Mercury Systems Inc (MRCY) 2026 Q1 法說會逐字稿

Good day, everyone, and welcome to the Mercury Systems first quarter fiscal 2026 conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I would 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 2026 財年第一季電話會議。今天的通話將會被錄音。此時此刻，我謹將電話轉交給公司投資人關係副總裁泰勒‧霍喬，由他來致開幕詞及介紹各位嘉賓。請繼續，北條先生。

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. 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.

下午好，感謝各位的參與。今天陪同我的是我們的董事長兼執行長比爾鮑爾豪斯；以及我們的執行副總裁兼財務長戴夫法恩斯沃思。如果您尚未收到我們今天下午早些時候發布的盈利新聞稿，您可以在我們的網站 mrcy.com 上找到它。我們將要提到的幻燈片簡報已發佈在網站「投資者關係」版塊的「活動與簡報」欄位下。

Turning to slide 2 in the presentation. 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.

翻到簡報的第二張投影片。我想提醒各位，今天的演講包含前瞻性陳述，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。這些前瞻性陳述受到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與預期有重大差異。

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. 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.

所有前瞻性陳述都應與盈利新聞稿第 2 頁中的警示性聲明以及 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併考慮。我還想提一下，除了按照公認會計原則（GAAP）報告財務表現外，在本次電話會議中，我們還將討論幾個非GAAP財務指標，特別是調整後的收入、調整後的每股收益、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. I'll now turn the call over to Mercury's Chairman and CEO, Bill Ballhaus. Please turn to slide 3.

這些非GAAP指標的調節表已作為附錄包含在今天的幻燈片簡報和獲利新聞稿中。現在我將把電話交給 Mercury 的董事長兼執行長 Bill Ballhaus。請翻到第3張投影片。

Thanks, Tyler. Good afternoon. Thank you for joining our Q1 FY26 earnings call. We delivered Q1 results that were ahead of our expectations with solid year-over-year growth in backlog, revenue, adjusted EBITDA, and free cash flow. Our ability to accelerate deliveries on a number of our customers' high-priority programs once again contributed to strong results this quarter.

謝謝你，泰勒。午安.感謝您參加我們2026財年第一季財報電話會議。我們第一季的業績超出預期，積壓訂單、收入、調整後 EBITDA 和自由現金流均實現了穩健的年成長。本季度，我們加快交付多個客戶重點項目的能力再次為強勁的業績做出了貢獻。

Today, I'll cover three topics: first, some introductory comments on our business and results; second, an update on our four priorities: performance excellence, building a thriving growth engine, expanding margins and driving improved free cash flow; and third, performance expectations for the balance of FY26 and longer term.

今天，我將介紹三個主題：首先，對我們的業務和業績進行一些介紹性評論；其次，更新我們的四個優先事項：卓越績效、建立蓬勃發展的成長引擎、擴大利潤率和推動自由現金流改善；第三，對 2026 財年剩餘時間和更長期的業績預期。

Then I'll turn it over to Dave, who will walk through our financial results in more detail. 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.

然後我會把麥克風交給戴夫，他會更詳細地講解我們的財務表現。在正式開始之前，我想感謝我們的客戶與我們建立合作關係，並感謝他們對 Mercury 的信任，讓我們能夠支持他們最重要的專案。我還要感謝我們的 Mercury 團隊，感謝他們為在邊緣端提供關鍵任務處理所付出的奉獻和努力。請翻到第4張投影片。

Our Q1 results support our expectations for robust organic growth with expanding margins and positive free cash flow. Bookings of $250 million and a 1.11 book-to-bill, resulting in a record backlog of $1.4 billion. Revenue of $225 million, up 10.2% year-over-year, adjusted EBITDA of $35.6 million and adjusted EBITDA margin of 15.8%, up 66% and 530 basis points, respectively, year-over-year; and free cash outflow of $4.4 million, a $16.5 million improvement in free cash flow year-over-year.

我們第一季的業績符合我們對強勁內生成長、利潤率擴大和正自由現金流的預期。預訂額達 2.5 億美元，訂單出貨比為 1.11，導致積壓訂單金額創下 14 億美元的紀錄。營收達 2.25 億美元，年增 10.2%；調整後 EBITDA 為 3,560 萬美元，調整後 EBITDA 利潤率為 15.8%，分別年增 66% 和 530 個基點；自由現金流出 440 萬美元，自由現金流量年增 1,650 萬美元。

We ended Q1 with $305 million of cash on hand. These results reflect ongoing focus on our four priority areas with highlights that include solid execution across our broad portfolio of production and development programs, backlog growth of 6.5% year-over-year, a streamlined operating structure enabling increased positive operating leverage and significant margin expansion and continued progress on free cash flow drivers with net working capital down $105.7 million year-over-year or 18.8%.

第一季末，我們手頭現金為3.05億美元。這些結果反映了我們對四個優先領域的持續關注，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 6.5%；精簡的運營結構提高了積極的運營槓桿和顯著的利潤率率擴張；以及在自由現金流驅動因素方面持續取得進展，淨營運資本同比下降 1.057 億美元，降幅達 18.8%。

Please turn to slide 5. Starting with our four priorities: and priority one, Performance Excellence, where our efforts positively impacted our results primarily in two areas: First, in Q1, we recognized $4 million of net adverse EAC changes across our portfolio, which is in line with recent quarters and down 51% year-over-year, reflecting our maturing capabilities in program management, engineering and operations, and sound execution on our development programs.

請翻到第5張投影片。首先，我們列出了四項優先事項：第一項優先事項是卓越績效，我們的努力主要在兩個方面對業績產生了積極影響：第一季度，我們確認了整個投資組合中 400 萬美元的淨不利 EAC 變化，這與最近幾個季度的情況一致，同比下降 51%，這反映了我們在專案管理、趨近的營運能力和營運能力方面的能力。

Second, we accelerated customer deliveries across a number of high-margin programs, generating approximately $20 million of revenue and $10 million of adjusted EBITDA previously planned for the second quarter. This acceleration, partially driven by a $26 million year-over-year increase in point-in-time revenue, contributed to top line growth and adjusted EBITDA margins that exceeded our expectations for Q1 and will also factor into our outlook for Q2, which I'll speak to shortly.

其次，我們加快了多個高利潤專案的客戶交付速度，創造了約 2,000 萬美元的收入和 1,000 萬美元的調整後 EBITDA，而這些收入和 EBITDA 先前已計劃在第二季度實現。這項加速成長部分得益於營收年增 2,600 萬美元，推動了第一季營收成長和調整後 EBITDA 利潤率超出預期，並將影響我們對第二季的展望，我稍後會對此進行闡述。

Beyond the solid performance across our portfolio of programs, we progressed on a number of actions in the quarter to increase capacity, add automation, and consolidate subscale sites and our ongoing efforts to drive scalability and efficiency.

除了我們所有專案組合的穩健表現外，本季度我們還在多項舉措上取得了進展，包括提高產能、增加自動化、整合小型生產基地以及持續推進可擴展性和效率提升。

Notably, we continue to build out our highly automated manufacturing footprint in Phoenix, Arizona. We expect to bring online over 50,000 square feet of factory space in Q3 of FY26 to support ramped production for our Common Processing Architecture programs and to allow for more efficient scaling if potential market tailwinds materialize. Please turn to slide 6.

值得一提的是，我們正持續擴大在亞利桑那州鳳凰城的高度自動化製造規模。我們預計在 2026 財年第三季啟用超過 50,000 平方英尺的工廠空間，以支援我們通用處理架構專案的量產，並在潛在的市場利好因素出現時實現更有效率的擴展。請翻到第6張投影片。

Moving on to priority two, Driving Organic Growth. Following record bookings in Q4, we delivered another solid quarter with $250 million of awards, resulting in a record backlog of $1.4 billion and a book-to-bill of 1.11. Notable Q1 awards reflected a healthy mix of competitive wins, follow-on production awards, and new design programs that continue to strengthen our position across key franchises, $26 million in competitive takeaways, including a major RF subsystem win supporting a ramping US missile program.

接下來是第二個優先事項：推動內生成長。繼第四季度創紀錄的訂單量之後，我們迎來了一個穩健的第一季度，獲得了價值 2.5 億美元的訂單，使積壓訂單達到創紀錄的 14 億美元，訂單出貨比達到 1.11。值得一提的是，第一季的訂單涵蓋了競爭性訂單、後續生產訂單和新設計項目，這些都持續鞏固了我們在關鍵領域的市場地位。其中，競爭性訂單總額達 2,600 萬美元，包括一項重要的射頻子系統訂單，該子系統將支援美國正在加速推進的飛彈項目。

Multiple follow-on production awards, including an order from a leading European defense prime for an electronic-warfare application that reinforces our strong international positioning and a follow-on for RF modules supporting a major US fighter aircraft. Several follow-on orders that leverage our Common Processing Architecture and include embedded anti-tamper and cybersecurity software from our recent acquisition of Star Lab.

隨後又獲得了多項生產訂單，其中包括來自歐洲一家領先的國防巨頭的電子戰應用訂單，這鞏固了我們強大的國際地位；以及為美國一款主要戰鬥機提供射頻模組的後續訂單。後續幾筆訂單將利用我們的通用處理架構，並包含我們最近收購的 Star Lab 提供的嵌入式防篡改和網路安全軟體。

And on the development front, we saw continued momentum with new design wins across mission computing, RF and processing technologies, expanding Mercury's role on next-generation defense platforms.

在研發方面，我們在任務運算、射頻和處理技術領域取得了新的設計突破，並持續保持強勁勢頭，擴大了 Mercury 在下一代國防平台上的作用。

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 with our proven capabilities and latest innovations.

這些獎項意義重大，不僅因為它們對我們的發展軌跡具有價值和影響，還因為它們反映了客戶對 Mercury 的信任，相信我們能夠憑藉我們成熟的能力和最新的創新來支持他們最重要的特許經營項目。

Beyond our backlog growth, we continue to have customer conversations on the potential for higher demand on multiple programs across our portfolio, driven by increased defense budgets globally and domestic priorities like Golden Dome.

除了積壓訂單的成長之外，我們還在與客戶就我們產品組合中多個項目的潛在更高需求進行持續對話，這些需求是由全球國防預算的增加和國內優先事項（如金穹頂）所推動的。

Although these potential opportunities are still in early pipeline phases, I am optimistic that they may have a positive impact on our demand environment if funding is allocated across certain program priorities to our customers over the next several quarters and beyond. Please forward to slide 7.

儘管這些潛在機會仍處於早期階段，但我樂觀地認為，如果未來幾個季度及以後，資金能夠分配給客戶的某些優先項目，它們可能會對我們的需求環境產生積極影響。請翻到第7頁。

Now turning to priority three, Expanding Margins. In our efforts to progress toward our targeted adjusted EBITDA margins in the low to mid-20% range, we are focused on the following drivers: backlog margin expansion as we convert lower-margin backlog and add new bookings aligned with our target margin profile, ongoing initiatives to further simplify, automate and optimize our operations, and driving organic growth to realize positive operating leverage.

現在來看第三個優先事項：擴大利潤空間。為了實現我們調整後 EBITDA 利潤率在 20% 左右的目標，我們專注於以下幾個方面：擴大積壓訂單利潤率，將低利潤率的積壓訂單轉化為符合我們目標利潤率的新訂單；持續推進各項舉措，進一步簡化、自動化和優化我們的營運；以及推動內生成長，以實現積極的經營槓桿。

Q1 adjusted EBITDA margin of 15.8% was ahead of our expectations and up 530 basis points year-over-year. This margin performance was driven by the conversion of backlog previously contemplated to be delivered later in FY26 and higher operating leverage. Gross margin of 28%, up approximately 260 basis points year-over-year was driven by a favorable mix of backlog margin converted in the quarter.

第一季調整後 EBITDA 利潤率為 15.8%，超出預期，較去年同期成長 530 個基點。這一利潤率表現得益於先前計劃在 2026 財年稍後交付的積壓訂單的轉換以及更高的營運槓桿。毛利率為 28%，年增約 260 個基點，主要得益於本季積壓訂單轉換率的良好表現。

We expect average backlog margin to continue to increase as we bring in new bookings that we believe will be in line with our targeted margin profile and accretive to the current average margin in our backlog. Operating expenses as a percent of revenue are down year-over-year, as a result of fully realizing the impact of previously implemented actions to further simplify, streamline, and focus our operations and ongoing initiatives to drive efficiency.

我們預計，隨著新訂單的到來，平均積壓訂單利潤率將繼續提高，我們相信這些新訂單將符合我們的目標利潤率水平，並提高我們積壓訂單的當前平均利潤率。由於充分發揮了先前實施的進一步簡化、精簡和集中我們營運的措施以及持續提高效率的措施的影響，營運費用佔收入的百分比同比下降。

Please forward to slide 8. Finally, turning to priority four, Improved Free Cash Flow. We continue to make progress on the drivers of free cash flow, and in particular, reducing net working capital, which at approximately $458 million is down $106 million year-over-year.

請翻到第8頁。最後，我們來看第四個優先事項：改善自由現金流。我們在推動自由現金流方面繼續取得進展，特別是減少了淨營運資本，目前淨營運資本約為 4.58 億美元，比上年減少了 1.06 億美元。

Q1 free cash flow represented a $16.5 million improvement over Q1 of last year. We believe our continuous improvement related to program execution, accelerating deliveries for our customers, demand planning and supply chain management will lead to continued reduction in working capital and net debt going forward.

第一季自由現金流比去年第一季增加了1,650萬美元。我們相信，我們在專案執行、加速客戶交付、需求計畫和供應鏈管理方面的持續改進，將有助於我們未來繼續減少營運資金和淨債務。

In addition, we continue to expect to allocate factory capacity in FY26 to programs with unbilled receivable balances, which will help drive free cash flow, although with little impact to revenue. Please turn to slide 9. Looking ahead, I am optimistic about our team, our leadership position in delivering mission-critical processing at the edge, the market backdrop, 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%.

此外，我們預計在 2026 財年繼續將工廠產能分配給有未開立應收帳款餘額的項目，這將有助於推動自由現金流，儘管對收入的影響很小。請翻到第9頁投影片。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、市場環境以及我們預期隨著時間的推移實現與目標相符的業績的能力都充滿信心，我們的目標包括：高於市場水平的營收增長、調整後的 EBITDA 利潤率在 20% 到 25% 的低至中段，以及 50% 的自由現金流轉化率。

We believe our strong Q1 results, combined with the solid Q4 results of FY25 reflect continued progress toward this target profile with an aggregate 1.2 book-to-bill, 10% top line growth, 17.4% adjusted EBITDA margins and positive free cash flow over the last two quarters.

我們相信，強勁的第一季業績，加上 2025 財年第四季穩健的業績，反映了我們朝著這一目標持續取得進展，過去兩個季度的總訂單出貨比為 1.2，營收成長 10%，調整後 EBITDA 利潤率為 17.4%，自由現金流為正。

Coming out of Q1, we maintain our full year view on FY26, which excludes any further acceleration of customer deliveries within or into FY26 or upside bookings to our plan tied to domestic priorities like Golden Dome or increased global defense budgets.

第一季結束後，我們維持對 2026 財年的全年展望，這不包括 2026 財年內或之後客戶交付速度的進一步加快，也不包括與國內優先事項（如金穹頂）或增加的全球國防預算相關的訂單增加。

We continue to expect annual revenue growth of low single digits with the first half relatively flat year-over-year, and volume increasing sequentially as we move through the second half. Given our Q1 overperformance, we expect Q2 revenue to be down year-over-year, absent any additional acceleration of deliveries.

我們繼續預期全年營收將維持個位數低成長，上半年年比基本持平，而隨著下半年的到來，銷售量將較上季成長。鑑於我們第一季業績超出預期，如果沒有進一步加快交付速度，我們預計第二季營收將年減。

We continue to expect full year adjusted EBITDA margin approaching mid-teens with low double-digit adjusted EBITDA margins in the first half. Given the accelerated delivery of high-margin backlog into Q1, we expect Q2 adjusted EBITDA margin approaching double digits as we convert low-margin backlog. We continue to anticipate margins to expand in the second half with Q4 adjusted EBITDA margin expected to be the highest of the fiscal year.

我們繼續預計全年調整後 EBITDA 利潤率將接近 15% 左右，上半年調整後 EBITDA 利潤率將達到兩位數左右。鑑於高利潤積壓訂單已加速交付至第一季度，我們預計隨著低利潤積壓訂單的轉化，第二季度調整後 EBITDA 利潤率將接近兩位數。我們繼續預期下半年利潤率將擴大，預計第四季度調整後 EBITDA 利潤率將達到本財年最高水準。

Finally, with respect to free cash flow, we expect to be free cash flow positive for the year with second half free cash flow greater than the first half. In summary, with our momentum coming out of Q1, I expect FY26 performance to represent another positive step toward our target profile.

最後，關於自由現金流，我們預計全年自由現金流為正，下半年自由現金流將大於上半年。總而言之，憑藉第一季的良好勢頭，我預計 2026 財年的業績將代表我們朝著目標邁出的另一個積極步伐。

Additionally, I'm gaining optimism regarding the potential for tailwinds associated with increased global defense budgets and domestic priorities like Golden Dome to materialize in upside bookings to our plan over time. I look forward to providing updated commentary as we progress through the year.

此外，我對全球國防預算增加和國內優先事項（如金頂國家紀念大樓）帶來的利好因素逐漸抱持樂觀態度，認為這些因素最終會轉化為我們計劃的預訂量增長。我期待在今年餘下的時間裡為大家提供最新的評論。

Before I hand it over to Dave, I wanted to touch on a new $200 million buyback authorization that was announced in our earnings press release. This authorization underscores our confidence in the business, our improving fundamentals and the multiple opportunities we see ahead to drive long-term shareholder value.

在將發言權交給戴夫之前，我想談談我們在獲利新聞稿中宣布的新的 2 億美元股票回購授權。這項授權凸顯了我們對公司業務的信心、公司基本面的改善以及我們看到的許多推動股東長期價值成長的機會。

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?

接下來，我將把發言權交給戴夫，讓他來介紹本季的財務業績，期待大家的提問。戴夫？

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

謝謝你，比爾。我們第一季的業績繼續反映出我們在實現業務卓越績效目標方面取得了穩步進展，該卓越績效的特點是內生成長、利潤率擴大和強勁的自由現金流。

We still have work to do, but we are encouraged by the progress we have made and expect to continue this momentum throughout fiscal 2026. With that, please turn to slide 10, which details our first quarter results. Our bookings for the quarter were $250.2 million with a book-to-bill of 1.11.

我們還有很多工作要做，但我們對已取得的進展感到鼓舞，並期望在 2026 財年繼續保持這種勢頭。接下來，請翻到第 10 張投影片，其中詳細介紹了我們第一季的業績。本季我們的預訂金額為 2.502 億美元，預訂出貨比為 1.11。

Our record backlog of $1.4 billion is up $86.4 million or 6.5% year-over-year. Revenues for the first quarter were $225.2 million, up approximately $21 million or 10.2% compared to the prior year. During the first quarter, we were again able to accelerate customer deliveries worth approximately $20 million of revenue previously planned to be delivered in Q2 FY26.

我們創紀錄的積壓訂單額為 14 億美元，比去年同期增加了 8,640 萬美元，增幅為 6.5%。第一季營收為 2.252 億美元，較上年同期成長約 2,100 萬美元，增幅達 10.2%。在第一季度，我們再次加快了向客戶交付價值約 2,000 萬美元的收入，這些收入原計劃在 2026 財年第二季交付。

Gross margin for the first quarter increased approximately 260 basis points to nearly 28% as compared to the same quarter last year. Gross margin improvement during the first quarter was primarily driven by favorable program mix, lower manufacturing adjustments of $7.4 million and a reduction in net EAC change impacts of approximately $4 million or 51% year-over-year.

與去年同期相比，第一季毛利率成長約 260 個基點，接近 28%。第一季毛利率的提高主要得益於有利的產品組合、減少 740 萬美元的製造調整以及淨 EAC 變化影響減少約 400 萬美元或同比下降 51%。

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 through our continued focus on building a thriving growth engine, coupled with ongoing initiatives to simplify, automate and optimize our operations.

正如比爾之前指出的那樣，我們預計隨著時間的推移，我們的毛利率表現將會改善，因為我們將繼續專注於建立蓬勃發展的成長引擎，並不斷採取措施簡化、自動化和優化我們的運營，從而提高積壓訂單的平均利潤率。

Operating expenses increased $6.3 million or 9.6% year-over-year. The increase was primarily driven by higher compensation costs and incremental litigation and settlement expenses within selling, general and administrative costs of $7.3 million and $6 million, respectively.

營運費用年增 630 萬美元，增幅為 9.6%。此次成長主要是由於更高的賠償成本以及銷售、一般及行政成本中新增的訴訟和和解費用，分別為 730 萬美元和 600 萬美元。

These increases were partially offset by a reduction in research and development costs of $5.2 million or 28.3%, driven by headcount reductions initiated in fiscal 2025 to align our team composition with our increased production mix, as we previously discussed.

這些成長部分被研發成本減少 520 萬美元或 28.3% 所抵消，這主要是由於我們在 2025 財年開始裁員，以使我們的團隊構成與我們不斷增長的生產組合相匹配，正如我們之前討論的那樣。

We also incurred $1.6 million of restructuring and other charges during the quarter as we progress on driving scale and efficiency in our operations. GAAP net loss and loss per share in the first quarter were $12.5 million and $0.21, respectively, as compared to GAAP net loss and loss per share of $17.5 million and $0.30, respectively, in the same quarter last year.

本季度，隨著我們不斷擴大營運規模和提高營運效率，我們也產生了 160 萬美元的重組和其他費用。第一季GAAP淨虧損和每股虧損分別為1,250萬美元和0.21美元，去年同期GAAP淨虧損和每股虧損分別為1,750萬美元和0.30美元。

The improvement in year-over-year earnings is primarily a result of increased gross margins, partially offset by increased operating expenses previously discussed. Adjusted EBITDA for the first quarter was $35.6 million, up $14.1 million or 65.8% as compared to the same quarter last year.

年比獲利成長主要歸功於毛利率的提高，但部分被先前討論過的營運費用增加所抵銷。第一季調整後 EBITDA 為 3,560 萬美元，比去年同期成長 1,410 萬美元，增幅達 65.8%。

Adjusted earnings per share was $0.26 as compared to $0.04 in the prior year. The year-over-year increase was primarily related to our increase in revenue and the associated gross margin in the current period as compared to the prior year.

調整後的每股收益為 0.26 美元，而上年同期為 0.04 美元。與去年同期相比，本期營收和相關毛利率的成長是導致年成長的主要原因。

Free cash flow for the first quarter was an outflow of $4.4 million as compared to an outflow of $20.9 million in the prior year. This reflects a $16.5 million or 79% reduction to our outflow as compared to the prior year. slide 11 presents Mercury's balance sheet for the last five quarters.

第一季自由現金流為流出 440 萬美元，而去年同期為流出 2,090 萬美元。這反映出我們的資金流出比前一年減少了1,650萬美元，降幅達79%。第11張投影片展示了Mercury公司過去五個季度的資產負債表。

We ended the first quarter with cash and cash equivalents of $304.7 million, sequentially driven primarily by $2.2 million in cash provided by operations in the first quarter, which was offset by investments of $6.5 million in capital expenditures. Over the last four quarters, we generated approximately a $135.6 million of free cash flow.

第一季末，我們持有現金及現金等價物 3.047 億美元，環比成長主要得益於第一季經營活動產生的 220 萬美元現金，但被 650 萬美元的資本支出所抵銷。過去四個季度，我們產生了約 1.356 億美元的自由現金流。

Billed receivables decreased year-over-year and sequentially by $31.9 million and $16.9 million, respectively. Unbilled receivables decreased year-over-year and sequentially by $23.4 million and $3.6 million, respectively. The decrease in both billed and unbilled receivables reflects the progress we've made by delivering on programs to our customers.

已開立應收帳款年比和季減了 3,190 萬美元和 1,690 萬美元。未開立應收帳款年比和季比分別減少了 2,340 萬美元和 360 萬美元。已開立應收帳款和未開立應收帳款的減少反映了我們透過向客戶交付專案所取得的進展。

As Bill previously noted, we continue to expect to allocate factory capacity in fiscal '26 to programs with unbilled receivable balances, which will help drive free cash flow with minimal impact to revenue. Inventory decreased year-over-year by $10.8 million.

正如比爾之前指出的那樣，我們仍然預計在 2026 財年將工廠產能分配給有未開票應收帳款餘額的項目，這將有助於推動自由現金流，同時對收入的影響最小。庫存年減了1080萬美元。

Prepaid expenses and other current assets increased sequentially by $43.2 million, primarily due to our settlement in principle on the securities class action complaint. This settlement in principle is recorded as a receivable within prepaid expenses and other current assets and a corresponding accrual was recorded in accrued expenses.

預付費用和其他流動資產環比增加 4,320 萬美元，主要原因是我們在證券集體訴訟投訴中達成了原則和解。此項原則性結算已記為預付費用及其他流動資產中的應收款項，並在應計費用中記入了相應的應計項目。

Accounts payable increased year-over-year and sequentially by $23.1 million and $18.7 million, respectively, driven by the timing of payments to our suppliers. Accrued expenses increased $32.2 million sequentially, primarily due to our settlement in principle on the securities class action complaint previously mentioned. Accrued compensation decreased $27.8 million sequentially, primarily due to payments under our incentive compensation plans.

應付帳款年比和季比分別增加了 2,310 萬美元和 1,870 萬美元，主要原因是向供應商付款的時間表。應計費用較上季增加 3,220 萬美元，主要是由於我們與先前提到的證券集體訴訟投訴達成了原則性和解。累計薪酬環比減少 2,780 萬美元，主要原因是根據我們的激勵性薪酬計劃支付的款項。

Deferred revenues increased year-over-year by $29.2 million as a result of additional milestone billings achieved during the period. Sequentially, deferred revenues decreased slightly by $1.3 million. Working capital decreased $105.7 million year-over-year or 18.8%, this demonstrates the progress we've made in reversing the multiyear trend of growth in working capital, resulting in a reduction of $202.3 million or 30.6% from the peak net working capital in Q1 FY24. Net working capital remains a primary focus area for us, and we believe we can continue to deliver improvement. Turning to cash flow on slide 12.

由於本期間實現了額外的里程碑式帳單，遞延收入年增 2,920 萬美元。與上一季相比，遞延收入略微減少了 130 萬美元。營運資本年減 1.057 億美元，降幅達 18.8%，這表明我們在扭轉多年營運資本成長趨勢方面取得了進展，與 2024 財年第一季的淨營運資本高峰相比，減少了 2.023 億美元，降幅達 30.6%。淨營運資本仍然是我們關注的重點領域，我們相信我們能夠繼續取得進步。接下來請看第 12 頁的現金流量部分。

Free cash flow for the first quarter was an outflow of $4.4 million as compared to $20.9 million in the prior year. We still expect to be free cash flow positive for the year with second half free cash flow greater than the first half, as Bill previously noted.

第一季自由現金流為440萬美元，而去年同期為2,090萬美元。我們仍然預計今年自由現金流為正，並且下半年的自由現金流將大於上半年，正如比爾之前指出的那樣。

We believe our continuous improvement in program execution, hardware delivery, just-in-time material and appropriately timed payment terms will lead to continued reduction in working capital. In closing, we are pleased with the performance in the first quarter and the higher level of predictability in the business.

我們相信，透過不斷改進專案執行、硬體交付、及時供貨和適當的付款條件，我們將持續減少營運資金。總之，我們對第一季的業績以及業務更高的可預測性感到滿意。

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.

我們相信，繼續推進我們的四個優先重點領域，不僅能夠推動收入成長和獲利能力，而且還能進一步擴大利潤率和現金轉換率，從而展現我們業務的長期價值創造潛力。

Lastly, as you saw in our filing, we've announced that we've entered into an amendment to our revolving credit facility. This amendment extends the maturity date of the credit facility by five years with a facility size of $850 million. This amendment enhances our financial flexibility and provides continued access to a strong source of liquidity, allowing us to execute our strategic priorities and invest in our long-term growth.

最後，正如您在我們提交的文件中所看到的，我們已宣布對我們的循環信貸安排進行了修訂。該修正案將信貸安排的到期日延長五年，信貸規模為 8.5 億美元。這項修正案增強了我們的財務靈活性，並持續提供了強大的流動性來源，使我們能夠執行策略重點並投資於長期成長。

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

接下來，我將把電話轉回給比爾。

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

謝謝你，戴夫。操作員，那麼請開始問答環節。

(Operator Instructions)

（操作說明）

Ken Herbert, RBC.

Ken Herbert，RBC。

Yeah, hi. Nice results, Bill and Dave. Maybe just to start off, when we back out sort of the pull forward on the revenues, you're sort of basically flat in terms of the growth with 12%-ish EBITDA margins, sort of in line, I think, with how you were initially guiding for the first quarter?

嗨，你好。比爾和戴夫，成績不錯。首先，如果我們剔除營收成長的提前效應，你們的成長基本上持平，EBITDA 利潤率約為 12%，我認為這與你們最初對第一季的預期基本一致？

Can you just talk about your ongoing ability to continue to pull the revenues forward as we think about that as through the rest of the fiscal year? And I know, obviously, it's hard to predict that and depending upon a lot of factors. But how do we think about that?

您能否談談貴公司在剩餘財年內持續提高營收的能力？我知道，這顯然很難預測，而且取決於許多因素。但我們該如何看待這個問題呢？

And how do we think about that from a potential to really drive sort of incremental upside as we go through the rest of the fiscal year?

那麼，我們如何看待這種可能性，才能在本財年剩餘的時間裡真正推動業績的逐步成長呢？

Yeah. Ken, thanks. This is Bill. I'll take that. If I think about the last few quarters, we have been successful as we've worked our way through the quarters at looking at the constraints on delivering to our customers and for their high priority programs, being able to work through the constraints and accelerate deliveries.

是的。肯，謝謝。這是比爾。我接受。回顧過去幾個季度，我們取得了成功，因為我們一直在努力克服向客戶交付產品和推進其高優先級專案時遇到的限制，並努力克服這些限制，加快交付速度。

The challenge with doing that is we really don't have good line of sight on how we're working through those constraints, until we get toward the middle or the end of the quarter.

這樣做的挑戰在於，直到季度中期或末期，我們才能真正清楚地了解我們是如何克服這些限制的。

And so as we think about Q2 and our commentary for the balance of the year, that's the primary reason why we haven't factored any future accelerations into it. That said, we're continuing across our portfolio every day and every week to work on constraints and trying to accelerate for our customers.

因此，當我們考慮第二季度以及對今年剩餘時間的評論時，這就是我們沒有將任何未來的加速成長納入其中的主要原因。即便如此，我們每天每週都在持續努力，在我們的產品組合中克服各種限制，並努力加快為客戶提供服務的速度。

And we hear loud and clear from our customers that in today's environment, if -- in general, if we can deliver early, that's a very good thing for them and for their customers. So we continue to work through it. The kinds of things that we're working through are largely tied to trying to accelerate material from our suppliers, in some cases, we have some factory constraints that we need to try and work our way through as material comes in.

我們從客戶那裡清楚地聽到，在當今環境下，如果——總的來說，如果我們能夠提前交付，這對他們和他們的客戶來說都是一件非常好的事情。所以我們會繼續努力解決這個問題。我們正在努力解決的問題主要與加快供應商的供貨速度有關，在某些情況下，我們還有一些工廠方面的限制，需要隨著材料的到貨努力克服這些限制。

And those are the kinds of things that we're working on, on a day-to-day basis. So again, we haven't factored it into our outlook for Q2 or for the rest of the year. We do continue to work it. And as we're successful in accelerating deliveries, then obviously, we pull that into our updated view on the current period in the fiscal year.

這些就是我們每天都在努力做的事情。所以，我們還沒有將其納入第二季或今年剩餘時間的展望中。我們會繼續努力。如果我們能夠成功加快交付速度，那麼很顯然，我們會將此納入我們對本財年當前階段的更新看法中。

Good thanks and if I could, the additional capacity that you're bringing online in Phoenix, what's the timing? And can you help maybe -- help us quantify sort of what that could add in terms of either capacity or ultimately what it could add from a revenue standpoint?

非常感謝。如果可以的話，我想問一下，你們在鳳凰城新增的產能何時能夠投入使用？您能否幫忙量化一下，這在產能方面能帶來多少提升，或是最終在收入上能帶來多少提升？

Yeah. I mean, I think, to answer the question, I'd like to take a step back and answer it in the broader context of how we're thinking about our approach to scaling up, not only to meet our anticipated ramp, but also any potential tailwinds across a broad number of programs in our portfolio, where we're having active conversations with our customers today about increased quantity.

是的。我的意思是，我認為，要回答這個問題，我想退一步，從更廣泛的角度來回答，談談我們如何思考擴大規模的方法，不僅是為了滿足我們預期的增長，也是為了我們投資組合中眾多項目可能帶來的任何有利因素，我們目前正在與客戶積極討論增加產量的問題。

And I would say our general outlook is that our investment profile in order to meet the anticipated ramp-up in front of us, and the potential tailwinds, I would categorize as an elegant profile, meaning incremental investment when we have line of sight to the demand. And the kinds of places that we would be investing would be adding multiple shifts. Most of our locations are operating on a single shift or an extended shift.

我認為，為了滿足預期的成長需求和潛在的利多因素，我們的整體展望是，我們的投資策略屬於穩健型，這意味著當我們能夠預見需求時，就會進行增量投資。我們投資的場所將會增加多個班次。我們大部分門市都實行單班製或延長班次製。

So we have capacity to add multiple shifts. And on certain lines, we might increase automation with additional test equipment, so that we could accelerate our processing and shrink our cycle time. So in general, what we see are incremental investments like that, that are tied to firm demand and typically not in advance of that demand.

因此，我們有能力增加多個班次。在某些方面，我們可能會增加自動化程度，例如增加測試設備，以便加快處理速度並縮短週期時間。因此，總的來說，我們看到的是像這樣的增量投資，這些投資與實際需求相關，而且通常不會提前於需求出現。

I'd say the one exception to what I just described is the capacity that we're bringing online in Phoenix that is currently and has been in our cost structure, in our operating expense in terms of the rent. We are making some incremental investments in terms of CapEx to bring additional lines up in that factory.

我想說，我剛才描述的情況有一個例外，那就是我們在鳳凰城上線的產能，它目前和過去一直都包含在我們的成本結構中，也就是我們的營運費用中，包括租金。我們正在逐步增加資本支出，以在該工廠增設生產線。

And it's intended in the near term to meet the anticipated demand increase for our Common Processing Architecture program. I won't dimension the capacity that we could potentially bring online, because it's really tied to the number of shifts, do we work extended weeks, those kinds of things. And right now, we're not forecasting or anticipating the need to do that across the board in Phoenix.

短期內，此舉旨在滿足我們通用處理架構計劃的預期需求成長。我不會估算我們未來可能投入使用的產能，因為這實際上取決於輪班次數、我們是否延長工作週等等因素。目前，我們並未預測或預料到鳳凰城需要全面採取這種措施。

I think, Bill, I would just add that it gives us additional flexibility in -- to be able to flex up.

比爾，我想補充一點，這給了我們更大的靈活性——能夠靈活調整。

Absolutely.

絕對地。

Great.

偉大的。

And just to be clear on that point, we will have the ability to ramp up and scale up efficiently on other programs in that space should some of the tailwinds that I've mentioned materialize in bookings.

為了明確這一點，如果我提到的某些利好因素在預訂量上得以實現，我們將有能力有效地擴大和提升該領域其他項目的規模。

Pete Arment, Baird.

皮特·阿門特，貝爾德。

Nice results there.

結果不錯。

Peter, you're a little --

彼得，你有點--

Peter, we can't hear you.

彼得，我們聽不到你說話。

Yes, it's a little quiet.

是的，這裡有點安靜。

Can you hear me now?

現在能聽到我說話嗎？

It's a little bit better, but I think Dave puts his ear really close to the speaker, we should be able to pick up.

情況稍微好了一些，但我認為戴夫把耳朵貼得很近揚聲器，我們應該可以聽出來。

Go ahead, Peter.

請繼續，彼得。

I'm sorry. Can you --

對不起。你可以嗎--

Here we go.

開始了。

(inaudible)

（聽不清楚）

On the CPA, you guys have had a couple of good bookings quarters coming into this first quarter, and it sounds like you've had some other follow-on orders. Just could you give us the latest on how that production is ramping up?

就 CPA 而言，你們在進入第一季之前已經有幾個季度的預訂情況良好，而且聽起來你們還有一些後續訂單。可否告知我們該生產項目目前的產能提升情況？

Yeah. And this has been a multi-quarter progression going back to when we first brought back up the line and went through a very methodical approach to initial production. And our commentary all along has been that we had confidence that once we started to produce again and increase production, we would start to see bookings fall. And that has been the progression that we've seen. And we believe that as we continue to ramp up production and deliver, that will unlock future demand.

是的。這是一個持續了幾個季度的漸進過程，從我們最初恢復生產線開始，我們採取了非常有條不紊的方法進行初始生產。我們一直以來的觀點是，我們有信心，一旦我們恢復生產並提高產量，就會開始看到預訂量下降。這就是我們所看到的進展。我們相信，隨著我們不斷提高產量和交付能力，這將釋放未來的需求。

So this is one of the parts of the business where we're continuing to focus on what we call ramp to rate, higher rate production, because we can see the potential demand, customer demand for our existing CPA products.

所以，這是我們持續關注的業務領域之一，我們稱之為提高產量，因為我們看到了現有 CPA 產品的潛在需求和客戶需求。

We're also focused on how we can expand that TAM and investments that we can make in different form factors with a similar kind of CPA architecture and approach, that over time we think could expand the TAM to additional platforms where we could sell this technology into. So we're excited about the progress that we're making on our programs, the increases in production that we've been able to achieve.

我們也專注於如何擴大 TAM，以及我們可以在具有類似 CPA 架構和方法的不同形態的產品上進行哪些投資，我們認為隨著時間的推移，這可以將 TAM 擴展到我們可以向其銷售這項技術的其他平台。因此，我們對我們在專案上取得的進展以及我們所取得的產量成長感到興奮。

And this is obviously a part of the business that we're very committed to. We're excited about, and we see significant growth potential.

顯然，這是我們非常重視的業務領域之一。我們對此感到興奮，並看到了巨大的成長潛力。

That's great color. And then if you could also just comment on kind of the European defense environment. It sounds like you're getting favorable follow-on production awards there, and seeing that mix continue to ramp?

顏色真好看。然後，您能否也談談歐洲的國防環境？聽起來你在那邊獲得了不少後續製作獎項，而且這種勢頭還在持續增強？

Yeah, it's interesting. As we think about just the market broadly, the general tailwinds that we're seeing fall into a couple of different categories. I'd say, first, it's the growth in the domestic budgets. And it's not just the size of the defense budget, it's also the percent that's being allocated to the acquisition of technology and capabilities like we delivered. And there's also some interesting tailwinds with executive orders around the use of commercial technology and certain priorities like Golden Dome.

是啊，挺有意思的。從整體市場來看，我們看到的利多因素大致可以分為以下幾類。我認為，首先是國內預算的成長。而且，這不僅僅是國防預算的規模，還涉及用於獲取我們所交付的技術和能力的預算比例。此外，圍繞商業技術應用和某些優先事項（如金頂）的行政命令也帶來了一些有趣的利多因素。

And then another major driver, which you mentioned is the tailwinds in Europe tied to the ReArm Europe initiative, where defense budgets look like in aggregate, they're tripling over the next few years towards $1 trillion in aggregate. We have very strong channels to market to that European defense budget growth. If we look at our last -- our trailing 12 months, the growth of that part of the business has been about 15%, when we look at direct to European primes and via FMS.

還有另一個主要驅動因素，正如你所提到的，是歐洲與「重整歐洲」倡議相關的順風，歐洲的國防預算總額在未來幾年內可能會成長兩倍，達到 1 兆美元。我們擁有非常強大的市場管道，可以滿足歐洲國防預算成長的需求。如果我們回顧過去 12 個月，就會發現，直接面向歐洲主要承包商以及透過 FMS 實現的業務成長約為 15%。

And I would say that, that's largely before the tailwinds have really kicked in. Now the conversations that I alluded to earlier that we're having with our primes domestically are mirrored with the European primes, where we're talking about increased quantities, accelerating rates, things like that, in areas primarily associated with EW and radar processing.

而且我認為，這主要是在順風真正發揮作用之前的情況。現在，我之前提到的我們與國內主要廠商進行的對話，也反映在歐洲主要廠商身上，我們正​​在討論增加數量、加快速度等等，主要涉及電子戰和雷達處理領域。

Now those are conversations that are early in the pipeline, but I do think they're healthy and reflective of what could be a healthy demand environment internationally, where, again, we have good exposure, and we have a demonstrated growth rate in the 15% range over the last 12 months.

這些對話目前還處於早期階段，但我認為它們是健康的，反映了國際上可能存在的健康需求環境。我們再次強調，我們在國際上擁有良好的市場地位，並在過去 12 個月中實現了 15% 左右的成長率。

Seth Seifman, JPMorgan.

Seth Seifman，摩根大通。

Hi, good evening, This is [Rocco] on for Seth. As expected, gross margins took a bit of a step back in Q1. How should we be thinking about the margin progression through the year? Are volumes the key to expanding margins? Or are there other focus pieces to watch?

大家好，晚上好，我是Rocco，替Seth為您報道。正如預期的那樣，第一季的毛利率略有下降。我們該如何看待全年利潤率的變化？銷量是提高利潤率的關鍵嗎？或是有其他值得關注的重點嗎？

Well, I'd say year-over-year, our gross margins are up about 260 basis points, and that was really a key enabler to our EBITDA margin expansion of over 500 basis points year-over-year. So we feel really good about the progression of our margins toward our target profile.

嗯，我想說，與去年同期相比，我們的毛利率提高了約 260 個基點，這確實是我們 EBITDA 利潤率同比增長超過 500 個基點的關鍵推動因素。因此，我們對利潤率朝著目標方向發展感到非常滿意。

And as we said before, we've got clear line of sight to our target profile that consists of improvements to our average backlog margin, as we convert low-margin backlog and replace it with bookings that are in line with our target margin, increased initiatives to drive automation and efficiency and then positive operating leverage.

正如我們之前所說，我們清楚地看到了我們的目標概況，其中包括提高平均積壓訂單利潤率，將低利潤率的積壓訂單轉化為符合目標利潤率的訂單，加大力度推動自動化和效率提升，以及實現積極的營運槓桿。

Those are really the three components of our bridge from where we are today that, again, over the last two quarters, our EBITDA margin has been 17.4%, and we feel like we're on our way towards the target profile of low to mid-20s focused on those three components.

這三個要素是我們實現目前目標的關鍵。在過去的兩個季度裡，我們的 EBITDA 利潤率達到了 17.4%，我們感覺我們正在朝著 20% 左右的目標邁進，而這三個要素正是我們前進的動力。

And Rocco, I know you -- I think your question, you were looking sequentially?

羅科，我知道你──我想你的問題是，你是按順序看的嗎？

Yes.

是的。

Yes. So sequentially, of course, there's a little bit of mix in there, from the margin standpoint. So Q4 and when we talked about this on the earnings call, we talked about, it had a very favorable mix for us during that quarter. And so we did -- our expectation was not that Q1 would approximate that same mix.

是的。所以從利潤率的角度來看，當然會有一些混合因素。所以，第四季度，正如我們在財報電話會議上談到的那樣，我們當時談到，該季度我們的投資組合非常有利。所以我們照做了——我們並不期望第一季能達到同樣的組合水準。

Right. That makes sense. And then how should we think about free cash flow conversion this year? Should we expect it to come in below the target of 50% following the strong conversion last year? Or is there additional cash to pull out in the near term?

正確的。這很有道理。那麼，我們該如何看待今年的自由現金流轉換率呢？鑑於去年強勁的轉換率，我們是否應該預期今年的轉換率會低於 50% 的目標？或是近期有額外的現金可以提領？

Well, as Bill said, and we've been talking about, we're focused on getting our working capital to the level it should be, and what we feel like the model gets us to. Of course, that takes time, and there's quarter-to-quarter kind of perturbations around that, because of timing of billings and shipments.

正如比爾所說，也是我們一直在討論的，我們專注於將我們的營運資金提升到應有的水平，以及我們認為該模式能夠達到的水平。當然，這需要時間，而且由於帳單和發貨時間的原因，每個季度都會出現一些波動。

But we do expect over the long run that we'll be at that 50% level. And -- but in any given quarter, that's -- we're not saying our expectation is this quarter or next quarter that it will be that way. But over time, and what we said for FY26 is we expect to be free cash flow positive.

但我們預計從長遠來看，我們將達到 50% 的水平。但是——但在任何一個季度，我們並不是說我們預期本季或下個季度會是這樣。但隨著時間的推移，正如我們對 2026 財年所說，我們預計自由現金流將為正值。

Cash flow positive with the second half higher than the first half.

現金流為正，下半年高於上半年。

And I think as we progress through FY26, over time we'll be able to provide an updated view on that.

我認為隨著 2026 財年的推進，我們將能夠就此提供更新的觀點。

Austin Moeller, Canaccord Genuity.

Austin Moeller，Canaccord Genuity。

Hi, good afternoon. Just my first question here. Can you walk us through the delivery timeline for LTAMDS based on what's currently in your backlog and the contract that was recently received by Raytheon for the next batch?

您好，下午好。這是我的第一個問題。能否根據您目前的積壓訂單和雷神公司最近收到的下一批訂單合同，向我們介紹一下LTAMDS的交付時間表？

Yes. Thanks for the question. I don't think we'll comment on the current deliveries and the current timeline associated with option year one. With respect to what you referenced, there's typically a time constant from the time that primes in general, get awarded their funding until we get our funding. And we're working through the progressions associated with that time constant.

是的。謝謝你的提問。我認為我們不會對目前的交付情況以及與第一年選擇權相關的當前時間表發表評論。關於你提到的情況，通常從專案獲得資助到我們獲得資助之間會有一個時間常數。我們正在研究與該時間常數相關的各種進展。

And as those conversations materialize in bookings, then I think we'll be able to give an updated view on our commentary.

隨著這些對話轉化為實際預訂，我認為我們可以對我們的評論給出更新的觀點。

Okay. And how do you view the revenue growth rate and backlog opportunity for your US versus international customers?

好的。您如何看待美國客戶與國際客戶的營收成長率和訂單積壓機會？

I mean we feel good about both potentials for growth. I don't think we've quantified one versus the other. But certainly, the tailwinds and -- that Bill talked about make us feel good about the long-term prospects for growth in both of those marketplaces.

我的意思是，我們對這兩種成長潛力都感到樂觀。我認為我們還沒有對二者進行量化比較。但可以肯定的是，比爾提到的這些順風因素讓我們對這兩個市場的長期成長前景感到樂觀。

Yeah. I agree. I mean, both domestically, internationally and as we look across our portfolio in general, we see a number of different growth drivers and potential tailwinds above getting to our target profile, which we've spoken to.

是的。我同意。我的意思是，無論是在國內、國際上，還是從我們整體的投資組合來看，我們都看到了許多不同的成長驅動因素和潛在的利好因素，這些因素有助於我們達到目標，我們已經與相關方進行了溝通。

Jonathan Ho, William Blair.

喬納森·何，威廉·布萊爾。

Hi, good afternoon and congratulations on the strong results. Just wanted to ask quickly on Golden Dome and maybe what you're seeing there. Is there any sort of update in terms of timing or potential opportunities just given your ability to participate in all the theaters?

您好，下午好，恭喜您取得優異成績。我只是想快速問一下關於金頂穹頂以及你在那裡看到的情況。鑑於您有能力參與所有劇院的演出，在時間安排或潛在機會方面是否有任何最新消息？

Well, thanks, Jonathan. Thanks for the comment and for the question. I'd say it's still early in terms of specifics on where funding will be allocated and the timing with which it will be allocated. I will say, though, I feel like we are well positioned with respect to how that opportunity could materialize.

謝謝你，喬納森。感謝您的評論和提問。我認為現在討論資金的具體分配方向和分配時間還為時過早。不過，我認為我們已經做好了充分的準備，能夠抓住這個機會。

And specifically, when you think about the different layers associated with a Golden Dome, a space layer, an airborne layer, tracking layer, interceptor, ground-based processing, shipboard processing, et cetera.

具體來說，當你想到與金色穹頂相關的不同層面時，例如空間層、空中層、追蹤層、攔截器、地面處理、艦載處理等等。

And the administration's commitment to having capabilities in place over a three-year timeframe, it really points to existing capabilities in those layers, and we participate across that entire architecture. And so while there's some uncertainty around the specifics and the timing, we do believe that over time as the funding priorities are clear and the funding is allocated to programs, eventually that's going to translate into increased demand for mission-critical processing at the edge on the platforms in those different layers, and we feel very positioned to capture those tailwinds.

政府承諾在三年內建立相應的能力，這實際上表明了這些層面的現有能力，而我們參與了整個架構。因此，雖然具體細節和時間安排仍存在一些不確定性，但我們相信，隨著時間的推移，資金優先事項逐漸明確，資金也分配到各個項目中，最終這將轉化為對不同層級平台邊緣關鍵任務處理需求的增加，我們感覺自己已經做好充分準備，抓住這些有利時機。

So there's uncertainty around the specifics. We do expect things to unfold over time, but we are very confident and believe we're well positioned to be able to capture those tailwinds, because of our broad exposure across that architecture.

所以具體細節還存在不確定性。我們預計事情會隨著時間的推移而發展，但我們非常有信心，並且相信我們能夠很好地掌握這些有利因素，因為我們在該架構中擁有廣泛的業務。

And just as a quick follow-up, I just want to make sure -- I didn't completely hear one of the questions. But in terms of the US government shutdown, are you seeing any impact either to funding or -- and to program starts -- or contract awards? Just wanted to make sure that there was some impact there?

最後再確認一下，我好像沒完全聽清楚其中一個問題。但就美國政府停擺而言，您是否看到對資金、專案啟動或合約授予有任何影響？我只是想確認一下是否真的產生了一些影響？

Yeah. I would say that so far, the -- any impact associated with the shutdown, we'd say is very minimal. And there's a couple of factors behind that response. One is we have very good backlog coverage as we look at our outlook for the fiscal year. Most of our funding comes through the primes and most of our awards come from the primes.

是的。我認為到目前為止，與停工相關的任何影響都非常小。這種反應背後有兩個因素。首先，從本財年的展望來看，我們的積壓訂單覆蓋率非常高。我們的大部分資金來自主要承包商，我們的大部分獎金也來自主要承包商。

I would say that if there's an extended shutdown over time, we could see some timing-related impacts associated with new bookings. But at this point, we haven't seen anything that is beyond minimal.

我認為，如果停工時間延長，可能會對新預訂產生一些時間上的影響。但就目前而言，我們還沒有看到任何超出最低限度的情況。

(Operator Instructions)

（操作說明）

Michael Ciarmoli, Truist Securities.

Michael Ciarmoli，Truist Securities。

This is actually [Sam] on for Mike. Congrats on the nice quarter. I was curious, obviously, last quarter, you guys talked to kind of trying to work down some of the lower-margin older backlog that you guys have. I was curious if you could just give a general update on how you feel like you're progressing with that? And kind of thoughts for the rest of the year?

實際上這是[Sam]替Mike上場。恭喜你本季業績出色。我很好奇，顯然，上個季度你們談到瞭如何解決一些利潤率較低的舊訂單積壓問題。我想問一下，您能否大致介紹一下您在這方面取得的進展？對今年剩下的時間有什麼想法？

And if there's any relationship between the pull forward on the higher-margin work and execution on that lower-margin portfolio?

那麼，提前推動高利潤專案與執行低利潤專案之間是否有任何關係呢？

Yes. I think as -- sorry. As was pointed out earlier, we did accelerate some high-margin activity from Q2. We were able to complete it in Q1. So when you kind of normalize for that, we were very close to the range we were thinking about or had communicated.

是的。我想……抱歉。正如之前指出的那樣，我們確實從第二季度開始加快了一些高利潤業務。我們在第一季就完成了這項工作。所以，當我們把這些因素考慮進去之後，我們其實非常接近我們之前考慮或溝通過的範圍。

So, I think we made good progress on burning down or expanding some of the lower-margin activity. Still have some to go. We talked about we're going to be working on that throughout the year but made good progress and the higher margin was a result of the mix of high-margin things that we were able to bring into the quarter.

所以，我認為我們在削減或擴大一些低利潤業務方面取得了良好進展。還有一些沒做完。我們討論過將在今年內努力實現這一目標，並且取得了良好的進展，更高的利潤率是我們能夠在季度中引入高利潤率產品組合的結果。

Great. And if I could just do one follow-up. On free cash flow, obviously, you guys mentioned kind of second half will be the stronger generation for the year. But should we kind of think about a steady sequential progression through 2Q into the second half? Or should it -- we think about it maybe more as a bit of a step function increase once we get closer to the end of the year?

偉大的。如果我能再補充一點就好了。關於自由現金流，顯然，你們提到下半年將是今年表現最強勁的一年。但是我們是否應該考慮從第二季穩定地推進到下半年呢？或者我們應該這樣想——隨著年底臨近，或許應該將其視為一個階躍式增長？

Yes. I think we only talk about cash for the year and talk about it being stronger in the second half. Cash can be -- can vary quarter-to-quarter based on just timing.

是的。我認為我們只討論全年的現金流，並預測下半年現金流會更強勁。現金流可能會因時間因素而逐季度波動。

Got it, appreciate it. Nice quarter guys. Thank you.

收到，謝謝。夥計們，這部分不錯。謝謝。

Sheila Kah, Jefferies.

Sheila Kah，傑富瑞。

Thanks so much. Good evening, guys. Maybe if I could just start off on your margin. You talked about margin improvement from the 16% we saw in the quarter to your target of low to mid-20s, and that's based on visibility in your bookings, positive operating leverage and increased automation.

非常感謝。晚上好，各位。或許我可以先從你的利潤空間開始。您提到利潤率將從本季的 16% 提高到 20% 左右的目標，這是基於訂單的可見性、積極的營運槓桿和自動化程度的提高。

Can you maybe talk about how we should think about the timing of those? And then maybe as a follow-up to that, how we should think about the backlog margin composition as you think about your core business? And the order momentum you've seen in recent quarters?

您能否談談我們該如何考慮這些事情的時機？那麼，作為後續問題，當您考慮核心業務時，我們應該如何考慮積壓訂單的利潤組成？您在最近幾季看到的訂單成長動能如何？

Yeah. So as far as the timing goes, it really depends on how we convert over the next few quarters. If you think back to when we made the comment about our backlog margin being lower than what we would typically expect to see, it was at the end of FY24.

是的。所以至於時間安排，這真的取決於我們未來幾季的轉換情況。如果你回想一下我們上次評論說我們的積壓訂單利潤率低於我們通常預期的情況，那是在 2024 財年末。

And since that time, we've commented that we've been able to bring in bookings that are in line with our targeted profile. So the low-margin programs in our backlog distribution at the end of FY24 will burn off over some period of time from the end of FY24.

自那時以來，我們表示，我們已經能夠獲得符合我們目標客戶群的預訂。因此，在 2024 財年末，我們積壓訂單分佈中的低利潤項目將從 2024 財年末開始的一段時間逐漸減少。

Now our backlog duration isn't a year, but it also isn't two-plus years. So somewhere between, I don't know, eight quarters-ish, that low-margin backlog should pretty much all convert. And so that would put us in the FY27 timeframe. So we want to see how we progress through FY26. The progress we make in Q2, Q3 and Q4 before we get any more precise around how we expect to converge on the target profile.

現在我們的積壓工作時間不是一年，但也不是兩年多。所以大概在八個季度左右，那些低利潤的積壓訂單應該幾乎全部都能轉換成訂單。這樣一來，我們就進入了2027財年的時間範圍。所以我們希望看看我們在 2026 財年的發展。在更精確地確定我們如何達到目標輪廓之前，我們將在第二、第三和第四季取得進展。

Your second question, our backlog progression has been in line with our expectations. We've seen an increased mix towards production, which we think is just healthy in general, given the heavy mix of development programs that we had going back to two years ago. And the margin profile of our backlog is converging on what we believe is consistent with our targeted margin profile.

關於你的第二個問題，我們的積壓工作進度符合預期。我們看到生產項目佔比增加，考慮到兩年前我們主要從事研發項目，我們認為這總體上是件好事。我們積壓訂單的利潤率正逐漸接近我們認為與目標利潤率相符的水平。

Can I actually ask one more question on the buyback. Why now on the share repurchase agreement? And just do we think about the buyback program using the revolver balance to fund the buyback?

關於回購事宜，我還能再問一個問題嗎？為什麼現在才簽股份回購協議？我們是否考慮過利用循環信貸餘額來為回購計畫提供資金？

Thanks, Sheila. This is Bill. I'll take that one. We've made a lot of progress on delevering, which has been our focus over the last couple of years. And we've seen significant free cash flow.

謝謝你，希拉。這是比爾。我選那個。我們在去槓桿化方面取得了很大進展，這也是我們過去幾年的工作重點。我們看到了大量的自由現金流。

I think over the last four quarters, our free cash flow has been just north of $130 million. And while our primary focus is on the organic value creation opportunity in front of us, and that's primarily tied to the top line ramp, as we transition toward production, and the margin expansion that we've talked about, we also want to make sure that we've got the all appropriate degrees of freedom available to us, so that we can drive long-term shareholder value.

我認為在過去的四個季度裡，我們的自由現金流一直略高於 1.3 億美元。雖然我們目前的主要關注點是眼前的有機價值創造機會，這主要與營收成長、投產以及我們之前討論過的利潤率擴張有關，但我們也希望確保我們擁有所有適當的自由度，以便我們能夠推動股東的長期價值成長。

So we haven't talked anymore about our plans for capital deployment beyond that other than our primary focus is the organic value creation opportunity in front of us. But we want to have access to all the levers and degrees of freedom.

所以，除了我們目前的主要關注點是眼前的有機價值創造機會之外，我們沒有再討論過我們的資本部署計劃。但我們希望能夠掌控所有手段和自由度。

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

巴爾豪斯先生，看來沒有其他問題了。我想把電話交還給您，請您作總結發言。

Casey, thank you, and thank you to all of you who participated today. We look forward to getting together to discuss our results next quarter. Thank you.

Casey，謝謝你，也謝謝今天所有參與的各位。我們期待下個季度聚在一起討論業績。謝謝。

This concludes today's conference 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了。