Mercury Systems Inc (MRCY) 2025 Q3 法說會逐字稿

Good day everyone, and welcome to the Mercury Systems third quarter fiscal 2025 conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the call over to the company's Vice President of investor relations, Tyler Hojo. Please go ahead, Mr. Hojo.

大家好，歡迎參加 Mercury Systems 2025 財年第三季電話會議。今天的通話正在錄音。現在，為了致開幕詞和介紹，我想將電話轉給公司投資人關係副總裁 Tyler Hojo。請繼續，Hojo先生。

Good afternoon and thank you for joining us. With me today is our Chairman and Chief Executive Officer, Bill Ballhaus, and our Executive Vice President and CFO, Dave Farnsworth.

下午好，感謝您加入我們。今天與我一起的有我們的董事長兼執行長比爾鮑爾豪斯 (Bill Ballhaus) 和我們的執行副總裁兼財務長戴夫法恩斯沃思 (Dave Farnsworth)。

If you have not received a copy of the earnings press release we issued earlier this afternoon, you can find it on our website at mrcy.com. The slide presentation that we will be referencing to is posted on the investor relations section of the website under events and presentations. Turning the slide 2 in the presentation.

如果您還沒有收到我們今天下午早些時候發布的收益新聞稿，您可以在我們的網站 mrcy.com 上找到。我們將參考的幻燈片簡報已發佈在網站「投資者關係」版塊的「活動和簡報」欄位下。翻轉簡報中的第 2 張投影片。

I'd like to remind you that today's presentation includes forward-looking statements, including information regarding Mercury's financial outlook, future plans, objectives, business prospects, and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2 in the earnings press release and the risk factors included in Mercury's SEC filings.

我想提醒您，今天的簡報包含前瞻性陳述，包括有關 Mercury 的財務前景、未來計劃、目標、業務前景和預期財務業績的資訊。這些前瞻性陳述受未來風險和不確定性的影響，可能導致我們的實際結果或績效產生重大差異。所有前瞻性陳述都應與收益新聞稿中幻燈片 2 上的警示性聲明以及 Mercury 向美國證券交易委員會提交的文件中包含的風險因素一起考慮。

I'd also like to mention that in addition to reporting financial results in accordance with generally accepted accounting principles or GAAP during our call, we will also discuss several non-GAAP financial measures. Specifically adjusted income, adjusted earnings per share, adjusted EBITDA, and free cash flow.

我還想提一下，除了在電話會議中按照公認會計原則或 GAAP 報告財務結果外，我們還將討論幾項非 GAAP 財務指標。具體來說，調整後的營收、調整後的每股盈餘、調整後的 EBITDA 和自由現金流。

A reconciliation of these non-GAAP metrics is included as an appendix to today's slide presentation and in the earnings press release.

這些非公認會計準則指標的對帳已作為附錄包含在今天的幻燈片簡報和收益新聞稿中。

I'll now turn the call over to Mercury's Chairman and CEO, Bill Ballhaus. Please turn to slide 3.

現在我將把電話轉給 Mercury 董事長兼執行長 Bill Ballhaus。請翻到幻燈片 3。

Thanks, Tyler. Good afternoon. Thank you for joining our Q3 FY25 earnings call.

謝謝，泰勒。午安.感謝您參加我們的 2025 財年第三季財報電話會議。

We delivered solid results in Q3 that were once again in-line with or ahead of our expectations, and I'm optimistic about our ongoing efforts to improve performance as we move through the fiscal year.

我們在第三季度取得了穩健的業績，再次符合或超越了我們的預期，我對我們在整個財政年度中持續努力提高業績感到樂觀。

Today I'd like to cover three topics. First, some introductory comments on our business and results. Second, an update on four priorities delivering predictable performance, building a thriving growth engine, expanding margins, and driving improved free cash flow. And third, performance expectations for FY25 and longer term. Then I'll turn it over to Dave, who will walk through our financial results in more detail.

今天我想講三個話題。首先，對我們的業務和業績做一些介紹性的評論。其次，更新了四項優先事項：實現可預測的業績、打造蓬勃發展的成長引擎、擴大利潤率以及推動改善自由現金流。第三，對 25 財年及更長遠的業績預期。然後我將把它交給戴夫，他將更詳細地介紹我們的財務結果。

Before jumping in, I'd like to thank our customers for their collaborative partnership and the trust they put in Mercury to support their most critical programs. I'd also like to thank our Mercury team for their dedication and commitment to delivering mission critical processing at the edge. Please turn to slide 4.

在開始之前，我想感謝我們的客戶的合作夥伴關係以及他們對 Mercury 支持其最關鍵項目的信任。我還要感謝我們的 Mercury 團隊對在邊緣提供關鍵任務處理的奉獻和承諾。請翻到幻燈片 4。

Our Q3 results reinforce my confidence in our strategic positioning and our expectations to deliver predictable organic growth with expanding margins and robust free cash flow. Bookings of $200 million and a trailing 12 month book to bill of 1.1. Revenue of $211 million and year-to-date revenue growth of 8.9% year over year.

我們的第三季業績增強了我對我們的策略定位的信心，以及我們對實現可預測的有機成長、不斷擴大的利潤率和強勁的自由現金流的期望。訂單金額達2億美元，過去12個月訂單出貨比為1.1。營收達2.11億美元，年初至今營收年增8.9%。

Adjusted EBITDA of $25 million and adjusted EBITDA margin of 11.7%, both up substantially year-over-year, and free cash flow of $24 million up $50 million year over year, resulting in $146 million of free cash flow over the last four quarters. We ended Q3 with $270 million of cash on hand.

調整後 EBITDA 為 2,500 萬美元，調整後 EBITDA 利潤率為 11.7%，均較去年同期大幅成長，自由現金流為 2,400 萬美元，較去年同期增加 5,000 萬美元，導致過去四個季度的自由現金流達到 1.46 億美元。第三季結束時，我們的現金餘額為 2.7 億美元。

These results reflect continued progress in each of our four priority areas with highlights that include solid execution across our broad portfolio of production and development programs, backlog growth of 4% year-over-year, reduced operating expense, enabling increased positive operating leverage and continued progress on free cash flow drivers with networking capital down $148 million year over year or 24.6%. Please turn to slide 5.

這些結果反映了我們在四個優先領域中持續取得的進展，其中的亮點包括我們廣泛的生產和開發項目組合的穩健執行、積壓訂單同比增長 4%、運營費用的降低、正運營槓桿的提高以及自由現金流驅動因素的持續進展，網絡資本同比下降 1.48 億美元，降幅為 24.6%。請翻到投影片 5。

Starting now with our four priorities and priority one, delivering predictable performance. In the third quarter, our focus on predictable performance positively impacted our results primarily in two areas. First, in Q3, we recognized approximately $3.7 million of net EAC change impacts across our portfolio, which is again down sequentially to the lowest level in several quarters, reflecting our maturing capabilities in program management, engineering, and operations and progress in completing development programs.

從現在開始，我們的四個優先事項和首要任務是提供可預測的績效。在第三季度，我們對可預測業績的關注主要在兩個方面對我們的業績產生了積極影響。首先，在第三季度，我們確認了整個投資組合中約 370 萬美元的淨 EAC 變更影響，該影響再次環比下降至幾個季度以來的最低水平，這反映了我們在專案管理、工程和營運方面的能力日趨成熟，以及在完成開發專案方面取得的進展。

And second, our focus on accelerating customer deliveries allowed us to largely offset the $29 million of revenue that we accelerated into Q2 as discussed in our last call. Please turn to slide 6.

其次，我們專注於加速客戶交付，這在很大程度上抵消了上次電話會議中討論的加速到第二季度的 2,900 萬美元的收入。請翻到幻燈片 6。

Moving on to priority 2, driving organic growth. Q3 bookings of $200 million resulted in a backlog of $1.34 billion up 4% year-over-year. In the third quarter, we received a number of significant contract awards, including a total of $40 million in production contracts for our common processing architecture, adding to our backlog in this area.

繼續討論第二項優先事項，推動有機成長。第三季的訂單量為 2 億美元，導致積壓訂單量達到 13.4 億美元，年增 4%。第三季度，我們獲得了多項重要合約獎勵，其中包括總額為 4000 萬美元的通用處理架構生產合同，這增加了我們在該領域的積壓訂單。

And a $20 million follow-on production order associated with the F-35 program. It's also worth noting that in the month of April we had several meaningful bookings including a $20 million follow-on production agreement with an innovative commercial space company that supports a US national security mission. A $7 million development contract with the US Navy for an electronic warfare capability, and a $6 million follow-on production order for a classified avionics program that leverages our commercial memory products and advanced packaging expertise.

以及與 F-35 計劃相關的價值 2000 萬美元的後續生產訂單。另外值得注意的是，四月我們獲得了幾項有意義的訂單，包括與一家支持美國國家安全任務的創新商業太空公司達成的價值 2000 萬美元的後續生產協議。與美國海軍簽訂了價值 700 萬美元的電子戰能力開發合同，以及價值 600 萬美元的機密航空電子設備後續生產訂單，利用我們的商用內存產品和先進的封裝專業知識。

In-line with our expectations, over 80% of trailing 12 month bookings were production in nature, which continues to drive a makeshift toward production. These awards are important not only because of their value and impact on our growth trajectory, but also because they reflect those customers' trust in mercury to support their most critical franchise programs.

正如我們的預期，過去 12 個月的訂單中有超過 80% 屬於生產性質，這將繼續推動臨時生產。這些獎項之所以重要，不僅因為它們的價值和對我們成長軌蹟的影響，還因為它們反映了客戶對水星支持其最關鍵特許經營計劃的信任。

In addition to this booking's progress, in early Q4, we entered into two agreements that we believe will enhance our competitive position going forward. First, we announced the acquisition from Wind River of Starlab, a longtime partner and provider of cybersecurity software that integrates with our common processing architecture products, adding to our overall differentiation in this area.

除了預訂的進展之外，在第四季度初，我們還簽署了兩項協議，我們相信這將有助於增強我們未來的競爭地位。首先，我們宣布從 Wind River 收購 Starlab，Starlab 是我們長期的合作夥伴和網路安全軟體供應商，它與我們的通用處理架構產品相集成，增強了我們在該領域的整體差異化。

Second, we announced an agreement to divest and outsource our manufacturing operation in Switzerland, which we believe will enhance our ability to scale and increase capacity with improved efficiency as we pursue continued growth of our international operations. Please forward to slide 7.

其次，我們宣布了一項協議，剝離和外包我們在瑞士的製造業務，我們相信，這將增強我們擴大規模的能力，提高產能，提高效率，同時繼續實現國際業務的成長。請轉發至投影片 7。

Now turning to priority 3, expanding margins. As we've discussed in prior calls, to achieve our targeted adjusted EBITDA margins in the low to mid-20% range, we are focused on the following two drivers backlog margin expansion as we burn down lower margin existing backlog and replace with new bookings aligned with our target margin profile and driving organic growth to realize positive operating leverage given our streamlined operations.

現在轉向優先事項 3，擴大利潤。正如我們在先前的電話會議中討論過的，為了實現我們目標的調整後 EBITDA 利潤率在 20% 左右，我們專注於以下兩個驅動因素：積壓訂單利潤率擴張，因為我們會消耗利潤率較低的現有積壓訂單，並用符合我們目標利潤率狀況的新訂單取而代之，並推動有機增長，以在我們精簡營運的情況下實現的營運槓桿。

Q3 adjusted EBITDA margin of 11.7% was in line with our expectations, up subsequentially 180 basis points and indicative of progress on each of these levers in our effort to reach our targeted margins over time.

第三季調整後的 EBITDA 利潤率為 11.7%，符合我們的預期，隨後上漲了 180 個基點，顯示我們在努力實現目標利潤率的過程中，每個槓桿都取得了進展。

Gross margin of 27% was in-line with our expectations and largely driven by the average margin in our backlog coming into FY25. We expect backlog margin to continue to increase as we bring in new bookings that we believe will be both in line with our targeted margin profile and accretive to the current average margin in our backlog.

27% 的毛利率符合我們的預期，這主要得益於 2025 財年積壓訂單的平均利潤率。我們預計，隨著我們引入新的訂單，積壓訂單利潤率將繼續增加，我們相信這將符合我們的目標利潤率狀況，並增加我們積壓訂單的當前平均利潤率。

Operating expenses are again down year-over-year and down significantly year-to-date as a result of prior and ongoing actions to streamline and focus our operations. Please forward to slide 8.

由於我們之前和現在採取的簡化和集中運營的措施，營運費用同比再次下降，並且年初至今大幅下降。請轉發至幻燈片 8。

Finally, turning to priority 4, improved free cash flow. We continue to make significant progress on the drivers of free cash flow, and in particular, reduced networking capital, which at $453 million is at the lowest level since Q2 of FY22 and down $207 million from peak networking capital levels in Q1 of FY24.

最後，談談第四個優先事項，即改善自由現金流。我們在自由現金流驅動方面繼續取得重大進展，特別是在減少網路資本方面，目前網路資本為 4.53 億美元，處於 2022 財年第二季度以來的最低水平，比 2024 財年第一季度的網路資本峰值水平下降了 2.07 億美元。

Notably, combined free cash flow over the last four quarters is approximately $146 million, and net debt is down to $322 million the lowest level since Q1 of FY22. We believe our continuous improvement related to program execution and hardware delivery, just in time material and appropriately timed payment terms, will lead to continued reduction in working capital and net debt going forward. Please turn to slide 9.

值得注意的是，過去四個季度的綜合自由現金流約為 1.46 億美元，淨債務降至 3.22 億美元，為 2022 財年第一季以來的最低水準。我們相信，我們在專案執行和硬體交付方面的持續改進、及時的材料和適時的付款條件將導致未來營運資本和淨債務的持續減少。請翻到第 9 張投影片。

Looking ahead, I am optimistic about our team, our leadership position in delivering mission critical processing at the edge, and our expected ability over time to deliver results in line with our target profile of above market top line growth, adjusted EBITDA margins in the low to mid 20% range, and free cash flow conversion of 50%.

展望未來，我對我們的團隊、我們在邊緣關鍵任務處理方面的領導地位以及我們隨著時間的推移實現符合目標業績的預期能力感到樂觀，即高於市場的營收成長、調整後的 EBITDA 利潤率在 20% 到 20% 的中低範圍內，以及 50% 的自由現金流轉換。

As we discussed last quarter, although we will not be providing specific guidance for FY25, I will update the color we previously discussed.

正如我們上個季度所討論的那樣，雖然我們不會為 FY25 提供具體的指導，但我將更新我們之前討論過的顏色。

For full year FY25, we continue to expect annual revenue growth approaching mid single digits with timing positively impacted by our enhanced execution and accelerated deliveries earlier in the year.

對於 2025 財年全年，我們繼續預期年收入成長率將接近中等個位數，而今年稍早我們加強的執行力和加速的交付將對時間產生積極影響。

As we discussed last quarter, our current backlog margin is lower than what we expect to see on a go forward basis, driven primarily by a small number of low margin development programs and programs that incurred adverse net EAC change impacts in FY24.

正如我們上個季度所討論的那樣，我們目前的積壓訂單利潤率低於我們預期的未來水平，這主要是由於少數低利潤率開發項目和在 24 財年產生不利的淨 EAC 變化影響的項目所致。

Although we are encouraged that our recent quarter bookings are accretive to our overall backlog margin, we continue to expect low double digit adjusted EBITDA margins overall for FY25. We continue to expect Q4 adjusted EBITDA margins to be the highest level of the fiscal year approaching mid-teens.

儘管我們很高興看到最近一個季度的訂單量增加了我們的整體積壓訂單利潤率，但我們仍然預計 2025 財年整體調整後的 EBITDA 利潤率將處於較低的兩位數。我們繼續預期第四季度調整後的 EBITDA 利潤率將達到本財年的最高水平，接近十五六成。

Finally, with respect to free cash flow, our year-to-date free cash flow of $85 million is above our previous expectations. Even with this acceleration of cash year-to-date, we expect free cash flow to be around break even for Q4, resulting in full year free cash flow that is ahead of our prior expectations.

最後，關於自由現金流，我們今年迄今的自由現金流為 8,500 萬美元，高於我們先前的預期。即使今年迄今現金流加速成長，我們也預期第四季的自由現金流將達到損益兩平，從而使全年自由現金流超出我們先前的預期。

In summary, given the operational improvements over the last several quarters and our recent momentum, I expect that our performance in FY25 will represent a positive step toward our target profile, and I look forward to providing commentary on expectations for FY26 in our call next quarter.

總而言之，鑑於過去幾個季度的營運改善和我們最近的勢頭，我預計我們在 25 財年的業績將朝著我們的目標邁出積極的一步，我期待在下個季度的電話會議上對 26 財年的預期發表評論。

With that, I'll turn it over to Dave to walk through the financial results for the quarter, and I look forward to your questions, Dave?

說完這些，我將把時間交給戴夫來介紹本季的財務業績，我期待您的提問，戴夫？

Thank you, Bill. Our third quarter results reflect solid progress toward our goal of positioning the business to deliver predictable performance characterized by organic growth, expanding margins, and robust free cash flow.

謝謝你，比爾。我們的第三季業績反映出我們在實現目標方面取得了堅實進展，即實現以有機成長、利潤率擴大和強勁的自由現金流為特徵的可預測業績。

There is still work to be done, but we are encouraged by the progress we have made and expect the fourth quarter fiscal 2025 revenue and adjusted even the margins to improve over those in the first three quarters. With that, please turn to slide 10, which details our third quarter results.

仍有工作要做，但我們對所取得的進展感到鼓舞，並預計 2025 財年第四季的收入和調整後的利潤率將比前三個季度有所提高。請翻到第 10 張投影片，其中詳細介紹了我們的第三季業績。

Our bookings for the quarter were $200 million with a book to bill of 0.95. Our bookings on a trailing 12 month basis reflect a book to bill of 1.1. Our backlog of $1.34 billion is up $51 million or 4% year-over-year. Revenues for the third quarter were approximately $211 million up $3 million or 1.5% compared to prior year. Our revenues grew approximately $52 million or 8.9% on a year-to-date basis.

本季我們的訂單量為2億美元，訂單出貨比為0.95。過去12個月的訂單量反映出貨比為1.1。我們的積壓訂單量為13.4億美元，年增5,100萬美元，增幅為4%。第三季的營收約為 2.11 億美元，比去年同期增加 300 萬美元，增幅為 1.5%。我們的營收今年迄今成長了約 5,200 萬美元，即 8.9%。

Gross margin for the third quarter increased to 27% from 19.5% in the same quarter last year. As Bill previously noted, we expect to see an improvement in our gross margin performance over time as the average margin in our backlog improves. This is the result of our expectation that newer awards will be at targeted margins coupled with further expected progress toward completion of lower margin activities.

第三季毛利率由去年同期的19.5%上升至27%。正如比爾之前指出的那樣，隨著積壓訂單平均利潤率的提高，我們預計毛利率表現將隨著時間的推移而改善。這是因為我們預期新的獎項將達到目標利潤率，同時預期在完成較低利潤率活動方面將取得進一步進展。

Operating expenses decreased approximately $12 million year-over-year, primarily due to lower R&D expense and restructuring and other charges. These decreases were driven by the actions taken in fiscal 2024 and 2025 to improve our performance by consolidating and simplifying our operations and aligning our team composition with our increased production mix as we discussed last quarter.

營運費用年減約 1,200 萬美元，主要由於研發費用以及重組和其他費用的減少。這些下降是由於我們在 2024 財年和 2025 財年採取的行動所致，這些行動旨在透過整合和簡化我們的營運以及使我們的團隊組成與我們上個季度討論過的增加的生產組合保持一致來提高我們的業績。

GAAP net loss and loss per share in the third quarter were approximately $19 million and $0.33 respectively as compared to GAAP net loss and loss per share of approximately $45 million and $0.77 respectively in the same quarter last year. The improvement in year-over-year earnings is primarily a result of increased gross margins coupled with reduced operating expenses.

第三季 GAAP 淨虧損和每股虧損分別約為 1,900 萬美元和 0.33 美元，而去年同期 GAAP 淨虧損和每股虧損分別約為 4,500 萬美元和 0.77 美元。收益較去年增加主要是因為毛利率增加以及營運費用減少。

Adjusted EBITDA for the third quarter was $24.7 million compared to negative $2.4 million in the same quarter last year. Adjusted earnings per share were $0.06 as compared to adjusted loss per share of $0.26 in the prior year. The year-over-year increase was primarily related to lower net losses in the current period as compared to the prior year.

第三季調整後 EBITDA 為 2,470 萬美元，而去年同期為負 240 萬美元。調整後每股收益為 0.06 美元，而去年調整後每股虧損為 0.26 美元。年成長主要與本期淨虧損較上年同期下降有關。

Free cash flow for the third quarter was approximately $24 million, as compared to an outflow of approximately $26 million in the prior year. The significantly increased cash flow was primarily driven by the improvement in cash provided by operating activities, which was approximately $48 million higher as compared to the same quarter in the prior year.

第三季的自由現金流約為 2,400 萬美元，而去年同期的自由現金流約為 2,600 萬美元。現金流大幅增加主要得益於經營活動提供的現金的增加，與去年同期相比增加了約 4,800 萬美元。

Slide 11 presents Mercury's balance sheet for the last five quarters. We ended the third quarter with cash and cash equivalents of nearly $270 million, driven primarily by approximately $30 million in cash provided by operations, which were partially offset by investments of approximately $6 million in capital expenditures.

投影片 11 展示了 Mercury 過去五個季度的資產負債表。截至第三季度，我們的現金和現金等價物總額接近 2.7 億美元，主要來自經營活動提供的約 3,000 萬美元現金，但約 600 萬美元的資本支出投資部分抵消了這一增長。

Billed receivables remained relatively flat sequentially, while unbilled receivables approximately $7 million. Unbilled receivables decreased year-over-year by approximately $54 million or 17%. The decrease in unbilled receivables reflects the incremental progress we've made by delivering on programs to our customers, which significantly drove our cash flow performance during fiscal 2025.

已開立應收帳款季持平，未開立應收帳款約 700 萬美元。未開立應收帳款年減約 5,400 萬美元，即 17%。未開立發票應收帳款的減少反映了我們透過向客戶交付計畫所取得的逐步進展，這大大推動了我們 2025 財年的現金流表現。

Inventory increased slightly year-over-year and sequentially by approximately $10 million and $8 million respectively. We continue to see increases in deferred revenue, which in many cases provides an offset to a portion of our unbilled and inventory balances. Accounts payable increased approximately $9 million sequentially driven by the timing of payments to our suppliers.

庫存同比和環比分別略有增加約 1000 萬美元和 800 萬美元。我們繼續看到遞延收入的增加，這在許多情況下抵消了部分未開票和庫存餘額。由於向供應商付款的時間安排，應付帳款較上月增加了約 900 萬美元。

Accrued expenses increased approximately $5 million sequentially, primarily due to increased litigation and settlement related expenses. Deferred revenues increased year-over-year as sequentially by approximately $72 million and $7 million respectively as a result of additional milestone billing events achieved during the period.

應計費用較上季增加約 500 萬美元，主要原因是訴訟和和解相關費用增加。由於本期間實現了額外的里程碑計費事件，遞延收入較去年同期分別增加約 7,200 萬美元和 700 萬美元。

Working capital decreased in the third quarter approximately $148 million year-over-year or 25% and decreased by $22 million or 5% sequentially. This demonstrates the progress we've made in reversing the multi-year trend of growth in working capital, highlighted by six quarters of sequential reductions in unbilled receivables, resulting in the lowest net working capital since Q2 of fiscal 2022.

第三季營運資本年減約 1.48 億美元，降幅 25%，季減 2,200 萬美元，降幅 5%。這表明我們在扭轉營運資本多年成長趨勢方面取得了進展，突出表現是未開票應收帳款連續六個季度減少，導致淨營運資本達到 2022 財年第二季度以來的最低水平。

As a reference point, in the last four quarters, we have driven our net working capital from a high of 72% of trailing 12 month revenue to 51%. Net working capital remains a primary focus area and we believe we can continue to deliver improvement.

作為參考，在過去四個季度中，我們的淨營運資本已從過去 12 個月收入的 72% 的高點降至 51%。淨營運資本仍然是主要關注領域，我們相信我們能夠繼續取得進步。

Turning to cash flow on Slide 12. Free cash flow for the third quarter was approximately $24 million, as compared to an outflow of $26 million in the prior year. We believe our continuous improvement related to program execution, hardware delivery, just in time material and appropriately timed payment terms will lead to continued reduction in working capital.

轉向幻燈片 12 上的現金流。第三季的自由現金流約為 2,400 萬美元，而去年同期的自由現金流為 2,600 萬美元。我們相信，我們在專案執行、硬體交付、準時材料和適時付款條件方面的持續改進將導致營運資本的持續減少。

In closing, we are pleased with the performance through the third quarter of the fiscal year and the higher level of predictability in the business. We believe continuing to execute on our four priority focus areas will not only drive revenue growth and profitability, but will also result in further margin expansion and cash conversion, demonstrating the long-term value creation potential of our business.

最後，我們對本財年第三季的業績以及業務的更高可預測性感到滿意。我們相信，繼續執行我們的四個優先重點領域不僅將推動收入成長和獲利能力，還將進一步擴大利潤率和現金轉換，展現我們業務的長期價值創造潛力。

With that, I'll now turn the call back over to Bill.

說完這些，我現在將電話轉回給比爾。

Thanks, Dave. With that, operator, please proceed with the Q&A.

謝謝，戴夫。那麼，接線員，請繼續問答。

(Operator Instructions) Peter Arment, Baird.

（操作員說明）Peter Arment，Baird。

Yeah. Thanks. Good afternoon, Bill, Dave, Tyler, nice results.

是的。謝謝。下午好，比爾、戴夫、泰勒，結果不錯。

Thanks, David.

謝謝，大衛。

Hey. Bill, could you maybe give us a little bit of an update on LTAMDS, given just recent developments of that kind of program moving into kind of initial production? And I know that was always going to be considered one of your larger programs, as we get into kind of that production stage. So what's the latest on that?

嘿。比爾，考慮到該專案最近剛進入初步生產階段，您能否向我們介紹 LTAMDS 的最新進展？而且我知道，隨著我們進入生產階段，這將一直被視為您的大型專案之一。那麼最新情況是什麼呢？

Yeah. Thanks for asking the question. And we've talked about this before as one of the major programs that has -- that we worked our way through the development has tremendous potential for us in terms of long-term production.

是的。感謝您提出這個問題。我們之前已經討論過這個主要項目之一，我們透過自己的努力開發了這個項目，從長期生產的角度來看，它具有巨大的潛力。

We're really pleased to see our customer achieve their significant milestone, which was critical to the program moving forward. And we continue to work with them to ramp up consistent with their schedule and their needs and are excited about the growth prospects for LTAMDs.

我們非常高興看到我們的客戶實現了他們的重要里程碑，這對於計劃的推進至關重要。我們將繼續與他們合作，按照他們的計劃和需求加強生產力度，並對 LTAMD 的成長前景感到興奮。

Okay. And then just maybe as my follow-up, Dave, could you just maybe just give us a little more color on the increase in deferred? I know you guys have made a lot of progress on unbilled receivables and that's been great to see, but just how do we think about the deferred revenues kind of jumping the way it's been over the last few quarters?

好的。然後也許作為我的後續問題，戴夫，您能否給我們更多關於延期增加的詳細信息？我知道你們在未開立發票應收帳款方面取得了很大進展，這是件好事，但我們如何看待過去幾季遞延收入的大幅成長呢？

Yeah. I think Peter goes back to and we've talked about really focused on the terms that we have with our customers and being in a position where we can set milestones we go and as long as we're achieving those milestones, we have solid payment terms associated with that. So we've been getting through those milestones on schedule and the payments result.

是的。我認為彼得回到了我們討論過的問題，真正關注我們與客戶之間的條款，並處於我們可以設定里程碑的位置，只要我們實現這些里程碑，我們就有與之相關的可靠的付款條款。因此，我們已經按計劃完成了這些里程碑並獲得了付款結果。

And again, one of the things we've talked about in the past and you see this in our inventory is, where customers will come and say, hey, we'd like you to go buy a bunch of end of life components for us, so we can have production for several years and not have to worry about it.

再說一次，我們過去談到的一件事，你可以從我們的庫存中看到，那就是客戶會過來說，嘿，我們希望你為我們購買一批報廢的組件，這樣我們就可以生產好幾年而不用擔心它。

And we say, we're absolutely willing to do that and they're willing to pay us to do that upfront, so that we can go out and get those things and have them in stock for them. So you see a little bit of inventories pick up because of that, but at the same time the deferred payments that offset that.

我們說，我們絕對願意這樣做，他們也願意預先付錢給我們，這樣我們就可以出去購買這些東西並為他們備貨。因此，您會看到庫存增加，但同時延期付款也抵消了這種影響。

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

知道了。我會重新排隊。謝謝大家。

Okay. Thanks, Peter.

好的。謝謝，彼得。

Michael Ciarmoli, Truist Securities.

Truist Securities 的 Michael Ciarmoli。

Hey. Good evening, guys. Thanks for taking the question. Nice results. Maybe just really good free cash flow performance, Dave, what sort of the optimal net working capital level as a percent of revenues and as you're kind of continuously driving or taking out costs and improving efficiencies, is anything changing with your expectation of free cash conversion?

嘿。大家晚上好。感謝您回答這個問題。效果不錯。也許只是非常好的自由現金流表現，戴夫，最佳淨營運資本水準佔收入的百分比是多少，當你不斷推動或降低成本並提高效率時，你對自由現金轉換的預期有什麼變化嗎？

Yeah. No, Mike, thanks for the comments starting out. No, we've looked at it and we've talked about kind of ultimately looking at a 50% free cash flow conversion from EBITDA and that still makes sense to us. I mean, we're running significantly ahead of that, as you said, because we're bringing down our working capital to a more level that would be commensurate with our business.

是的。不，麥克，謝謝你一開始的評論。不，我們已經研究過這個問題，並且討論過最終從 EBITDA 中實現 50% 的自由現金流轉換，這對我們來說仍然有意義。我的意思是，正如您所說，我們已經遠遠領先於此，因為我們正在將營運資金降低到與我們的業務相稱的水平。

And as we've talked about, we were as high as the 70% plus of revenue. That's just not the right model for this business where we're down in the low 50% now and still have room to go. We've talked about a model in the future kind of in an ideal world. We'd love to get to 30% or 35%, but more 35% to 40% is probably the right range for us. So we have rough to go as Bill and I have both said before and we're going to continue to work on that.

正如我們所討論的，我們的收入高達 70% 以上。對我們這個產業來說，這並不是正確的模式，因為我們目前的利潤率已經跌至 50% 以下，但仍有上升空間。我們討論了未來理想世界的模型。我們希望達到 30% 或 35%，但 35% 到 40% 可能是我們合適的範圍。因此，正如比爾和我之前所說的那樣，我們前面的路很艱難，我們將繼續努力。

Got it. That's helpful. And just a follow-up, does this low margin backlog that you're burning off, does that drag continue or have an impact as we start fiscal '26 or should we think of the, EBITDA margins you're going to generate in the fourth quarter as sort of a launching point for '26?

知道了。這很有幫助。再問一個問題，你們正在消化的低利潤積壓訂單，這種拖累是否會持續下去，或者在我們開始 26 財年時產生影響，或者我們是否應該將你們在第四季度產生的 EBITDA 利潤率視為 26 財年的起點？

Yeah. I think the way I would think about it is, every quarter we've been -- as we've talked about, we've been adding new bookings that are at our targeted margins are better. So higher than what the existing margin in backlog is and we're burning off those lower margin things.

是的。我認為我會這樣想，每個季度我們都在——正如我們所討論的，我們一直在增加新的預訂，這些預訂符合我們的目標利潤率。因此，積壓訂單的現有利潤率高於此，而我們正在消耗那些利潤率較低的東西。

It's not a binary activity that all of a sudden it's going to jump in one quarter to the final number. It's going to go gradually up there over time. So I would not think of it as, hey, we're going to wake up one morning and it's going to be completely different. It's going to gradually move up and Bill has talked about approaching that line over time.

這不是一個二元活動，它不會在一個季度內突然跳到最終數字。隨著時間的推移，它會逐漸上升。所以我不會想，嘿，我們某天早上醒來，一切都會完全不同。它會逐漸上升，比爾也說過會隨著時間的推移逐漸接近這個水準。

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

知道了。很有幫助。我會重新回到隊列中。謝謝大家。

Okay. Thanks, Mike.

好的。謝謝，麥克。

Seth Seifman, JPMorgan.

摩根大通的賽斯‧塞夫曼。

Hi, good afternoon. This is Rockwell on for Seth. Was the revenue stepped down sequentially due to the pull forward into Q2?

嗨，下午好。這是 Rockwell 為 Seth 所做的表演。由於第二季的提前，營收是否季減？

Yeah. We talked about it last quarter that our focus on accelerated deliveries for customers trying to get the benefits of our technology into their hands sooner. We've been really focused on the operations of the business and we had a significant pull forward from Q3 into Q2.

是的。我們上個季度討論過，我們的重點是加速交付，以便客戶能夠更快地享受我們技術帶來的好處。我們一直非常專注於業務運營，並且從第三季到第二季取得了顯著的進展。

I think we characterized it as around $30 million. And so, in thinking about the Q3 revenue, I think there's an opportunity to think about it as normalized for that pull forward. And then for our full year commentary, as we indicated, our expectations for the full year remain the same. The timing profile within the year shifting to the left because of the acceleration of deliveries.

我認為我們將其定為 3000 萬美元左右。因此，在考慮第三季的收入時，我認為有機會將其視為提前拉動的正常化。對於我們的全年評論，正如我們所指出的，我們對全年的預期保持不變。由於交付速度加快，年內的時間曲線向左移動。

Right. So that acceleration of deliveries is what's driving the flat revenue year-over-year in Q4 that's implied, which would be a deceleration versus the first half?

正確的。那麼，交付量的加速是導致第四季營收與去年同期持平的原因嗎？這意味著與上半年相比收入會有所減速嗎？

Correct. Consistent with our prior expectations.

正確的。與我們先前的預期一致。

Great. Thank you.

偉大的。謝謝。

Pete Skibitski, Alembic Global.

Pete Skibitski，Alembic Global。

Yeah. Good evening, guys. Nice quarter.

是的。大家晚上好。不錯的季度。

Hey, Pete.

嘿，皮特。

Yeah. Bill, maybe to follow-up on Mike's question, just you guys mentioned the 12 month trailing bookings were greater than 80% production. I'm just wondering, if we switch to revenue, what's the revenue split development versus production this year? And how do you expect that changes in fiscal '26?

是的。比爾，也許是為了跟進麥克的問題，剛才你們提到過去 12 個月的預訂量超過了產量的 80%。我只是想知道，如果我們轉向收入，今年開發和生產的收入分成是多少？您預計 26 財年會出現怎樣的變化？

Yeah. We haven't talked about the split out of the revenue that way. Suffice it to say that, over time, it follows our bookings for sure. So we expect it to continue moving in that direction, but we haven't broken out for -- in our financials exactly how much of the revenue is production versus development. But definitely, you should look at the bookings as an indicator.

是的。我們還沒有討論過如何分配收入。可以肯定地說，隨著時間的推移，它肯定會遵循我們的預訂。因此，我們預計它將繼續朝著這個方向發展，但我們還沒有明確指出——在我們的財務狀況中，究竟有多少收入來自生產，有多少來自開發。但你絕對應該把預訂量當作一個指標。

Okay. And then just one follow-up. If I look at the 10-Q and some of your revenue by program area, the radar area has really grown nicely year-to-date for the first three quarters. Some of the other areas like electronic warfare, C4I, they still seem to be kind of sort of flattish, I guess. Is there anything going on that is driving that improved radar performance revenue wise and it's causing the other couple of areas to kind of lag?

好的。然後只需進行一次跟進。如果我查看 10-Q 和按專案領域劃分的部分收入，就會發現雷達領域今年前三個季度確實成長良好。我想，其他一些領域，像是電子戰、C4I，似乎還是比較平淡。是否存在某種因素推動了雷達性能收入的提高，並導致其他幾個領域的發展落後？

Yeah. And we've talked about before the -- when we talked about some of the significant adjustments that we saw in the QEM catch up on EACs that a large piece of that was in that radar area. And that had to do with some of our common processing architecture activities.

是的。我們之前討論過——當我們討論 QEM 追趕 EAC 時看到的一些重大調整時，我們發現其中很大一部分是在雷達區域。這與我們的一些常見的處理架構活動有關。

And that now you're seeing that's not as big an impact that was a negative. So that was naturally going to rise. That's if you think about the programs we have and we don't talk about the individual programs and how much revenue they are, but you guys have a good sense of the programs, we're working on and which ones are in that radar area. So it'll give you an idea of what's driving that.

現在您會發現，負面影響並沒有那麼大。因此，這一數字自然會上升。如果你考慮我們擁有的項目，我們不會談論單一項目以及它們的收入，但你們對我們正在進行的項目以及哪些項目在雷達範圍內有很好的了解。所以它會讓你了解是什麼導致了這個現象。

Okay. Yeah. To compliment that, I'm just wondering why the others seem to be kind of lagging a bit?

好的。是的。為了讚美這一點，我只是想知道為什麼其他人似乎有點滯後？

Yeah, I think there is not so much lagging. There is a little bit of timing involved in some of those things. So -- and again, remember, we're in a situation where we've been very cognizant of ensuring that materials just in time and we've talked about, you'll see some as we go up that curve a little bit slower than we have in the past, some timing impact in some of those areas. But overarching, the revenue will be identical for the programs, just a little bit of a different timing situation.

是的，我認為沒有那麼多滯後。其中一些事情與時間有關。所以 — — 再次提醒，請記住，我們目前的情況是，我們非常清楚要確保材料及時供應，而且我們已經討論過，隨著我們沿著這條曲線前進的速度比過去慢一點，你會看到，在某些領域，時間方面會受到一些影響。但總體而言，這些項目的收入是相同的，只是時間安排略有不同。

Okay. Sounds great. Thank you.

好的。聽起來很棒。謝謝。

Yeah. Thanks, Pete.

是的。謝謝，皮特。

Ken Herbert, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Ken Herbert。

Yeah. Hi, good afternoon, everybody.

是的。大家好，下午好。

Hi, Ken.

你好，肯。

Yeah. Maybe Bill or Dave, you called out $40 million I think of production contracts for the common processing architecture in the quarter. Just to help put that in context, can you talk about maybe what sort of how did that trend across through the first through third quarters? Was that a relatively high number that you called it out? And then maybe if you can, what percent of the backlog or does the CPA represent or can you give any sort of scale as to how that is represented in the backlog?

是的。也許是比爾或戴夫，我認為你們在本季提出了 4000 萬美元的通用處理架構生產合約。為了幫助您理解這一情況，您能否談談這一趨勢在第一季到第三季是如何表現的？您所說的這個數字是不是相對較高？然後，如果可以的話，CPA 代表了積壓訂單的百分之多少，或者您能否給出積壓訂單中 CPA 所佔比例的某種表示方式？

Yeah. No, thanks for the question, Ken. I don't think we've given specifics on the magnitude of the backlog associated with CPA. I will point out though that we referenced early in the year some strategic wins, good sized wins, along with the wins that we discussed on this call, which has added pretty substantially to our backlog in that area.

是的。不，謝謝你的提問，肯。我認為我們還沒有給出與 CPA 相關的積壓量的具體細節。不過，我要指出的是，我們在今年年初提到了一些戰略勝利、相當大的勝利，以及我們在這次電話會議上討論的勝利，這些都大大增加了我們在該領域的積壓訂單。

And of course, we feel very good about that. It's an area where we see demand. We have differentiation. We added to the differentiation this quarter with the acquisition of Star Labs. So, we're feeling really good about the progression associated with CPA.

當然，我們對此感到非常高興。這是我們觀察到需求的領域。我們有差異化。本季度，我們收購了 Star Labs，進一步增強了差異化。因此，我們對 CPA 的進展感到非常滿意。

I would add that, although, we don't break out the allocation of our bookings in to the individual kind of categories and we have pointed out in the past when there is been a significant booking that was impactful to the backlog in that area. So the fact that we pointed out that $40 million is an indication that it's impactful that that's significant.

我想補充一點，雖然我們不會將預訂分配到各個類別中，但我們過去曾指出，當有大量預訂對該領域的積壓產生影響時。因此，我們指出 4000 萬美元這一事實表明它的影響重大。

Yeah.

是的。

That's helpful. Thanks. And I know it's been over the last few quarters, you've been able to call out some nice share gains on some specific, recompetes or new wins. Can you give any commentary on the competitive landscape maybe and how you see the opportunity to maybe outgrow the industry here in these areas, especially, with what looks like to be a host of new program starts coming out of the DoD as part of the maybe the '25 supplemental or into '26?

這很有幫助。謝謝。我知道在過去的幾個季度裡，您已經能夠在一些特定的、重新競爭的或新的勝利中取得不錯的份額成長。您能否對競爭格局發表一些評論，以及您如何看待這些領域超越行業的機遇，尤其是隨著國防部開始推出一系列新計劃，可能是 25 年補充計劃或 26 年計劃的一部分？

Yeah. I mean, those dynamics are still shaping up. But I think in general, we feel pretty good about the tailwinds at least as they've been discussed to date and more specific to us. I think we feel well positioned. I think it's backed up by our LTM book to bill of 1.1.

是的。我的意思是，這些動態仍在形成中。但我認為，總的來說，我們對順風因素感覺相當良好，至少就迄今為止討論的以及對我們來說更具體的因素而言。我認為我們處於有利地位。我認為它得到了我們的 LTM 帳簿和 1.1 帳單的支持。

Already in this quarter, we had some nice wins in a volume of awards that in the first month of the quarter is the highest that we've seen in any quarter in our history. I don't want to make too much of that because the first month of a quarter is usually a low volume month, but we did have a good month of April and feel good about where we sit in some of those tailwinds.

本季度，我們已獲得一些不錯的獎項，本季度第一個月的獎項數量是我們歷史上任何一個季度中最高的。我不想對此做太多評論，因為一個季度的第一個月通常是交易量較低的月份，但我們四月份確實表現不錯，並且對我們在某些​​順風條件下所處的位置感到滿意。

Great. Thank you very much. I'll pass it back there.

偉大的。非常感謝。我會把它傳回去。

Okay. Thank you.

好的。謝謝。

Conor Walters, Jefferies.

康納沃特斯，傑富瑞集團。

Hi, guys. Thanks so much for taking the question and --

嗨，大家好。非常感謝你回答這個問題--

Hey, Conor.

嘿，康納。

On the quarter. Hey, Bill and Tom. Yeah. So maybe on the EBITDA margins approaching mid-teens for Q4, it's a nice sequential step up. I was hoping to dive into that a little bit. You previously pointed to some OpEx, mainly SG&A, steadily rising, which we're seeing.

按季度計算。嘿，比爾和湯姆。是的。因此，也許第四季度的 EBITDA 利潤率接近 15% 左右，這是一個不錯的連續成長。我希望能夠對此進行更深入的探討。您之前指出一些營運支出（主要是銷售、一般及行政費用）正在穩步上升，我們也看到了這一點。

But maybe on the gross margin level, things have been a little bit flattish quarter-over-quarter despite the EAC improvement. So I was hoping on like you guys could provide some color on how to think about that progression into Q4 and to what degree we can think of that as a fair launching point in 2026.

但也許在毛利率水準上，儘管 EAC 有所改善，但環比情況仍然略有持平。所以我希望你們能夠提供一些關於如何看待第四季度的進展以及我們在多大程度上可以將其視為 2026 年的一個公平起點的信息。

I mean, I can take a cut at it and then Dave can jump in. At least for us, in terms of our path to our targeted margins, which we discussed in the low to mid-20s, it's now really clear what the drivers of that progression are. And it's the two things that we've mentioned. It's this dynamic associated with our backlog margin and how that's improving over time as we burn down the low margin and replace with bookings that are at or above our targeted margins.

我的意思是，我可以先嘗試一下，然後戴夫就可以加入。至少對我們來說，就我們實現目標利潤率的途徑而言（我們在 20% 左右時討論過），現在很清楚推動這一進步的驅動因素是什麼。這就是我們提到的兩件事。這種動態與我們的積壓訂單利潤率有關，隨著我們降低低利潤率並用等於或高於我們目標利潤率的訂單取而代之，積壓訂單利潤率會隨著時間的推移而改善。

And again, in Q3, the margin associated with the bookings that we brought in, in the quarter were at or above our targeted margins. And Dave, I think we would say, in very strong relative to the last several quarters. So we feel very good about how that dynamic is playing out.

再次，在第三季度，我們獲得的訂單相關的利潤率達到或超過了我們的目標利潤率。戴夫，我想我們會說，與過去幾個季度相比，表現非常強勁。因此，我們對這種動態的發揮感到非常滿意。

And in Q4, what I think you're seeing is those two things that plus the operating leverage associated with our OpEx being sort of in the zip code of where we think it needs to be, all starting to play out. And hopefully that gives a sense of the timing and the progression of how the backlog margin dynamic is starting to play out in conjunction with the operating leverage. And that's really what's driving the Q4 expectations.

在第四季度，我認為您會看到這兩件事，再加上與我們的營運支出相關的營運槓桿，這些都開始發揮作用。希望這能讓人們了解積壓訂單利潤率動態如何與經營槓桿一起發揮作用的時間和進展。這才是推動第四季預期的真正因素。

Yeah. And I would just echo what Bill said, when you look at EBITDA and the expectations that Bill outlined for EBITDA, it is a function largely of exactly those two things and we've made the progress on the op expense and you can see that in our financials and you've seen that as we've gone through the year.

是的。我只是想重複比爾所說的話，當你查看 EBITDA 和比爾對 EBITDA 概述的預期時，它很大程度上就是這兩件事的函數，我們在營運費用方面取得了進展，你可以在我們的財務報表中看到這一點，你可以在我們度過這一年時看到這一點。

And at the same time, again, every quarter that we're making more progress as we both finish off or get to the lower levels on some of the lower margin activities and we're adding to our backlog at higher margins. So that backlog margin is increasing and we expect to see that start playing out. As I said earlier, it'll play out over time. But we do expect to see benefit from both of those things in the fourth quarter to benefit the EBITDA.

同時，我們每季都會取得更大的進展，因為我們既完成了一些利潤率較低的活動，或者達到了較低的水平，又增加了利潤率較高的積壓訂單。因此，積壓訂單利潤率正在增加，我們預計這種情況將開始顯現。正如我之前所說，它會隨著時間的推移而發揮作用。但我們確實預期第四季這兩件事都會為 EBITDA 帶來好處。

Okay. That's great. Thanks so much. I'll leave it there.

好的。那太棒了。非常感謝。我就把它留在那裡。

Okay. Thanks, Connor.

好的。謝謝，康納。

Noah Poponak, Goldman Sachs.

高盛的諾亞·波波納克。

Hey. Good evening, everyone.

嘿。大家晚上好。

Hey, good evening, Noah.

嘿，晚上好，諾亞。

Can you grow free cash flow full year 2026 versus 2025?

與 2025 年相比，2026 年全年的自由現金流可以成長嗎？

Yeah. It's a good question. The way we're thinking about cash in 2026 is continuing to as we think about, in general, as we go forward, we're not providing any color or guidance around 2026. But I think I would talk to the longer term model that Bill had talked about in his remarks is, we expect to get to a point where there's a kind of a recurring 50% of EBITDA, cash flow and we expect to continue as we go through time until we get to the right working capital level to reduce working capital.

是的。這是個好問題。我們對 2026 年現金的思考方式仍在繼續，總的來說，隨著我們向前發展，我們不會對 2026 年提供任何預測或指導。但我認為我會談談比爾在他的演講中談到的長期模型，我們預計將達到 50% 的 EBITDA 現金流，並且我們預計隨著時間的推移，這種情況會持續下去，直到我們達到合適的營運資本水平以減少營運資本。

I think as Bill talked about, when we get to -- at the end of next quarter, we'll have a little more color around FY26. But right now, we're just focused on getting through this year and completing strong and then working towards the model that we've talked about.

我認為，正如比爾所說的那樣，當我們到達下個季度末時，我們將對 26 財年有更多的了解。但現在，我們只專注於度過今年並取得好成績，然後朝著我們所談論的模式努力。

Yeah. And I think there's two pieces to coming up with the answer to that question. One is, our kind of our steady state free cash flow conversion that we think we can deliver and Dave spoke to that earlier around 50% and we feel good about how we're honing in to that part of the model.

是的。我認為可以從兩個方面來回答這個問題。一是，我們認為我們可以實現穩定狀態的自由現金流轉換，戴夫之前談到這個數字約為 50%，我們對如何磨練模型的這一部分感到滿意。

And then I think the other contributor is the cash that's still available to be freed up off of our balance sheet driving towards the working capital targets that Dave mentioned. And we still see a really good opportunity on that front. So it'll be a matter of how those two things play together in '26. And as I said earlier, I look forward to coming back in our next call and giving some commentary on how we think '26 is going to shape up.

然後我認為另一個貢獻因素是仍然可以從我們的資產負債表中釋放的現金，以推動戴夫提到的營運資本目標。我們仍然看到這方面存在著非常好的機會。所以問題在於這兩件事在 26 年如何協同發揮作用。正如我之前所說，我期待在下次電話會議中再次發言，並就我們對 26 年情況的看法發表一些評論。

Okay. Great. So the framework is sort of directionally 50% of EBITDA and then, it sounds like multiple years still of improving working capital. So, that can be lumpy. So we'll sort of just see how that layers on top.

好的。偉大的。因此，該框架的方向性是 EBITDA 的 50%，然後，聽起來仍需要多年時間才能改善營運資本。所以，這可能會很棘手。因此我們只需看看頂層是如何分層的。

Yeah, sir. And I think you could look at the progression that we've made and the timing associated with that and that can inform a view of what's left to go and the time associated with it.

是的，先生。我認為，您可以看看我們已經取得的進展以及與之相關的時間，這樣就可以了解還剩下什麼以及與之相關的時間。

Okay. Excellent. In terms of the burning out of the backlog, the older legacy lower margin contracts. What's the time frame in the future at which that is close to entirely gone from your revenue?

好的。出色的。就積壓訂單的消解而言，較舊的遺留低利潤合約。未來什麼時候您的收入會幾乎完全消失？

Yeah. I mean, if I were to just think about the answer to that question from a math standpoint, I would think about our commentary on the backlog at the end of FY24 being lower than what we expect to see on a go forward basis and the timing for that aggregate backlog to burn off and the number of quarters it would take for it to be replaced by the bookings that since we made that comment have been in line with what we expect to be our targeted margin profile associated with the EBITDA margin profile we've discussed of low to mid-20s.

是的。我的意思是，如果我僅從數學的角度來思考這個問題的答案，我會認為我們對 24 財年末積壓訂單的評論低於我們預期的未來水平，並且該累計積壓訂單消耗的時間以及需要多少個季度才能被預訂量取代，自從我們發表該評論以來，這些預訂量一直與我們預期的目標利潤率相一致，該目標相一致25% 左右。

So I think you can create an estimate for what that timeframe looks like based on our duration and the commentary at the end of FY24.

因此，我認為您可以根據我們的持續時間和 FY24 末的評論來估計這個時間範圍。

Okay. That makes a lot of sense. And again --

好的。這很有道理。再次--

And as you said, it's a matter of several quarters where that will play out. And the good news is, we're seeing that progression happen.

正如您所說，這需要幾個季度才能見效。好消息是，我們看到了這種進步。

Okay. Great. And just last thing related, how do you define, bringing new work into the backlog at a higher margin? Obviously, the simple definition is it has a higher margin. But over time, everything you bring into the backlog has an assumed margin and then that can change over time based on cost and execution.

好的。偉大的。最後一件事，您如何定義以更高的利潤率將新工作納入積壓工作中？顯然，簡單的定義就是它有更高的利潤。但隨著時間的推移，您放入積壓訂單的所有東西都有一個假定的利潤，然後它會根據成本和執行情況隨時間而改變。

So I was just curious to hear you talk about how you're defining that if it's just purely the initial price cost assumptions or if it's also, some version of conservatism or something else in the assumptions you make on the front end versus what's happened in the past?

所以我很好奇想聽聽您如何定義它，如果它僅僅是純粹的初始價格成本假設，或者它是否也包含某種保守主義或其他東西，這些假設與過去發生的事情相比，在前端進行？

Yeah. So when you think about how companies in our business and the aerospace and defense kind of business think about these things. So you propose, you bid, you negotiate, you get awarded and then you go through a startup process. And in that startup process, you review the risk opportunity set around programs and you establish this is what I'm going to start at, in terms of a margin rate.

是的。因此，當您思考我們行業以及航空航天和國防行業的公司如何看待這些事情時。因此，你要提出建議、競標、協商、得標，然後經歷一個啟動過程。在啟動過程中，您要審查圍繞計劃的風險機會，並確定這是我要從利潤率開始的。

And so, we put a great deal of additional rigor around that process in the last 12 or 18 months since we started. So it's reflective of that startup process, which is taking into account the risk and opportunities and how we're going to work through them. So it's not, we won this and we bid X-ray. It's what we believe when we line up the program and go through that analysis and pressure test that as to what we use as the backlog margin.

因此，自開始以來的過去 12 到 18 個月裡，我們對這項流程進行了大量的額外嚴格要求。因此，它反映了創業過程，其中考慮了風險和機會以及我們如何應對它們。所以事實並非如此，我們贏了，我們競標了 X 射線。當我們排列程序並進行分析和壓力測試時，我們相信我們使用的積壓保證金就是這個。

I understand. Okay. Thank you so much.

我明白。好的。太感謝了。

Okay. Thank you.

好的。謝謝。

Jonathan Ho, William Blair.

喬納森·何、威廉·布萊爾。

Hi. This is Garrett Berkham on for Jonathan Ho. Thanks for taking my question. Just the book to bill ratio dipping below one this quarter. Can you just help us understand why that is? And it looks like it's been trending lower, for two quarters in a row now. So, maybe just some color on why that's happening?

你好。我是加勒特·伯克漢姆 (Garrett Berkham)，代替喬納森·何 (Jonathan Ho)。感謝您回答我的問題。本季訂單出貨比已跌破 1。您能幫助我們理解這是為什麼嗎？看起來，它已經連續兩個季度呈下降趨勢。那麼，也許可以解釋為什麼會發生這種情況？

Yeah. I think the timing of bookings can move around a little bit. So I don't get too hung up on it on a quarter-by-quarter basis. And that's why we're really pointing at the LTM book to bill of 1.1, which we think is in a good zip code. Also look at the quality of the bookings and we've talked about production versus development mix. And also this quarter, the margin at which we brought those bookings in that we feel very good about.

是的。我認為預訂的時間可以稍微調整一下。所以我不會太糾結於每季的情況。這就是為什麼我們真正將 LTM 帳簿指向 1.1 的帳單，我們認為這是一個很好的郵遞區號。還要看看預訂的質量，我們已經討論了生產與開發組合。本季度，我們的預訂利潤率讓我們感到非常滿意。

And as I said in Q4, we're off to a really good start with a lot of activity already had some new awards, some of which that slipped out of Q3 into early Q4, which can also help inform a view of like an adjusted book to bill for the quarter. So we feel great about our position, feel really good about our pipeline, the activity in Q4 and all-in-all good about the bookings performance in Q3.

正如我在第四季度所說的那樣，我們開局很好，很多活動已經獲得了一些新獎項，其中一些獎項從第三季度延續到了第四季度初，這也有助於了解本季度調整後的訂單出貨比情況。因此，我們對自己的地位感到非常滿意，對我們的管道、第四季度的活動感到非常滿意，並且對第三季度的預訂表現總體感到滿意。

Okay. Got it. Makes sense. And then maybe just on the macro environment, is there anything notable to call out there? And particularly are you seeing any disruption, from the federal space from DOGE at all?

好的。知道了。有道理。那麼也許僅在宏觀環境下，有什麼值得注意的嗎？特別是，您是否看到 DOGE 對聯邦空間造成了任何干擾？

Not so much a disruption associated with DOGE. I'm sure that our customers' customers are dealing with some dynamics associated with that. But I think we're focused on the macros that early on sound like a growing overall defense budget.

與 DOGE 相關的干擾並不多。我確信我們的客戶的客戶正在處理與此相關的一些動態問題。但我認為，我們關注的是宏觀層面，早期聽起來像是不斷增加的整體國防預算。

What we think is a constructive mix adjustment, specifically, away from services and into acquiring technologies and capabilities, there are some systems and priorities that have been discussed and in executive orders like Golden Dome, where our technology is right at the center of some of the existing systems. And so, we feel really good about the opportunity to participate there. So all-in-all, as we step back and look at those dynamics, I'd say, for me personally, I have a positive overall bias on those dynamics and the tailwinds that they present.

我們認為這是一種建設性的組合調整，具體來說，就是從服務轉向獲取技術和能力，我們已經討論過一些系統和優先事項，在像 Golden Dome 這樣的行政命令中，我們的技術正處於一些現有系統的核心。因此，我們很高興有機會參與其中。總而言之，當我們回顧並審視這些動態時，我想說，就我個人而言，我對這些動態以及它們所呈現的順風總體上持積極的看法。

Got it. Thank you.

知道了。謝謝。

(Operator Instructions) Pete Skibitski, Alembic Global.

（操作員指示）Pete Skibitski，Alembic Global。

Yeah. Thanks, guys. Hey, the question guys we've been asking everyone, but didn't ask you yet. Tariffs, any just because of your commercial chip supply chain, have you seen -- are you do you expect to see any impact from the tariffs?

是的。謝謝大家。嘿，夥計們，這個問題我們一直在問每個人，但還沒有問你。關稅，只是因為你們的商業晶片供應鏈，你們看到了嗎——你們預計會看到關稅的任何影響嗎？

Yeah. Certainly no material impact in FY25. And when we look at country exposure, we don't see any direct impact from tariffs on China or Mexico or Canada. There are a number of exclusions to your point that apply to a significant piece of our bill material. So like everybody else, we're monitoring the situation and paying attention to it. But at this point, we feel like we feel good about where we sit relative to tariff exposure.

是的。對 FY25 肯定不會產生重大影響。當我們觀察國家風險時，我們並沒有看到關稅對中國、墨西哥或加拿大有任何直接影響。您的論點中有一些排除條款，適用於我們法案中的大部分內容。因此，與其他人一樣，我們也在監視局勢並給予關注。但目前，我們對於自己在關稅風險方面的處境感到滿意。

Okay. And that's both from a cost perspective, but also just from a sourcing perspective, you think sourcing will be okay?

好的。這不僅是從成本角度，也是從採購角度，您認為採購會沒問題嗎？

I think from a sourcing standpoint, yes. And also from a cost perspective, we have a number of different ways that we can address any potential cost impacts that may emerge associated with tariffs.

我認為從採購的角度來看，是的。而且從成本角度來看，我們有多種不同的方法來應對與關稅相關的任何潛在成本影響。

Okay. Thank you.

好的。謝謝。

Mr. Ballhaus, it appears there are no further questions. Therefore, I would like to turn the call back over to you for any closing remarks.

鮑爾豪斯先生，看來沒有其他問題了。因此，我想將電話轉回給您，請您做最後的演講。

Okay. Well, thank you very much, and I appreciate everybody joining the call this evening, and I look forward to our next update next quarter. Thank you very much.

好的。好吧，非常感謝，我感謝大家今晚參加電話會議，我期待下個季度的下一次更新。非常感謝。

That concludes today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。