Moog Inc (MOG.B) 2025 Q4 法說會逐字稿

Ladies and gentlemen, thank you for joining us, and welcome to the Moog, Inc, fiscal 2025 fourth-quarter and full-year earnings call. (Operator Instructions)

女士們、先生們，感謝各位的到來，歡迎參加 Moog 公司 2025 財年第四季及全年財報電話會議。（操作說明）

I will now hand the conference over to Aaron Astrachan, Head of Investor Relations. Aaron, please go ahead.

現在我將把會議交給投資者關係主管亞倫·阿斯特拉坎。亞倫，請繼續。

Good morning, and thank you for joining Moog’s fourth-quarter 2025 earnings release conference call. I am Aaron Astrachan, Director of Investor Relations. With me today are Pat Roche, our Chief Executive Officer; and Jennifer Walter, our Chief Financial Officer.

早安，感謝您參加 Moog 2025 年第四季財報發布電話會議。我是投資者關係總監 Aaron Astrachan。今天陪同我的是我們的執行長帕特·羅奇和我們的財務長珍妮佛·華特。

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. 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.

今天早些時候，我們發布了研究結果和補充幻燈片，這兩份文件都可以在我們的網站上找到。我們的獲利新聞稿、補充投影片以及今天電話會議的演講均包含經調整的非GAAP結果。所提供的資料中包含了這些調整後結果與 GAAP 結果的調整表。最後，我們今天的評論可能包含與預期未來業績相關的聲明和其他前瞻性聲明，這些聲明並非保證。我們的實際業績可能與前瞻性聲明中描述的情況存在重大差異，並且受到各種風險和不確定性的影響，這些風險和不確定性已在我們的盈利新聞稿和我們提交給美國證券交易委員會的其他文件中進行了描述。

Now I am happy to turn the call over to Pat.

現在我很高興把電話交給派特。

Good morning, and welcome to our earnings call. We closed out fiscal 2025 with an exceptional fourth-quarter performance. We achieved record results. This performance capped an outstanding full year in which we achieved strong growth, continued margin expansion, and improved free cash flow, continuing our improvement journey launched at our 2023 Investor Day. Our fourth-quarter sets a new high-water mark for performance.

早上好，歡迎參加我們的財報電話會議。我們在2025財年第四季取得了優異的業績。我們取得了創紀錄的成績。這項業績為我們出色的一年畫上了圓滿的句號，在這一年中，我們實現了強勁增長、利潤率持續擴大和自由現金流改善，延續了我們在 2023 年投資者日啟動的改進之旅。我們的第四季業績創下新高。

Record-breaking results included delivering over $1 billion in quarterly sales, hitting an all-time high 12-month backlog of $3 billion, plus achieving our highest quarterly adjusted operating margin and adjusted EPS and free cash flow. Our successful execution of strategy has resulted in a financially stronger business with outstanding fiscal 2025 results. Our focus on customer drove records for orders, backlog, and sales, which are expectedly up 36%, 20%, and 7% relative to prior year.

創紀錄的業績包括季度銷售額超過 10 億美元，12 個月積壓訂單達到歷史最高水準 30 億美元，以及實現季度調整後營業利潤率、調整後每股收益和自由現金流的最高紀錄。我們成功執行策略，使公司財務狀況更加穩健，並取得了2025財年的優異業績。我們以客戶為中心的策略推動了訂單、積壓訂單和銷售額的創紀錄成長，預計將分別比上一年增長 36%、20% 和 7%。

Our success at growing the business and our focus on operational execution enabled us to drive record adjusted margin and EPS whilst overcoming tariff headwinds. Finally, we improved free cash flow relative to the prior year with an outstanding performance in the last two quarters. Our results demonstrate our dedication to driving improved operational and financial performance. Our focus is on delivering for our customers and driving ongoing continuous improvement.

我們在業務成長方面的成功以及對營運執行的重視，使我們能夠在克服關稅不利因素的同時，實現創紀錄的調整後利潤率和每股盈餘。最後，由於最近兩季的出色表現，我們的自由現金流較上年同期有所改善。我們的業績證明了我們致力於提升營運和財務績效的決心。我們專注於為客戶提供優質服務，並持續推動持續改善。

Our success is driven by our employees’ commitment to making this both a great place to work and a strong company, and for that, I want to thank all of those dedicated staff who contributed to our performance over the last 12 months.

我們的成功源於員工致力於將這裡打造成為一個優秀的工作場所和一家強大的公司，為此，我要感謝所有在過去 12 個月中為我們業績做出貢獻的敬業員工。

Now let us turn attention to our end markets and the macro environment, starting with defense. The defense market continues to be strong. We are experiencing a secular increase in defense spending within the US, NATO nations, and Indo-Pacific allies, which will continue for the foreseeable future. In addition, there is a growing sense of urgency to increase industrial capacity in these regions. We are well positioned to respond to these demands across a broad-based opportunity set with both prime and new entrants. We are winning in the US, we are expanding in Europe, and we are gaining a foothold in Australia.

現在讓我們把注意力轉向終端市場和宏觀環境，首先從國防開始。國防市場持續強勁。美國、北約國家和印太盟國的國防開支正在持續成長，而且這種趨勢在可預見的未來也將持續。此外，這些地區也越來越迫切地需要提高工業產能。我們已做好充分準備，能夠透過廣泛的機遇，滿足現有優質企業和新進者的需求。我們在美國取得了成功，我們在歐洲不斷擴張，我們在澳洲也站穩了腳步。

Moving to commercial aerospace, our customers have strong backlogs and are intent on driving increased production rates. Boeing broke ground on a second final assembly building in Charleston, South Carolina, as part of its $1 billion commitment to the 787. In addition, 737 MAX rates are set to increase. We continue to see stability and have confidence in the demand outlook. We maintain a stable production plan that supports our customers’ needs.

轉向商業航空航太領域，我們的客戶有大量的訂單積壓，並致力於提高生產力。作為波音公司對787項目10億美元投資計畫的一部分，波音公司在南卡羅來納州查爾斯頓破土動工興建第二座總裝大樓。此外，737 MAX 的票價也將上漲。我們持續看到市場穩定，並對需求前景充滿信心。我們維持穩定的生產計劃，以滿足客戶的需求。

On the aftermarket side, we continue to benefit from increased airline activity, an aging fleet, increased wide-body fleet utilization, and our ability to maintain a strong aftermarket position. Finally, within industrial markets, we continue to have relative stability. We see steady growth in the medical end market and outsized growth in data center cooling. This is reflected in progressive growth in our 12-month industrial backlog over the last two quarters. Overall, end market conditions are very favorable for our business.

在售後市場方面，我們繼續受益於航空公司活動的增加、機隊的老化、寬體機隊利用率的提高以及我們保持強大的售後市場地位的能力。最後，在工業市場方面，我們持續保持相對穩定。我們看到醫療終端市場穩定成長，資料中心冷卻市場也出現了超乎尋常的成長。這體現在我們過去兩個季度 12 個月工業積壓訂單的持續成長。整體而言，終端市場環境對我們的業務非常有利。

Now turning attention to our leadership priorities, starting with customer focus. We are incredibly pleased to have our operational performance officially recognized by our customers. We received the Crystal Excellence Award from CAE for outstanding operational performance and deep commitment to sustainability. We also received a supplier award from Lockheed Martin for 100% on-time delivery over the last 12 months on the PAC-3 missile program. Our focus on operational excellence ensures that we deliver for our customers and expand our business.

現在讓我們把注意力轉向我們的領導重點，首先是客戶至上。我們非常高興我們的營運表現得到客戶的正式認可。我們因其卓越的營運表現和對永續發展的堅定承諾，榮獲 CAE 頒發的水晶卓越獎。在過去 12 個月中，我們因 PAC-3 飛彈項目 100% 按時交付而獲得了洛克希德馬丁公司的供應商獎。我們專注於卓越運營，以確保為客戶提供服務並拓展業務。

Our strong customer value proposition was further reflected in several notable contract awards. We secured an order under the SGT Stout program for our reconfigurable integrated weapons platform. This will equip a fifth of the Army’s eight battalions and extends our production horizon through to 2027. We leveraged our established presence in Australia to win an important position on future Guided Multiple Launch Rocket System production in Australia with Lockheed Martin. This represents the first geographic expansion of our missiles business.

我們強大的客戶價值主張在幾項重要的合約授予中得到了進一步體現。我們根據 SGT Stout 專案獲得了可重構整合武器平台的訂單。這將為陸軍八個營中的五分之一提供裝備，並將我們的生產期限延長至 2027 年。我們利用在澳洲的既有地位，與洛克希德馬丁公司合作，在澳洲未來導引多管火箭系統生產中贏得了重要地位。這標誌著我們導彈業務首次實現地域擴張。

Finally, we are making substantial progress extending our presence on collaborative combat aircraft. We provide trade-offs with flight control and actuation products on the XQ-58, also known as Valkyrie, and the BQM-177, and are in continuing discussions for additional products on their future CCA platforms. This is a great illustration that we deliver fit-for-purpose solutions not just for advanced military aircraft but also for the emerging collaborative combat aircraft market. Finally, I saw first hand how our operations are responding to changing customer needs.

最後，我們在擴大協同作戰飛機領域的影響力方面取得了實質進展。我們為 XQ-58（又稱 Valkyrie）和 BQM-177 提供飛行控制和作動產品方面的權衡方案，並正在繼續討論其未來 CCA 平台上的其他產品。這很好地說明了我們不僅為先進的軍用飛機提供合適的解決方案，也為新興的協同作戰飛機市場提供合適的解決方案。最後，我親眼目睹了我們的營運如何應對不斷變化的客戶需求。

Our electric motor and pump operation in Murphy, North Carolina, is a key production site for data center cooling pumps. Our team has done a remarkable job meeting the increased volume requirements from our hyperscaler customers. We have doubled volume over the last nine months, and I expect this pace of growth to continue into fiscal '26. Our ball and roller screw operation in Bergamo, Italy, is working with an industry disrupter to apply roller screws in a new and extremely demanding application environment. Our team has demonstrated significant agility and accelerated the pace of development, producing eight prototypes within a year. This underpins my firm belief that we can respond to the expectations of fast-moving new entrants in any market.

我們在北卡羅來納州墨菲的馬達和水泵生產基地是資料中心冷卻泵的關鍵生產基地。我們的團隊出色地滿足了超大規模客戶不斷增長的容量需求。過去九個月，我們的銷量翻了一番，我預計這種成長速度將持續到 2026 財年。我們在義大利貝加莫的滾珠螺桿生產部門正與一個產業顛覆者合作，將滾珠螺桿應用於一個全新的、要求極高的應用環境。我們的團隊展現了極強的彈性，加快了研發步伐，一年內就生產了八個原型。這更加堅定了我的信念，即我們能夠滿足任何市場中快速發展的新進入者的期望。

Now turning to our employees and communities. We are committed to the development of our people and in support of our host communities. We invested in a dedicated hands-on training center for our East Aurora campus. This unit trains machinists and assembly and test operators. It supports onboarding, upskilling, and recertification of employees across our Western New York campuses. It is driving a significant improvement to quality, consistency, and efficiency of skills training.

現在，讓我們把目光轉向我們的員工和社區。我們致力於員工發展，並支持所在社區的發展。我們為東奧羅拉校區投資興建了一個專門的實務訓練中心。該部門負責培訓機械師、裝配工和測試操作員。它為我們紐約西部各校區的員工提供入職培訓、技能提升和再認證支援。它顯著提高了技能培訓的品質、一致性和效率。

Our investment was complemented by financial support from the US Navy Maritime Industrial Base. We collected over 43,000 pounds, which is close to 19.5 metric tons of waste, with a collective effort of almost 1,000 volunteer staff across 19 sites and 15 countries during a week of action in September. This is a notable example of our staff supporting their local communities.

我們的投資得到了美國海軍海事工業基地的財政支持。在 9 月為期一周的行動中，我們匯集了超過 43,000 磅（約 19.5 公噸）的垃圾，這得益於 19 個地點和 15 個國家的近 1,000 名志願者的共同努力。這是我們員工支持當地社區的一個顯著例子。

Now shifting to financial strength. We are seeing our financial performance improve through solid growth and consistent focus on pricing and simplification. We have embedded 80/20 into approximately 80% of our businesses by revenue. Our focus is further strengthening maturity with 80/20 champions working with business leaders to solve the most relevant challenges. 80/20 insights are leading to data-driven business decisions that are improving profitability.

現在轉向財務實力。透過穩健成長和持續專注於定價和簡化流程，我們的財務表現正在改善。我們已將 80/20 法則融入我們約 80% 的業務（按收入計）。我們致力於進一步提升80/20法則的成熟度，讓80/20法則的倡議者與企業領導者攜手合作，共同應對最迫切的挑戰。 80/20法則的洞見正引領企業做出數據驅動型決策，進而提升獲利能力。

(inaudible) for the customer. We have prioritized key customers covering over 25% of our business by revenue, including hundreds of interviews. We are getting actionable insights that will support business growth. We are clear within the organization on how best to serve our most important customers. Simplification, customer, and product profitability analysis is allowing us to focus resources and reduce complexity.

（聽不清楚）為顧客。我們優先考慮了收入占我們業務25%以上的關鍵客戶，並進行了數百次訪談。我們正在獲得可執行的洞察，這將有助於業務成長。公司內部對於如何更好地服務我們最重要的客戶有著清晰的認知。透過簡化流程、客戶分析和產品獲利能力分析，我們可以集中資源並降低複雜性。

Segmented income statements now widely used across the organization are driving better profitability. Simplification has also been achieved through the sale of non-core businesses and product line asset disposals through focus factory approach which aligns clearly with market requirements and through consolidation of facilities. These are all ongoing activities within our business. Our simplification initiatives delivered similar margin benefit to that of pricing and volume growth together in the fiscal year. The solid improvement was partially eroded by margins.

目前，公司內部廣泛採用分部損益表，從而提高了獲利能力。透過出售非核心業務和產品線資產，並採取聚焦工廠的方式，與市場需求緊密結合，以及透過整合設施，也實現了簡化。這些都是我們公司正在進行的業務活動。本財年，我們的簡化措施帶來的利潤收益與價格和銷售成長帶來的利潤收益相當。這一顯著改善被利潤率部分抵消。

A look at multi-year trends helps illustrate the profound impact that simplification is having on our business. From fiscal '22 to fiscal '25, while controlling headcount increases to just 4% and reducing our factory space by 8%, we have driven a 27% increase in sales. These achievements reflect strong operational performance and increase our financial strength.

透過對多年趨勢的分析，可以更好地說明簡化對我們的業務的深遠影響。從 2022 財年到 2025 財年，在將員工人數成長控制在 4% 以內，並將工廠面積減少 8% 的情況下，我們實現了 27% 的銷售額成長。這些成就反映了我們強勁的營運業績，並增強了我們的財務實力。

Now let's reflect on the improved financial performance over that same period relative to our Investor Day goals. Sales growth was ahead of expectations at 8% CAGR. Adjusted margin enhancement exclusive of tariffs averaged 110 basis points, or 330 basis points cumulatively, and ahead of our 100-basis-point average goal. Adjusted EPS growth of 16% CAGR met our goal. Finally, while free cash flow has improved over the last couple of years to 46%, it is short of our target range. We were ambitious for our business at Investor Day in 2023, and I'm proud of the progress that we've achieved over subsequent quarters and years.

現在讓我們回顧一下，與投資者日目標相比，同期財務表現的改善情況。銷售成長超出預期，年複合成長率達 8%。調整後的利潤率提升（不含關稅）平均為 110 個基點，累計提升 330 個基點，高於我們 100 個基點的平均目標。經調整後的每股盈餘複合年增長率達到16%，並實現了我們的目標。最後，雖然自由現金流在過去幾年有所改善，達到 46%，但仍低於我們的目標範圍。我們在 2023 年投資者日上對我們的業務抱有雄心壯志，我對我們在隨後的幾個季度和幾年裡的進展感到自豪。

Now moving to FY26. Our FY26 guidance will further cement this solid multi-year performance improvement. Sales will be up 9% year over year, and adjusted operating margin exclusive of tariffs in both years will be up 70 basis points. FY26 adjusted EPS will be up 15%, and free cash flow will strengthen to 60%. In addition to our ongoing margin enhancement actions, we have launched initiatives that specifically focus on structural change that we believe are necessary to enhance free cash flow. These initiatives will deliver impact over the next few years and make a contribution in fiscal '26.

現在進入2026財年。我們2026財年的業績指引將進一步鞏固這多年來穩健的業績提升。銷售額將年增 9%，兩年的調整後營業利潤率（不包括關稅）將成長 70 個基點。2026 財年調整後每股盈餘將成長 15%，自由現金流將增強至 60%。除了我們正在採取的提高利潤率的措施外，我們還啟動了一些專門針對結構性變革的舉措，我們認為這些變革對於提高自由現金流是必要的。這些舉措將在未來幾年產生影響，並在 2026 財年做出貢獻。

Our commercial aircraft business is the most significant contributor to our total trade net working capital requirements. This is because our own manufacturing and supply chain network is complex and dispersed across multiple global locations. In addition, we shielded our supply chain from variations in our customers’ demand in challenging terms and conditions. We have multiple actions underway that will help address this situation. Over a few years, these actions will significantly reduce trade networking capital as a percent of sales.

我們的商用飛機業務是我們貿易淨營運資本需求的最大貢獻者。這是因為我們自身的製造和供應鏈網路複雜且分散在全球多個地點。此外，我們保護了我們的供應鏈免受客戶在充滿挑戰的條款和條件下的需求變化的影響。我們正在採取多項措施來幫助解決這個問題。幾年後，這些措施將大幅降低貿易網絡資本佔銷售額的比例。

We are committed to execute these initiatives with the same focus that we have applied to our margin enhancement journey. I look forward to describing these initiatives over the coming quarters.

我們將秉持與提升利潤率相同的專注精神來執行這些舉措。我期待在接下來的幾個季度詳細介紹這些舉措。

And with that, let me hand over to Jennifer for a detailed breakdown on the quarter and our fiscal 2026 guidance.

接下來，我將把麥克風交給詹妮弗，讓她詳細分析本季業績以及我們 2026 財年的業績展望。

Thanks, Pat. Before getting to our financial performance, I will note an update to our previously reported results. I will then provide a summary for FY25, followed by a more detailed review of our fourth-quarter financial performance. I will wrap up with our initial guidance for FY26. We are revising previously reported results to reflect the correction of an accounting error that we identified this past quarter. The error relates to the accounting for a certain group of commercial aircraft aftermarket contracts.

謝謝你，帕特。在介紹我們的財務表現之前，我想先說明一下我們先前公佈的業績的最新情況。接下來，我將提供 2025 財年的總結，然後對我們第四季的財務表現進行更詳細的回顧。最後，我將介紹我們對 2026 財年的初步預期。我們正在修訂先前公佈的業績，以反映上個季度發現的會計錯誤已修正。此錯誤與某組商用飛機售後市場合約的會計處理有關。

We have also reflected other previously recognized immaterial out-of-period items in the correct periods. The net impact of these changes increases our net earnings per share by $0.13 in fiscal year '23, $0.05 in fiscal year '24, and $0.06 in the first nine months of fiscal year '25. Additional detail can be found in supplemental schedules in our press release and in our upcoming 10-K filing.

我們也把先前認定為無關緊要的期間外項目反映到了正確的期間內。這些變化帶來的淨影響使我們在 2023 財年的每股淨收益增加 0.13 美元，在 2024 財年增加 0.05 美元，在 2025 財年的前九個月增加 0.06 美元。更多詳情請參閱我們新聞稿中的補充附表以及即將提交的 10-K 文件。

I will now move to our financial results starting with the year. Fiscal year '25 was marked with record sales, expanding operating margins, and improved cash flow generation. Sales for FY25 were $3.9 billion. This represents a 7% increase over FY24. Our aerospace and defense segments drove this growth.

接下來，我將介紹我們的財務業績，首先從本年度開始。2025 財年以創紀錄的銷售額、不斷擴大的營業利潤率和改善的現金流為標誌。2025財年銷售額為39億美元。這比 2024 財年成長了 7%。我們的航空航太和國防業務推動了這一成長。

Commercial aircraft sales increased 15% due to strong aftermarket sales and the ramp-up on wide-body programs. Sales in Space and Defense increased 9% due to strong broad-based defense demand. Military aircraft sales also increased 9% as activity increased on the MV-75 and new production programs. Industrial sales decreased 4% as a result of divesting two businesses at the beginning of FY25.

由於售後市場銷售強勁以及寬體飛機項目加速推進，商用飛機銷售額成長了 15%。由於國防需求強勁且覆蓋面廣，航太和國防領域的銷售額成長了 9%。隨著 MV-75 和新生產項目的推進，軍用飛機銷售額也成長了 9%。由於在 2025 財年初剝離了兩項業務，工業銷售額下降了 4%。

Our adjusted operating margin of 13.0% increased 30 basis points over FY24. Excluding this year’s pressure from tariffs and last year’s employee retention credit benefit, operating margins increased 120 basis points. Operating margins expanded in each of our segments except for commercial aircraft. In Industrial, our operating margin expanded 80 basis points to 13.5% as we continued our simplification initiative.

我們調整後的營業利益率為 13.0%，比 2024 財年提高了 30 個基點。剔除今年的關稅壓力和去年的員工留任獎勵，營業利潤率提高了 120 個基點。除商用飛機業務外，我們所有業務部門的營業利潤率均有所提高。在工業領域，隨著我們繼續推動簡化計劃，我們的營業利潤率提高了 80 個基點，達到 13.5%。

Military aircraft operating margin increased 40 basis points to 12.3% as a result of stronger business performance and pricing. Our operating margin in Space and Defense increased 20 basis points to 13.5% due to profitable sales growth, offset by last year's employee retention credit benefit and this year's increased investments in product development, business capture, and operational readiness. In Commercial Aircraft, our operating margin decreased 30 basis points to 12.4% as pressure from tariffs was partially offset by the sale of a noncore product line.

由於業務表現和定價走強，軍用飛機的營業利潤率提高了 40 個基點，達到 12.3%。由於獲利性銷售成長，我們在航太和國防領域的營業利潤率提高了 20 個基點，達到 13.5%，但被去年的員工留任獎勵和今年在產品開發、業務拓展和營運準備方面的增加投資所抵消。在商用飛機業務方面，由於關稅帶來的壓力被非核心產品線的出售部分抵消，我們的營業利潤率下降了 30 個基點至 12.4%。

Adjusted earnings per share in FY25 were $8.69, up 11%. The increase relates to the higher level of sales and to some extent, the increase in operating margin. For the year, we generated free cash flow near the high end of the range that we shared a quarter ago. We invested in our business in FY25 to support our strong growth both through capital expenditures and within working capital.

2025財年調整後每股盈餘為8.69美元，成長11%。這一增長與銷售額的提高以及一定程度上的營業利潤率的提高有關。今年，我們產生的自由現金流接近上個季度公佈的預期範圍的高端。我們在 2025 財年對業務進行了投資，以支持我們的強勁成長，投資方式包括資本支出和營運資金。

Let's shift over to our fourth quarter results. We had a great quarter. Sales were over $1 billion for the first time. Adjusted operating margin was above plan, and adjusted earnings per share significantly exceeded the high end of our guidance range. In addition, we generated about $200 million of free cash flow, which is around 2.5 times the level of our adjusted net earnings.

接下來我們來看第四季業績。我們這個季度表現出色。銷售額首度突破10億美元大關。調整後的營業利潤率高於預期，調整後的每股盈餘也顯著超過了我們預期範圍的上限。此外，我們產生了約 2 億美元的自由現金流，約為我們調整後淨收益的 2.5 倍。

We took $18 million of charges in the fourth quarter that we've adjusted out of the operating profit numbers we'll describe. Charges included $10 million associated with the settlement of a legal dispute, $5 million associated with simplification efforts, and $3 million associated with acquisition fees. In addition, we took a $4 million tax charge associated with simplifying our legal entity structure.

我們在第四季度提列了 1800 萬美元的費用，我們已將其從我們將要描述的營業利潤數據中調整出來。費用包括與解決法律糾紛相關的 1,000 萬美元，與簡化工作相關的 500 萬美元，以及與收購費用相關的 300 萬美元。此外，我們也承擔了簡化法律實體結構所產生的 400 萬美元稅。

I'll now talk through our fourth-quarter results, excluding these charges. Sales in the fourth quarter of $1 billion were 14% higher than last year's fourth quarter. Commercial Aircraft, Space and Defense and Military Aircraft were each up double-digit percentages and industrial was also up nicely. The largest increase in segment sales was in commercial aircraft. Commercial Aircraft sales of $252 million increased 27% over the same quarter a year ago. The increase was driven by volume on major production programs as well as aftermarket associated with strong fleet utilization on the 787 and A350 programs.

接下來，我將介紹我們第四季的業績，不包括這些費用。第四季銷售額達10億美元，比去年同期成長14%。商用飛機、航太與國防以及軍用飛機均實現了兩位數百分比的成長，工業領域也取得了不錯的成長。各細分市場中，商用飛機領域的銷售量增幅最大。商用飛機銷售額為 2.52 億美元，比去年同期成長 27%。此次成長主要得益於主要生產項目的產量，以及與 787 和 A350 專案機隊利用率高相關的售後市場需求。

Space and Defense sales were $307 million, up 17% over the fourth quarter last year. Our sales this quarter were at a record level, reflecting broad-based Defense demand. We're seeing demand particularly strong from missile control and satellite components.

航太與國防業務銷售額為 3.07 億美元，比去年第四季成長 17%。本季我們的銷售額創歷史新高，反映了國防領域的廣泛需求。我們看到飛彈控制系統和衛星零件的需求尤其強勁。

In Military Aircraft, sales of $236 million were up 10% over the fourth quarter of last year. Activity on the MV-75 program continued to increase. We also benefited from new pricing primarily within aftermarket. Industrial sales were $253 million in the quarter, up 5% over the same quarter a year ago, or 7% when adjusting for divestitures we completed at the beginning of FY25 and foreign currency effects.

軍用飛機銷售額為 2.36 億美元，比去年第四季成長了 10%。MV-75 計畫的活動持續增加。我們也受惠於新的定價策略，主要體現在售後市場。本季工業銷售額為 2.53 億美元，比去年同期成長 5%，如果扣除我們在 2025 財年初完成的資產剝離和外匯影響，則成長 7%。

We had higher sales for IV pumps and administration sets as we fulfill backlog that's built up from previous part shortages. Sales of enteral feeding administration sets were also strong, reflecting current demand. Sales also grew within the expanding data center cooling market.

由於我們解決了先前零件短缺造成的積壓訂單，靜脈輸液幫浦和輸液裝置的銷售量有所成長。腸內營養輸注裝置的銷售情況也十分強勁，反映了當前的市場需求。隨著資料中心冷卻市場的不斷擴張，銷售也隨之成長。

We'll now shift to operating margins. Adjusted operating margin in the fourth quarter was 13.7%, up 20 basis points from the fourth quarter a year ago, reflecting operating strength offset by tariff pressures. Our Defense businesses are up significantly, while Industrial is up nicely and Commercial Aircraft is down considerably.

接下來我們將討論營業利益率。第四季調整後營業利益率為 13.7%，比去年同期成長 20 個基點，反映出營運實力增強，但被關稅壓力所抵銷。我們的國防業務大幅成長，工業業務成長良好，而商用飛機業務則大幅下降。

Military Aircraft operating margin of 14.1% in the fourth quarter, up 210 basis points from the fourth quarter last year. We benefited from pricing activities, both for the OE and aftermarket as well as a favorable mix. Space and Defense operating margin was 15.1% in the fourth quarter, up 190 basis points. The increase was driven by profitable sales growth offset partially by increased business capture, product development, and operational readiness investment.

第四季軍用飛機業務營業利潤率為 14.1%，比去年第四季成長 210 個基點。我們從定價策略中受益，無論是針對原廠配套市場或售後市場，以及有利的產品組合。第四季度，航太與國防業務的營業利益率為 15.1%，成長了 190 個基點。成長主要由獲利性銷售成長推動，但部分被業務拓展、產品開發和營運準備投資的增加所抵消。

Industrial operating margin was 13.9%, 70 basis points above that of the same period a year ago. We benefited from a favorable sales mix and simplification initiatives, including divestitures. These benefits were partially offset by the impact of tariffs. Commercial Aircraft operating margin was 11.4%, down 440 basis points from the fourth quarter last year. The decrease was driven by tariff pressure and to a lesser extent, an unfavorable sales mix.

工業營業利益率為 13.9%，比去年同期高出 70 個基點。我們受益於有利的銷售組合和簡化舉措，包括資產剝離。這些收益部分被關稅的影響所抵銷。商用飛機業務的營業利潤率為 11.4%，比去年第四季下降了 440 個基點。下降的主要原因是關稅壓力，其次是銷售組合不利。

Our adjusted effective tax rate in the fourth quarter was 24.1%, up from 19.0% in the fourth quarter last year. In last year's fourth quarter, we benefited from an incentive associated with capital investment in one of our UK sites. Putting it all together, adjusted earnings per share came in at $2.56, up 19% compared to last year's fourth quarter. The increase reflects the higher sales level.

我們第四季的調整後實際稅率為 24.1%，高於去年第四季的 19.0%。去年第四季度，我們受惠於與我們在英國某地進行資本投資相關的激勵措施。綜合所有因素，調整後每股收益為 2.56 美元，比去年第四季成長 19%。這一增長反映了銷售水平的提高。

Let's shift over to cash flow, which was at a record level this quarter. In the fourth quarter, we generated about $200 million of free cash flow. This represents free cash flow conversion at around 2.5 times the level of adjusted net earnings. The key driver to the strong cash generation this quarter was working capital, in particular, customer advances.

我們接下來看看現金流，本季現金流達到了創紀錄的水平。第四季度，我們產生了約 2 億美元的自由現金流。這相當於自由現金流轉換率約為調整後淨收益的 2.5 倍。本季強勁現金流的關鍵驅動因素是營運資金，特別是客戶預付款。

Capital expenditures were relatively high compared with spend levels in recent quarters. This past quarter was elevated as certain commercial aircraft production was moved into one of our focused factories to optimize our manufacturing space. Our leverage ratio was 2.0 times as of the end of the fourth quarter, putting us at the low end of our target leverage of 2 to 3 times. Our capital deployment priorities are around organic growth, and we'll pursue strategic acquisitions that will fit in nicely within our business. We strive to have a balanced capital deployment strategy over the long term.

與最近幾季的支出水準相比，資本支出相對較高。上個季度業績有所提升，因為為了優化生產空間，我們將部分商用飛機生產轉移到了我們的一個重點工廠。截至第四季末，我們的槓桿率為 2.0 倍，處於我們 2 至 3 倍目標槓桿率的低端。我們的資本部署重點是內生成長，我們將尋求與我們業務完美契合的策略性收購。我們力求長期採取均衡的資本配置策略。

Now let's shift over to our initial guidance for the year. Fiscal year '26 will be another great year in which we continue to build our financial strength. We'll achieve a record level of sales, further expand our operating margin and make meaningful progress towards generating strong free cash flow. We're projecting sales of $4.2 billion in FY26, a 9% increase compared to FY25. We're projecting the largest sales growth in our Aerospace and Defense segment with a modest increase in Industrial.

現在讓我們來看看今年的初步業績指引。2026財年將是另一個輝煌的年份，我們將繼續增強財務實力。我們將實現創紀錄的銷售額，進一步擴大營業利潤率，並在產生強勁的自由現金流方面取得實質進展。我們預計 2026 財年的銷售額將達到 42 億美元，比 2025 財年成長 9%。我們預期航空航太和國防領域的銷售成長最為顯著，工業領域的銷售成長也將較為溫和。

The largest increase in sales will be in Commercial Aircraft. Sales are projected to grow 15% to $1.0 billion, driven by increased production rates for narrow-body and wide-body programs. Sales will also increase from pricing initiatives, both for the OE and in the aftermarket.

銷售額增幅最大的將是商用飛機領域。受窄體和寬體飛機專案產量提高的推動，預計銷售額將成長 15%，達到 10 億美元。價格策略也將促進銷售成長，無論是在原廠配套市場或售後市場。

Space and Defense sales are projected to increase 11% to $1.2 billion. We're seeing strong Defense demand across our entire book of business, in particular, for controls for missiles and in the European ground vehicles market. In addition, the acquisition of COTSWORKS is contributing 3 percentage points to our sales growth.

預計航太和國​​防銷售額將成長 11%，達到 12 億美元。我們看到國防業務在我們所有業務領域都有強勁的需求，特別是飛彈控制系統和歐洲地面車輛市場。此外，收購 COTSWORKS 為我們的銷售成長貢獻了 3 個百分點。

Military Aircraft sales are projected to increase 7% to $1.0 billion. The increase will be driven by pricing changes that have already been secured and to a lesser extent, growth in new production aircraft. These increases will be offset somewhat by declines in certain legacy programs that are nearing end of life production. Industrial sales are projected to increase 3% to $1.0 billion, driven by increased demand for data center cooling pumps.

預計軍用飛機銷售額將成長7%，達到10億美元。此次成長將主要受已確定的價格調整以及新生產飛機數量的成長（儘管成長幅度較小）所推動。這些增長將被某些即將停產的傳統項目的減少所部分抵消。受資料中心冷卻幫浦需求增加的推動，工業銷售額預計將成長 3%，達到 10 億美元。

Let's shift over to adjusted operating margin. We're projecting our operating margin in FY26 to be 13.4%, a 40 basis point increase over FY25. Excluding the impact of tariff pressure in FY26, our operating margin would be 14.2%, in line with the long-term target we shared in our 2023 Investor Day presentation. Military Aircraft operating margin will increase 200 basis points to 14.3%, driven by increased pricing in both OE and in the aftermarket. Industrial's operating margin is also projected to be 14.3%, 80 basis points over FY25.

我們接下來來看調整後的營業利益率。我們預期 2026 財年的營業利益率為 13.4%，比 2025 財年成長 40 個基點。如果排除 2026 財年關稅壓力的影響，我們的營業利潤率將達到 14.2%，與我們在 2023 年投資者日演講中提出的長期目標一致。受原廠配套市場和售後市場價格上漲的推動，軍用飛機的營業利潤率將提高 200 個基點，達到 14.3%。預計工業部門的營業利潤率也將達到 14.3%，比 2025 財年成長 80 個基點。

The increase reflects the benefits of further portfolio-shaping activities. Our operating margin at Space and Defense will remain flat at 13.5%. We'll continue to benefit from profitable sales growth, net benefit will be offset by continued investments in product development.

這一增長反映了進一步調整投資組合活動所帶來的益處。我們在航太與國防領域的營業利益率將維持在 13.5% 不變。我們將繼續受惠於獲利性銷售成長，但淨收益將被產品研發的持續投資所抵銷。

In Commercial Aircraft, our operating margin will decrease 90 basis points to 11.5%. Tariffs are pressuring this business. Excluding the incremental impact of tariffs, operating margin in FY26 would expand 60 basis points over FY25 as the benefit associated with secured price increases will more than offset an unfavorable sales mix.

在商用飛機領域，我們的營業利潤率將下降 90 個基點至 11.5%。關稅給這家企業帶來了壓力。不計關稅的額外影響，2026 財年的營業利潤率將比 2025 財年增長 60 個基點，因為價格上漲帶來的收益將足以抵消不利的銷售組合。

Our effective tax rate will increase to 25.0% in FY26. Recently enacted legislation helps us from a cash flow perspective through accelerated deductions that causes us to lose some of the related permanent benefits that affect our tax rate. For FY26, earnings per share are projected to be $10, plus or minus $0.20. That's up 15% over FY25 adjusted earnings per share. The increase reflects a higher sales level and to a lesser extent, a higher operating margin. For the first quarter, we're forecasting earnings per share to be $2.20, plus or minus $0.10.

2026財年，我們的實際稅率將提高到25.0%。最近頒布的法律透過加速扣除從現金流的角度幫助我們，但這也導致我們失去一些相關的永久福利，從而影響我們的稅率。預計2026財年每股收益為10美元，上下浮動0.20美元。這比2025財年調整後的每股盈餘成長15%。這一成長反映了銷售額的提高，其次是營業利潤率的提高。我們預測第一季每股收益為 2.20 美元，上下浮動 0.10 美元。

Finally, turning to cash. We're projecting free cash flow conversion to be about 60%, an improvement over FY25. Our strong sales growth requires increased working capital, so we're mitigating that through various initiatives. Within Commercial Aircraft, we've already had success in pushing out material receipts, and we will also be destocking later in the year. We anticipate a use of cash in the first quarter to be in excess of $100 million, reflecting normal timing of compensation payments and the timing of incoming receipts and customer advances.

最後，我們來談談現金。我們預計自由現金流轉換率約為 60%，比 2025 財年有所提高。強勁的銷售成長需要更多的營運資金，因此我們正在透過各種措施來緩解這個問題。在商用飛機領域，我們已經成功地加快了物料接收速度，並且我們將在今年稍後進行去庫存。我們預計第一季現金使用量將超過 1 億美元，這反映了正常的薪資支付時間以及收到款項和客戶預付款的時間。

Overall, FY25 was a year marked by record sales and strong operational performance, and we're looking forward to another great year in FY26.

整體而言，2025 財年是銷售額創紀錄、營運績效強勁的一年，我們期待 2026 財年再創佳績。

And now I'll turn it back to Pat.

現在我把麥克風交還給派特。

Now before I move on to closing out, let me just correctly state the impact of simplification from earlier. Simplification initiatives delivered similar margin benefits to pricing and volume growth together in fiscal '25. This solid improvement was partially eroded by tariffs. Now with that, I think we've completed a fourth quarter with exceptional financial results and an outstanding full year, and we're guiding that the business will continue to perform well based on our view of the markets and our success in driving business improvement.

在繼續總結之前，先讓我先正確地闡述前面提到的簡化所帶來的影響。2025 財年，簡化措施在定價和銷售成長方面都帶來了類似的利潤率收益。這一顯著改善被關稅部分抵消。綜上所述，我認為我們已經順利完成了第四季度，取得了卓越的財務業績，並且全年業績也十分出色。基於我們對市場的判斷以及我們在推動業務改進方面的成功，我們預計公司業務將繼續保持良好的發展勢頭。

And with that, let me open the floor up for questions.

接下來，我將開放提問環節。

(Operator Instructions) Jon Tanwanteng, CJS.

（操作員說明）Jon Tanwanteng，CJS。

Really nice quarter and outlook there. I was wondering if you could focus a little bit more on the cash flow, if possible. Just how do you expect that to phase through the following three quarters after Q1? And then maybe talk about some of the underlying items that you addressed in your prepared remarks. You talked about factor improvement, supply chain improvements as well as the terms from your customers.

本季前景非常好。我想問您能否盡可能多關註一下現金流方面的情況。您預計第一季之後的三個季度將如何逐步推進？然後或許可以談談你在準備好的發言稿中提到的一些具體問題。您談到了要素改進、供應鏈改進以及客戶的條款。

Maybe talk about how those layer in over the next one or two years and when you expect to hit the target range of 75% to 100% conversion?

或許可以談談這些措施將在未來一兩年內如何逐步實施，以及預計何時能達到 75% 到 100% 的轉換率目標？

Sure. I'll start with our forecast for the year. So again, it's at 60% free cash flow conversion. As we've got a nicely growing business, you can see all the organic growth that we've had this past year, we're continuing to see even accelerated growth into next year, that requires working capital. It also requires capital expenditures.

當然。我先來做今年的預測。所以，它的自由現金流轉換率達到了 60%。由於我們的業務發展良好，您可以看到我們在過去一年中取得的所有自然成長，我們預計明年將繼續加速成長，這需要營運資金。它還需要資金支出。

We've been investing and we continue to invest in our facilities, and that uses some cash. We are having some initiatives that are mitigating the impact, particularly in Commercial Aircraft. And Commercial Aircraft is growing, and that does have the longest cash conversion cycle within our business. One of the things that we're doing, and we're already seeing results just a few weeks into the beginning of our year is on material receipts. We are pushing out some of the material receipts that were scheduled to come into the year such that they will be pushed outside of fiscal year '26.

我們一直在投資並將繼續投資於我們的設施，這需要一些現金。我們正在採取一些措施來減輕這種影響，尤其是在商用飛機領域。商用飛機業務正在成長，但它也是我們業務中現金週轉週期最長的領域。我們正在做的一件事，而且在年初短短幾週內就已經看到了成效，就是關於材料收據的那件事。我們將一些原定於本年度收到的物料款項延至 2026 財政年度之外。

So we have a plan for the year, and we've already made nice progress in our FY26 goal with activity that we've had already. . Later in the year, we're going to work on some destocking by bringing in less than we're shipping. We're obviously making sure that we're shipping according to what we need to do for our customers' requirements, but trying to make sure that we can bring in only what's needed balancing what's already on hand so that we can bring our physical inventory balance down.

所以我們制定了今年的計劃，透過我們已經開展的活動，我們在 2026 財年的目標方面已經取得了不錯的進展。。今年晚些時候，我們將進行一些去庫存工作，減少進貨量，減少出貨量。我們當然要確保按照客戶的要求進行發貨，但同時也要努力確保只引進所需的數量，平衡現有庫存，從而降低我們的實際庫存餘額。

So those are some of the activities that we've got going on in FY26. We also have stronger sales or stronger earnings -- so that's contributing to some of the growth that we're seeing in fiscal year '26. One area -- other area of pressure that we're seeing is in our receivables, and that's just the timing of when we're going to have our earnings, our sales and then the ultimate collection of it. So in a growing business, where we've got more sales and earnings towards the back end of the year, which is what we're projecting. We're going to have the higher receivables there, and so that will pressure us for the full year.

以上就是我們在2026財年所進行的一些活動。我們的銷售額和獲利能力也更強——因此，這也有助於我們在 2026 財年看到成長。我們看到的另一個壓力領域是應收帳款，這涉及到我們何時獲得收益、何時實現銷售，以及最終何時能夠收回款項。因此，在業務不斷增長的情況下，我們的銷售額和利潤將在年底前大幅增長，這也是我們所預測的。我們那裡的應收帳款會比較高，所以這將給我們全年帶來壓力。

So when we look out beyond fiscal year '26, so we like that we're seeing an improvement from what we had in fiscal year '25. Our target still remains long term for the 75% to 100% free cash flow conversion level. And as Pat mentioned in his prepared remarks, there's a number of activities that we've got going on. I shared a couple of the ones that are going to impact us from fiscal year '26. But there's other things that are already underway that are going to help us in the future so that we can get into that range.

所以，當我們展望 2026 財年之後，我們很高興地看到，與 2025 財年相比，情況有所改善。我們的目標仍是長期實現75%至100%的自由現金流轉換率。正如帕特在事先準備好的演講稿中提到的那樣，我們正在進行許多活動。我分享了其中幾項將從 2026 財政年度開始對我們產生影響的因素。但目前還有其他一些正在進行中的工作，這些工作將在未來幫助我們達到那個目標。

Yes. So thanks, Jennifer. So I think Jennifer covered some of the here and now things we're doing with material receipts on the cash flow side. But if I look at the structure of that business, we receive live variations or demand variations coming in from our customers, and we're not in a great position at the moment to reflect those through to our suppliers. We have too many of the suppliers on fixed appeals, which means there are certain delivery dates defined up to 1 year or 1.5 years in advance, and we need to change the structure of that over the coming couple of years.

是的。謝謝你，珍妮弗。所以我覺得珍妮佛已經介紹了一些我們目前正在現金流處理的材料收款事宜。但如果我看一下該業務的結構，我們會收到來自客戶的即時變化或需求變化，而我們目前還沒有很好的條件將這些變化反映給我們的供應商。我們有太多供應商採用固定交貨期，這意味著某些交貨日期會提前一年或一年半確定，我們需要在未來幾年內改變這種結構。

We're making good progress towards that end, but we'll report more on that in future quarters. So that's a sort of a structural change, which helps us deal with demand variation on the customer side.

我們在這方面取得了良好進展，但我們將在未來幾季報告更多相關資訊。所以這是一種結構性變化，有助於我們應對客戶方面的需求變化。

I think on the term side that I mentioned, that's -- we have pretty long payment terms with our customers. We need to consider how we're dealing with our supply side in that whole conversation about appeals, flexibility, working to forecast rather than working to fixed orders. But that's part of the change that's going on there.

我認為就我提到的付款期限而言，我們與客戶的付款期限相當長。在討論申訴、靈活性、根據預測而不是根據固定訂單進行工作等問題時，我們需要考慮如何處理我們的供應方。但這正是那裡正在發生的變化的一部分。

Great. And second, if you could, just on the negative, I guess, incremental margin Commercial Aircraft for '26, I know you mentioned that it was mostly a tariff impact on pricing, but I was wondering if there's any mix in there as well. I know you had a very strong aftermarket year this year and production from -- on the EM side is supposed to ramp up pretty strongly. Is that a component there? Or is there anything else going on just on the margin for Commercial in '26?

偉大的。其次，如果可以的話，我想就2026年商用飛機的增量利潤這部分負面數據談談，我知道您提到這主要是關稅對價格的影響，但我想知道其中是否還有其他因素。我知道你們今年的售後市場表現非常強勁，電子製造的產量應該會大幅成長。那是那裡的一個部件嗎？或者說，2026 年商業領域還有其他什麼邊緣事件發生嗎？

Yes, there is some negative mix. We have our commercial aftermarket, which is more profitable than our OE portion of the business, becoming a smaller percentage of the entire segment sales. So there is a negative mix impact there. I would say the tariffs is a very significant impact on this business, though.

是的，其中也存在一些負面影響。我們擁有商業售後市場，其利潤比我們的原廠配套業務更高，因此在整個細分市場銷售額中所佔比例越來越小。所以這會產生負面影響。但我認為關稅對這家企業的影響非常顯著。

Jon, the last thing I was going to add in, when we transitioned back to that subsequent question was to do with our own configuration of manufacturing plants and the movement of product between them. So every transition from one plant to another adds time to the overall cash conversion cycle that Jennifer was talking about, but it also adds buffer stocks and other increases in work in progress. And so we're trying to work that down as well. And so line replaceable unit by line replaceable unit, we're working to consolidate the manufacturing footprint and the supplier footprint such that overall conversion time from starting a product production through to delivery to the customer, that overall lead time through the entire network is reduced.

Jon，當我們回到接下來的問題時，我最後要補充的是關於我們自己的製造工廠配置以及產品在工廠之間的流動。因此，每次從一個工廠過渡到另一個工廠都會延長珍妮佛所說的整體現金轉換週期，但同時也會增加緩衝庫存和其他在製品數量。所以我們也在努力降低這個比例。因此，我們正在逐一生產線可更換單元地整合製造佈局和供應商佈局，從而縮短從產品生產開始到交付給客戶的整體轉換時間，即整個網路的整體交付週期。

That's what takes time to do with projects underway at the moment that are actually working that, and that's what I hope to give updates on in future quarters.

目前正在進行的專案需要時間來做到這一點，而這正是我希望在未來幾季中提供最新進展的資訊。

Mike Ciarmoli, Truist.

Mike Ciarmoli，Truist。

Maybe Jennifer, just to stay on the Pat as well to stay on the cash flow, you mentioned trying to make some of these structural changes. And Jennifer, you called out working capital, and I think you called it out specifically in that Commercial Aircraft. Can you give us a sense of where you're trying to get that working capital as a percent of revenue to where it is now? And then even just more on maybe some of the bridging items to cash next year. I'm assuming CapEx stays elevated at that 4% to 5%.

珍妮弗，或許只是為了留在帕特公司，為了保持現金流，你提到要嘗試進行一些結構性變革。珍妮弗，你提到了營運資金，而且我認為你在商用飛機部分特別提到了這一點。您能否大致說明一下，您希望將營運資金佔收入的百分比從目前的水平提高到什麼程度？然後，明年或許還可以更專注於一些過渡性項目，以實現現金流目標。我假設資本支出將保持在 4% 到 5% 的高點。

You did get, I guess, a good tailwind on customer advances this quarter, maybe $74 million or so. But how does that look in '26 on the advanced side?

我想，你們這季度在客戶預付款方面應該得到了不錯的提振，大概有 7400 萬美元左右。但到了 2026 年，在先進方面又會是什麼樣子呢？

Sure. Let me start off with our working capital targets. Right now, we're just putting something out for '26. But based on the comments that you heard Pat describe longer term, we're certainly wanting to make a much more meaningful impact beyond '26 in that. We're not ready to share that yet at this point, but we'll continue to give updates as we move further.

當然。首先，讓我談談我們的營運資金目標。目前，我們只是在為 2026 年推出一些東西。但根據你聽到的帕特對長期發展的評論，我們當然希望在 2026 年後產生更有意義的影響。目前我們還不方便透露具體訊息，但我們會隨著進展繼續發布最新消息。

But I would reiterate that we still believe that our business when we get through these initiatives, we'll be in the 75% to 100% free cash flow conversion rate. When I look at some of the individual pieces for fiscal year '26, we're anticipating, obviously, we've got a higher level of earnings and then I'll start with some of our working capital items. We'll probably use a little more working capital than we did this year. I would note that physical inventories will plan on keeping around the same level of growth in physical inventories that we had this year. So with the growing business, we certainly need more, but we're able to even a growing business, keep it to the same level of growth that we have this year.

但我還是要重申，我們仍然相信，當我們完成這些措施後，我們的業務自由現金流轉換率將達到 75% 到 100%。當我查看 2026 財年的一些具體項目時，我們預計，顯然，我們的盈利水平會更高，接下來我將從我們的一些營運資本項目開始。我們今年的營運資金使用量可能會比今年略高一些。我想指出的是，實體庫存方面，我們計劃保持與今年大致相同的成長水準。隨著業務的成長，我們當然需要更多資源，但即便業務不斷成長，我們也能維持今年的成長水準。

We will see some pressure from billed receivables and advances. Our advances were very strong. And I called it out in their fourth quarter comments because it was even -- we expected fourth quarter to be strong. It was well stronger than what we had projected. And so that actually pulled a little bit in from '26 into '25 for us.

我們將面臨已開立發票應收帳款和預付款的一些壓力。我們的進展非常順利。我在他們的第四季度業績評論中指出了這一點，因為當時的情況比較膠著——我們原本預期第四季度會表現強勁。它的強度遠遠超出我們的預期。所以實際上，這讓我們從 2026 年到 2025 年之間吸收了一些資金。

But when we look at customer advances, it's still going to be positive for next year, just not as strong as it was in fiscal year '25. So those are some of the things that we've got. I would say, capital expenditures are going to stay around the same level as a percentage of sales that we had this year. Again, we are investing in our business for that long-term growth that we've got. This year, we ended at around $145 million.

但從客戶進度來看，明年仍會是正面的，只是不如 2025 財年那麼強勁。以上就是我們擁有的一些東西。我認為，資本支出佔今年銷售額的比例將維持在大致相同的水平。我們再次強調，我們正在投資我們的業務，以實現我們所擁有的長期成長。今年，我們的最終收入約為 1.45 億美元。

We're projecting to go to $160 million, it's around the same percentage of sales that we have though before. So those are some of the bigger pieces within our cash flow as we're looking out for next year.

我們預計銷售額將達到 1.6 億美元，這與我們先前預想的銷售額佔比大致相同。所以，這些是我們展望明年時現金流中的一些重要部分。

Got it. Got it. And then specifically on the CapEx, I mean we've certainly seen and heard about a number of the projects you're doing. But how are you guys thinking about the return profile on some of those projects and when we should really start to see the benefits and maybe even see some of that CapEx start to trend lower as you complete some of these projects?

知道了。知道了。具體來說，關於資本支出，我們當然已經看到和聽說了你們正在進行的一些項目。但是，你們如何看待其中一些項目的回報情況？我們什麼時候才能真正開始看到收益，甚至隨著這些項目的完成，看到一些資本支出開始下降？

I would say there's different nature of different projects. So some of the projects are things that we get benefit as we get captured in rates as we do projection production over the next couple two, three years type of thing. So we see the benefit or the recovery really in the next couple of years from that standpoint. Some of it is for anticipated growth and it's the growth that we are seeing. Another aspect of some of the things that we're doing, especially in the automation space, is actually being able to take on these contracts.

我認為不同項目的性質各不相同。所以有些項目是我們可以受益的，因為我們可以在未來兩三年內進行預測生產，並將收益計入費率中。所以從這個角度來看，我們預計未來幾年將真正迎來復甦或改善。一部分是預期成長，一部分是我們現在看到的成長。我們正在做的一些事情，尤其是在自動化領域，另一個方面是能夠承接這些合約。

Otherwise, we would not have had the space, the efficiency and the throughput to get through the increasing volumes that we've had. So it's already -- so those are already improving for our -- coming through from our sales and efficiencies.

否則，我們將沒有足夠的空間、效率和吞吐量來處理我們不斷成長的業務量。所以，這些方面——這些方面——已經有所改善，從我們的銷售和效率中就能體現出來。

(Operator Instructions) Tony Bancroft, GAMCO Investors, Inc.

（操作員說明）托尼·班克羅夫特，GAMCO Investors, Inc.

Yes. Congratulations, Patrick and Jennifer. Very well done. Just on your growth sort of growth platforms, the MV-75, CCA, 47, maybe potentially FA-XX space satellites and missiles. Can you just sort of talk about what's in that space where possibly you could do?

是的。恭喜派崔克和珍妮佛。做得非常好。就你們的成長型平台而言，MV-75、CCA、47，或許還有FA-XX太空衛星和飛彈。您能簡單談談在這個領域可以做些什麼嗎？

Is there any M&A in that space that you could do or sort of maybe some more color on what that looks like, where you could maybe grow that?

在這個領域是否有任何併購機會？或者能否更詳細地介紹一下這個領域的情況，以及你們可能可以如何成長？

Yes. Thanks, Tony, for the question. Thanks for the compliment as well. We are active and have continued to be active in maintaining a funnel of potential acquisition targets. We are interested in growing the business and the Defense side is where we're getting great returns.

是的。謝謝托尼的提問。也謝謝你的誇獎。我們一直積極主動地維護潛在收購目標的儲備庫。我們對發展業務很感興趣，而國防領域是我們獲得豐厚回報的領域。

So it is an attractive area. We have to see what comes up. We're interested in building out the business both here and overseas. I mean, I called out an example where organically, we're using our footprint in Australia to build out our missiles business. We're looking at opportunities to do that in Europe as well.

所以這是一個很有吸引力的地區。我們得看看會發生什麼。我們有興趣在國內和海外拓展業務。我的意思是，我舉了一個例子，說明我們如何利用在澳洲的業務基礎，逐步發展我們的飛彈業務。我們也正在尋找在歐洲進行這項工作的機會。

And so if there's acquisitions that fit that agenda, we're interested.

因此，如果有符合此目標的收購，我們很感興趣。

(Operator Instructions) We have a follow-up question from Mike Ciarmoli of Truist.

（操作說明）我們收到 Truist 公司的 Mike Ciarmoli 的後續問題。

Pat, you guys seem to be getting hit a little bit harder on tariffs, maybe in Aerospace. I mean, I would have thought you would have seen it a little bit more in Industrial. And is it really just a function of the contracting environment that you can pass these tariffs through? or there certain materials that you're having to procure? Or what's kind of behind the pressures more concentrated in aircraft?

帕特，你們似乎在關稅方面受到的影響更大一些，可能是在航空航太領域。我的意思是，我以為你會在工業領域看到更多這樣的情況。難道只是合約環境決定了這些關稅能否轉嫁出去嗎？或您需要採購某些特定材料？或者說，飛機上壓力集中的原因是什麼？

So first point is that it's a highly global manufacturing and supply chain structure around that Commercial Aircraft business, unlike the Military Aircraft business, which is mostly US-based or North American-based at least. So that's one difference between them structurally. The Section 232 tariffs, which impact steel and aluminum, obviously, have an impact on materials moving in and out as part of that business. And then as you know, we have a major manufacturing location in Baguio in the Philippines. Now fortunately, many of our customer contracts are ex factory, ex Works, in nature.

首先，商用飛機業務的製造和供應鏈結構高度全球化，這與主要以美國或至少以北美為中心的軍用飛機業務截然不同。這是它們在結構上的一個區別。第 232 條款關稅對鋼鐵和鋁材造成了影響，顯然會對相關產業的材料進出造成影響。如您所知，我們在菲律賓碧瑤市設有一個主要的生產基地。幸運的是，現在我們許多客戶合約都是工廠交貨（ex factory）或工作場所交貨（ex work）性質的。

So in some of those cases, we're shielded from the impact of the tariff ourselves, but the combination of all of those tariffs that I mentioned and some customer contracts that and set up that way means that it does have an impact most heavily felt in commercial relative to other segments. Does that help?

因此，在某些情況下，我們本身可以免受關稅的影響，但我提到的所有這些關稅以及一些以這種方式設置的客戶合約加在一起，意味著它確實會產生影響，而且相對於其他領域，商業領域受到的影響最大。這樣有幫助嗎？

Okay. Okay. Yes, that's helpful. And then just Commercial Aircraft, you're guiding for 15% growth. It sounded like you're going to be dealing with a little bit of destocking.

好的。好的。是的，這很有幫助。僅商用飛機業務，你們預計成長15%。聽起來你們可能要進行一些清倉處理了。

I'm assuming that's on the 87 and the A350, but you're still getting pretty good growth. Can you maybe parse out, I mean, between aftermarket and OEM growth next year in aircraft?

我猜這是指 87 和 A350，但即便如此，你們的成長仍然相當不錯。您能否具體分析一下，明年飛機售後市場和 OEM 市場的成長？

Yes. I'll start with the general comment as we -- and then we'll do the app market Yes, the destocking. So of course, we're going to meet our customers' requirements and what they're doing from that side of it. So it's really us managing it on the supply chain side of things when we're talking about the destocking. We'll continue to ship as we have already previously continued to, but we have some opportunities in the supply chain to delay such that it doesn't impact what we're getting out the door. So that's really helpful.

是的。我先說一句整體評論，然後我們再來談談應用程式市場。是的，就是去庫存。所以，我們當然會滿足客戶的需求以及他們在這方面所做的工作。所以，當我們談到去庫存時，實際上是我們在供應鏈方面進行管理。我們將繼續像以前一樣發貨，但我們在供應鏈中有一些可以延遲發貨的機會，這樣就不會影響我們最終發貨的數量。這真的很有幫助。

I think if I look into '26, a lot of the growth is coming on the OE side. Some of that also is narrow-body actually, and we don't talk about that a lot in the call because of the lower content value on the narrow-body aircraft, but the volumes there are beginning to pick up as well, and that seems to be coming through.

我認為，如果我展望 2026 年，很多成長都將來自 OE 方面。其中一些實際上也是窄體飛機，我們在電話會議中很少談到這一點，因為窄體飛機的貨物價值較低，但窄體飛機的貨運量也開始回升，這似乎正在顯現出來。

Okay. Got it. And then maybe just a final one on cash, Pat and Jennifer. I mean, the 60% conversion. Last year proved to be a bit of a challenge with a couple of downward revisions.

好的。知道了。最後，帕特和珍妮佛，也許可以再問一個關於現金的問題。我的意思是，轉換率達到 60%。去年由於幾次下調預期，確實有些挑戰。

I mean, as you guys contemplated and set the 60% conversion, I mean, the confidence level, I think I previously asked for some of those bridging items. But I guess just the line of sight and confidence to that 60% right now?

我的意思是，當你們考慮並設定 60% 的轉換率時，我的意思是，信心水平，我想我之前要求過一些過渡性項目。但我認為，目前達到60%的把握和信心至關重要？

Yes, we're confident in our projection that we've got out for this year. We've got the increase in our earnings, and it's being driven by our sales growth, the sales growth is strong. You heard Pat talk about the backlog. So that's certainly contributing to it as well. We do have customer advances in line in sight.

是的，我們對今年的預測很有信心。我們的獲利成長了，這主要得益於銷售成長，而且銷售成長勢頭強勁。你聽帕特說過積壓的工作量問題。所以這肯定也是造成這種情況的原因之一。我們確實有一些客戶預付款項目正在籌備中。

Not to the extent that we had last year, but we have those in sight, so we can do that. And then I mentioned a couple of the areas where we have -- especially on pushing out some of the material receipts. We've already achieved that. We've actually pushed some of those out already. So we're seeing that -- we know that, that progress is going to come through for us.

雖然達不到去年的程度，但我們已經看到了目標，所以我們能夠做到。然後我提到了我們目前面臨的幾個問題領域——尤其是在加快一些材料收據的發放方面。我們已經實現了這個目標。我們實際上已經推出了一些。所以我們看到──我們知道，進步終將到來。

So we are confident in our projection for next year.

因此，我們對明年的預測充滿信心。

There are no further questions at this time. I will now turn the call back to Pat Roche for closing remarks.

目前沒有其他問題了。現在我將把電話轉回給帕特·羅奇，請他作總結發言。

So that concludes our earnings call. I appreciate you taking the time to listen to our update on the business, and I look forward to updating you again on our next quarterly call. Thank you.

至此，我們的財報電話會議就結束了。感謝您抽出時間聽取我們關於公司業務的最新情況匯報，我期待在下次季度電話會議上再次向您報告最新進展。謝謝。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。謝謝各位的出席。您現在可以斷開連線了。