TAT Technologies Ltd (TATT) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the TAT Technologies second quarter 2025 earnings conference call. Please note that today's conference may be recorded.

女士們、先生們，大家好。感謝您的耐心等待。歡迎參加 TAT Technologies 2025 年第二季財報電話會議。請注意，今天的會議可能會被錄音。

My name is Matt Chesler and I'm a partner with FNK IR, a US-based investor relations firm supporting Eran Yunger, TAT's internal Head of Investor Relations. Hosting today's call is Igal Zamir, our President and CEO, and Ehud Ben-Yair, our CFO.

我叫 Matt Chesler，是 FNK IR 的合夥人，這是一家總部位於美國的投資者關係公司，我為 TAT 的內部投資者關係主管 Eran Yunger 提供支援。主持今天電話會議的是我們的總裁兼執行長伊加爾·扎米爾和我們的財務長埃胡德·本-亞伊爾。

Before getting started, we would like to draw your attention to the fact that certain matters discussed on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other provisions of the federal securities laws.

在開始之前，我們想提請您注意，本次電話會議討論的某些事項可能包含 1995 年《私人證券訴訟改革法案》和聯邦證券法其他條款所指的前瞻性陳述。

These forward-looking statements are based on management's current expectations and are not guarantees of future performance. Actual results could differ materially from those expressed in or implied by these forward-looking statements. The forward-looking statements are made as of the date of this call and except as required by law, TAT Technologies assumes no obligation to update or revise them. Investors are cautioned not to place undue reliance on these forward-looking statements.

這些前瞻性陳述是基於管理階層目前的預期，並不構成對未來績效的保證。實際結果可能與這些前瞻性聲明中明示或暗示的結果有重大差異。本次電話會議中的前瞻性陳述僅代表截至會議召開之日的信息，除法律要求外，TAT Technologies 不承擔更新或修改這些陳述的義務。投資人應注意，不要過度依賴這些前瞻性陳述。

For a more detailed discussion of how these and other risks and uncertainties could cause TAT Technologies' actual results to differ materially from those indicated in these forward-looking statements, please see our annual report on Form 20-F for the fiscal year ended December 31, 2024, and other filings we make with the SEC.

有關這些及其他風險和不確定性如何導致 TAT Technologies 的實際業績與這些前瞻性聲明中指出的業績存在重大差異的更詳細討論，請參閱我們截至 2024 年 12 月 31 日的財政年度的 20-F 表格年度報告以及我們向美國證券交易委員會提交的其他文件。

The financial measures discussed today include non-GAAP measures. We believe investors focus on non-GAAP financial measures in comparing results between periods and among our peer companies that publish similar non-GAAP measures. Please see yesterday evening's Form 6-K, our earnings release, and the Investors section of our website at tat-technologies.com for a reconciliation of non-GAAP financial measures to GAAP measures.

今天討論的財務指標包括非GAAP指標。我們認為，投資人在比較不同期間以及與發布類似非GAAP指標的同業公司之間的績效時，會專注於非GAAP財務指標。請參閱昨晚發布的 6-K 表格、我們的收益報告以及我們網站 tat-technologies.com 的投資者關係部分，以了解非 GAAP 財務指標與 GAAP 指標的調整表。

Non-GAAP financial information should not be considered in isolation from, as a substitute for, or superior to GAAP financial information, but is included because management believes it provides meaningful information about the financial performance of our business and is useful to investors for informational and comparative purposes. The non-GAAP financial measures that we use have limitations and may differ from those by other companies.

非公認會計準則財務資訊不應與公認會計準則財務資訊割裂看待，也不應被視為公認會計準則財務資訊的替代品或優於公認會計準則財務資訊。之所以納入非公認會計準則財務信息，是因為管理層認為它能提供有關我們業務財務業績的有意義的信息，並且對投資者進行信息參考和比較很有用。我們使用的非GAAP財務指標有其局限性，可能與其他公司的指標有所不同。

With all that, I would now like to turn the call over to Igal.

說了這麼多，我現在想把電話交給伊加爾。

Good morning, everyone, and thank you for joining us for the second quarter earnings call. I appreciate your interest and continued support as we review TAT Technologies' performance and discuss our strategic direction moving forward.

各位早安，感謝各位參加第二季財報電話會議。感謝您對我們 TAT Technologies 業績的關注和持續支持，我們將在此評估公司業績並討論未來的策略方向。

Q2 marked another quarter of double-digit revenue growth for TAT reflecting the impact of the strategic initiative implemented over the last few years. We continue to outpace the industry peer group averages. And we are doing it organically to market share gains, delivering solid revenue growth, margin expansion, and driving sustainable profitability.

TAT 在第二季度再次實現了兩位數的收入成長，反映了過去幾年實施的策略舉措的影響。我們持續超越業界同業平均。我們正在以有機成長的方式提升市場份額，實現穩健的收入成長、利潤率擴張，並推動永續獲利能力。

This was the fourth consecutive quarter of a sequential gross margin improvement exceeding 25% for the first time and demonstrating our improving operational efficiencies and the management focus on expanding margin.

這是連續第四個季度毛利率環比增長超過 25%，這是毛利率首次突破 25%，這表明我們不斷提高營運效率，管理層也更加重視擴大利潤率。

Importantly, we also enhance long-term visibility by increasing our long-term agreement value and backlog by $85 million to $524 million. This growth reflects both new contracts, including programs tied to more recently certified platforms and continued expansion within our customer base. We achieved this 18% year over year revenue growth, and even greater growth in the long-term agreement and backlog even as we experience some weaknesses in MRO intake. This production is due to strategic diversification of our revenue between trading, MRO, and OEM.

更重要的是，我們還透過將長期協議價值和積壓訂單增加 8,500 萬美元至 5.24 億美元，提高了長期可見度。這一增長反映了新合約（包括與最近獲得認證的平台相關的項目）以及客戶群的持續擴張。我們實現了 18% 的年營收成長，即使在 MRO 業務量出現一些疲軟的情況下，長期協議和積壓訂單的成長幅度也更大。此次產量成長得益於我們在貿易、MRO 和 OEM 之間的收入策略多元化。

I'd note that during the last month, MRO intake began re-accelerating which is reinforcing our near term confidence. In parallel, with strong commercial performance, we further strengthened our financial position and simplified our capital structure.

我想指出，上個月MRO的進貨量開始重新加速成長，這增強了我們對近期前景的信心。同時，憑藉著強勁的商業表現，我們進一步鞏固了財務狀況，簡化了資本結構。

During the quarter, we facilitated a successful public offering and welcomed new group of institutional investors, a majority of which are located in the US. At the same time, we increased our financial flexibility to pursue potential accretive acquisitions that enhance our growth profile.

本季度，我們成功促成了公開募股，並迎來了一批新的機構投資者，其中大多數位於美國。同時，我們提高了財務靈活性，以尋求能夠提升我們成長前景的潛在增值收購。

With this fundraising complete, we are well-prepared to execute the next phase of our strategy, adding new business lines to related categories to our targeted M&A to expand our addressable market and accelerate growth.

隨著此次融資的完成，我們已做好充分準備，執行下一階段的策略，在目標併購的相關類別中增加新的業務線，以擴大我們的目標市場並加速成長。

In parallel to this, under the leadership of our Chairman, we focused on strengthening our Board of Directors with an overall goal to align our Board composition with our growth strategy and new challenges, including M&A, capital markets, US market background, and industry experience.

同時，在董事長的領導下，我們致力於加強董事會建設，總體目標是使董事會的組成與我們的成長策略和新的挑戰保持一致，包括併購、資本市場、美國市場背景和行業經驗。

Now let's turn into our financial performance. Second quarter revenue increased by 18% to $43 million up from $36.5 million in the same period last year. For the first six months of the year, revenues was up more than 20% in comparison to the first six months of last year.

現在讓我們來看看財務業績。第二季營收成長18%，達4,300萬美元，高於去年同期的3,650萬美元。今年前六個月的營收比去年同期成長了20%以上。

While we increased the revenue in a double-digit pace, strong booking led to an even larger increase in our long-term agreement value and backlog, which expanded by $85 million to $524 million. This progress validates our belief in growing customer demand and reinforces our business strategy of expanding our addressable market by adding new capabilities.

雖然我們的營收以兩位數的速度成長，但強勁的預訂量導致我們的長期協議價值和積壓訂單增加了更大的幅度，增加了 8,500 萬美元，達到 5.24 億美元。這項進展驗證了我們對客戶需求不斷增長的信念，並強化了我們透過增加新功能來擴大目標市場的商業策略。

Our gross profit increased by 35%, and our gross margin expanded by 320 basis points to 25.1% compared to 21.9% in the second quarter of last year. This improvement is an outcome of our ongoing effort to optimize cost structure, improve operational efficiencies, and enhance our product mix.

我們的毛利成長了 35%，毛利率從去年第二季的 21.9% 成長了 320 個基點，達到 25.1%。這項改進是我們不斷努力優化成本結構、提高營運效率和增強產品組合的結果。

Adjusted EBITDA increased by 41.9% to $6.1 million, translating to an adjusted EBITDA margin of 14.0%, a notable improvement from 11.9% margin in the same period last year. TAT continued to deliver operating leverage as a result of our disciplined expense management. I'd like to note that we continue to believe that there are opportunities to further improve our profitability, expanding both our gross margin and EBITDA margin as we scale.

調整後 EBITDA 成長 41.9% 至 610 萬美元，調整後 EBITDA 利潤率為 14.0%，較去年同期的 11.9% 利潤率顯著提高。由於我們嚴格的費用管理，TAT 繼續實現營運槓桿效應。我想指出，我們仍然相信，隨著規模的擴大，我們的獲利能力還有進一步提升的空間，毛利率和 EBITDA 利潤率都將提高。

We also generated approximately $7 million in positive cash flow from operation in the quarter, which is a further testament to the progress we are making and to the strength of our business model.

本季我們也從經營活動中產生了約 700 萬美元的正現金流，這進一步證明了我們所取得的進展以及我們商業模式的實力。

Our strong performance comes at a time when the aviation sector is facing a range of macroeconomics and operational headwinds. While we are not immune, we believe that our business is well-positioned to manage through them. It is not uncommon for airline fleets to adjust discretionary maintenance activities based on evolving budget and operational needs. This creates a period of softer intake, followed by surges in demands, which adds complexity and impact short-term visibility.

在航空業面臨一系列宏觀經濟和營運逆風之際，我們取得了強勁的業績。雖然我們並非完全免疫，但我們相信我們的業務能夠很好地應對這些挑戰。航空公司機隊根據不斷變化的預算和營運需求調整可自由支配的維護活動並不罕見。這造成了一段供應較為疲軟的時期，隨後需求激增，這增加了複雜性，並影響了短期可見性。

We've seen this dynamic more clearly in the recent months. What differentiates us is our ability to shift capacity in real time. This quarter, that agility helped us offset software MRO volumes by capitalizing on trading opportunities to protect our profitability.

近幾個月來，我們已經更清楚地看到了這種動態。我們的優勢在於能夠即時調整產能。本季度，這種靈活性幫助我們利用交易機會抵消了軟體 MRO 業務量的變化，從而保護了我們的獲利能力。

While the level of market volatility does not appear to be dissipating, we believe that our model remains doable. Our growing traction with customers and OEM partners, combined with our operational flexibility, support our long term strategy and ability to execute in a dynamic environment.

儘管市場波動程度似乎並未減弱，但我們相信我們的模型仍然是可行的。我們與客戶和 OEM 合作夥伴之間日益增長的聯繫，加上我們營運的靈活性，為我們的長期策略和在動態環境中執行策略提供了支援。

Growth in APU work in the second quarter increased 12% year over year, but decreased slightly on a sequential basis, reflecting this increasing volatility. The sequential APU revenue dip reflects a short-term shift in customer behavior, not a change in long-term fundamentals.

第二季 APU 工作量年增 12%，但較上季略有下降，反映出這種波動性正在增加。APU收入環比下降反映的是客戶行為的短期變化，而不是長期基本面的變化。

In response to the broader macroenvironment, carriers proactively deferred non-critical maintenance to preserve cash and to better manage operating expenses. But the reality is that with aircraft utilization remaining very high, especially among the aging fleets, the need for services that are not discretionary, it is sometimes delayed, but is not diminished.

為了應對更廣泛的宏觀環境，航空公司主動推遲非關鍵性維護，以節省現金並更好地管理營運費用。但現實情況是，由於飛機利用率仍然很高，尤其是在老舊機隊中，對非可有可無的服務的需求有時會被推遲，但不會減少。

Offsetting the sequential APU dip was the tripling of our revenue from trading and leasing. This segment showcases our operation, operational flexibility and synergies. With modest MRO intake in the quarter, we identify the immediate market needs for exchanges, programs, enabling us to maintain productivity and profitability while servicing real-time customer needs.

抵消了 APU 環比下降的影響，我們的交易和租賃收入增加了兩倍。本部分展示了我們的營運、營運彈性和協同效應。由於本季度 MRO 業務量不大，我們確定了市場對交換和專案的迫切需求，使我們能夠在滿足客戶即時需求的同時保持生產力和盈利能力。

Long term, our robust and growing backlog positioned as well to continue and outperform the industry. We expect ongoing quarter-to-quarter volatility, including potential short-term fluctuations in MRO intake in the near term. As we continue to scale, we expect these variations of quarter-to-quarter to be less of an impact, but this is the reality of the aviation industry in general and MRO business in particular. We have constructed our business to be as resilient as possible to these factors.

從長遠來看，我們強勁且不斷增長的訂單儲備也為我們繼續超越行業水平奠定了基礎。我們預期季度間波動將持續存在，包括近期 MRO 業務量可能會出現短期波動。隨著我們規模的不斷擴大，我們預期季度間的這些波動影響會越來越小，但這卻是航空業，特別是MRO業務的現實。我們已建立了能夠最大限度抵禦這些因素影響的業務模式。

From our position of strength and in line with our strategic growth plan, we continue to seek opportunity to expand our capabilities. This includes exploring strategic acquisitions. There are opportunities to make accretive bolt-on acquisitions that would increase the addressable market and open additional natural adjacencies. Our goal is to enhance the value that we provide to our strategic customers. And the more services we can provide to our customers, the more valuable we will be for them.

憑藉我們的優勢地位，並根據我們的策略成長計劃，我們將繼續尋求機會來擴大我們的能力。這包括探索策略收購。有進行增值性附加收購的機會，這將擴大潛在市場並開闢更多自然鄰近領域。我們的目標是提升我們為策略客戶提供的價值。我們能為客戶提供的服務越多，我們對他們的價值就越大。

In summary, TAT Technologies continue to deliver performance that outpace the industry. Our strategy is working, providing the scale to position us as a meaningful provider to the aviation industry and governments, and the diversification to navigate supply chain and other challenges common to the industry.

總而言之，TAT Technologies 的業績持續超越業界平均。我們的策略正在奏效，使我們擁有了足夠的規模，能夠成為航空業和政府的重要供應商，並實現了多元化，從而應對供應鏈和行業普遍面臨的其他挑戰。

Longer term, my optimism remains even though my short term outlook remains cautious. We are generating encouraging demand to our products and services, strong interest from both new and existing customers, and we have the potential to achieve long-term growth rates that significantly outpace the broader industry while continuing to expand margin.

儘管我對短期前景仍持謹慎態度，但從長遠來看，我依然保持樂觀。我們的產品和服務需求令人鼓舞，新舊客戶都表現出濃厚的興趣，我們有潛力實現長期成長率顯著超過整個產業，同時繼續擴大利潤率。

In closing, before I turn the call to Ehud, I want to take a moment to thank our dedicated employees for their professionalism and hard work. Our achievement would have not been possible without their effort, and they continue to set the standard for the industry. Thank you.

最後，在將電話轉給埃胡德之前，我想藉此機會感謝我們敬業的員工們的專業和辛勤工作。如果沒有他們的努力，我們不可能有這樣的成就，他們也一直是業界的標竿。謝謝。

And with that, I'll turn it over to our CFO, Ehud Ben-Yair, to provide further insights into our financial performance and business outlook.

接下來，我將把發言權交給我們的財務長埃胡德‧本-亞伊爾，讓他進一步介紹我們的財務表現和業務前景。

Thank you, Igal. Good morning, everyone. Good afternoon for those joining us from Israel. We will review some financial elements as well as cash flow and balance sheets.

謝謝你，伊加爾。各位早安。以色列的朋友們，下午好。我們將檢視一些財務要素，以及現金流量表和資產負債表。

We continue to see growth in revenue and improvement in the profitability elements quarter after quarter for already nine quarters in a row. Revenue in Q2 of 2025 grew by 18% to $43.1 million compared to 36.5% in Q2 of 2024. The revenue in the first six months of 2025 grew by 21% to $85.2 million compared to $70.6 million in 2024. Year over year, the growth was driven from all product segments, mainly MRO activity on the commercial side of the business.

我們已經連續九個季度看到營收成長和獲利能力指標逐季改善。2025 年第二季營收成長 18% 至 4,310 萬美元，而 2024 年第二季營收成長 36.5%。2025 年上半年的營收成長了 21%，達到 8,520 萬美元，而 2024 年為 7,060 萬美元。與前一年相比，所有產品部門都實現了成長，主要成長來自商業方面的MRO（維護、維修和營運）業務。

Revenue growth in Q2 of 2025 was achieved despite the slowdown in MRO work that happened during the quarter. Looking into the second half of the year, we see again strong demand for MRO work, mainly on the APU and landing gear. As we indicated in the past, our growth is mainly dependent on overcoming supply chain issues from the larger OEMs.

儘管2025年第二季MRO業務放緩，但公司仍實現了營收成長。展望下半年，我們看到MRO工作的需求依然強勁，主要集中在APU和起落架方面。正如我們過去所指出的，我們的成長主要取決於克服大型原始設備製造商的供應鏈問題。

In the second quarter of 2025, gross profit was $10.8 million and reached the 25.1% gross margin. This is an important milestone that we indicated at the beginning of the year. Crossing the 25% gross margin put us on the same game field with the best industry leaders. The gross margin in the second quarter of 2025 grew by 36% compared to the second quarter of 2024, which is exactly doubling the increase in revenue year over year.

2025年第二季度，毛利為1,080萬美元，毛利率達25.1%。這是我們年初就已提出的一個重要里程碑。毛利率突破 25% 後，我們就與業內領先企業站在了同一起跑線上。2025 年第二季的毛利率比 2024 年第二季成長了 36%，與上年同期營收成長幅度正好翻了一番。

In the second quarter of 2025, operating income increased by 62% to $4.4 million which is 62% increase year over year, again, almost doubling the increase of the gross margin. This was achieved mainly from the growth in revenue, our operational efficiencies program, and despite the increase in SG&A expenses, which further emphasize our operational leverage.

2025 年第二季度，營業收入成長 62% 至 440 萬美元，年增 62%，毛利率增幅幾乎翻了一番。這主要得益於收入成長、我們的營運效率提升計劃，儘管銷售、一般及行政費用有所增加，但這進一步凸顯了我們的營運槓桿作用。

During the second quarter of 2025, we suffered from the strength of the Israeli shekel compared to the US dollar by 10%. This resulted in an increase of the cost of exchange rate differences by over $50 million. This is a re-evaluation of over $10 million of loans which were taken four years ago marked in Israeli shekel. As a result, we saw a reduction of $400,000 on the net profit in Q2 of 2025 compared to Q1 of 2025.

2025 年第二季度，由於以色列新謝克爾對美元走強，我們遭受了 10% 的損失。這導致匯率差額成本增加了 5,000 多萬美元。這是對四年前以以色列新謝克爾計價的超過 1000 萬美元貸款的重新評估。因此，與 2025 年第一季相比，2025 年第二季的淨利潤減少了 40 萬美元。

Despite everything that I mentioned, net profit increased during Q2 of 2025 by 25% compared to Q2 of 2024 and by 53% year over year in the first six months of 2025.

儘管我提到了上述種種情況，但 2025 年第二季度的淨利潤比 2024 年第二季度增長了 25%，2025 年上半年的淨利潤同比增長了 53%。

Please note that our normal average quarterly interest rates are about $0.5 million on a quarter. All the rest are fluctuation of exchange rate differences mainly on the loans. The company does not hedge the balance exposure and the cash flow. I also want to emphasize that it is a non-cash expense. And as it looks right now, we are not expecting any additional expenses of this nature in Q3 of 2025.

請注意，我們正常的季度平均利率約為每季 50 萬美元。其餘部分主要都是貸款匯率波動所造成的差異。該公司沒有對沖餘額風險敞口和現金流。我還要強調，這是一筆非現金支出。就目前情況來看，我們預計 2025 年第三季不會有任何此類額外支出。

EBITDA continued to grow to $6.1 million in Q2 of 2025. This is a 39% increase year over year and by 47% year over year in the first six months of 2025. May I draw the attention of the audience to the 14% EBITDA margin in Q2 of 2025. We are in the right direction to achieve the 15% EBITDA margin that we indicated at the beginning of the year.

2025年第二季度，EBITDA持續成長至610萬美元。這比去年同期成長了 39%，比 2025 年上半年成長了 47%。請各位注意，2025 年第二季 EBITDA 利潤率為 14%。我們正朝著年初設定的 15% EBITDA 利潤率目標穩步前進。

On July 2024, the One Big Beautiful Bill was approved in the US. This bill has some positive impact on our tax exposure. From learning this bill together with our US tax adviser, and we're still carefully learning it and waiting for more instruction from the IRS, it looks like we will not pay taxes in the US this year because this bill further increases our carry-forward losses that can be utilized in the short term.

2024年7月，《一個美好的大法案》在美國獲得通過。這項法案對我們的稅務負擔產生了一些正面影響。我們與美國稅務顧問一起研究了這項法案，目前我們仍在仔細研究並等待美國國稅局的進一步指示，看來我們今年在美國無需繳稅，因為這項法案進一步增加了我們可以在短期內使用的結轉虧損。

My indication about the Israel tax exposure remains the same, and I still believe that we will start paying taxes by the end of this year in Israel.

我對以色列稅務風險的看法依然不變，我仍然相信我們將在今年年底前開始在以色列繳稅。

On the cash flow side, in Q2 of 2025, cash flow from operational activity was positively strong and was $6.9 million. It was also positive by $1.9 million during the first six months of 2025, and this is compared to a negative cash flow of $5 million in the first quarter of 2025. The main reason for the positive cash flow were better collections from our customers and improving payment terms from our suppliers.

在現金流方面，2025 年第二季度，經營活動產生的現金流表現強勁，達到 690 萬美元。2025 年上半年，該公司實現了 190 萬美元的正收益，而 2025 年第一季則出現了 500 萬美元的負現金流。現金流為正的主要原因是客戶收款狀況改善以及供應商付款條件改善。

During June of 2025, the company completed the financing round of $45 million. We closed short term loans of close to $10 million in order to save about $200,000 a quarter on interest expenses. This will bring down the interest expenses to an average of $300,000 on a quarterly basis.

2025年6月，該公司完成了4,500萬美元的融資。我們發放了近 1000 萬美元的短期貸款，以便每季節省約 20 萬美元的利息支出。這將使每季的利息支出平均降至 30 萬美元。

As indicated on the prospectus and during the roadshow, the money will be used in order to strengthen our balance sheet, provide working capital to support the growth of our operations, and mainly provide funds for strategic deals that will further accelerate the growth of the company in the near future.

正如招股說明書和路演所述，這筆資金將用於加強我們的資產負債表，提供營運資金以支持我們業務的成長，並主要用於為策略交易提供資金，以在不久的將來進一步加速公司的成長。

By the end of June, total loans are at the level of $12.4 million and cash at the level of $43 million. Debt-to-EBITDA ratio is very low and currently at 0.5%. TAT's shareholder equity is $166 million on a balance of $214 million, leading us to a very strong equity-to-balance ratio of 78%. The strong balance sheet together with the minimal debt open opportunities to leverage more debt together with our cash to be used for strategic deal in the near future.

截至6月底，貸款總額為1,240萬美元，現金總額為4,300萬美元。債務與EBITDA比率比例非常低，目前為0.5%。TAT 的股東權益為 1.66 億美元，資產餘額為 2.14 億美元，這使得我們的權益與資產餘額比率非常強勁，達到 78%。強勁的資產負債表和極低的債務為我們提供了機會，可以利用現金進行更多債務融資，以便在不久的將來開展策略交易。

In terms of the revenue by product line, looking at the revenue per product line, all our strategic line of product grew double-digit year over year. This is perfectly aligned to our strategy and expectation. During the second quarter, we saw some slowdown in intake of MRO, mainly on the APU, due to volatilities and uncertainties that existed in the commercial aviation industry. By the same way, the volatility impact the share and the stock market during April and May mainly driven from the uncertainty of the tariff impact.

從產品線收入來看，我們所有策略產品線的收入都實現了兩位數的年成長。這完全符合我們的策略和預期。第二季度，由於商業航空業的波動性和不確定性，我們看到MRO（維修、修理和大修）業務量有所放緩，主要涉及APU（輔助動力裝置）。同樣，4月和5月期間，波動性對股票和股市的影響主要源自於關稅影響的不確定性。

The operational capacity on the MRO was switched to repair APU and landing gear for exchanges, which resulted in a higher revenue indicated under the trading line of product.

MRO 的營運能力轉向維修 APU 和起落架以進行交換，這使得產品貿易線下的收入增加。

Starting from mid-June, the market stabled, and we are now seeing an upward trend in intake for MRO. Therefore, I strongly recommend investors when coming to analyze the revenue by product, to look at the 12-month trend per product and not to focus on small fluctuation between the quarters.

從六月中旬開始，市場趨於穩定，我們現在看到MRO的進貨量呈現上升趨勢。因此，我強烈建議投資者在分析各產品的收入時，要注意每個產品過去 12 個月的趨勢，而不要關注季度之間的小幅波動。

During the last quarter, we announced a major win on the APU side of business which further strengthened our midterm approach to the organic growth of the APU segment. We are certain that both APU and landing gear segment will grow, will show growth year over year and align with our strategy.

上一季度，我們在 APU 業務方面取得了重大勝利，這進一步加強了我們對 APU 業務中期有機成長的策略。我們確信 APU 和起落架業務都將成長，逐年成長，並符合我們的策略。

With regards to the backlog, backlog and LTA value continue to grow constantly. It is at the level of $524 million by the end of 2025, an increase of $85 million compared to last quarter.

關於積壓訂單，積壓訂單和長期訂單價值持續成長。到 2025 年底，這一數字將達到 5.24 億美元，比上一季增加 8,500 萬美元。

During the second quarter of 2025, we announced a major win with one of the major cargo carriers in the world for a contract value of $40 million to $55 million which is now under the APU segment on our LTA value. This one and some other small-size contract are a major contributor to increasing the backlog and LTA value which will secure the organic growth of the company in the coming years. The total backlog and LTA of the APU and landing gear has grown to $204 million compared to $170 million at the end of Q1 of 2025.

2025 年第二季度，我們宣布與世界主要貨運公司之一達成一項重大協議，合約價值 4,000 萬至 5,500 萬美元，目前屬於我們 LTA 價值中的 APU 板塊。這份合約以及其他一些小規模合約是增加積壓訂單和長期協議價值的主要因素，這將確保公司在未來幾年實現有機成長。APU 和起落架的總積壓訂單和 LTA 已增至 2.04 億美元，而 2025 年第一季末為 1.7 億美元。

It is also important to emphasize that by the end of Q2 2025, the APU backlog contained multi-million contracts for the 777 APU which are new and were not part of our backlog in Q1 of 2025. This further emphasizes our go-to market approach for the new engines that are expected to be a major organic growth engine for the years to come. Also, when talking about growth opportunity, the overall cycle of the E170, the Embraer 170 landing gear is starting now. We are well-positioned with a signed contract to serve the largest world fleet and with some other initiatives.

還需要強調的是，到 2025 年第二季末，APU 積壓訂單中包含數百萬美元的 777 APU 合同，這些合同是新的，並不屬於我們 2025 年第一季度的積壓訂單。這進一步強調了我們針對新型引擎的市場推廣策略，這些引擎有望成為未來幾年主要的內生成長引擎。此外，談到成長機會，E170 的整體週期，Embraer 170 起落架現在才剛開始。我們已經簽署了為全球最大船隊提供服務的合同，並開展了一些其他舉措，這使我們處於有利地位。

And by this, I have concluded my report. But before handing over to the organizer, I want to use this opportunity and thank all of the existing investors and new investors that took part in the last capital raised in the secondary round, for the trust and confidence in TAT and its management, and believing in all of the good that is yet to come. I want to thank my team that diligently worked on the deal for the last five months. And great thank you for the underwriters, the legal advisors, auditors, IR firms, and everybody that supported us.

我的報告到此結束。但在將發言權交給主辦單位之前，我想藉此機會感謝所有參與上一輪二次融資的現有投資者和新投資者，感謝他們對 TAT 及其管理層的信任和信心，以及對未來美好前景的信念。我要感謝我的團隊，他們在過去五個月為促成這筆交易付出了辛勤努力。非常感謝承銷商、法律顧問、審計師、投資者關係公司以及所有支持我們的人。

And by this, I hand over the call for final remarks and questions.

至此，我將結束語和提問環節交給各位。

(Operator Instructions)

（操作說明）

Josh Sulivan, Benchmark Company.

Josh Sulivan，Benchmark公司。

Congratulations on the results. Can we just dig in to the MRO acceleration comments. You mentioned, I know the quarter started off with little uncertainty just given the macros, but can you just talk a little bit about where the re-acceleration is happening in the MRO market? Is it broad based or any specific markets showing outsized recovery at this point?

恭喜你取得好成績。我們能不能深入探討一下MRO加速的相關評論？您提到，我知道鑑於宏觀經濟情勢，本季初的不確定性較小，但您能否談談MRO市場重新加速發展的現狀？目前這種復甦是普遍性的，還是某些特定市場出現了超乎尋常的復甦？

Josh, it's Igal. If you remember, last quarter, I indicated that we should expect some volatility at the end of last year. I'm in the company for nine years, and what we are seeing this time is not different than what we saw several times in the past. We have to remember that in most cases, the services that we provide on them or discretionary, meaning that the airlines are not forced to send the components for the overall repair by schedule or by flight hours, but it's more up to their discretion. Also, they have a large spare inventory that they maintain.

喬希，我是伊加爾。如果你還記得的話，上個季度我曾表示，我們應該預料到去年年底會出現一些波動。我在公司工作了九年，這次我們看到的情況與過去幾次看到的情況並無不同。我們必須記住，在大多數情況下，我們提供的服務是可自由支配的，這意味著航空公司沒有義務按計劃或飛行小時數發送用於整體維修的部件，而更多地取決於他們的自由裁量權。此外，他們還維護大量的備用庫存。

And in most cases, the first time when they see uncertainty is they send less MRO work and they try to save cash by leveraging the spares. It lasts for several months until they are out of spares. And then you see a recovery, and then you see an acceleration. Because as I mentioned in my statements, the aircraft is triple flying. Nobody is reporting on any reduction in flight. So the fleet is flying. Big portion of the fleet is really old as the airlines are waiting for new aircraft that are way behind schedule. And eventually, it comes.

在大多數情況下，他們第一次感受到不確定性時，就會減少MRO（維護、維修和大修）工作，並試圖透過利用備件來節省資金。這種情況會持續幾個月，直到備件用完為止。然後你會看到復甦，然後你會看到加速。因為正如我在聲明中提到的，這架飛機是三機飛行。目前沒有任何關於航班減少的報導。機隊正在飛行。由於航空公司仍在等待新飛機，而新飛機的交付進度嚴重滯後，因此機隊中很大一部分飛機都非常老舊。最終，它還是會到來。

So we were telling ourselves that it will come in fourth quarter. Last year, if you recall, we spoke about it as we expected to see the seasonality of fourth quarter. It didn't happen. In first quarter, we spoke about it and we thought that it will come. It didn't happen. It did come in second quarter. I don't see anything -- any drama here. So there was a dip for few months. And after a few months, we see the increasing intake. It's not specific, if I may say.

所以我們一直告訴自己，它將在第四季到來。如果你還記得的話，去年我們討論過這個問題，因為我們預計第四季會出現季節性波動。這事沒發生過。第一季我們就討論過這個問題，當時我們認為它會實現。這事沒發生過。它確實發生在第二季。我沒看到任何戲劇性的事情發生。所以有幾個月的時間出現了下滑。幾個月後，我們發現攝取量增加了。恕我直言，它不夠具體。

Okay. Got it. And then on the nice cash flow in the quarter, what was the largest driver there? And with this type of cash generation, how are you looking at working capital growth going forward?

好的。知道了。那麼，本季良好的現金流主要是什麼因素造成的呢？有了這樣的現金流，您如何看待未來的營運資本成長？

I think, again, we had three phases up until now in the company. First phase started in 2022. We wanted to grow. We spent the years of COVID getting ready for the growth. And the real focus was on revenue growth. Then about a year later -- a year and a half later, we added a real focus on profitability. So not only to grow the revenue, I spoke about it many times in the last year and a half, our biggest initiative and focus is ongoing revenue. Personally, I would like to bid value, not just revenue. So increasing the margin is an ongoing concern with major initiatives across all TAT companies, and we are seeing the result quarter after quarter.

我認為，到目前為止，公司的發展歷程可以分為三個階段。第一階段於2022年啟動。我們想要發展壯大。我們利用新冠疫情期間的幾年時間為成長做好準備。真正的重點在於營收成長。大約一年後——或者說一年半後，我們真正開始關注獲利能力。因此，我們不僅要增加收入（我在過去一年半中多次談到這一點），我們最大的舉措和重點是持續的收入。就我個人而言，我希望競標的是價值，而不僅僅是收入。因此，提高利潤率一直是 TAT 所有公司持續關注的重點，我們每季都能看到成效。

In parallel, if you remember, we spoke about the need to drastically increase inventory to overcome the volatility in the market and the challenges in supply chain, which still exist. We wanted to make sure that we can serve the customers and that we can provide good service. So it had impact on cash. And we feel that we are in a good position now to continue to supporting the market. We feel that we have the right inventories. And despite the challenges in the industry, with few exceptions, I would say, but as a general thing, we are in the right place.

同時，如果你還記得的話，我們曾討論過需要大幅增加庫存以克服市場波動和供應鏈挑戰，而這些挑戰仍然存在。我們希望確保能夠服務好客戶，並提供優質的服務。所以這對現金流產生了影響。我們認為，我們現在處於有利地位，可以繼續支持市場。我們認為我們的庫存充足。儘管行業面臨諸多挑戰，但除少數例外情況外，我認為總體而言，我們正處於正確的位置。

And therefore, a couple of months ago, we added a third tier in our evolution to really start focusing on our cash flow. And I'm pleased with the results of the quarter. With tighter controls, with improving collections, and other aspects. We have opportunities to continue and do so in the next few quarters by better managing our inventories. And we feel that this is just the beginning.

因此，幾個月前，我們在發展過程中增加了第三層級，以便真正開始關注我們的現金流。我對本季的業績感到滿意。透過更嚴格的管控、改進收款方式等方面。我們有機會在接下來的幾個季度繼續保持這種勢頭，透過更好地管理庫存來實現這一目標。我們認為這只是個開始。

Right. Maybe just one last one on the APU strategy. You winning smaller deals, the moving up market as you understand the process and your capabilities, and then moving on to larger deals, how do you feel about that transition? Is that strategy coming together as you had planned? And thank you for the time.

正確的。關於APU策略，或許可以再補充一點。你先是贏得一些小額訂單，隨著你對流程和自身能力的了解，逐步提升市場水平，最終達成更大的訂單，你對這種轉變有何感想？你的策略是否按計畫順利實施？感謝您抽出時間。

As Ehud mentioned a couple of minutes ago, so far, it's going well for us. We are capturing more and more market share on the APUs that we've been doing historically for the 767 and 757 fleets. And we are gaining more and more market share where we have huge advantages of competition.

正如埃胡德幾分鐘前提到的那樣，到目前為止，一切對我們來說都很順利。我們在輔助動力裝置 (APU) 領域獲得了越來越多的市場份額，而我們過去一直為 767 和 757 機隊提供 APU。我們在競爭中擁有巨大的優勢，因此正在獲得越來越多的市場份額。

And on the new platforms, we decided to start with smaller fleets and smaller RFPs. And as Ehud mentioned, we won several of them since the beginning of the year and working on several more. So it looks promising. It will take its time, but it's going very nicely and it's reflecting in the growth of the backlog and the value of the LTAs.

在新平台上，我們決定從規模較小的車隊和較小的招標項目開始。正如埃胡德所提到的那樣，從年初到現在，我們已經贏得了其中幾個獎項，並且正在努力爭取更多獎項。看起來很有希望。這需要時間，但進展非常順利，積壓訂單的成長和長期協議的價值也反映了這一點。

Mike Ciarmoli, Truist

麥克·恰爾莫利，Truist

Thanks for taking the question. Maybe just on the APUs and the current dynamic out there, I guess I was thinking more that those are flight-critical offerings and obviously airlines wouldn't really have the ability to defer. Maybe just what else are you seeing there? Is some of this weakness more domestic US carriers? Is it global carriers?

感謝您回答這個問題。或許就 APU 和目前的市場動態而言，我當時更多是在想，這些都是對航班至關重要的產品，航空公司顯然沒有能力推遲交付。你還看到了什麼？這種弱點是否也包括美國國內的航空公司？它是全球營運商嗎？

Do you have a sense as to what kind of spare APUs are out there in the system? Or are these airlines maybe just doing kind of the bare minimum maintenance on those units, replacing, whether it's kind of life-limited components and parts to extend the life? Maybe just any more color on the dynamic you're seeing there.

您知道系統中目前有哪些類型的備用APU嗎？或者這些航空公司可能只是對這些設備進行最基本的維護，更換一些壽命有限的零件和零件來延長其使用壽命？或許只是想為你們看到的這種動態增添一些色彩。

Sure. Hi, Mike. First of all, I think that we see it on global fleets. It's not necessarily related just to US. The second thing, you need to remember that, we have a heavy concentration of cargo carrier. And when the tariff started and then the cargo carrier started feeling -- they were really concerned about what will happen with their equipment and the freight needs and whatever, it had an impact on their decisions.

當然。嗨，麥克。首先，我認為我們在全球艦隊中都能看到這種情況。這不一定只與我們有關。第二點，你需要記住，我們這裡貨運車輛非常集中。當關稅開始實施後，貨運公司開始感到擔憂——他們非常擔心他們的設備、貨運需求等等會受到怎樣的影響，這影響了他們的決策。

A typical typical airline, if I'm looking at our customers, we'll keep anywhere from 10 to 15 spare engines on the shelf at their shops.

以我們典型的客戶為例，我們會在航空公司的維修站貨架上儲備 10 到 15 台備用引擎。

You asked about do they do any just light repairs? I'm not familiar with such behaviour. I cannot say that I ever saw such a behavior. So when they actually send the engine to repair, they expect a full scope. They want the engine to be brought to full operation. But what they do is they can, I have 15 spares, it's enough to last for a couple of good months, and I'm not going to send, I'm going to sit on it or I'm going to sit on there or remove the engines for a couple of months.

你問他們是否承接一些小修小補的工作？我不熟悉這種行為。我從未見過這種行為。所以當他們真的把引擎送去維修時，他們希望進行全面的檢修。他們希望這台引擎能夠全面投入運轉。但他們的做法是，他們可以，我有 15 個備用零件，足夠用好幾個月了，我不會發貨，我會把它們放在那裡，或者把發動機拆下來用幾個月。

By the way, I'm not saying that specifically what happens with each and every one of them. And I personally talk with top executives at several of our large customers about it. We saw it several times in the past. So they sit on it until they feel that their spare pool is getting to a too low level, if you will. And then they send us everything. And then you see a major spike in intake.

順便說一句，我並不是說他們每個人都會具體發生什麼。我親自與我們幾家大客戶的高階主管就此進行了交談。我們以前見過好幾次。所以他們會一直等到覺得備用泳池的水位太低為止。然後他們把所有東西都寄給我們。然後你會看到攝取量大幅上升。

Okay. Perfect. That's really a really good color. And then maybe shifting just on the commentary in the press release, you obviously did the equity raise and maybe looking to grow the portfolio through M&A. Are there any specific capabilities or products you would look to target to maybe expand your capability set? Or are you staying in the wheelhouse of APUs, landing gears, and the thermal management solutions?

好的。完美的。這顏色真好看。然後，或許僅從新聞稿中的評論來看，你們顯然已經完成了股權融資，並且可能正在尋求透過併購來擴大投資組合。您是否希望針對某些特定能力或產品來擴展您的能力範圍？或者您仍然專注於輔助動力裝置 (APU)、起落架和散熱管理解決方案？

No. I would say, we want to stay close to our existing capabilities and DNA, as a general thing. But definitely looking to expand into more mechanical systems and components rather than just expanding within the current segments that we have.

不。總的來說，我想說，我們希望保持與現有能力和企業基因的緊密聯繫。但我們肯定會尋求拓展到更多機械系統和組件領域，而不僅僅是在我們目前擁有的領域內擴張。

At the end of the day, the key goal on the MRO side, when it comes to acquisitions, we also have some ideas relating to OEM and the geographic expansion, which we discussed during the road show.

歸根結底，MRO 方面的關鍵目標是收購，我們也有一些關於 OEM 和地理擴張的想法，我們在巡迴演出期間討論過這些想法。

But when it comes to the MRO, to your question, our strategy is to remove headache to our customers. We want to be meaningful to our customers and to buy them with not -- it's not just the service and cheap price. We want to help them consolidate their vendor list. We want to be more meaningful and to add more capabilities.

但就MRO（維修、維修和大修）而言，回答您的問題，我們的策略是消除客戶的擔憂。我們希望為客戶帶來有意義的東西，讓他們購買我們的產品不僅僅是服務和低廉的價格。我們想幫助他們精簡供應商名單。我們希望變得更有意義，並增加更多功能。

As we think about acquisitions, we are looking at any company that will be related to what we do in the sense of our understanding of the business and our understanding of how to manage it and sell to the customer, especially when it comes to the first acquisitions where we want to be more on the conservative side and go more safe, if you will. But definitely expanding behind just APOs, landing gear, and heat exchanges.

在考慮收購時，我們會專注於任何與我們業務相關的公司，包括我們對業務的理解、對如何管理業務以及如何向客戶銷售業務的理解，尤其是在首次收購時，我們希望更加保守，更加穩健。但肯定不包括 APO、起落架和熱交換器。

Got it. And then just the last one for me, I know the trading business and activity could be a bit lumpy, but if I just look at your core MRO from the APU, landing gear, that was down about 7%, sequentially. What should we think about those revenues going into 3Q and 4Q? And I'll jump back in the queue. Thanks, guys.

知道了。最後，我知道貿易業務和活動可能會有些波動，但如果我只看你們的核心MRO（維護、修理和大修）業務，例如APU（輔助動力裝置）、起落架等，那麼環比下降了約7%。我們該如何看待第三季和第四季的營收？那我再重新排隊。謝謝各位。

I would just repeat what I stated that we see a large increase in intake in the last couple months and a half months. I will keep it to that.

我只想重申我之前說過的話，那就是在過去的兩個半月裡，我們的攝取量大幅增加。我就說到這裡。

Ben Klieve, Lake Street.

本·克利夫，湖街。

Congratulations on a good quarter. A couple follow-up questions here. One, great to see the, 777 APU in the backlog now. Can you elaborate at all on your outlook for the APU pipeline specifically within the 737 or A320 airframes?

恭喜你本季業績出色。這裡還有幾個後續問題。很高興看到 777 APU 現在也列入了待辦清單。能否詳細說明您對737或A320機身內APU產品線的展望？

At this point, we are still doing -- we are performing the work on them on a one-off base. And we haven't announced any -- we have very small RFPs that we won and not meaningful enough to publish a separate deal, but we haven't published any meaningful win yet. Still working on it.

目前，我們仍在進行中——我們正在以零散的方式進行這項工作。我們還沒有公佈任何消息——我們贏得了一些規模很小的招標項目，這些項目意義不大，不足以單獨公佈交易，但我們還沒有公佈任何有意義的勝利。還在努力中。

Very good. And then, a follow-up question on your M&A commentary. Can you talk a bit about how comfortable you are with multiples in the areas that you're looking at? Are there parts of the market that are getting a little frothy for your comfort? Or are you still pretty comfortable with valuations across the board?

非常好。然後，我想就您關於併購的評論提出一個後續問題。您能否談談您對所關注領域的多學科交叉融合的接受程度？市場中是否有某些部分價格過高，讓你感到不安？或者您仍然對整體估值感到比較滿意？

Maybe I'll answer it in a different way. I plan to be extremely disciplined in our approach to acquisitions. We're not going to acquire for the sake of acquiring. We will acquire if it makes sense, if it adds value to our customers, but also if it adds value to the shareholders of the company. So the multipliers will have to be right. And if a certain acquisition will be out in the market for a bid and prices will not be reasonable, we're not going to go for it.

或許我會用另一種方​​式回答。我計劃在收購方面採取極為嚴謹的態度。我們不會為了收購而收購。如果收購有意義，能夠為我們的客戶創造價值，同時也能為公司的股東創造價值，我們就會進行收購。所以乘數必須正確。如果某個收購案公開招標，但價格不合理，我們就不會參與。

Got it. Very good. And then one last one for me on the trading and leasing business, as you noted, you're tripling here year over year. I know that's a lumpy business and probably pretty difficult to forecast, but can you kind of give us any expectations on the relative year-over-year growth here that you're looking at in the second half within that segment?

知道了。非常好。最後，關於貿易和租賃業務，正如您所指出的，您的業務每年都在增長三倍。我知道這是一個波動較大的行業，可能很難預測，但您能否大致說明一下您對該業務板塊下半年同比增速的預期？

Yeah. There are two aspects here. The first aspect is the leasing side of the business. Every asset that we own is leased. We have nothing that is sitting and waiting. There is huge demand, and I wish that we could have had more assets for the leasing activity. So over there, it's not going to grow substantially because everything that we have is deployed. But it's steady and continues. And as long as the supply chain challenges in the industry continues, I feel that we will keep on enjoying very strong demand on the leasing side.

是的。這裡有兩個面向。第一個面向是業務的租賃環節。我們擁有的所有資產都是租賃的。我們沒有任何東西是閒置待用的。市場需求龐大，我希望我們能有更多的資產用於租賃業務。所以那邊不會有大幅成長，因為我們所有的資源都已經部署完畢了。但它穩定且持續。只要產業供應鏈挑戰持續存在，我認為租賃方面的需求就會持續保持強勁勢頭。

On the trading, it's a little bit more challenging. There are two factors here. First of all, our trading business is based on finding removed assets. Assets that were removed from all the aircraft, all fleet. Buying them, then bringing them to the shops, overhauling them, and exchanging them with exchange programs to customers that have out of inventory; or in other cases, on the lending gear, selling them to customer that needs lending gear sets.

交易方面，就更具挑戰性了。這裡有兩個因素。首先，我們的交易業務是基於尋找被移除的資產。從所有飛機、所有機隊中移除的資產。買下它們，然後帶到商店，進行翻新，並透過以舊換新計劃將它們出售給庫存不足的客戶；或者在其他情況下，作為租賃設備，將它們出售給需要租賃設備的客戶。

But there are two factors here that makes it a little bit more spotty. There is no real ongoing flow of deals that you can look at; therefore, answering the question is very difficult. The first factor is that, as a general saying, because of the fact that the airlines keep on flying very old platforms, there is much less tear down activity of old airplanes comparing to what it used to be in the past, up until year and a half, two years ago. So it's much harder to find assets as they move assets from tear downs to purchase.

但有兩個因素使得情況略顯不穩定。目前並沒有真正持續不斷的交易可供參考；因此，回答這個問題非常困難。第一個因素是，總的來說，由於航空公司一直在運營非常老舊的平台，因此與過去一年半到兩年前相比，舊飛機的拆解活動要少得多。因此，隨著資產從拆除轉移到收購，尋找資產變得更加困難。

And there are lots of companies like us that are dealing with trading, as you know, we're all fighting on the same fleet. So one challenge is to put your hand on the right assets and to buy them typically very fast deals that goes away within a couple of days.

還有很多像我們一樣從事貿易的公司，正如你所知，我們都在同一支艦隊中競爭。因此，一個挑戰是找到合適的資產並迅速買入，這些交易通常會在幾天內消失。

And the second factor is operational efficiency. So let's assume that you purchased the asset. Now you need to overhaul it. And you want to balance with the MRO intake that we have. So first of all, we need to take care of our customers on the MRO side.

第二個因素是營運效率。假設您已經購買了該資產。現在你需要徹底改造它。而且你還想與我們現有的MRO攝取量保持平衡。所以首先，我們需要在MRO（維護、維修和大修）方面照顧好我們的客戶。

What Ehud mentioned before is where we leveraged it in the second quarter. So we had a software intake than usual which basically opened up some capacity. And we immediately leveraged the capacity to overhaul assets that we purchased since the beginning of the year. And to put them on the shelf for sale or to sell or to exchanges, APUs, exchanges, and landing gear sales. And you see it in the results.

埃胡德之前提到的正是我們在第二季加以利用的地方。因此，我們的軟體需求量比平常增加，這基本上釋放了一些產能。我們立即利用自身能力，對年初以來收購的資產進行了全面改造。並將它們上架出售或交換，APU、交換和起落架銷售。結果也證明了這一點。

So these factors, ability to find the assets in the market and the capacity that you need to reserve to take care of your customers are going to continue and creating fluctuations on the trading deals, almost like a counter cycle, if you will, that can change from quarter to quarter.

因此，這些因素，即在市場上找到資產的能力以及為照顧客戶而需要預留的產能，將繼續造成交易波動，幾乎就像一個反向週期，而且這種波動可能會逐季度發生變化。

Having said all of this, we have a great team of employees and leaders in the trading department that are working very hard to bring more and more deals and to find more and more assets. So we definitely want to increase this business.

儘管如此，我們交易部門擁有一支優秀的員工和領導團隊，他們正努力促成越來越多的交易，尋找越來越多的資產。所以我們肯定希望擴大這項業務。

Very good. That's very helpful commentary. Congratulations again on a nice quarter and really great backlog growth. Thanks for taking my questions, and I'll get back in queue.

非常好。這是很有幫助的評論。再次恭喜你們本季業績出色，積壓訂單成長非常強勁。感謝您回答我的問題，我會盡快重新排隊。

Thanks, Ben. I appreciate the comment.

謝謝你，本。感謝您的評論。

Jonathan Siegman, Stifel.

喬納森·西格曼，斯蒂費爾。

Good day. Thank you for taking my question. Just on the margins, I was impressed to see them rise sequentially despite some of the segments not having sales growth sequentially. Was there any one-off benefits there that helped you that might not be sustainable? Or any other colour you can expand on what drove that impressive margins? Thank you.

再會。感謝您回答我的問題。僅就邊際效益而言，令我印象深刻的是，儘管某些細分市場的銷售額沒有環比增長，但它們仍然實現了環比增長。那裡是否有一些一次性的、但可能無法持續的好處？或者您能否用其他顏色來詳細解釋一下是什麼因素促成瞭如此驚人的利潤率？謝謝。

Hi, Jonathan. I stated it every quarter in the last, I believe, six, seven quarters. My goal is to improve a strategy that results in improving profitability. So for me, improving the margin and improving the profit is more important than just improving revenue for the sake of revenue.

嗨，喬納森。在過去的六、七個季度裡，我每季都說過這句話。我的目標是改善能夠提高獲利能力的策略。所以對我來說，提高利潤率和提高利潤比為了提高收入而提高收入更重要。

Behind this nice slogan, we have meaningful initiatives across the board in all the sites. I'm talking about, initiatives to improve the operational efficiencies, automation, improving equipment, initiatives around the workforce itself, how to make the employee's life easier, how to improve productivity, how to improve utilization of employees.

在這個美好的口號背後，我們在所有站點都開展了意義深遠的各項舉措。我指的是提高營運效率、實現自動化、改善設備、以及圍繞員工隊伍本身的各項舉措，例如如何讓員工的生活更輕鬆、如何提高生產力、如何提高員工利用率。

I can say that with all the improvements that we have achieved, we have still many of these initiatives underway. And this is why we feel that we have more room to continue and improve. I wouldn't say that there was any specific element, one-time element, that contributed. Because if you look at the overall trend over the last two years, it's consistent improvement.

我可以說，儘管我們已經取得了許多進步，但我們仍有許多此類舉措正在進行中。正因如此，我們才覺得我們還有很大的發展和進步空間。我不會說有什麼特定的因素，或是某個一次性因素促成了這件事。因為如果你看一下過去兩年來的整體趨勢，你會發現它一直在持續改善。

The second thing that we do to improve the EBITDA is we make sure that we manage our expenses. We are running the business very lean. And we are paying a lot of attention not to increase our operating expenses more than what the business can afford, and make sure that we always increase revenue more than what we increase expenses and spending to verify that we will increase the margin.

我們提高 EBITDA 的第二件事是確保控制好支出。我們的業務運作非常精簡。我們非常注重控制營運支出，避免超出企業承受能力，並確保收入成長始終大於支出成長，以驗證利潤率的提高。

The last major effort that we have is on the purchasing price. Continuing substantial effort in our supply chain to reduce cost, to find alternative suppliers, to improve quality, and to reduce waste in production. All of this resulting in what we see. And again, I believe that we have still more to do in the coming few quarters.

我們最後的主要工作是採購價格。我們將繼續在供應鏈中投入大量精力，以降低成本、尋找替代供應商、提高品質並減少生產中的浪費。這一切最終導致了我們所看到的一切。而且，我認為在接下來的幾個季度裡，我們還有更多的工作要做。

Thank you. And then slipping another one on freight, you mentioned being impacted by tariffs, specifically, is that end market one where you're seeing some strengthening the last month? Thank you very much.

謝謝。然後，關於貨運方面，您提到了關稅的影響，特別是終端市場，您是否看到上個月該市場有所走強？非常感謝。

Yes, definitely. And I'm not sure that they had, by the way, I'm not representing the freight companies, the cargo carriers. But there was a concern. When the tariff came, I know they were expressing serious concern about potential impact on their business. I don't know if at the end of the day they reported a slowdown or not, to be honest. But they act based on the concerns. Discretionary spending is the first time that you cut when you have concern about the outlook of your business. So that's our interpretation of the situation.

是的，當然。順便說一句，我不確定他們是否真的有，我並不代表貨運公司或貨物運輸公司。但存在一些擔憂。我知道，當關稅出台時，他們對關稅可能對其業務造成的影響表示嚴重關切。說實話，我不知道他們最終是否報告了經濟放緩的情況。但他們的行動是基於這些擔憂。當你對企業前景感到擔憂時，首先要削減的就是可自由支配支出。這就是我們對情況的解讀。

Thank you.

謝謝。

I'm now going to move to any written questions that were submitted using the Q&A widget. Here is a question around the backlog. The question is how long is the backlog in terms of years ahead or how much of it is for next year? Maybe talk about how the backlog converts into revenue over time.

接下來，我將回答透過問答小工具提交的書面問題。這裡有一個關於積壓工作的問題。問題是，積壓的訂單會持續多久，以年為單位計算，或者說，有多少訂單會持續到明年？或許可以談談積壓訂單如何隨著時間的推移轉化為收入。

Yes. So the backlog includes two types of -- it's backlog and long-term value of MRO. On the OEM side, it's backlog. These are the confirmed POs that we received from our customers. And on the MRO, when every contract that we signed, based on the customer forecast, we assign the value that we expect -- the revenue value that we expect to see from the customer. We actually update this value on an annual based on the actual performance of the customer. So that's the methodology that we are using.

是的。因此，積壓工作包括兩種類型－積壓工作和MRO的長期價值。OEM廠商方面，有積壓訂單。以下是我們收到的客戶已確認的採購訂單。在 MRO 方面，我們簽訂的每一份合同，都會根據客戶的預測，賦予我們預期的價值——即我們預期從客戶那裡獲得的收入價值。實際上，我們會根據客戶的實際業績，每年更新一次這個數值。這就是我們採用的方法。

MRO deals are typically signed between three to five years. So when we sign, if we announce, I don't know, the $40 million deal, if it's based on five years, it's going to be $8 million a year for the coming five years. But the range is between three to five years.

MRO（維修、維修和大修）合約通常簽訂三到五年。所以當我們簽約，宣布，我不知道，那份價值 4000 萬美元的合同，如果是五年期的，那麼未來五年每年就是 800 萬美元。但具體時間範圍在三到五年之間。

And on the OEM side, you can split it again between two types. One is shorter-term projects like accessories, air conditioned systems and such. The typical orders that we received today, then we're supposed to supply them in the next -- by the end of next year. On the thermal components, I think we have all the POs already for 2026.

在 OEM 方面，也可以將其分為兩種類型。一是短期項目，例如配件、空調系統等。我們今天收到的典型訂單，應該在明年年底前交付。關於散熱組件，我認為我們已經拿到了 2026 年的所有採購訂單。

And behind that, if we have an exclusive agreement with an air cap manufacturers where we supply the thermal components, we are calculating the value that they will have to purchase from us in the following years based on their production plan of aircraft.

此外，如果我們與氣帽製造商簽訂了獨家協議，為其提供熱元件，我們會根據他們的飛機生產計劃，計算他們未來幾年需要從我們這裡購買的元件的價值。

So again, it's not an easy answer and it's definitely not just for next year. So again, MRO three to five years. OEM on fleets that are going to continue being produced over the next couple of years, we look at the value based on the production.

所以，這又不是一個容易回答的問題，也絕對不只是明年的問題。所以，MRO（維修、維修和大修）週期為三到五年。對於未來幾年將繼續生產的車隊，我們將根據產量來評估其價值。

Thank you for that response, Igal. There are additional questions, but as I read through them, they are questions that have already been answered by you. So I respectfully appreciate the submission of those questions. Hopefully, you got the answers you needed. If not, please feel free to reach out to the IR team after the call, and we'll follow up with you. At this point, I'd like to turn the call back to Igal for concluding remarks.

謝謝你的回复，伊加爾。還有一些其他問題，但我讀了一遍之後發現，這些問題您都已經回答過了。因此，我謹此感謝各位提出這些問題。希望你已經找到想要的答案了。如果還有其他問題，請在通話結束後隨時聯繫投資者關係團隊，我們會跟進處理。現在，我想把電話轉回伊加爾，請他做總結發言。

Basically, just as a conclusion of this call, first of all, thank you for joining us. This quarter was another milestone for TAT reflecting the benefits of the first (inaudible) offer to our customers and the growth prospect that it provides. Our increasing strength enable us to pivot a capital market transaction that strengthens our balance sheet and optimizes our capital structure. This positions us to advance to the next stage of our strategy, adding acquisitions alongside with continuing the organic growth that we enjoy.

最後，感謝各位參加本次通話。本季是 TAT 的又一個里程碑，反映了我們首次（聽不清楚）優惠為客戶帶來的益處以及它所帶來的成長前景。我們不斷增強的實力使我們能夠進行資本市場交易，從而增強我們的資產負債表並優化我們的資本結構。這使我們能夠推進到策略的下一階段，在繼續保持現有有機成長的同時，增加收購活動。

We head into the second half of the year with a strong momentum, while remaining mindful of ongoing industry-wide challenges. I believe that we are now better positioned than before, and I am more confident than ever in our long-term prospects. So again, thank you very much for the confidence in us and for joining us and have a good day.

我們帶著強勁的發展勢頭進入下半年，同時也密切關注整個產業持續面臨的挑戰。我相信我們現在比以前更有優勢，我對我們的長期前景也比以往任何時候都更有信心。再次感謝您對我們的信任和參與，並祝您有美好的一天。

This concludes the earnings conference call. You may now disconnect your lines.

本次財報電話會議到此結束。現在您可以斷開線路了。