道了。這顏色確實不錯啊然後轉向商用飛機和生產率。顯然，考慮到你的船組，你並沒有接觸到 MAX。但是您可以向我們提供您的發貨地點的任何顏色嗎？聽起來確實在短期內，787 可能會稍微弱一些。我認為我們昨天從空中巴士公司發出了一些積極的信號，他們希望採取 A350 的價格，但也許您可以向我們提供有關當前運費的任何顏色，以及是否存在可能只是建立一些近期庫存的風險。問題在窄體方面和87（原文如此）[787] 之間得到了解決。

Yes. You're right. Our exposure is more weighted towards the widebody side on the 787, A350. We are continuing to manufacture in alignment with the schedules that both Boeing and Airbus have provided to us. We haven't seen any communications from Boeing at this point as a change in our plans. We're currently running at rate 5 on the 787. And we've said previously that we intended to ramp that up towards 8 in the current fiscal year. So that's the path we're on.

是的。你說得對。我們的曝光更著重於 787、A350 的寬體機側。我們將繼續按照波音和空中巴士向我們提供的時間表進行生產。目前，我們還沒有看到波音公司發出任何關於我們計劃發生變化的信息。目前 787 的運行速度為 5。這就是我們正在走的路。

I should point decide at some point that they want to adjust their rate, there needs to be conversations, obviously, with the supply chain about that. And I think Boeing have already acknowledged that they don't want to create supply chain instability, and we want to be able to ramp up to the level they want to get. We still want to get 10 by fiscal '26. So yes, we're pretty stable at the home. We don't see any impact on our fiscal '24 numbers.

我應該在某個時候決定他們想要調整他們的費率，顯然需要與供應鏈就此進行對話。我認為波音公司已經承認他們不想造成供應鏈不穩定，我們希望能提高到他們想要的水平。我們仍然希望在 26 財年之前達到 10 個。所以是的，我們在家裡相當穩定。我們認為這對我們的 24 財年數字沒有任何影響。

And we'll take our next question from Jack Ayers with TD Cowen.

我們將回答傑克艾爾斯和 TD Cowen 提出的下一個問題。

Guys, I'm on for Cai today. Nice results. I just wanted to ask about free cash flow. I think in the quarter, it came in a little bit light relative to Street expectations. So Jennifer, I just wanted to see if you could maybe unpack that a little bit, talk about some of that unwind in the back half? And maybe just sequentially, where we go from here, maybe we can just reset expectations a little bit.

各位，今天我來找蔡。不錯的結果。我只是想問一下自由現金流。我認為本季的情況相對於華爾街的預期來說有點輕微。所以詹妮弗，我只是想看看你是否可以稍微解開一下，談談後半部分的一些放鬆？也許只是按順序，我們從這裡開始，也許我們可以稍微重新調整期望。

And to your point, about '24 moderate free cash flow, is that still positive or negative? Any color on cash in '24 would be helpful.

就你的觀點而言，關於 24 年適度的自由現金流，這仍然是正數還是負數？ 24 年現金上的任何顏色都會有幫助。

Of course, Jack. Yes, we definitely had pressure on our free cash flow in this quarter. It all came through our working capital. So our working capital grew, and that's the source of our pressure.

當然，傑克。是的，本季我們的自由現金流確實面臨壓力。這一切都來自我們的營運資金。所以我們的營運資金增加了，這就是我們壓力的來源。

There's three main areas that we had pressure this quarter. One was in our bills receivables. So that pressure that we saw in Q2 was due to the timing of collections. So back in the first quarter, we had very favorable collections where some collections that were going to be in Q2 moved into Q1. So that actually put us at a little bit tight squeeze to start the quarter.

本季我們在三個主要領域面臨壓力。其中之一是我們的應收票據。因此，我們在第二季度看到的壓力是由於收款時間造成的。因此，早在第一季度，我們就有了非常有利的產品系列，其中一些原本要在第二季推出的產品系列轉移到了第一季。因此，這實際上讓我們在本季開始時面臨一些緊張的局面。

And then we had the opposite thing happened this quarter, where there are some things that we expected to receive at the end of this quarter, got pushed out into the beginning of Q3 that we collected in the first week. So those are things that we got pressure on build receivables. It's really a timing issue and those collections that we had expected at the end of the second quarter actually came in very early in the third quarter, so we know that, that is coming back and normalizing. So that's a timing issue that we saw.

然後我們在本季度發生了相反的事情，我們預計在本季末收到的一些東西被推遲到了我們在第一周收集的第三季初。這些都是我們在建立應收帳款方面所面臨的壓力。這確實是一個時間問題，我們預計在第二季末收集的產品實際上在第三季很早就出現了，所以我們知道，這種情況正在回歸併正常化。這就是我們看到的時間問題。

Physical inventories is where we saw some real pressure. Our strong level of sales contributed to that, especially on areas where we do our long-term contracts, which is most of our businesses, with the exception of Industrial in general. So our strong level of sales there essentially, it drove up our sales and it drove up our unbilled, which gets into our physical inventories. So with that record level of sales, came a high level of pressure on our unbilled receivables and our physical inventories.

實體庫存是我們看到一些真正壓力的地方。我們強勁的銷售水平促成了這一點，特別是在我們簽訂長期合約的領域，這是我們的大部分業務，但一般工業除外。因此，我們在那裡的強勁銷售水準本質上提高了我們的銷售額，也提高了我們的未開票金額，這進入了我們的實體庫存。因此，隨著創紀錄的銷售水平，我們的未開票應收帳款和實體庫存面臨很大的壓力。

The other source of pressure on our working capital was in our customer advances. In the first quarter, we received very strong receipts. Those started to work down. This part was expected, work down in our defense programs. We saw that work down happening in Military Aircraft and the Defense part of our Space and Defense segment as well. So we saw that work down, so that's again pressure that we had.

我們營運資金的另一個壓力來源是我們的客戶預付款。在第一季度，我們收到了非常強勁的收入。那些開始起作用了。這部分是預期的，在我們的國防計劃中進行。我們看到軍用飛機以及太空和國防部門的國防部分也發生了這種情況。所以我們看到這項工作下降了，這又是我們面臨的壓力。

As we look into the second quarter, we're going to continue to work down our customer advances. We don't have anything planned to come in from a customer advances standpoint as a receipt from customer in the back half of the year.

當我們展望第二季時，我們將繼續努力降低客戶預付款。從客戶預付款的角度來看，我們沒有計劃在今年下半年收到任何客戶的收據。

However, we will have some billing opportunities in Commercial, also in our Military business, and that's going to move our unbilled receivables down. First, physical inventories are going to go down in the back half of the year. Some of that is going to turn to pressures in our build part of our business, due to the terms that we have on the commercial side, though other parts will actually come through as cash.

然而，我們在商業和軍事業務中將有一些計費機會，這將使我們的未開票應收帳款下降。首先，下半年實體庫存將會下降。由於我們在商業方面的條款，其中一些將轉化為我們業務建設部分的壓力，儘管其他部分實際上將以現金形式實現。

The other thing that will get a benefit on in the back half of the year is the timing of our compensation benefit of payments. That's just a timing thing. It's happened. It's easily predictable as far as where that goes.

下半年將受益的另一件事是我們支付補償金的時間。這只是一個時間問題。它發生了。就其走向而言，很容易預測。

So as we look into the back half of the year, we are looking to have some relief in our physical inventories, but to have some pressure in our billed receivables and our customer advances.

因此，當我們展望今年下半年時，我們希望實體庫存有所緩解，但應收帳款和客戶預付款面臨一些壓力。

We are still projecting that our free cash flow for FY '24 will be modest. Modest means a low level of cash -- free cash flow inflow, so a positive number, something above 0. So we are still projecting that. But based on our Q2 sales growth, that really put pressure on our second quarter working capital. It's more pressured than it was 90 days ago.

我們仍預期 24 財年的自由現金流將會適度。適度意味著現金水準較低——自由現金流流入，因此是一個正數，大於 0。但根據我們第二季的銷售成長，這確實給我們第二季的營運資金帶來了壓力。與90天前相比，壓力更大了。

Okay. Perfect. I really appreciate all the building blocks there. And just as a follow-up, if I may, and this could be for Pat or Jennifer, I think there was maybe a news release a couple of weeks ago about your space vehicle program and maybe a potential suit with one of your customers. Like I'm wondering if you can maybe just give us an update on there? I saw there were no sort of major charges there this quarter. So if you could maybe unpack that, how we move forward and any next steps with respect to that lawsuit from your customer?

好的。完美的。我真的很欣賞那裡的所有構建模組。作為後續行動，如果可以的話，這可能是針對帕特或詹妮弗，我認為幾週前可能發布了一份關於您的太空飛行器計劃的新聞稿，並且可能與您的一位客戶提出了潛在的訴訟。我想知道你是否可以提供我們最新情況？我發現本季沒有發生重大費用。那麼，如果您可以解開這個問題，我們將如何進行以及針對您客戶的訴訟的後續步驟？

Okay. Thanks, Jack. I'll take that question. So yes, we're aware of the suit, obviously, filed by L3Harris. We're not going to publicly comment on the allegations, the specifics of those during the call. We will vigorously defend ourselves, of course, against those allegations.

好的。謝謝，傑克。我來回答這個問題。所以，是的，我們顯然知道 L3Harris 提起的訴訟。我們不會公開評論這些指控以及通話期間的具體內容。當然，我們將針對這些指控積極為自己辯護。

But I'd like to point out looking forward that we continue to support L3Harris and their important work that they're doing, and we have a number of other space vehicle programs running with them at the moment. I referred to the large book of business we had on space vehicles on previous calls. That work continues despite this issue that we're working through.

但我想指出，我們將繼續支援 L3Harris 及其正在進行的重要工作，目前我們還有許多其他太空船專案與他們一起運作。我在之前的電話會議中提到了我們關於太空飛行器的大量業務手冊。儘管我們正在解決這個問題，但這項工作仍在繼續。

Got it. And Jennifer, that -- the unbilled in the quarter, was that related maybe? Or could you maybe give some specifics there, whether it wasn't or it was.

知道了。詹妮弗，那個——本季未開票的，可能有關係嗎？或者您能否提供一些具體信息，無論是不是。

The growth in the unbilled receivables is really due to the strong sales that we had throughout our book of business. So we had record levels of sales, and because most of our business is on long-term contracts, that's actually sitting in unbilled until we are able to bill those for them to shift into billed receivables and then collect them on their level of term. So it's really related to our sales growth.

未開票應收帳款的成長實際上是由於我們整個業務範圍內的強勁銷售。因此，我們的銷售水平達到了創紀錄的水平，而且因為我們的大部分業務都是長期合同，所以實際上這些合同一直處於未開票狀態，直到我們能夠為他們開出賬單，將其轉變為開票應收帳款，然後依期限收取。所以這確實與我們的銷售成長有關。

(Operator Instructions) And we'll take our next question from Tony Bancroft with Gabelli Funds.

（操作員說明）我們將接受 Gabelli Funds 的 Tony Bancroft 提出的下一個問題。

Pat and Jennifer, you guys have done a great job. I'm trying to see what's -- where do you see sort of the next phase is? Obviously, you've just excelled and pretty much everything you're doing here. Is there something that you see as transformational in your business, either that you own now and want to focus more on or somewhere or something out there that another business that you think would make sense if combined with you could sort of take you the next level of growth or a bigger, more robust business?

帕特和詹妮弗，你們做得很好。我想知道什麼是——你認為下一階段會在哪裡？顯然，你在這裡所做的一切都表現出色。您認為您的業務中是否有一些具有變革性的業務，無論是您現在擁有的並且希望更多關注的業務，還是您認為與您結合起來有意義的其他業務，或者其他業務，您認為可以將您帶入下一個層次成長還是更大、更強勁的業務？

Yes. Tony, welcome to the call. Our focus and our priority is to deliver on the margin enhancement work that we outlined at the Investor Day meeting in last June. And I think we're demonstrating, we're making good solid progress against that. We've got more work to do. I mean we said we could increase the margins 100 basis points per year from now through fiscal '26. That's still the path we're on. The results are demonstrating we can do it. We have more work to do, and I don't want to distract from that. So to be honest, it's my priority at the moment to continue to deliver on what we've already promised.

是的。東尼，歡迎您的來電。我們的重點和首要任務是實現我們在去年 6 月的投資者日會議上概述的提高利潤率的工作。我認為我們正在證明，我們正在為此取得堅實的進展。我們還有更多工作要做。我的意思是，我們說過從現在到 26 財年，我們可以每年將利潤率提高 100 個基點。這仍然是我們正在走的路。結果證明我們可以做到。我們還有更多工作要做，我不想分散注意力。所以說實話，我目前的首要任務是繼續兌現我們已經做出的承諾。

And our next question comes from Kristine Liwag with Morgan Stanley.

我們的下一個問題來自摩根士丹利的克里斯汀·利瓦格。

This is Justin on for Kristine this morning. On -- back on free cash flow, maybe just looking beyond this year, you have the 75% to 100% conversion target out there from the Investor Day for FY '25. I mean, do you see any new risks here that might take a little bit longer now for some of the working capital pressures to roll off at all?

這是賈斯汀今天早上為克里斯汀做的。回到自由現金流，也許只是展望今年，從 25 財年投資者日起，您就可以實現 75% 到 100% 的轉換目標。我的意思是，您是否認為這裡有任何新的風險，這些風險現在可能需要更長的時間才能完全消除一些營運資金壓力？

Generally, I think it's going to be somewhat -- there's not a significant change in our assumptions as everything goes. Obviously, any changes in market conditions can certainly affect that. We'll be providing our more detailed guidance of FY '25 in the October, November time frame, along with our earnings release for the fourth quarter.

總的來說，我認為隨著一切的進展，我們的假設不會有重大變化。顯然，市場條件的任何變化肯定會影響這一點。我們將在 10 月、11 月的時間範圍內提供 25 財年更詳細的指導，以及第四季的收益發布。

Okay. That makes sense. And then, Pat, you mentioned upfront about the backlog growth. Can you just talk maybe a little bit about the biggest contributors there? And then you also mentioned the supplemental defense spending packages. Is there anything specific in there to call out that is a driver of potential upside for you guys?

好的。這就說得通了。然後，帕特，您預先提到了積壓訂單的增長。能簡單談談其中最大的貢獻者嗎？然後你也提到了補充國防開支計畫。有什麼具體的東西可以指出這對你們來說是潛在的上升動力嗎？

If I look to the backlog, I mean, the change in our backlog is really the strengthening on the Commercial Aerospace side and the Defense businesses over the course of the last year. I think slight weakening on the Industrial side as well, reflective of the slowdown in orders that we have described as well. So it's Commercial and Defense, up; Industrial, slightly down. So that's on the backlog side.

如果我看看積壓訂單，我的意思是，我們積壓訂單的變化實際上是去年商業航空航天方面和國防業務的加強。我認為工業方面也略有疲軟，這也反映了我們所描述的訂單放緩。所以這是商業和國防，向上；工業，略有下降。這就是積壓方面。

And in terms of the budgets that were mentioned, the DoD fiscal year, our calendar year '25 budget going up, that's really highlighting and supporting some of those strategic programs, next-generation aerial defense and CCAs and things like that.

就所提到的預算而言，國防部財政年度，我們的日曆年'25預算增加，這確實強調和支持其中一些戰略計劃，下一代防空和CCA等等。

I mean, we are a leading provider of primary flight control systems, and we have a role to play in all of those long-term programs, how they actually pan out. We are committed to supporting whatever is required in those.

我的意思是，我們是主要飛行控制系統的領先供應商，我們在所有這些長期計劃中發揮作用，以及它們的實際效果。我們致力於支持這些方面的任何需求。

And also general industry support as well as the funding has started to come through now for Ukraine and the Middle East. We are responding to the increased level of demand that, that is enabling. And so we've talked previously in some of our calls about the pickup of broad-based pickup we're seeing in the defense businesses. That is continuing for sure.

烏克蘭和中東的一般產業支援和資金現在也已開始到位。我們正在應對日益增長的需求，這使得我們能夠實現這一目標。因此，我們之前在一些電話中談到了我們在國防業務中看到的廣泛基礎的回升。這肯定會持續下去。

Got it. And then just last clarifying question. You mentioned the CCA, and we saw this award earlier this week for the Increment 1. Are you partnered with any of those prime providers on the program at this stage?

知道了。然後是最後一個澄清問題。您提到了 CCA，我們本週早些時候看到了增量 1 的獎項。

We are not on either of those 2. There we do see other interesting opportunities. One thing that we probably should reflect is that there's a lot of once-in-a-generation type activity going on, and we are spending more of our time and effort and our bid responses in responding to those opportunities that are out there.

我們不在這兩個方面。我們可能應該反思的一件事是，有許多千載難逢的活動正在進行，我們花了更多的時間和精力以及我們的出價回應來應對這些機會。

And that does conclude the question-and-answer session. I'll now turn the conference back over to Mr. Aaron Astrachan for any additional remarks.

問答環節到此結束。現在，我將把會議轉回給 Aaron Astrachan 先生，請他發表補充意見。

This is Pat. Actually, I'll conclude the call. Thank you for taking your time and joining us. I think, as I said earlier, we had an exceptional quarter. We think we have really good momentum built for this fiscal year, and we'll continue to deliver on the improvement activities that we've been describing. So thank you, and I look forward to meeting you again on the next investor call.

這是帕特。事實上，我會​​結束通話。感謝您抽出寶貴時間加入我們。我認為，正如我之前所說，我們度過了一個出色的季度。我們認為本財年的勢頭非常好，我們將繼續實施我們一直在描述的改進活動。謝謝您，我期待在下次投資者電話會議上再次見到您。

Thank you. And that does conclude today's conference. We do thank you for your participation, and have an excellent day.

謝謝。今天的會議到此結束。我們非常感謝您的參與，祝您有個愉快的一天。