StandardAero, Inc. (SARO) 2024 Q3 法說會逐字稿

Greetings, and welcome to the StandardAero third quarter 2024 earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 StandardAero 2024 年第三季財報電話會議及網路廣播。 （操作員指示）謹此提醒，本次會議正在錄製中。

It's now my pleasure to turn the call over to your host, Alex Trapp. Alex, please go ahead.

現在我很高興將電話轉給主持人 Alex Trapp。亞歷克斯，請繼續。

Thank you, and good afternoon, everyone. Welcome to the StandardAero third quarter 2024 earnings call. I'm joined today by Russell Ford, our Chairman and Chief Executive Officer; and Dan Satterfield, our Chief Financial Officer. Alongside today's call, you can find our earnings release as well as some presentation materials on our website at standardaro.com. An audio replay of this call will also be made available, which you can access on our website or by phone. The phone number for the audio replay is included in the press release announcing this call.

謝謝大家，大家下午好。歡迎參加 StandardAero 2024 年第三季財報電話會議。今天我們的董事長兼執行長拉塞爾福特 (Russell Ford) 也加入了我的行列。以及我們的財務長 Dan Satterfield。除了今天的電話會議外，您還可以在我們的網站 standardaro.com 上找到我們的財報以及一些簡報資料。還將提供本次通話的音訊重播，您可以透過我們的網站或透過電話存取。音訊重播的電話號碼包含在宣布此通話的新聞稿中。

Before we begin, I would like to remind everyone that today's earnings release and statements made during this call include forward-looking statements under federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections.

在開始之前，我想提醒大家，今天的收益發布和本次電話會議期間發表的聲明包括聯邦證券法規定的前瞻性聲明。這些陳述存在風險和不確定性，可能導致實際結果與我們的預期和預測有重大差異。

Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission, including in the Risk Factors section of the prospectus from our initial public offering dated October 1, 2024. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

此類風險和不確定性包括收益發布和我們向美國證券交易委員會提交的文件中規定的因素，包括我們於2024 年10 月1 日首次公開募股的招股說明書的風險因素部分。義務或修改任何前瞻性陳述，無論是由於新資訊、未來事件或其他原因，法律要求的除外。

Additionally, during today's call, we will discuss certain non-GAAP financial measures such as adjusted EBITDA, adjusted EBITDA margin, and net debt to adjusted EBITDA leverage ratio. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings release, in our 8-K filed with the SEC and in the appendix to the slide presentation. Non-GAAP financial measures should be considered in addition to and not as a substitute for GAAP measures.

此外，在今天的電話會議中，我們將討論某些非公認會計準則財務指標，例如調整後的 EBITDA、調整後的 EBITDA 利潤率以及淨債務與調整後的 EBITDA 槓桿率。這些指標與最直接可比較的 GAAP 指標的調整可以在我們的收益報告、向 SEC 提交的 8-K 以及幻燈片簡報的附錄中找到。非 GAAP 財務指標應作為 GAAP 指標的補充而非替代。

I would now like to turn the call over to Russ.

我現在想把電話轉給拉斯。

Thank you, Alex. Thank you to everyone for joining our first earnings call as a publicly traded company following our IPO in October. I'd like to express my deep gratitude to our internal team, all of our advisers, and to our new investors who participated in the transaction and contributed to its success. I would also like to thank the research analysts who invested their time to participate in the process, and we look forward to continuing to build our relationship with each of you.

謝謝你，亞歷克斯。感謝大家參加我們作為一家上市公司在 10 月首次公開募股後的第一次財報電話會議。我謹向我們的內部團隊、所有顧問以及參與本次交易並為其成功做出貢獻的新投資者表示深深的感謝。我還要感謝投入時間參與這過程的研究分析師，我們期待繼續與你們每個人建立關係。

We're very excited about StandardAero's future, and we look forward to partnering with our stockholders as we focus on continuing to grow the business and creating value in the years to come. As this is our first earnings call as a public company and since many of you may be new to our story, I'd like to start a little differently than we typically will during future calls by providing some highlights about our company and what we believe makes us unique.

我們對 StandardAero 的未來感到非常興奮，我們期待與股東合作，專注於在未來幾年繼續發展業務並創造價值。由於這是我們作為一家上市公司的第一次財報電話會議，並且由於你們中的許多人可能對我們的故事不熟悉，因此我想在未來的電話會議中以與通常不同的方式開始，提供一些有關我們公司的亮點以及我們的信念讓我們獨一無二。

We believe StandardAero is the world's largest independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, where we provide a comprehensive suite of aftermarket solutions, including engine maintenance, repair and overhaul as well as engine component repair. We have a pure-play focus on the aerospace engine aftermarket, which we believe is the largest most attractive, profitable and fastest-growing vertical of the aerospace market, which itself is a highly attractive market that has historically achieved long-term growth above GDP.

我們相信StandardAero是世界上最大的固定翼和旋翼飛機航空發動機售後服務的獨立純供應商，我們提供一整套售後解決方案，包括發動機維護、修理和大修以及發動機零件維修。我們專注於航空航太引擎售後市場，我們認為這是航空航太市場中最大、最具吸引力、利潤最高且成長最快的垂直市場，而成長最快的垂直市場本身就是一個極具吸引力的市場，歷來實現了高於GDP 的長期成長。

We are also fully independent and OEM aligned, which allows us to serve as a key and preferred partner to both the engine OEMs and aircraft operators. Within the engine services aftermarket, we're a market leader in holding number 1 or number 2 positions globally on many of the major engine platforms that fly today's and tomorrow's most prevalent aircraft, with these top positions representing approximately 80% of our engine services revenues in 2023.

我們也是完全獨立的，並與 OEM 保持一致，這使我們能夠成為發動機 OEM 和飛機運營商的關鍵和首選合作夥伴。在發動機服務售後市場中，我們是市場領導者，在當今和未來最受歡迎飛機的許多主要發動機平台上佔據全球第一或第二的位置，這些頂級位置約占我們發動機服務收入的 80% 2023年。

We have a scaled global footprint, differentiated positions on critical growth platforms, a rapidly growing engine component repair franchise, and a proven playbook for investing to expand our capabilities capturing new engine platforms and executing on accretive highly synergistic acquisitions. These factors result in an attractive financial profile with over 3/4 of our revenue tied to long-term contractual agreements, a long track record of strong double-digit growth and resilience to outperform the broader aerospace market during downturns, coupled with the ability to quickly recover if there is a downturn.

我們擁有規模化的全球足跡、在關鍵成長平台上的差異化地位、快速成長的引擎零件維修特許經營權，以及經過驗證的投資策略，以擴大我們捕獲新引擎平台和執行增值性高度協同收購的能力。這些因素導致了我們具有吸引力的財務狀況，超過3/4 的收入與長期合約協議相關，長期保持兩位數的強勁增長記錄，在經濟低迷時期表現優於更廣泛的航空航天市場的彈性，以及如果出現低迷，則可以快速恢復。

Turning to page 4 of the presentation. This page lays out our two business segments, engine services or full engine repair, overhaul, and other value-added services business as well as component repair services, which focuses on synergistic repairs of the components in and around the engine in which we've grown into one of the largest independent engine component repair businesses worldwide. It also shows our diversification across end markets and platforms in commercial aerospace, military, helicopter, and business aviation.

翻到簡報的第 4 頁。本頁列出了我們的兩個業務部門，即引擎服務或引擎全面維修、大修和其他增值服務業務以及零件維修服務，重點是對我們已使用的引擎內部和周圍的零件進行協同維修。發展成為全球最大的獨立引擎零件維修企業之一。它也展示了我們在商業航空航太、軍事、直升機和公務航空領域的終端市場和平台的多元化。

Within each end market, we are positioned as a leader having close relationships with blue chip customers and differentiated positions on many of the most prevalent engine platforms in service such as the CFM56, which is currently the largest installed base of any engine platform and the LEAP 1A and 1B, which is expected to quickly become the industry's largest engine platform in the world and where we have a strong position as the only independent holder in the Americas of the CBSA license. This license officially designates StandardAero as a premier MRO provider for LEAP engines and significantly differentiates us in the market.

在每個終端市場中，我們都被定位為領導者，與藍籌客戶保持密切關係，並在許多最受歡迎的現役引擎平台上擁有差異化地位，例如CFM56（目前是所有引擎平台中最大的安裝基數）和LEAP 1A 和 1B，預計將迅速成為全球業界最大的引擎平台，並且我們作為美洲 CBSA 許可證的唯一獨立持有者擁有強大的地位。該許可證正式指定 StandardAero 為 LEAP 引擎的首要 MRO 供應商，使我們在市場上脫穎而出。

Across end markets, we are seeing secular industry tailwinds driven by demand growth outpacing capacity, an aging global fleet, increased MRO work, and increasing global defense spending needs, which we believe positions us in the early innings of an aerospace aftermarket super cycle that is expected to drive attractive growth for our business. So we're clearly excited about the positioning and outlook for our business and the aftermarket in general. Hopefully, that gives a good flavor for who we are and the core tenets of our forward strategy.

在終端市場，我們看到需求成長超過產能、全球機隊老化、MRO 工作增加以及全球國防支出需求增加所推動的長期行業順風，我們相信這使我們處於航空航天售後市場超級週期的早期階段，即預計將為我們的業務帶來有吸引力的成長。因此，我們顯然對我們的業務和整個售後市場的定位和前景感到興奮。希望這能讓我們更了解我們是誰以及我們前進策略的核心原則。

Now turning to page 5. I'd like to describe the progress of the business over the last few months and update you on some of our recent strategic milestones. Starting on the left side of the page, we're making great progress on our key organic initiatives. The industrialization of our LEAP program that began with our landmark CBSA license win last year remains on track. This quarter, our flagship 810,000 square foot facility in San Antonio, Texas, completed correlation of its first test cell for both the LEAP-1A and 1B engines, achieving another major milestone as we introduce LEAP-1A and 1B MRO capabilities.

現在翻到第 5 頁。從頁面左側開始，我們在關鍵的有機措施上取得了巨大進展。我們的 LEAP 計畫的工業化始於去年獲得具有里程碑意義的 CBSA 許可證，目前仍在按計劃進行。本季度，我們位於德克薩斯州聖安東尼奧市佔地810,000 平方英尺的旗艦工廠完成了LEAP-1A 和1B 發動機第一個測試單元的關聯，在我們推出LEAP-1A 和1B MRO 功能時實現了另一個重要里程碑。

The San Antonio facility is now able to undertake full functional and performance engine testing in support of both Boeing 737 MAX and Airbus A320neo customers. Our LEAP pipeline continues to expand. And during the quarter, we announced our first LEAP customer agreements, including a five-year agreement with Avianca. These customers joined a growing list of operators who rely on StandardAero as their LEAP engine support partner.

聖安東尼奧工廠現在能夠進行全面的功能和性能引擎測試，以支援波音 737 MAX 和空中巴士 A320neo 客戶。我們的 LEAP 管道繼續擴大。在本季度，我們宣布了第一份 LEAP 客戶協議，包括與 Avianca 的五年協議。這些客戶加入了越來越多依賴 StandardAero 作為 LEAP 引擎支援合作夥伴的營運商行列。

During the quarter, we also achieved important milestones on two other major organic investment initiatives. First, at our new greenfield CFM56 Center of Excellence building at Dallas-Fort Worth, we recently held our ribbon-cutting to open the building. Also, we celebrated StandardAero's 1,000 CFM56 shop visit during the quarter. Second, we broke ground on an 80,000 square foot expansion of our Augusta business aviation facility that will allow us to support additional super midsized and large cabin aircraft for airframe and avionics while also significantly expanding our engine shop to further support many of those aircraft.

在本季度，我們也在另外兩項主要有機投資措施上實現了重要里程碑。首先，在達拉斯-沃斯堡新建的 CFM56 卓越中心大樓，我們最近舉行了大樓落成剪綵儀式。此外，我們還慶祝了 StandardAero 在本季度訪問了 1,000 架 CFM56 工廠。其次，我們對奧古斯塔公務航空設施進行了80,000 平方英尺的擴建，這將使我們能夠為更多的超中型和大型客艙飛機的機身和航空電子設備提供支持，同時也顯著擴大我們的發動機車間，以進一步支援其中許多飛機。

Additionally, we received two significant prime contract awards with the US Navy. First, we were selected for a five-year $1.2 billion IDIQ contract for the Navy's P-8 Poseidon fleet where we'll perform MRO on the fleet's CFM56 engines. Second, we were also selected to perform engine services for the Navy's T56-427A engines that power its E-2D Advanced Hawkeye aircraft.

此外，我們還獲得了美國海軍的兩項重要主合約。首先，我們被選為海軍 P-8 Poseidon 艦隊的一份為期 5 年、價值 12 億美元的 IDIQ 合同，我們將對艦隊的 CFM56 發動機執行 MRO。其次，我們也被選中為海軍的 T56-427A 發動機提供發動機服務，該發動機為其 E-2D 先進鷹眼飛機提供動力。

Moving to the middle of the page, we'll hit on another major strategic pillar of our value creation strategy through M&A. During the quarter, we acquired Aero Turbine which provides engine component repair and other value-added engine aftermarket services for the US military and other international customers. This acquisition continues to accelerate the expansion of our component repair segment and provides new repairs and differentiated military SAR expertise that we intend to utilize to drive third-party sales growth and increasing in-sourcing of component repairs on its engine services work.

轉到頁面中間，我們將透過併購來探討我們價值創造策略的另一個主要策略支柱。本季度，我們收購了 Aero Turbine，該公司為美國軍方和其他國際客戶提供引擎零件維修和其他增值引擎售後服務。此次收購將繼續加速我們零件維修業務的擴張，並提供新的維修和差異化的軍事搜救專業知識，我們打算利用這些專業知識來推動第三方銷售增長並增加其發動機服務工作中零件維修的內包。

Aero Turbine also brings new positions on military platforms and an attractive mix of work with approximately 90% of its revenues from prime, sole-source contracts, and it enhances our position to capture future growth military programs in the market. The total potential purchase price for the acquisition was $141 million, of which $120 million was paid upfront and $21 million is contingent on hitting certain earnings metrics.

Aero Turbine 還在軍事平台上帶來了新的職位和有吸引力的工作組合，其大約 90% 的收入來自主要、獨家來源的合同，這增強了我們在市場上捕捉未來增長軍事項目的地位。此次收購的潛在收購總價為 1.41 億美元，其中 1.2 億美元為預付款，2,100 萬美元取決於是否達到某些獲利指標。

We expect ATI to contribute $25 million of EBITDA in 2025. I believe this deal is a great example of StandardAero's ability to identify and execute on value accretive M&A. This was a carefully executed acquisition where we had unique knowledge of their platforms, a relationship with the seller, and the ability to generate synergies, all of which enabled us to acquire this business at an attractive valuation.

我們預計 ATI 將在 2025 年貢獻 2,500 萬美元的 EBITDA。這是一次精心執行的收購，我們對他們的平台有獨特的了解、與賣方的關係以及產生協同效應的能力，所有這些使我們能夠以有吸引力的估值收購這項業務。

Then on the right, Dan will get further into the details, but of course, we completed our IPO in early October which, coupled with the refinancing of our debt that we completed a couple of weeks ago significantly reduces our leverage, improves our ratings profile, and will result in over $130 million of annual interest savings. This should further bolster our net income and strong cash flow profile as we move forward.

然後在右邊，丹將進一步介紹細節，但當然，我們在10 月初完成了首次公開募股，再加上我們幾週前完成的債務再融資，顯著降低了我們的槓桿率，改善了我們的評級狀況，每年將節省超過 1.3 億美元的利息。隨著我們的前進，這將進一步增強我們的淨利潤和強勁的現金流狀況。

Moving on to the next page. I'll touch on a few market and financial highlights from the quarter before Dan discusses our results in more detail. We continue to generate double-digit revenue growth at 13% year-over-year with good performance across both our engine services and component repair services segments.

轉到下一頁。在丹更詳細地討論我們的業績之前，我將談談本季的一些市場和財務亮點。我們持續實現兩位數的營收成長，年增 13%，在引擎服務和零件維修服務領域均表現良好。

We're continuing to see strong demand in the commercial aerospace aftermarket, particularly in the regional jet market as it recovers from the pilot shortages last year which, along with good performance at our Turboprop business drove 19% year-over-year sales growth in that end market. Sales to the business aviation end market grew 15% with continued strong customer demand particularly on our HTF7000 program, where we are the exclusive independent provider of heavy engine overhauls.

我們繼續看到商業航空航太售後市場的強勁需求，特別是支線噴射機市場，因為它從去年的飛行員短缺中恢復過來，再加上我們渦輪螺旋槳發動機業務的良好表現，推動了2019 年銷售額同比成長19%。由於客戶需求持續強勁，尤其是對我們的 HTF7000 項目的需求，公務航空終端市場的銷售額增長了 15%，在該項目中，我們是重型發動機大修的獨家獨立提供商。

This quarter did see an offsetting decline in our military business, where revenues were 3% below Q3 of last year which was primarily driven by reduced volumes on the Rolls-Royce AE1107 platform that powers the V-22 Osprey tiltrotor, which was grounded temporarily earlier this year. That platform is now back in full operation, which should drive volume recovery in military, which is seeing steady demand on most other platforms.

本季我們的軍事業務確實出現了抵消性下降，收入比去年第三季度下降了3%，這主要是由於為V-22 魚鷹傾轉旋翼機提供動力的勞斯萊斯AE1107 平台銷量減少所致，該平台早些時候已暫時停飛今年。該平台現已恢復全面運營，這將推動軍事領域銷售的恢復，而大多數其他平台的需求也保持穩定。

Moving now to earnings. Adjusted EBITDA increased 26%, approximately double the rate of revenue, reflecting strong growth in both segments, leverage on our fixed costs a favorable mix, particularly in our engine services segment, where we saw lighter material content work scopes that led to lower revenues on those engines, but stronger margins. Adjusted EBITDA margin expanded by a very healthy 137 basis points versus the same period last year.

現在轉向收益。調整後的EBITDA 成長了26%，大約是收入率的兩倍，反映了兩個細分市場的強勁成長，利用我們的固定成本形成有利的組合，特別是在我們的引擎服務細分市場，我們看到材料內容工作範圍較輕，導致收入下降這些發動機，但利潤更高。調整後 EBITDA 利潤率與去年同期相比成長了 137 個基點，非常健康。

To wrap up, I'm pleased with our strong performance in the quarter, which represents a great start as a public company and sets us up to close out a successful 2024.

最後，我對我們本季的強勁表現感到滿意，這代表著作為一家上市公司的良好開端，並使我們為 2024 年的成功收官奠定了基礎。

With that, I'd like to turn the call over to Dan Satterfield to walk through the financials in further detail.

說到這裡，我想把電話轉給丹·薩特菲爾德，讓他更詳細地介紹一下財務狀況。

Thank you, Russ. I will start off with some housekeeping given this is our first quarterly earnings call. As Russ mentioned, our business is organized into two reportable segments: engine services, which is focused on whole engine repair and overhaul, along with other value-added aftermarket services like test services, engineering, and asset management. Then component repair services, which is focused on repairs specifically for engine part components and accessories. We report revenue and adjusted EBITDA for each of these segments.

謝謝你，拉斯。鑑於這是我們的第一次季度財報電話會議，我將從一些家務開始。正如拉斯所提到的，我們的業務分為兩個可報告的部分：引擎服務，專注於整個引擎的維修和大修，以及其他增值售後服務，如測試服務、工程和資產管理。然後是零件維修服務，專注於專門針對引擎零件和配件的維修。我們報告每個細分市場的收入和調整後的 EBITDA。

With that, I'll start with our revenue performance. For the third quarter ended September 30, 2024, StandardAero generated revenue of $1.2 billion as compared to $1.1 billion for the third quarter last year, representing a 13.2% growth of which 12.4% was organic. We saw good growth at both our engine services and component repair services segments, which I will delve further into momentarily.

接下來，我將從我們的收入表現開始。截至 2024 年 9 月 30 日的第三季度，StandardAero 營收 12 億美元，去年第三季為 11 億美元，成長 13.2%，其中有機成長 12.4%。我們在引擎服務和零件維修服務領域都看到了良好的成長，我將立即進一步深入研究。

Adjusted EBITDA increased to $168.4 million for the third quarter of 2024 compared to $133.6 million for the prior year period, representing 26% growth. As a result of the revenue growth and higher margins from favorable engine shop visit and work scope mix, price escalations, productivity improvements, and continued growth in our higher-margin component repair services segment.

2024 年第三季調整後 EBITDA 增至 1.684 億美元，去年同期為 1.336 億美元，成長 26%。由於有利的引擎車間參觀和工作範圍組合帶來的收入成長和更高的利潤、價格上漲、生產力提高以及我們利潤率較高的零件維修服務領域的持續成長。

Net income was $16.4 million for the third quarter of 2024 as compared to a net loss of $17.9 million for the prior year period. As a reminder, we were significantly more levered prior to our IPO, which occurred right after quarter end. So our interest burden has come down significantly, which we believe will increase our profitability moving forward.

2024 年第三季淨利為 1,640 萬美元，而上年同期淨虧損為 1,790 萬美元。提醒一下，我們在首次公開發行（IPO）之前（即季度末後）的槓桿率顯著提高。因此，我們的利息負擔顯著下降，我們相信這將提高我們未來的獲利能力。

Our earnings in Q3 were also burdened by onetime expenses related to our IPO, debt refinancing, and the Aero Turbine acquisition of $12.5 million as well as start-up costs associated with our LEAP program and CFM56 Center of Excellence build-out of $10.5 million. As a result, we view adjusted EBITDA as a better measure of our operating performance.

我們第三季的獲利也受到 IPO、債務再融資和 Aero Turbine 收購相關的一次性費用（1,250 萬美元）以及與 LEAP 計畫和 CFM56 卓越中心擴建相關的啟動成本（1,050 萬美元）的影響。因此，我們認為調整後的 EBITDA 可以更好地衡量我們的經營績效。

Moving to the cash flow statement. CapEx was $25 million for the quarter and $70 million year-to-date, reflecting 2% and 1.8% of revenues, respectively. These figures also include CapEx of $15 million in Q3 and $40 million year-to-date related to the investments we've been making in our LEAP program and the CFM56 greenfield facility build-out. We continue to invest for growth while also maintaining our attractive CapEx-light business model.

轉到現金流量表。本季資本支出為 2,500 萬美元，年初至今資本支出為 7,000 萬美元，分別佔收入的 2% 和 1.8%。這些數字還包括第三季 1500 萬美元的資本支出和年初至今 4000 萬美元的資本支出，這些資本支出與我們在 LEAP 計劃和 CFM56 綠地設施建設方面的投資相關。我們繼續投資以實現成長，同時保持有吸引力的輕資本支出業務模式。

While on cash flow, similar to net income, I would note that our operating cash flow this quarter was also impacted by the higher interest burden from our old capital structure versus what we would have today, along with a significant and non-recurring IPO, acquisition and transformation costs that amounted to $25 million collectively in Q3 and $66 million year-to-date.

在現金流方面，與淨利潤類似，我要指出的是，我們本季度的營運現金流也受到了我們舊資本結構與今天相比更高的利息負擔的影響，以及重大的非經常性首次公開募股，第三季的收購和轉型成本總計為 2,500 萬美元，今年迄今總計為 6,600 萬美元。

Q3 was also impacted by timing on working capital, where we saw some expected unwind in the quarter after positive timing at the end of Q2, along with some impact of Hurricane Helene, which held up shipments at the end of the quarter. And we saw the elevated CapEx levels associated with our growth investments. As a result, we don't believe our cash flows from operating and investing activities in the cash flow statement are a good indicator of the normalized go-forward cash generation of the business.

第三季也受到營運資金時機的影響，在第二季末的正面時機之後，我們看到本季預計會出現一些放鬆，以及颶風海倫的一些影響，這阻礙了本季末的出貨量。我們看到與我們的成長投資相關的資本支出水準有所提高。因此，我們認為現金流量表中來自經營和投資活動的現金流量並不能很好地反映業務正常化的未來現金流量。

I'll now move to talking about the performance across our two segments. Starting with our engine services segment. Revenue increased $125 million or 13% to $1.1 billion for the third quarter of 2024 compared to the prior year period. Commercial aerospace end market revenue grew 20% compared to the prior year period on strong demand across both turbofans and turboprops. Business aviation end market revenue grew 15% compared to the prior year period from continued strength on the platforms that we service.

我現在將討論我們兩個細分市場的表現。從我們的引擎服務部門開始。 2024 年第三季營收較上年同期增加 1.25 億美元，成長 13%，達到 11 億美元。由於渦輪風扇發動機和渦輪螺旋槳發動機的強勁需求，商業航空航天終端市場收入與去年同期相比增長了 20%。由於我們服務的平台持續強勁，公務航空終端市場收入與去年同期相比成長了 15%。

Offsetting these gains was our military and helicopter end market revenue, which declined 7% compared to Q3 last year, primarily from lower reductions on the Rolls-Royce AE1107 engine, which was impacted by the temporary grounding of the V-22 earlier in the year. Engine services adjusted EBITDA grew 20% year-over-year, driven by the strong revenue growth and favorable platform and work scope mix where we saw lower pass-through material content, which together drove 83 basis points of margin expansion versus last year.

抵消這些收益的是我們的軍用和直升機終端市場收入，與去年第三季度相比下降了7%，主要是由於勞斯萊斯AE1107 發動機的產量減少，該發動機受到今年早些時候V-22 暫時停飛的影響。引擎服務調整後的EBITDA 年成長20%，這得益於強勁的收入成長以及有利的平台和工作範圍組合，我們看到傳遞材料含量較低，這共同推動了利潤率比去年增長了83 個基點。

Now to our component repair services segment. CRS revenue increased 15% compared to the prior year period to $154.3 million for the third quarter of 2024 or 9% organically. CRS commercial aero end market revenue grew 13% year-over-year, all of which was organic. Revenues in the military and other end markets grew 19%, primarily driven by the initial contribution of the Aero Turbine acquisition. Organic growth from military and other end markets was 3% up year-over-year.

現在我們的零件維修服務部分。 2024 年第三季 CRS 營收較上年同期成長 15%，達到 1.543 億美元，有機成長 9%。 CRS 商用航空終端市場營收年增 13%，全部是有機成長。軍事和其他終端市場的收入成長了 19%，這主要是由 Aero Turbine 收購的初始貢獻所推動的。軍事和其他終端市場的有機成長較去年同期成長 3%。

CRS adjusted EBITDA grew 21% over Q3 last year, which was driven by revenue growth and 128 basis points of margin expansion to 26.4% from operating leverage, productivity improvement initiatives, and price.

CRS 調整後的 EBITDA 比去年第三季成長了 21%，這得益於營收成長以及營運槓桿、生產力改善計畫和價格帶來的利潤率擴大 128 個基點至 26.4%。

Now moving to slide 10. I'll talk about our capital structure and what things look like following our IPO. As you know, we completed our IPO on October 2, and use our $1.2 billion of net proceeds from primary share of sales to pay down debt. And more recently, at the end of October, we completed a refinancing of our remaining debt, putting in place a new term loan facility with an interest rate of SOFR plus 2.25% and a new $750 million revolving credit facility with a rate of SOFR plus 2%.

現在轉到投影片 10。如您所知，我們於 10 月 2 日完成了 IPO，並使用主要銷售份額的 12 億美元淨收益來償還債務。最近，在 10 月底，我們完成了剩餘債務的再融資，設立了利率為 SOFR 加 2.25% 的新定期貸款便利和利率為 SOFR 加 2.25% 的新的 7.5 億美元循環信貸便利2%。

These new rates represent a 125 basis point reduction in rate from our pre-IPO term loans, and we expect to save over $130 million of annual interest expense versus pre-IPO levels. We also are now significantly delevered and as a result, we have received a multi-notch upgrade in our credit ratings from all three agencies putting us solidly in the BB category, which hopefully will improve as we continue to delever.

這些新利率比我們首次公開募股前的定期貸款利率降低了 125 個基點，我們預計與首次公開募股前的水平相比，每年可節省超過 1.3 億美元的利息費用。我們現在還大幅去槓桿化，因此，我們的信用評級從所有三個機構都獲得了多級升級，使我們穩固地處於BB 級，希望隨著我們繼續去槓桿化，這一評級將會得到改善。

Moving to the next page, I would also like to touch on our capital allocation priorities as a public company. We are in an attractive position where we have multiple avenues where we can allocate our capital to drive strong returns and we will continue to focus on organic investments, winning and ramping new platform programs like we are doing with the LEAP, and accretive and synergistic acquisitions.

進入下一頁，我還想談談我們作為一家上市公司的資本配置優先事項。我們處於一個有吸引力的位置，我們有多種途徑可以分配我們的資本來推動強勁的回報，我們將繼續專注於有機投資，贏得並擴大新的平台計劃，就像我們在LEAP 上所做的那樣，以及增值和協同收購。

Underpinning all of that is a disciplined approach focused on strategic benefit and return on investment that we use as a key criterion whenever deciding on a significant investment decision. Additionally, while we are comfortable with where we sit from a leverage perspective, we are also focused on continuing to delever the business through our growth and cash flow and are targeting long-term net leverage between 2 times and 3 times. We believe that level provides ample cushion and flexibility on our balance sheet to invest across our strategic priorities.

所有這一切的基礎是注重戰略利益和投資回報的嚴格方法，我們在做出重大投資決策時將其作為關鍵標準。此外，雖然從槓桿角度來看，我們對自己的處境感到滿意，但我們也致力於透過成長和現金流繼續降低業務去槓桿化，並將長期淨槓桿率的目標控制在2 倍到3 倍之間。我們相信，這一水準為我們的資產負債表提供了充足的緩衝和靈活性，可以對我們的策略重點進行投資。

So in summary, we're very pleased with the financial performance in Q3 and feel really good about the business and the market. We currently intend to provide annual guidance beginning in 2025 when we report our Q4 results. In the meantime, there is no change to our outlook for the business for the remainder of this year, and we continue to expect good growth and sequential improvement in Q4 in revenue, adjusted EBITDA, and operating cash flow as compared to Q3.

總而言之，我們對第三季的財務表現非常滿意，並對業務和市場感覺非常好。目前，我們打算在報告第四季業績時從 2025 年開始提供年度指引。同時，我們對今年剩餘時間的業務前景沒有變化，我們繼續預計第四季度的收入、調整後的 EBITDA 和營運現金流與第三季相比將出現良好的成長和環比改善。

That's all I have on the financials. I'll now turn it over to Russ for some closing remarks.

這就是我對財務狀況的全部了解。現在我將把它交給 Russ 做一些結束語。

Thank you, Dan. In conclusion, I'm pleased with our performance in the quarter and proud of the work that our team did to support our customers while advancing our strategic initiatives and completing our IPO. As we look forward, I'm truly excited about the opportunity for StandardAero and will leave you this quarter with a few key takeaways.

謝謝你，丹。總而言之，我對我們本季的業績感到滿意，並對我們的團隊在推進我們的策略計劃和完成 IPO 的同時為支持客戶所做的工作感到自豪。展望未來，我對 StandardAero 的機會感到非常興奮，並將在本季度為您帶來一些重要的收穫。

We believe our pure-play focus on the engine aftermarket ideally positions us in the most attractive segment of the market that's also benefiting from enduring secular tailwinds, including robust travel demand, an aging fleet, increasing global defense spend, and an accelerating trend of OEM outsourcing, which are expected to drive aftermarket growth in the years to come.

我們相信，我們對發動機售後市場的純粹關注使我們處於市場中最具吸引力的領域，該領域也受益於持久的長期順風，包括強勁的旅行需求、老化的機隊、不斷增加的全球國防支出以及加速的OEM 趨勢外包，預計將在未來幾年推動售後市場的成長。

Within this strong market backdrop, we are the industry leader with differentiated scale, capabilities, and customer relationships and we believe we are well positioned to grow faster than the overall market as we harvest major recent strategic investments and new platform wins. In addition, we have the opportunity to continue to create additional value through our proven playbook for investing organically, capturing new programs, and executing on accretive M&A targets.

在這個強大的市場背景下，我們是行業領導者，擁有差異化的規模、能力和客戶關係，我們相信，隨著我們近期獲得重大戰略投資和新平台的勝利，我們處於有利地位，能夠比整體市場更快成長。此外，我們還有機會透過我們行之有效的有機投資、捕捉新項目和執行增值併購目標的策略，繼續創造額外價值。

All of this provides us with an attractive and resilient financial profile which, coupled with our experienced and motivated team, shapes our road map of achieving our objective of continued double-digit earnings growth and compounding shareholder returns.

所有這些都為我們提供了有吸引力且有彈性的財務狀況，再加上我們經驗豐富且積極進取的團隊，塑造了我們實現持續兩位數盈利增長和復合股東回報目標的路線圖。

Thank you again for joining us today. And with that, operator, we're now ready to move to Q&A.

再次感謝您今天加入我們。操作員，我們現在準備好進入問答環節了。

(Operator Instructions)

（操作員說明）

Seth Seifman, JPMorgan.

賽斯‧塞夫曼，摩根大通。

Okay, thanks very much and good afternoon. So I wanted to start off talking a little bit about the new CFM programs and maybe kind of outline what you expect from them over the next couple of years for LEAP and CFM56 kind of what the contracting environment is like. And one of the questions that I've gotten from folks is they see additional investment from GE and Safran in the MRO network. And how to think about that with regard to the work share on the LEAP engines?

好的，非常感謝，下午好。因此，我想先談談新的 CFM 計劃，也許可以概述一下您對未來幾年 LEAP 和 CFM56 的期望，即合約環境是什麼樣的。我從人們那裡得到的問題之一是，他們看到了通用電氣和賽峰集團在 MRO 網路中的額外投資。如何考慮 LEAP 引擎的工作分擔？

Thank you, Seth. Taking those questions first, let's start with CFM56. What we see is CFM56 is expected to have strong growth over the next few years. And our expectations are in line with that of the OEM where they expect to see a continuing higher level of maintenance after the ramp that we're going to see in the next couple of years. So a very robust outlook there, and that's why we made the investment in the additional capacity at our Dallas-Fort Worth facility.

謝謝你，賽斯。先回答這些問題，讓我們先從 CFM56 開始。我們看到的是，CFM56 預計在未來幾年將出現強勁成長。我們的期望與原始設備製造商的期望一致，他們期望在未來幾年的升級之後看到持續更高水準的維護。因此，那裡的前景非常樂觀，這就是我們在達拉斯-沃斯堡工廠投資增加產能的原因。

Along the same lines talking about LEAP. The investment that we see, which has been made by both GE and Safran in the LEAP program, is entirely consistent with the OEM plans that we were part of building the CBSA network license partnership. Both GE and Safran, they're doing their part to support contracts that they've underwritten, and we are doing the same. We actually view this as a positive indicator for the long-term maintenance requirements for the LEAP platform and the pipeline of demand for slots looks very healthy as we expected.

沿著同樣的思路談論 LEAP。我們看到，GE 和賽峰集團在 LEAP 計畫中進行的投資與我們參與建立 CBSA 網路授權合作夥伴關係的 OEM 計畫完全一致。通用電氣和賽峰集團都在盡自己的一份力量來支持他們承保的合同，我們也在做同樣的事情。實際上，我們認為這是 LEAP 平台長期維護需求的一個積極指標，而且插槽的需求管道看起來非常健康，正如我們預期的那樣。

Great. And then maybe as a follow-up, Dan, if you could talk a little bit about the cash flow expectation for the fourth quarter?

偉大的。作為後續行動，丹，您能否談談第四季的現金流預期？

Yeah, sure. I mean we expect cash flow to improve sequentially quarter-over-quarter as well as revenue and earnings. This quarter was -- had a lot of onetime costs, including our IPO expenses, fees for the acquisition of ATI, some debt fees and of course, our LEAP and CFM losses. That was kind of a headwind for us. Some of the LEAP and CFM will -- industrialization costs will continue, but a lot of these onetime items will not repeat. So we'll expect sequential growth in cash flow quarter-over-quarter.

是的，當然。我的意思是，我們預計現金流以及收入和收益將環比改善。本季有許多一次性成本，包括我們的 IPO 費用、收購 ATI 的費用、一些債務費用，當然還有我們的 LEAP 和 CFM 損失。這對我們來說是一種逆風。一些 LEAP 和 CFM 的工業化成本將繼續存在，但其中許多一次性項目將不會重複。因此，我們預計現金流將環比成長。

Thank you.

謝謝。

Thank you for the question, Seth.

謝謝你的提問，賽斯。

Sheila Kahyaoglu, Jefferies.

希拉·卡哈奧格魯，杰弗里斯。

Congratulations guys on your first call. Russ, maybe just one for you. Just a follow-up on Seth's comments. If we could talk about the 19% commercial aerospace organic growth in the quarter, how do we think about early LEAP work contributing to that?

恭喜你們第一次打電話。拉斯，也許這只是一個適合你的。只是賽斯評論的後續行動。如果我們可以談論本季 19% 的商業航空有機成長，我們如何看待早期 LEAP 工作對此做出的貢獻？

Thank you, Sheila. LEAP is really just getting started. We're getting our facility of newly opened and industrialized or test cells are now correlated. We inducted our first engine in July. So it's very early. And while we industrialize the program, LEAP is not going to be a significant revenue driver this year, but we are seeing quite a lot of demand. Our pipeline, in fact, is filling out even better than we expected a year ago when we entered into the agreement. So we are very bullish about the ramp of the program, the long-term maintenance requirements, and the investments we made there are clearly going to be very accretive for the business over the long run.

謝謝你，希拉。 LEAP 確實才剛開始。我們正在將新開設的設施和工業化或測試單元連結起來。我們於 7 月推出了第一台引擎。所以現在還很早。雖然我們將該項目產業化，但 LEAP 今年不會成為重要的收入驅動因素，但我們看到了相當多的需求。事實上，我們的管道填充情況甚至比我們一年前簽訂協議時的預期還要好。因此，我們非常看好該計劃的進展、長期維護要求以及我們在那裡所做的投資，從長遠來看顯然將為業務帶來巨大的增值。

Okay. That's super helpful. And then maybe as a follow-up to that, just given [GE's] commentary about their shop visits down 1% in the quarter. How do we think about your overall LEAP capacity as it ramps? And obviously, your CFM56 capacity, what's your total capacity for that? And how does the Dallas Center of Excellence contribute?

好的。這非常有幫助。然後也許作為後續行動，剛剛給出 [GE] 關於他們本季度商店訪問量下降 1% 的評論。隨著 LEAP 產能的增加，我們如何看待您的整體 LEAP 產能？顯然，您的 CFM56 容量，您的總容量是多少？達拉斯卓越中心如何做出貢獻？

We are following the OEM guidance as well as the market reception that we've seen on both of those programs. We believe that we have laid in the appropriate capacity both test cell as well as assembly facilities to meet the needs that we're going to see through the balance of this decade. We will be adding the appropriate personnel and resources as the ramp continues and we'll be adding the appropriate working capital as dictated by the slots that we are opening up. So no changes to what we have planned.

我們正在遵循 OEM 指導以及我們在這兩個計劃中看到的市場接受情況。我們相信，我們已經配備了適當的測試單元和組裝設施，可以滿足我們在這十年的剩餘時間的需求。隨著產能的持續增加，我們將增加適當的人員和資源，並將根據我們正在開放的時間段增加適當的營運資金。所以我們的計劃沒有改變。

Great. Thank you.

偉大的。謝謝。

Thanks, Sheila.

謝謝，希拉。

Ronald Epstein, Bank of America.

羅納德·愛潑斯坦，美國銀行。

Yeah. Hey, good afternoon guy. Just maybe a quick one. Can you give us a little bit more detail on the trend in shop visit mix, like the share of heavy visits that continue to grow? And how much of that breaks down across the major engine platforms?

是的。嘿，下午好，夥計。也許只是快一點。您能否為我們提供有關商店光顧組合趨勢的更多詳細信息，例如持續增長的大量光顧比例？主要引擎平台上有多少發生故障？

Yeah. If you think about heavy visits versus shop visits or lighter visits, it's kind of reflected in our earnings profile this quarter, right? We had pretty good earnings. Which really reflected a lower -- lighter work scopes with lower material burden on those. And as you know, when you have those work scopes that have less material, you have a little bit higher margins. So that's what we expect -- that's what we saw in Q3.

是的。如果您考慮大量訪問與商店訪問或較少訪問，這在我們本季度的收益概況中有所反映，對嗎？我們的收入相當不錯。這確實反映了工作範圍更輕、物質負擔更輕。如您所知，當您的工作範圍材料較少時，您的利潤會更高一些。這就是我們的預期——這就是我們在第三季看到的情況。

Can you give detail across the platforms that you guys actually served, however?

不過，您能提供一下您們實際服務的平台的詳細資訊嗎？

Yeah. I mean we can talk about that, maybe a follow-up call. We really don't give platform details here.

是的。我的意思是我們可以討論這個問題，也許可以進行後續電話會議。我們確實不在這裡提供平台詳細資訊。

Okay, great and then great. That's fine. All right, cool. Thank you.

好吧，太棒了，然後太棒了。沒關係。好吧，酷。謝謝。

Ken Herbert, RBC Capital Markets.

肯‧赫伯特，加拿大皇家銀行資本市場。

Gavin Parsons, UBS.

加文·帕森斯，瑞銀集團。

Thanks guys. Good afternoon.

謝謝你們。午安.

Hey, Gavin.

嘿，加文。

I wanted to talk about just kind of the cash flow ramp up to normalized what is a normalized cash conversion level? I think you've invested already to build out the LEAP and CFM56 footprint what kind of working capital needs do you have over the next few years? And when do you think you get to kind of a more normal cash conversion level? Thanks.

我想談談現金流量增加到正常化水準的問題 什麼是正常化現金轉換水準？我認為您已經投資建立 LEAP 和 CFM56 足跡，未來幾年您需要什麼樣的營運資金？您認為什麼時候可以達到更正常的現金兌換水準？謝謝。

Yeah, it's a great question. We talked about -- and I got to hit all those, right? We had all these onetime fees and expenses that impacted cash flow in Q3 of about $25 million. In addition, we had the CapEx for LEAP and CFM were $15 million in the quarter, $40 million year-to-date. So the onetime expenses will -- won't repeat. The CapEx for LEAP and CFM, it will bleed a little bit into next year, but the big bulk of that will be behind us. I've already spent $40 million on that year-to-date.

是的，這是一個很好的問題。我們討論過——我必須實現所有這些，對吧？我們所有這些一次性費用和支出影響了第三季約 2500 萬美元的現金流。此外，本季 LEAP 和 CFM 的資本支出為 1,500 萬美元，年初至今為 4,000 萬美元。因此，一次性費用將不會重複。 LEAP 和 CFM 的資本支出將在明年有所減少，但其中很大一部分將被我們拋在腦後。那一年至今我已經花了 4000 萬美元。

It's important to point out that our working capital as a percent of revenue actually declined quarter-over-quarter, even though we grew significantly in revenue. Our net working capital as a percent of revenue declined 160 basis points year-over-year. So that's pretty good. So as we get into next year, cash flow will be positive, will be strong.

需要指出的是，儘管我們的收入大幅成長，但我們的營運資本佔收入的百分比實際上逐季下降。我們的淨營運資本佔收入的百分比年減 160 個基點。所以這非常好。因此，當我們進入明年時，現金流將是積極的、強勁的。

Listen, I will invest in working capital to get the LEAP and CFM programs initially provisioned and we're proud to do that. That's not a problem. But you're going to see sequential improvement in cash flow especially versus Q3 and Q4. And then next year, again, we'll have lower CapEx than we did this year, especially on those programs. And then I will have some initial provisioning on the other programs.

聽著，我將投資營運資金來初步配置 LEAP 和 CFM 計劃，我們對此感到自豪。那不是問題。但您將看到現金流量連續改善，尤其是與第三季和第四季相比。明年，我們的資本支出將再次低於今年，尤其是在這些項目上。然後我將對其他程序進行一些初步配置。

But as you've seen, especially this quarter, we're able to reduce working capital as a percent of revenue with a lot of initiatives there across the board.

但正如您所看到的，特別是在本季度，我們透過全面採取的許多舉措，能夠降低營運資本佔收入的百分比。

Okay, great. That's op cash or free cash?

好的，太好了。這是操作現金還是自由現金？

Free cash. Don't forget, right? I mean we've -- post IPO, I paid down my debt significantly. And we've also had the major refinancing. We're going to save about $130 million of interest year-over-year as a result of the IPO and the refinancing. So that's going to play also a significant role.

免費現金。別忘了，對吧？我的意思是，在首次公開發行後，我大幅償還了債務。我們也進行了大規模的再融資。透過 IPO 和再融資，我們將比去年同期節省約 1.3 億美元的利息。所以這也將發揮重要作用。

Thank you.

謝謝。

Thanks Gavin.

謝謝加文。

Doug Harned, Bernstein.

道格·哈內德，伯恩斯坦。

Well, good afternoon. Thank you. One of the issues we've seen with engine MRO lately has been real issues in the supply chain and with part shortages. Have you -- has this been at all a bottleneck for you trying to ramp work up? And if so, in which platform areas?

嗯，下午好。謝謝。我們最近在引擎 MRO 方面看到的問題之一是供應鏈和零件短缺的實際問題。你是否——這是否成為你努力提高工作量的瓶頸？如果是的話，在哪些平台領域？

Yeah. Thanks, Doug. So supply chain is -- has always been constrained in the aerospace industry since the Wright Brothers. And that is particularly pronounced in the engine segment because we're dealing with generally very unique materials that can operate at 3,000 degrees Fahrenheit. And so there's always going to be limited supply of those types of materials.

是的。謝謝，道格。因此，自萊特兄弟以來，航空航太產業的供應鏈一直受到限制。這在引擎領域尤其明顯，因為我們處理的是通常非常獨特的材料，可以在 3,000 華氏度的溫度下運行。因此，這些類型的材料的供應總是有限的。

There's no question that in recent years, those disruptions have been exacerbated to some degree by the pandemic, we're largely through that. And I would say we've taken a more long-term consistent approach to this. There's always daily micromanaging of various parts allocations, but we have enough diversification and enough capacity that we have the ability to continue to move things through our shops at a pretty consistent rate.

毫無疑問，近年來，疫情在某種程度上加劇了這些破壞，我們基本上已經度過了難關。我想說，我們對此採取了更長期一致的方法。每天都會對各種零件分配進行微觀管理，但我們有足夠的多樣化和足夠的能力，我們有能力繼續以相當一致的速度在我們的商店中運輸物品。

And where we've chosen to focus our investment is in two areas to help build additional detours around the occasional supply shortage. The first is in locating and returning to service used serviceable material. So these are actual OEM parts that many times require only an inspection, perhaps they require coding or some type of a repair. And then they can be returned to full service.

我們選擇將投資重點集中在兩個領域，以幫助繞過偶爾出現的供應短缺問題。第一個是找到並恢復使用過的可用材料。因此，這些是實際的 OEM 零件，很多時候只需要檢查，也許它們需要編碼或某種類型的維修。然後它們就可以恢復全面服務。

The second thing we've done is we've invested pretty heavily in repair development through both the addition of engineers as well as acquisitions to add to our list of approved -- OE approved repair processes on these parts so that we can return them to service again and work around a lot of the supply disruptions.

我們做的第二件事是，我們在維修開發方面投入了大量資金，透過增加工程師和收購來添加到我們批准的清單中 - OE 批准的這些零件的維修流程，以便我們可以將它們返回再次提供服務並解決許多供應中斷問題。

There are always going to be supply disruptions. Predominantly they are focused on sole sourced materials, not broadly across the industry. And that's why things like prepared development give us the ability to work around those conditions.

供應中斷總是會發生。他們主要關注單一來源的材料，而不是廣泛的整個行業。這就是為什麼像準備開發這樣的事情讓我們有能力解決這些條件。

And then somewhat related to that, you've talked about an 80-20 split in the sense between material cost pass-through and in your operate labor. And so you said you actually this time around, had less material pass-through and you had 83 basis points better margin. Is that a onetime situation and can you comment on if there's any trend here we should think about? And how -- in the portion that materials take up of your cost structure.

與此相關的是，您談到了材料成本轉嫁和營運勞動力之間的 80-20 分配。所以你說實際上這次你的物質傳遞減少了，你的利潤率提高了 83 個基點。這是一次性情況嗎？以及材料在成本結構中所佔的比例如何。

Yeah, great question. So yeah, our pass-through revenue programs actually declined quarter-over-quarter in terms of revenue. Is that a trend? Not necessarily, right? And it did have an impact on our margins. You do have to look at this business by the type of work scopes that we have and by the material content.

是的，很好的問題。所以，是的，我們的轉嫁收入計畫的收入實際上逐季下降。這是一種趨勢嗎？不一定吧？它確實對我們的利潤產生了影響。您確實必須根據我們擁有的工作範圍類型和材料內容來看待這項業務。

These are all growing programs. For the large part, the ones where I did have a decline in revenue quarter-over-quarter; that's impacted by margin. But I don't expect that to be a trend. It just -- it was -- if you look at some of these shipments, some of our engine shipments can be up to $15 million for a single engine. So any shift in that over a few days at the end of the quarter can have an impact like that.

這些都是不斷成長的計劃。在很大程度上，我所做的那些收入則是環比下降；這是受保證金影響的。但我不認為這會成為一種趨勢。如果你看看其中一些出貨量，我們的一些引擎出貨量對於單一引擎來說可能高達 1500 萬美元。因此，季度末幾天內的任何變化都可能產生類似的影響。

But a good point that did contribute to margin improvement in the quarter. We call it the pass-through, which is almost 0 margin and the lighter work scopes combined had that positive impact.

但這確實有助於本季利潤率的提高。我們稱之為直通，幾乎是 0 利潤，較輕的工作範圍相結合產生了積極的影響。

Very good. Thank you.

非常好。謝謝。

Thank you, Doug.

謝謝你，道格。

Myles Walton, Wolfe Research.

邁爾斯·沃爾頓，沃爾夫研究中心。

Thanks. Good evening. I wanted to follow up maybe on that same point, but a different tact, which is the intersegment disclosure you had for CRS. It looks like the intersegment sales are up about 70% year-on-year, an acceleration from the 40% year-to-date. How much of that is actually helping the 80% -- 80 basis points plus margin expansion at engine services?

謝謝。晚安.我想跟進同一點，但採取不同的策略，這就是 CRS 的部門間披露。看起來，部門間銷售額年增了約 70%，比年初至今的 40% 有所加速。其中有多少實際上有助於引擎服務 80% 至 80 個基點的利潤率擴張？

Yeah. So a great question, right? That is the in-sourcing initiative that we're driving, which has benefits across the business. And there's really two big ones to point out. First of all, component repair services, as you know, has higher margins, right, in Q3, 26.4% compared to engine services at 13.5%. So the faster that CRS grows at an enterprise level, of course, we benefit from that accretion.

是的。這是一個很好的問題，對吧？這就是我們正在推動的內包計劃，它對整個企業都有好處。確實有兩個大問題需要指出。首先，如您所知，零件維修服務的利潤率更高，對吧，在第三季為 26.4%，而引擎服務為 13.5%。因此，CRS 在企業層面的成長速度越快，我們當然就能從這種成長中受益。

Now on the engine services side, as we in-source the repairs to engine services, we do that elimination of the revenue at engine services, they'll see really increased margins from having those repairs done really at our internal costs. So on both sides, you're going to see an impact on higher growth for CRS and then you could see better margins or about ES.

現在在引擎服務方面，當我們將引擎服務的維修內包時，我們就消除了引擎服務的收入，他們會看到真正以我們的內部成本完成這些維修的利潤確實增加了。因此，在雙方方面，您都會看到 CRS 更高成長的影響，然後您可能會看到更好的利潤率或 ES 的利潤。

Dan, is there any forward look as to how -- I mean, 70% growth year-on-year in one quarter is great. I just don't know how quickly this is going in that direction. Is there a target or a benchmark you would want to set?

Dan，是否有任何前瞻性——我的意思是，一個季度同比增長 70% 是很棒的。我只是不知道這個方向進展得有多快。您想設定一個目標或基準嗎？

I can tell you that we've got our full attention on it, right? The whole company is working on this. The great thing is that CRS over the course of its history, has really built up a lot of capability that it didn't have before which is enabling this big in-sourcing effort to happen now. Now that they have this whole suite of repairs and the continuing development of new repairs, that will continue to allow this in-sourcing to grow. So you're seeing the first impacts of it this year; next year, it will be even more.

我可以告訴你，我們已經全神貫注地關注它了，對嗎？全公司上下都在為此努力。偉大的事情是，CRS 在其歷史進程中確實建立了許多以前沒有的能力，這使得現在能夠進行大規模的內包工作。現在他們已經擁有整套維修服務，並且不斷開發新的維修服務，這將繼續使內包業務成長。所以今年你會看到它的第一個影響；明年會更多。

All right, thanks.

好的，謝謝。

Thank you, Myles.

謝謝你，邁爾斯。

Krista Friesen, CIBC.

克里斯塔·弗里森，CIBC。

Hi. Thanks for taking my question and congrats on the quarter. I was just wondering if you can comment on what you're seeing in terms of M&A and potentially small tuck-ins over the next while here?

你好。感謝您提出我的問題並祝賀本季。我只是想知道您是否可以評論一下您在併購方面所看到的情況以及接下來在這裡可能進行的小額投資？

Hi Krista, we're not giving specifics on things in the works right now, but we're always in the market looking at potential deals where we're the right buyer for the business. There are a bunch of opportunities out there that we can potentially go after over the next couple of years. And M&A is certainly an important part of our value creation playbook, particularly in the component repair services area where there's often a pretty long list of opportunities. So we'll continue to look at those, but not giving specifics.

嗨，克里斯塔，我們不會提供目前正在進行的工作的具體細節，但我們總是在市場上尋找潛在的交易，我們是該業務的合適買家。在接下來的幾年裡，我們可能會抓住很多機會。併購無疑是我們價值創造策略的重要組成部分，特別是在零件維修服務領域，那裡往往有很多機會。因此，我們將繼續關注這些內容，但不會給出具體細節。

Thanks. And maybe if you can just speak to how we should think about the military segment for Q4, just given the decline in year-over-year growth due to (technical difficulty) onetime issues in Q3 here?

謝謝。也許您可以談談我們應該如何考慮第四季度的軍事部分，因為第三季度的（技術困難）一次性問題導致同比增長下降？

Yeah. The military segment continues to be a very stable segment. There was a grounding of the V-22 Osprey that caused an air bubble in flight hours. The engine on that particular aircraft, we see a lot of work that essentially got put on hold. It was not an engine problem, but that particular aircraft has now been returned to full operation. And we expect that we will progressively see flight hours resuming and we'll begin to see some of that work kind of unwind itself as we go into 2025.

是的。軍事領域仍然是一個非常穩定的領域。 V-22「魚鷹」飛機接地，導致飛行期間出現氣泡。對於那架特定飛機上的發動機，我們看到很多工作基本上被擱置了。這不是發動機問題，而是該飛機現已恢復全面運作。我們預計，飛行時間將逐步恢復，並且隨著 2025 年的到來，我們將開始看到其中一些工作自行放鬆。

The platform is expected to remain in service for 40-plus years so there's still a very long tail of revenue to be gained from that particular platform. One other item that we saw was during the quarter, we finished the negotiation of contract on the F110 engine, which is an engine that goes on the F-16 aircraft. We got that sorted and we're going to see increased volume from that going forward as well.

該平台預計將持續服務 40 多年，因此從該特定平台獲得的收入仍然很長。我們看到的另一件事是在本季度，我們完成了 F110 發動機的合約談判，這是 F-16 飛機上使用的發動機。我們已經解決了這個問題，我們也將看到未來交易量的增加。

Thank you.

謝謝。

Thanks, Krista.

謝謝，克里斯塔。

Gavin Parsons, UBS.

加文·帕森斯，瑞銀集團。

Hey, thanks for taking the follow up. I know you guys aren't guiding until next quarter, but just wanted to ask about your philosophy on guidance, just how you'll think about it.

嘿，感謝您的跟進。我知道你們要到下個季度才會提供指導，但只是想問一下你們的指導理念，以及你們會如何看待它。

Yeah. So we're not going to guide for Q4 specifically. But at the Q4 release of earnings, we will talk about 2025. And we give annual guidance.

是的。因此，我們不會專門為第四季度提供指導。但在第四季財報發佈時，我們將討論 2025 年。

Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Russell for any further or closing comments.

謝謝。我們的問答環節已經結束。我想將發言權交還給拉塞爾，以徵求進一步或結束評論的意見。

Okay. Thanks very much. That concludes the comments we have for this quarter. I want to thank everyone again for joining us today. We appreciate your continued interest and support in StandardAero, and we look forward to speaking with you again next quarter. Good day.

好的。非常感謝。我們對本季的評論就到此結束。我要再次感謝大家今天加入我們。我們感謝您對 StandardAero 的持續關注和支持，我們期待下季度再次與您交談。再會。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。