Moog Inc (MOG.A) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Moog third-quarter fiscal year 2024 earnings conference call. Today's conference is being recorded.

早安，歡迎參加穆格 2024 財年第三季財報電話會議。今天的會議正在錄製中。

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

現在，我想把會議交給 Aaron Astrachan 先生。請繼續。

Good morning, and thank you for joining Moog's third-quarter 2024 earnings release conference call. I'm 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 年第三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 comment today may include statements related to expected future results and other forward-looking statements which are not guaranteed. 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以及其他無法保證的前瞻性陳述。我們的實際結果可能與我們的前瞻性聲明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 another strong quarter demonstrating very positive progress towards improved financial performance.

早安，歡迎您的來電。今天，我們報告了另一個強勁的季度，顯示在改善財務表現方面取得了非常積極的進展。

Sales were strong, with double-digit growth in defense and mid-single-digit growth in commercial and markets. Industrial, which has been a watch item, held ground despite softening in automation. Adjusted operating margin was up substantially. This reflects moving beyond our space vehicle charges, a ramp in better-priced commercial business, and greater productivity, as future long-range assault aircraft expands. Adjusted diluted earnings per share increased by almost 40% relative to prior year, driven by margin enhancement initiatives and profitable sales growth.

銷售強勁，國防領域實現兩位數成長，商業和市場領域實現中個位數成長。儘管自動化程度有所疲軟，但一直屬於鐘錶專案的工業產品仍然堅守陣地。調整後營業利益率大幅上升。這反映了隨著未來遠程攻擊機的擴展，我們的太空飛行器費用已經超出了我們的預期，價格更優惠的商業業務的增長以及生產力的提高。在利潤率提升措施和獲利銷售成長的推動下，調整後的稀釋每股收益較上年增長近 40%。

Cash flow improved on the prior year. With three strong quarters behind us, we look forward with confidence to closing out fiscal '24 as another record year in which we deliver improved financial performance. We're increasing our revenue guidance, holding our adjusted operating margin guidance, and increasing our adjusted diluted earnings per share guidance for fiscal '24.

現金流較上年有改善。三個強勁的季度已經過去，我們滿懷信心地期待 24 財年結束時將成為另一個創紀錄的年份，我們將在這一年中實現更好的財務業績。我們正在提高 24 財年的營收指引，維持調整後的營業利潤率指引，並提高調整後的稀釋每股盈餘指引。

Now, I'll provide some highlights on our operational performance, starting with customer focus. We recently had the opportunity to meet with commercial and military customers, suppliers, and partners at the Farnborough International Air Show and the Royal International Air Tattoo. These engagements were incredibly important to enhance communications and strengthen working relationships as we continue to manage the growth in both markets.

現在，我將從以客戶為中心開始，重點介紹我們的營運績效。最近，我們有機會在範堡羅國際航空展和皇家國際航空展上與商業和軍事客戶、供應商和合作夥伴會面。隨著我們繼續管理兩個市場的成長，這些活動對於加強溝通和加強工作關係非常重要。

At Farnborough, we announced new airline support contracts with Lufthansa, Austrian Airlines, Hawaiian Air, Finnair PLC, and Finnair Technical Services, expanding our commercial aftermarket business. In June, we met with defense customers, suppliers, and partners at Eurosatory in Paris. This is the largest international exposition for land and air defense held every two years. Our customers signaled near-term growth not seen in decades that is driven by the need to build out defensive strength in Europe. This is creating increased interest in our field-proven products and opening opportunities for platform modernization.

在範堡羅，我們宣布與漢莎航空、奧地利航空、夏威夷航空、芬蘭航空 PLC 和芬蘭航空技術服務公司簽訂新的航空公司支援合同，擴大我們的商業售後市場業務。六月，我們在巴黎 Eurosatory 會見了國防客戶、供應商和合作夥伴。這是每兩年舉辦一次的規模最大的國際陸空防務博覽會。我們的客戶表示，由於需要增強歐洲的防禦實力，因此出現了數十年來未見的近期成長。這增加了人們對我們經過現場驗證的產品的興趣，並為平台現代化提供了機會。

Our dedicated subsidiary received its full and final facility security clearance at the end of June, enabling it to receive new classified program contract awards. We're excited to work with our customers on new opportunities that apply our unique systems capabilities to solve our nation's most challenging technical problems.

我們的專門子公司於 6 月底獲得了完整的最終設施安全許可，使其能夠獲得新的機密專案合約。我們很高興與客戶合作，利用我們獨特的系統功能來解決我們國家最具挑戰性的技術問題的新機會。

Moving to people, community, and planet, in June, I visited San Jose, Costa Rica, home to the largest of our three medical device facilities. Clarity of purpose to enhance healthcare and enrich patients' lives continues to be a powerful motivator for our medical employees. This focus has driven a decade of continuous improvement, leading to a reputation as a reliable partner that has secured market share growth, enhanced productivity that has doubled throughput in the facility, and secured a Bronze Shingo award.

轉向人、社區和地球，六月，我訪問了哥斯達黎加的聖何塞，這是我們三個醫療設備設施中最大的一個的所在地。加強醫療保健和豐富患者生活的明確目標仍然是我們醫務人員的強大動力。這種專注推動了十年來的持續改進，贏得了可靠合作夥伴的聲譽，確保了市場份額的成長，提高了生產力，使工廠的吞吐量翻了一番，並獲得了 Shingo 銅獎。

Costa Rica is a notable example of a purpose-driven organization delivering sustainable business performance through lean. While in San Jose, we visited a childcare facility run by a local charity within one of the most challenged communities. We are delighted that our contributions helped provide a hot meal and peace of mind for parents who struggle to make ends meet.

哥斯達黎加是目標驅動型組織透過精實交付永續業務績效的顯著例子。在聖荷西期間，我們參觀了當地慈善機構在最困難的社區之一運作的兒童保育機構。我們很高興我們的捐款幫助為入不敷出的父母提供了一頓熱飯，讓他們安心。

Another community project helping the next generation is addressing the availability of clean drinking water in Baguio City, which is a water-stressed region. Our donation and volunteer effort provided a local school 1,000 liters, or just over 260 gallons, per hour of clean, safe drinking water that will, on an ongoing basis, sustain around 1,800 people. Baguio City in the Philippines is an important manufacturing location for Moog.

另一個幫助下一代的社區計畫是解決碧瑤市缺水地區清潔飲用水的供應。我們的捐贈和志工的努力為當地學校提供了每小時 1,000 公升（即略多於 260 加侖）的清潔、安全飲用水，可以持續滿足約 1,800 人的生活。菲律賓碧瑤市是穆格的重要生產基地。

Continuing this theme, water stress is a growing humanitarian concern. We recognize that water is already a limited and precious resource in many parts of the world and that access to clean water will be even more challenging in future years. Consequently, we have baselined our consumption of water at all manufacturing locations globally. We're committed to reductions, and we'll publish our goal later in this year.

繼續這個主題，水資源壓力是一個日益嚴重的人道主義問題。我們認識到，在世界許多地區，水已經是一種有限且寶貴的資源，未來幾年，獲得清潔水將面臨更大的挑戰。因此，我們制定了全球所有生產基地的用水量基準。我們致力於減少排放，並將在今年稍後公佈我們的目標。

In the meantime, we've already started multiple projects to reduce water consumption. These include improved water stewardship through metering, awareness campaigns on water usage, and rainwater harvesting at several facilities. Our Bengaluru manufacturing facility has already seen a 40% reduction in water consumption.

同時，我們已經啟動了多個減少用水量的專案。其中包括透過計量改善水資源管理、用水宣傳活動以及多個設施的雨水收集。我們的班加羅爾製造工廠的用水量已減少 40%。

And finally, let me move to financial strength. We continue to drive margin enhancement through pricing and simplification. We see impact and growing momentum. We continue to ensure that our pricing reflects the value we create for our customers. We've already made great progress in delivering on our Investor Day plans. The work continues with bottom-up, site-level data analysis and action, complementing top-down large account management.

最後，讓我談談財務實力。我們繼續透過定價和簡化來提高利潤率。我們看到了影響力和不斷增長的勢頭。我們繼續確保我們的定價反映我們為客戶創造的價值。我們在實現投資者日計劃方面已經取得了巨大進展。這項工作繼續進行自下而上的站點級數據分析和行動，以補充自上而下的大客戶管理。

We persist in simplifying our business, further building our 80/20 capability. We've now deployed to almost half of our manufacturing locations, with the addition of a further six sites this quarter. We have trained over 750 leaders, with 200 trained within the quarter. Training has extended to functional leadership, such as finance, who can better support data analytics which enable better informed decision making across the organization.

我們堅持簡化業務，進一步打造80/20能力。我們現在已經部署到幾乎一半的製造地點，本季又增加了六個地點。我們已經培訓了 750 多名領導者，其中本季培訓了 200 名。培訓已擴展到財務等職能領導層，他們可以更好地支援數據分析，從而使整個組織能夠做出更明智的決策。

With the launch of our 80/20 playbook and standardized training programs, we anticipate accelerated deployment to the remaining sites. We now have a talented team of well-trained, dedicated 80/20 champions within the business who are acting as catalysts for this transformation. We're actively developing 80/20 tools and templates to embed the 80/20 mindset into our organizational DNA. This commitment ensures that our approach to 80/20 becomes the fundamental part of how we work and drive sustained success.

隨著我們 80/20 行動手冊和標準化培訓計劃的推出，我們預計將加速部署到其餘站點。我們現在擁有一支訓練有素、敬業的 80/20 業務冠軍團隊，他們是這項轉型的催化劑。我們正在積極開發 80/20 工具和模板，將 80/20 思維方式嵌入到我們的組織 DNA 中。這項承諾確保我們的 80/20 方法成為我們工作和推動持續成功的基本組成部分。

On footprint and portfolio-shaping activities, we took changes in the charges in the quarter arising from ongoing consolidation of our Radford, Virginia, facility into our Murphy, North Carolina, facility. Murphy is a focused factory for industrial motors, having transferred avionics products out of that site over the last year. The sales of two small European businesses near completion, and we expect both to close in the coming quarter.

在足跡和投資組合塑造活動方面，我們對本季的費用進行了調整，因為我們正在將弗吉尼亞州雷德福工廠合併到北卡羅來納州墨菲工廠。墨菲是一家專注於工業電機的工廠，去年已將航空電子產品從該工廠轉移出去。兩家歐洲小型企業的銷售即將完成，我們預計兩家企業都將在下個季度關閉。

Now, turning to macroeconomic and end market conditions, we're still in the midst of ongoing conflicts in Europe and the Middle East. The war in Ukraine has become a war of attrition. This reality drives the pressing need to replenish depleted arsenals. The shifting geopolitical reality is leading to growing security concerns in Europe, where nations are increasing their defense spending, and in Asia-Pacific, where a conflict would require a different balance of capabilities. As a result, we're seeing strong broad-based demand in defense and notable strengthening in Europe.

現在，轉向宏觀經濟和終端市場狀況，我們仍處於歐洲和中東持續不斷的衝突之中。烏克蘭戰爭已成為消耗戰。這一現實推動了補充耗盡的核武庫的迫切需求。不斷變化的地緣政治現實導致歐洲和亞太地區的安全疑慮日益加劇，歐洲各國正在增加國防開支，而亞太地區的衝突則需要不同的能力平衡。因此，我們看到了廣泛的強勁國防需求以及歐洲的顯著加強。

In the United States, a limited increase in the Department of Defense budget is anticipated in calendar year 2025. Given the inflationary pressure, this means difficult prioritization decisions in the near term. This could result in replenishment and sustainment being favored over some long-term strategic programs for a limited time.

在美國，預計 2025 年國防部預算將有限成長。考慮到通膨壓力，這意味著短期內很難做出優先事項決定。這可能會導致在有限時間內補給和維持比某些長期策略計畫更受青睞。

Despite this budgetary context, we have strong platform positions. We continue to ramp up our engineering efforts on FLARA, and as Bill has indicated, that the next program milestone is imminent, making FLRAA a program of record. Lockheed has resumed deliveries of F-35s to the United States government and is bullish about foreign military sales. And we've continued to deliver on our remote integrated weapons platform.

儘管有這樣的預算背景，我們仍擁有強大的平台地位。我們繼續加強 FLARA 的工程力度，正如 Bill 所指出的，下一個計劃里程碑即將到來，使 FLRAA 成為一個創紀錄的計劃。洛克希德公司已恢復向美國政府交付F-35，並看好對外軍售。我們繼續提供我們的遠程綜合武器平台。

As for the longer term, we're seeing once-in-a-generation type opportunities that could become important future platforms for Moog. Within these applications, we can leverage our component and system of systems engineering capabilities. There are multiple examples, starting with sixth-generation fighters and unmanned collaborative aircraft programs in play.

從長遠來看，我們看到了千載難逢的機遇，它們可能成為穆格未來的重要平台。在這些應用程式中，我們可以利用我們的組件和系統工程能力。有很多例子，首先是第六代戰鬥機和無人機協作飛機計畫。

In the United States, opportunities include the Navy's FAXX and the Air Force's next-generation air dominance aircraft. At Farnborough, the tri-nations Global Combat Air Program concept model aircraft was revealed. Whilst there may be uncertainty on budget and timeline, there is clear need for these next-generation aircraft.

在美國，機會包括海軍的 FAXX 和空軍的下一代製空飛機。在範堡羅，三國全球空戰計畫概念模型飛機亮相。儘管預算和時間表可能存在不確定性，但對這些下一代飛機的需求顯然是存在的。

In addition to aerial platforms, there are also next-generation armored vehicle platforms, including the mechanized inventory combat vehicle, known as XM-30, and vehicle modernization programs, such as the United Kingdom's ground-based air defense. Finally, we see ample opportunities for missile, hypersonic, and strategic weapons programs. We look forward to playing our part on these platforms of the future.

除了空中平台之外，還有下一代裝甲車輛平台，包括機械化庫存戰車（XM-30）和車輛現代化計劃，例如英國的陸基防空系統。最後，我們看到了飛彈、高超音速和戰略武器計畫的充足機會。我們期待在未來的這些平台上發揮我們的作用。

Turning to commercial aircraft, the number of people flying continues to increase. Data shows that more people traveled over the last couple of months than pre-pandemic. This is driving aircraft flight hours, and consequently, aftermarket demand is increasing.

轉向商用飛機，搭乘飛機的人數持續增加。數據顯示，過去幾個月出遊的人數比疫情前還要多。這增加了飛機的飛行時間，因此售後市場需求不斷增加。

Whilst Farnborough was light on aircraft orders in general, we did note that 50 787s and 25 A350s were added to the backlog. The focus of industry debate was the ability of Boeing and Airbus to hit targeted build rate, especially for narrow body aircraft. For our part, we are well prepared to meet our customers' planned build rates.

雖然範堡羅機場的飛機訂單總體較少，但我們確實注意到積壓訂單中增加了 50 787 架和 25 架 A350。產業爭論的焦點在於波音和空中巴士是否有能力達到目標建造率，尤其是窄體飛機。就我們而言，我們已做好充分準備來滿足客戶的計劃建造率。

Finally, turning to industrial markets, manufacturing activity in the heart of Europe continues to be weak, affecting our industrial automation business. However, this impact has been partially compensated for by other subsegments, such as simulation and energy. On a positive note, orders in the quarter were higher than the average trailing four quarters.

最後，轉向工業市場，歐洲中心地區的製造業活動持續疲軟，影響了我們的工業自動化業務。然而，這種影響已被其他細分領域（例如模擬和能源）部分補償。從積極的方面來看，本季的訂單高於過去四個季度的平均水平。

Now, let me turn the call over to Jennifer for a detailed review of the financials.

現在，讓我把電話轉給詹妮弗，詳細審查財務狀況。

Thanks, Pat. I'll begin with our third-quarter financial performance. I'll then provide an update on our guidance for FY24.

謝謝，帕特。我將從我們第三季的財務業績開始。然後，我將提供 2024 財年指導的最新資訊。

We had another great quarter from a sales and earnings perspective. Sales of $905 million were very strong. Adjusted operating margin of 12.3% was robust, and adjusted earnings per share of $1.91 exceeded the high end of our guidance range.

從銷售和盈利的角度來看，我們又度過了一個出色的季度。9.05 億美元的銷售額非常強勁。調整後營業利益率為 12.3%，表現強勁，調整後每股收益為 1.91 美元，超出了我們指導範圍的上限。

Sales in the third quarter were 6% higher than last year's third quarter. Aerospace and defense sales were up nicely, while industrial sales were fairly flat. The largest increase in segment sales was in military aircraft. Sales of $207 million were up 18% over the third quarter last year. Activity on the FLRAA tilt rotor aircraft program began to ramp in the third quarter last year and has steadily increased since that time, accounting for half of the increase in military aircraft sales this quarter. In addition, over the past couple of years, certain other development work has shifted into production, and we're now beginning to see the ramp-up in production that will continue for the next few years.

第三季的銷售額比去年第三季高出6%。航空航太和國防銷售成長良好，而工業銷售則相當平穩。軍用飛機領域銷售額增幅最大。銷售額為 2.07 億美元，比去年第三季成長 18%。FLRAA 傾轉旋翼飛機計畫的活動從去年第三季開始加速，此後一直穩定成長，佔本季軍用飛機銷售成長的一半。此外，在過去幾年中，某些其他開發工作已經投入生產，我們現在開始看到產量的增加將在未來幾年持續。

Space and defense sales of $258 million increased 7% over the third quarter last year. There continues to be strong defense demand across our portfolio associated with US defense priorities and European defense needs. In addition, launch vehicle activity increased in our space business.

太空和國防銷售額為 2.58 億美元，比去年第三季成長 7%。我們的產品組合中與美國國防優先事項和歐洲國防需求相關的國防需求仍然強勁。此外，我們的航太業務中的運載火箭活動有所增加。

Commercial aircraft sales of $189 million increased 6% over the same quarter a year ago. This reflects increased production in our wide-body business.

商用飛機銷售額為 1.89 億美元，比去年同期成長 6%。這反映了我們寬體機業務產量的增加。

Industrial sales were $250 million in the third quarter. That's down 1% from the same quarter a year ago or flat when considering the changes in foreign currency rates. Industrial automation sales were down from the very strong quarter a year ago, reflecting a slowdown in order as we've seen in recent quarters.

第三季工業銷售額為 2.5 億美元。考慮到外幣匯率的變化，這一數字比去年同期下降了 1%，或持平。工業自動化銷售額較一年前非常強勁的季度有所下降，反映出訂單放緩，正如我們在最近幾季所看到的那樣。

The other subsegments, energy, simulation and test, and medical, were all up from the third quarter last year. Demand for flight simulation systems continues to be strong. In this quarter, auto test demand drove the increase in this subsegment. We also benefited within medical devices from a competitor's challenges this quarter.

能源、模擬和測試以及醫療等其他細分市場均較去年第三季有所成長。對飛行模擬系統的需求持續強勁。本季度，汽車測試需求推動了該細分市場的成長。本季我們也從競爭對手的挑戰中受益於醫療設備領域。

We'll now shift to operating margins. Adjusted operating margin of 12.3% in the third quarter increased 210 basis points from the third quarter last year. Adjustments to operating profit this quarter and the same quarter a year ago were $6 million and $2 million, respectively. These adjustments reflect restructuring and asset impairment charges, largely in our industrial segment, as we continue to drive simplification.

我們現在轉向營業利潤率。第三季調整後營業利益率為12.3%，較去年第三季提高210個基點。本季和去年同期營業利潤的調整分別為 600 萬美元和 200 萬美元。這些調整反映了重組和資產減損費用，主要是在我們的工業部門，因為我們繼續推動簡化。

Adjusted operating margins increased over the third quarter last year in each of our segments. In space and defense, operating margin increased 490 basis points to 12.7%. This increase is associated with improved performance on space vehicle programs, offered partially by investments to fund once in a generation pursuits.

我們每個部門的調整後營業利潤率均較去年第三季有所成長。在太空和國防領域，營業利益率成長了 490 個基點，達到 12.7%。這一成長與太空船計畫績效的提高有關，部分原因是為一代人的追求提供資金的投資。

The operating margin for military aircraft was 11.9%, up 140 basis points, reflecting cost absorption on the FLRAA program this quarter. Commercial aircraft operating margin was 13.1%, up 190 basis points over the third quarter last year, as we saw benefits from both pricing and volume, as well as mix. Industrial operating margin was 11.7% in the third quarter, up 20 basis points. This increase was attributable to benefits from pricing initiatives, offset by pressures associated with lower industrial automation sales and planned product transfers.

軍用飛機的營運利潤率為 11.9%，成長 140 個基點，反映了本季度 FLRAA 計畫的成本吸收。商用飛機營運利潤率為 13.1%，比去年第三季成長 190 個基點，我們看到了定價、銷售以及組合帶來的好處。第三季工業營業利益率為11.7%，上升20個基點。這一增長歸因於定價措施帶來的好處，但被工業自動化銷售下降和計劃產品轉移相關的壓力所抵消。

Our adjusted effective tax rate in the third quarter was 19.3%, compared to 16.0% in the third quarter last year. We're benefiting from high levels of R&D tax credits and have captured these benefits in our return to provision third-quarter adjustments in both years.

我們第三季調整後的有效稅率為 19.3%，去年第三季為 16.0%。我們受益於高水準的研發稅收抵免，並在這兩年的第三季調整中獲得了這些好處。

Putting it all together, adjusted earnings per share of $1.91 were up 39% over the same quarter a year ago. Operating margin expansion, along with increased operating profit associated with higher sales, drove the increase in earnings per share.

總而言之，調整後每股收益為 1.91 美元，比去年同期成長 39%。營業利潤率的擴張，以及與銷售額增加相關的營業利潤的增加，推動了每股收益的成長。

Compared to our previous guidance, adjusted earnings per share for the third quarter came in well above the high end of our range. Higher operating profit associated with strong sales and margin expansion, along with a lower than forecasted effective tax rate, drove the increase in earnings per share. This was partially offset by higher non-operating expenses.

與我們先前的指引相比，第三季調整後的每股盈餘遠高於我們範圍的高端。強勁的銷售和利潤率擴張帶來更高的營業利潤，以及低於預期的有效稅率，推動了每股盈餘的成長。這被較高的營業外支出部分抵銷。

Let's now shift over to cash flow. Free cash flow for the third quarter was a $2 million use of cash. Our cash performance was driven by growth in net working capital.

現在讓我們轉向現金流。第三季的自由現金流為 200 萬美元的現金使用。我們的現金業績是由淨營運資本的成長所推動的。

Customer advances were a use of cash this quarter, reflecting the achievement of significant progress across several major defense programs. We also had strong billings, resulting in higher receivables that were a use of cash, which should be collected over the next quarter or two. Physical inventories, which has been a consumer of cash over recent quarters, were relatively flat in the third quarter.

本季度客戶預付款是現金使用，反映了幾個主要國防項目的重大進展。我們的帳單也很強勁，導致使用現金的應收帳款增加，應在下一兩季收回。近幾季一直消耗現金的實體庫存在第三季相對持平。

Capital expenditures were $32 million in the third quarter, down from the levels of the past few quarters. We expect our capital expenditures to return to a more typical level next quarter.

第三季資本支出為 3,200 萬美元，低於過去幾季的水準。我們預計下個季度的資本支出將恢復到更典型的水平。

Our leverage ratio, calculated on a net debt basis at the end of the third quarter, was 2.2 times, near the low end of our target range. Our capital deployment priorities, both long-term and near-term, are unchanged. Our current priority continues to be investing for organic growth.

我們的槓桿率（以第三季末淨債務計算）為 2.2 倍，接近我們目標範圍的低端。我們的長期和近期資本部署優先事項都沒有改變。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 guidance, affirming our adjusted operating margin, and increasing our adjusted earnings per share guidance for FY24. Fiscal year 2024 is measuring up to be a great step towards achieving our long-term financial targets. This year, our sales will grow by 8%, adjusted operating margin will expand by 150 basis points, and adjusted earnings per share will increase by 20%.

我們現在將轉向今年的更新指南。我們正在提高 2024 財年的銷售指導，確認調整後的營業利潤率，並提高調整後的每股盈餘指引。2024 財年是我們朝著實現長期財務目標邁出的一大步。今年，我們的銷售額將成長8%，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20%。

We're projecting sales of $3.58 billion in FY24, with sales growth in each of our segments. Commercial aircraft sales will grow related to the production ramps 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 increase slightly, with softening in industrial automation being compensated for by growth in other submarkets.

我們預計 2024 財年的銷售額將達到 35.8 億美元，每個細分市場的銷售額都會成長。商用飛機銷售的成長將與寬體飛機和其他項目的產量成長有關。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。工業銷售額將小幅成長，工業自動化的疲軟將被其他子市場的成長所彌補。

We're increasing our guidance for FY24 sales by $25 million from 90 days ago. For industrial, we're increasing our sales guidance by $40 million to reflect a strong level of sales in the third quarter and an improved outlook for the fourth quarter. We're increasing our sales guidance for military aircraft by $15 million based on our performance this past quarter. For space and defense, we're increasing our sales guidance by $10 million to reflect strong defense demand. We're reducing our sales guidance for commercial aircraft by $40 million, primarily due to a change in the timing of orders, which is causing a short-term delay in sales and a temporary increase in inventory.

我們將 2024 財年銷售額指引較 90 天前增加了 2,500 萬美元。對於工業，我們將銷售指引提高了 4,000 萬美元，以反映第三季的強勁銷售水準和第四季的改善前景。根據上個季度的業績，我們將軍用飛機的銷售指引增加了 1500 萬美元。對於太空和國防，我們將銷售指導增加 1000 萬美元，以反映強勁的國防需求。我們將商用飛機的銷售指導減少了 4000 萬美元，主要是由於訂單時間的變化，導致銷售短期延遲和庫存暫時增加。

Let's shift over to operating margin. We're projecting our adjusted operating margin in FY24 to be 12.4%, the same as we guided to a quarter ago, but with a different mix between segments. We're increasing guidance in commercial aircraft to reflect the strong third-quarter performance, and we're bringing down space and defense for planned cost to fund business pursuits. Our other two segments will be down just marginally. This results in operating margins of 13.0% in space and defense, 11.9% in military aircraft, 12.0% in commercial aircraft, and 12.5% in industrial.

讓我們轉向營業利潤率。我們預計 2024 財年調整後的營業利潤率為 12.4%，與我們一個季度前的指導相同，但細分市場之間的組合有所不同。我們正在增加商用飛機的指導，以反映第三季度的強勁業績，並且我們正在減少空間和國防的計劃成本，以資助業務追求。我們的其他兩個細分市場將略有下降。這導致航太和國防領域的營業利潤率為 13.0%，軍用飛機領域為 11.9%，商用飛機領域為 12.0%，工業領域為 12.5%。

For FY24, we're projecting adjusted earnings per share of $7.40, plus or minus $0.10. We've increased our guidance from 90 days ago by $0.15, which reflects the benefit associated with a lower effective tax rate in the third quarter and higher operating profit, largely realized in the third quarter, offset partially by higher non-operating costs. Compared to FY23, earnings per share will be up 20%. This reflects strong operational performance and growth in the business, partially offset by higher non-operating expenses and a higher effective tax rate.

對於 2024 財年，我們預計調整後每股收益為 7.40 美元，上下浮動 0.10 美元。我們將90 天前的指導意見上調了0.15 美元，這反映了與第三季度較低的有效稅率和較高的營業利潤相關的收益（主要在第三季度實現），部分被較高的非營業成本所抵銷。與 2023 財年相比，每股收益將成長 20%。這反映了強勁的營運業績和業務成長，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 free cash flow, our cash situation is somewhat more pressured than previously guided. We've consumed $77 million of cash year to date, and we expect that we will generate roughly that amount in the fourth quarter. Working capital improvements will drive our cash generation, with physical inventories coming down due to strong shipments.

最後，談到自由現金流，我們的現金狀況比之前指導的壓力更大。今年迄今為止，我們已經消耗了 7700 萬美元的現金，我們預計第四季將產生大約這個數字。營運資本的改善將推動我們的現金生成，由於出貨量強勁，實體庫存將會下降。

In addition, we expect receivables to generate cash on strong collections. Customer advances will remain a use of cash as we continue to work them down. For the year, we're projecting capital expenditures of $150 million, down from our previous guidance, reflecting the lighter spend in the third quarter. Overall, our third-quarter financial performance was solid, and we're confident in a strong finish to the year.

此外，我們預計應收帳款將在強勁的收款情況下產生現金。隨著我們繼續減少客戶預付款，客戶預付款仍將使用現金。今年，我們預計資本支出為 1.5 億美元，低於先前的指導，反映出第三季支出減少。整體而言，我們第三季的財務表現穩健，我們對今年的強勁收官充滿信心。

And now, I'll turn it over to Pat.

現在，我將把它交給帕特。

Thanks, Jennifer. I'm pleased with another impressive performance this quarter, and I look forward to continued strength as we close out the year. We continue to deliver improved financial performance.

謝謝，珍妮佛。我對本季的又一次令人印象深刻的表現感到高興，並期待在今年結束時繼續保持強勁勢頭。我們持續改善財務表現。

Now, let's turn it over to questions.

現在，讓我們把問題轉過來。

(Operator Instructions) Michael Ciarmoli, Truist Securities.

（操作員指示）Michael Ciarmoli，Truist 證券公司。

Hey. Good morning, guys. Thanks for taking the question. Pat or Jennifer, I guess the change in the commercial aircraft revenue may be pretty significant this late in the year. I guess that's wide-body driven. Jennifer, I think you said timing of orders there. Can you maybe give a little bit more color, I guess, against the backdrop of what we've seen from Airbus with their downward revision and Boeing's sort of ongoing challenges?

嘿。早安，夥計們。感謝您提出問題。帕特或詹妮弗，我想今年年底商用飛機收入的變化可能會相當顯著。我猜這是寬體驅動的。詹妮弗，我想你說的是那裡的訂單時間。我想，在我們從空中巴士公司看到的向下修正和波音公司持續面臨的挑戰的背景下，你能否給予更多的資訊？

Yeah. Michael, I wouldn't read too much into it as a reflection of a trend. It's a timing issue within the course of Q3 and Q4, the placement of orders from one of our significant customers, and that's affecting the sales level we're recording within the quarter. It doesn't reflect the change in production rates we are running on any of the wide-body programs.

是的。邁克爾，我不會過度將其解讀為趨勢的反映。這是第三季和第四季的一個時間問題，我們的一個重要客戶下訂單，這影響了我們在該季度記錄的銷售水平。它沒有反映我們在任何寬體項目上運行的生產率的變化。

Okay. Are you -- where are you right now on the wide-body rates? I guess more specifically, 787, I think you have been delivering ahead. Is that still kind of the plan? And do we have to worry about an inventory destock situation at any point?

好的。您現在的寬體機價格處於什麼水準？我想更具體地說，787，我認為你已經提前交付了。這仍然是計劃嗎？我們是否需要擔心庫存去庫存的情況？

So we're delivering to Boeing at a rate of about five ship sets per month, and we have an in-house production rate that's in line with their plans. So we're in a lot of communication with Boeing about the master production schedule. We don't see an impact here at the moment. We're continuing to monitor the situation closely with them.

因此，我們以每月大約五套船的速度向波音公司交付，並且我們的內部生產率與他們的計劃一致。因此，我們正在與波音公司就主生產計劃進行大量溝通。目前我們還沒有看到影響。我們將繼續與他們密切監視局勢。

So Jennifer, do you have anything additional?

詹妮弗，你還有什麼補充嗎？

Yeah. I think what you described, Pat, is fair. It's the constant communications that we're having with our customer right now so that we can find a solution that meets our needs and their needs. We're all looking for a healthy supply chain as we ramp up, and so that's something that's certainly important to us. And we're also mindful that we come to resolutions on these things that make sense from a financial perspective for us as well.

是的。帕特，我認為你的描述是公平的。這是我們現在與客戶進行的持續溝通，以便我們能夠找到滿足我們和他們的需求的解決方案。隨著我們的發展，我們都在尋找健康的供應鏈，因此這對我們來說當然很重要。我們也注意到，我們對這些事情所做的解決方案從財務角度來看對我們也有意義。

Yeah. I mean, the stability of the supply chain is crucially important to both us as we manage a whole tier of sub-suppliers, but also to Boeing as they acknowledged in their earnings call yesterday as well. We have a shared interest.

是的。我的意思是，供應鏈的穩定性對我們至關重要，因為我們管理整個層級的次級供應商，對波音公司也至關重要，正如他們在昨天的財報電話會議中所承認的那樣。我們有共同的利益。

Got it. Within commercial, I guess, can you give any color as to what was happening in the quarter and expectation for the aftermarket side?

知道了。我想，在商業方面，您能否對本季發生的情況以及對售後市場方面的期望給出任何顏色？

So as I said in the end market comments, in general, Michael, aftermarket is strong for us as a business. We expect that that will continue within our numbers. We signed up additional contracts with more airlines, bringing them under our support contracts. So we feel positive about the aftermarket business.

正如我在最終市場評論中所說，邁克爾，總的來說，售後市場對我們這個企業來說是強大的。我們預計這種情況將在我們的數字中持續下去。我們與更多航空公司簽訂了額外合同，將它們納入我們的支持合同之下。因此，我們對售後市場業務感到樂觀。

There's just some shifts also that we're seeing in aftermarket right now between OE and aftermarket that's making our OE a little bit stronger this quarter versus our aftermarket. That tends to normalize. It depends on just the prioritization of work that we're putting through the factory. So you'll see a little bit of shift to that, but that's, again, similarly not a trend that we expect to continue.

我們現在在售後市場上看到原廠設備和售後市場之間也發生了一些變化，這使得本季我們的原廠設備比我們的售後市場稍微強大一些。這趨於正常化。這僅取決於我們在工廠進行的工作的優先順序。所以你會看到一點轉變，但這同樣不是我們期望持續的趨勢。

Got it. And maybe I'll try and sneak one more in, Pat. You guys are going to be maybe in the unenviable position of reporting fourth quarter with an election, everything that's going on in this market. Any sort of early read you'd be willing to give us on fiscal '25?

知道了。也許我會嘗試再偷偷帶一個進去，帕特。你們可能會處於一個不令人羨慕的境地，因為要報導第四季的選舉，以及這個市場上發生的一切。您願意為我們提供有關 25 財年的任何早期讀物嗎？

No. We'll give the guidance for '25 in the November call, Michael. But in general, we, as an organization, as I said, are making good progress with the initiatives we're driving on the margin enhancement. We expect that to continue. Our sales have been strong and are growing. We expect that to continue as well.

不。邁克爾，我們將在 11 月的電話會議中提供 25 年的指導。但總的來說，正如我所說，我們作為一個組織，在提高利潤率方面所採取的舉措正在取得良好進展。我們預計這種情況會持續下去。我們的銷售一直強勁並且正在成長。我們預計這種情況也將持續下去。

So I think we're looking into '25 with a degree of optimism that we will deliver on all of the plans that we've laid out previously. So whatever happens in the election, I don't think it knocks us off path at all.

因此，我認為我們對 25 年充滿樂觀，我們將實現之前製定的所有計劃。因此，無論選舉中發生什麼，我認為這根本不會讓我們偏離正軌。

Got it. Perfect. I'll jump back in the queue, guys. Thanks.

知道了。完美的。我會插回隊列中，夥計們。謝謝。

Kristine Liwag, Morgan Stanley.

克莉絲汀‧利瓦格，摩根士丹利。

Hey, guys. Great to see you at Farnborough. Pat, Jennifer, you're now guiding to minimal free cash flow this year. So what's the path of some of the working capital unwind in 4Q to get to the positive territory? And then, I think, Jennifer, you highlighted that there's some pressure on receivables. Is there a change in what you guys are charging your customers to get bases on the receivables at a shorter and have cash conversion at a faster cycle?

嘿，夥計們。很高興在範堡羅見到你。派特、珍妮佛，你們現在正在指導今年的自由現金流達到最低限度。那麼，第四季部分營運資金的釋放如何達到正值呢？然後，我想，珍妮佛，你強調了應收帳款面臨一些壓力。你們向客戶收取的費用是否有變化，以便以更短的時間獲得應收帳款並以更快的周期實現現金轉換？

Yeah. Thanks, Kristine. It was nice seeing you there as well. For the fourth quarter in our cash flow, we're expecting positive cash flow essentially to make up for the use of cash that we had in third quarter. We're going to see it in a few places.

是的。謝謝，克里斯汀。很高興在那裡見到你。對於第四季的現金流，我們預期正現金流基本上可以彌補第三季的現金使用。我們將在幾個地方看到它。

First of all, receivables. So our receivables grew putting pressure on cash in the third quarter. Because we've got the strong receivables, we'll be able to collect much of that. Different parts of the business have different collection terms, and so I made a reference to in the next quarter or two. But a large portion, we will be able to collect off of the strong receivables that we had in the third quarter. So the pressure in the third quarter becomes a benefit in the fourth quarter on the receivables.

首先是應收帳款。因此，我們的應收帳款成長給第三季的現金帶來了壓力。因為我們有強大的應收帳款，我們將能夠收回其中的大部分。不同的業務部門有不同的收款條款，所以我在接下來的一兩個季度做了參考。但很大一部分，我們將能夠從第三季的強勁應收帳款中收回。所以第三季的壓力變成了第四季應收帳款的收益。

From a physical inventory, this is actually kind of a nice story for us. It's a flow story. But in this quarter, we've had flat levels of physical inventories from a cash perspective. And we're going to actually see that be a slight benefit as we look into next quarter. We're going to work down some of those physical inventories. So it's really starting to turn after we've had some growth over the past couple of years in the physical inventory. So this quarter is nice that we got to that level space, and we'll have a small benefit next quarter as we're doing it.

從實際庫存來看，這對我們來說實際上是一個很好的故事。這是一個流動的故事。但在本季度，從現金角度來看，我們的實體庫存水準持平。當我們展望下個季度時，我們實際上會看到這會帶來一點好處。我們將減少其中一些實體庫存。因此，在過去幾年我們的實體庫存有所增長之後，情況確實開始發生轉變。因此，本季度我們達到了這個水平，這很好，下個季度我們將在這樣做時獲得一點好處。

As we look to what happens, if I look longer term, there's structural opportunities that we have that'll be beyond '24 and '25 because it takes time to make those structural changes. And those involve things like condensing the flow as we build inventory in our processes. However, some of the things that we are working on and seeing the beginning of benefits associated with that are going to be our inventory management that we can impact and have a greater, more near-term impact, like vendor inventory management systems, planning and procurement. And we're doing this while we're supporting a growing business. So we've got that natural pressure of a growing business. but we are making a dent in some of these other things so that we are working that down.

當我們觀察會發生什麼時，如果我從長遠來看，我們將擁有超越 24 和 25 年的結構性機會，因為進行這些結構性改變需要時間。這些涉及到我們在流程中建立庫存時壓縮流程之類的事情。然而，我們正在努力並看到與之相關的一些好處將是我們可以影響並產生更大、更近期影響的庫存管理，例如供應商庫存管理系統、規劃和採購。我們在支持不斷成長的業務的同時也這樣做了。因此，我們面臨著業務成長的自然壓力。但我們正在對其他一些事情做出一些努力，以便我們正在努力解決這些問題。

In the fourth quarter, the other thing that we're having is pressure on customer advances. And that's a timing thing. We're going to continue to work it down. We did have really nice customer advances in the back half of FY23 and even into the first quarter of this year, but we don't have any new advances that are coming in of significance in the fourth quarter. So we are having that pressure as we continue to work that down. So that's largely where we're going to get the free cash flow benefit in Q4.

在第四季度，我們面臨的另一件事是客戶預付款的壓力。這是一個時機問題。我們將繼續努力解決這個問題。我們在 2023 財年下半年甚至今年第一季確實取得了非常好的客戶進展，但我們在第四季沒有任何重要的新進展。因此，當我們繼續努力解決這個問題時，我們面臨著這種壓力。因此，這很大程度上是我們在第四季度獲得自由現金流收益的地方。

And as you know, with the timing thing, last year's fourth quarter, we had a strong cash quarter after a softer quarter. So a lot of this is with timing. And as you can see, customer advances is a big portion of that for the third quarter type of results and that pressure does continue on. But we are making some nice progress in the physical inventories, and then we're positioned nicely on the receivables as well.

如您所知，就時間表而言，去年第四季度，我們在經歷了一個疲軟的季度後迎來了強勁的現金季度。所以很大程度上與時間有關。正如您所看到的，客戶預付款佔第三季業績的很大一部分，而且這種壓力確實持續存在。但我們在實體庫存方面取得了一些不錯的進展，而且我們在應收帳款方面也取得了很好的進展。

With respect to -- you're also asking about what are we charging customers and how are we working. We work -- when we're looking at our customers, we're looking at comprehensive negotiations with our customers. That involves pricing and terms, whether we're opening something up that isn't normally open or we're renegotiating something like that.

關於——您還詢問我們向客戶收取什麼費用以及我們如何工作。我們工作—當我們專注於客戶時，我們正在考慮與客戶進行全面的談判。這涉及定價和條款，無論我們是開放一些通常不開放的東西，還是重新談判類似的東西。

So we look at that at a balanced perspective, sometimes depending on -- and it's on the customer side, but it's also on the vendor side as well. We need to make sure that we're coming up with what makes best sense for us as well as the person -- the parties that we're negotiating with so that we can come out with the best outcome. Sometimes, there is a benefit of pricing at the cost of a term, and sometimes, it could be different. So it's looking at everything in a holistic type of way to get the best economic answer for us that works in that circumstance. So we are mindful of both our terms and pricing, because it's obviously not just the sales, the margin, it's the cash aspect of it as well.

因此，我們從平衡的角度來看這個問題，有時取決於客戶方面，但也取決於供應商方面。我們需要確保提出對我們以及我們正在談判的各方最有意義的方案，以便我們能夠得出最好的結果。有時，以期限為代價進行定價是有好處的，有時，情況可能會有所不同。因此，它以整體的方式看待一切，以獲得在這種情況下最適合我們的經濟答案。因此，我們很注意我們的條款和定價，因為這顯然不僅僅是銷售、利潤，還有現金方面。

Great. Thank you for the detailed answer, Jennifer. I really, really appreciate it. And if I could follow up, I mean, your previous guidance for 2025 free cash flow was 75% to 100% conversion. With all the timing issues that are happening and these changes, I just wanted to check to see if this is still intact, or if any of these concerns in fiscal year '24 kind of spill over to '25.

偉大的。謝謝你的詳細回答，詹妮弗。我真的非常非常感激。如果我可以跟進的話，我的意思是，你們之前對 2025 年自由現金流的指導是 75% 到 100% 的轉換。鑑於正在發生的所有時間問題和這些變化，我只是想檢查一下這是否仍然完好無損，或者 24 財年的這些擔憂是否會蔓延到 25 財年。

Yeah. We'll comment more specifically in our November call, but we are still working towards our Investor Day commitments that will be put out there. But we're looking forward to being able to report and demonstrate our continued success in our financial metrics.

是的。我們將在 11 月的電話會議中進行更具體的評論，但我們仍在努力實現將在該電話會議上做出的投資者日承諾。但我們期待能夠報告並展示我們在財務指標方面持續取得的成功。

Well, great. Thank you very much.

嗯，太棒了。非常感謝。

(Operator Instructions) And at this time, there are no further questions.

（操作員說明） 此時，沒有進一步的問題。

Okay. So I would like to thank everyone for joining the call. I appreciate your attendance and your questions. It's been another strong quarter for us on the path to a really good fiscal '24. I look forward to talking to you again in November as we report out on that. Thank you very much.

好的。因此，我要感謝大家加入這次電話會議。感謝您的出席和提問。對我們來說，這是另一個強勁的季度，我們正在邁向真正良好的 24 財年。我期待著 11 月我們對此進行報道時再次與您交談。非常感謝。

This does conclude today's conference. We thank you for your participation.

今天的會議到此結束。我們感謝您的參與。