TransDigm Group Inc (TDG) 2025 Q1 法說會逐字稿

Welcome to TransDigm Group Inc. Q1, 2025 Earnings Conference Call. (Operator Instructions)

歡迎參加 TransDigm Group Inc. 2025 年第一季財報電話會議。（操作員指令）

I would now like to turn the conference over to Jamie Stemen, Director of Investor Relations. You may begin.

現在，我想將會議交給投資者關係總監 Jamie Stemen。你可以開始了。

Thank you, and welcome to TransDigm's fiscal 2025 first quarter earnings conference call.

謝謝，歡迎參加 TransDigm 2025 財年第一季財報電話會議。

Presenting on the call this morning are TransDigm's President and Chief Executive Officer, Kevin Stein; Co-Chief Operating Officer, Joel Reiss, and Chief Financial Officer, Sarah Wynne. Also present for the call today is our Co-Chief Operating Officer, Mike Lisman.

今天上午參加電話會議的有 TransDigm 總裁兼執行長 Kevin Stein；聯合營運長 Joel Reiss 和財務長 Sarah Wynne。出席今天電話會議的還有我們的聯合營運長 Mike Lisman。

Please visit our website at transdigm.com to obtain a supplemental slide deck and call replay information. Before we begin, the company would like to remind you that statements made during this call, which are not historical in fact, are forward-looking statements. For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, please refer to the company's latest filings with the SEC available through the Investors section of our website or at sec.gov.

請造訪我們的網站 transdigm.com 以取得補充投影片和通話重播資訊。在開始之前，本公司想提醒您，本次電話會議所作的陳述並非歷史事實，而是前瞻性的陳述。有關可能導致實際結果與前瞻性陳述中表達或暗示的結果存在重大差異的重要因素的更多信息，請參閱公司向美國證券交易委員會(SEC) 提交的最新文件，該文件可通過我們網站的“投資者」部分或sec.gov 取得。

The company would also like to advise you that during the course of the call, we will be referring to EBITDA, specifically EBITDA as defined, adjusted net income and adjusted earnings per share, all of which are non-GAAP financial measures. Please see the tables and related footnotes in the earnings release for a presentation of the most directly comparable GAAP measures and applicable reconciliations.

公司也想提醒您，在電話會議過程中，我們將參考 EBITDA，特別是定義的 EBITDA、調整後淨收入和調整後每股收益，所有這些都是非 GAAP 財務指標。請參閱收益報告中的表格和相關腳註，以了解最直接可比較的 GAAP 指標和適用的對帳。

I will now turn the call over to Kevin.

現在我將電話轉給凱文。

Good morning. Thanks for calling in today. First, I'll start off with the usual quick overview of our strategy. A few comments about the quarter and discuss our fiscal '25 outlook. Then Joel and Sarah will give additional color on the quarter.

早安.感謝您今天的來電。首先，我將簡要概述一下我們的策略。關於本季的一些評論並討論我們的 25 財年展望。然後喬爾和莎拉將對本季進行進一步闡述。

To reiterate, we believe we are unique in the industry in both the consistency of our strategy in both good times and bad as well as our steady focus on intrinsic shareholder value creation through all phases of the aerospace cycle. To summarize, here are some of the reasons why we believe this. About 90% of our net sales are generated by unique proprietary products. Most of our EBITDA comes from aftermarket revenues, which generally have significantly higher margins and over any extended period have typically provided relative stability in the downturns.

需要重申的是，我們相信，我們在行業中是獨一無二的，因為我們無論在順境還是逆境中都堅持一致的戰略，並且始終專注於在航空航天週期的所有階段為股東創造內在價值。總而言之，以下是我們相信這一點的一些原因。我們的淨銷售額約有 90% 來自獨特的專有產品。我們的 EBITDA 大多來自售後市場收入，這些市場通常具有更高的利潤率，並且在任何較長時期內通常都能在經濟低迷時期提供相對的穩定性。

We follow a consistent long-term strategy, specifically. First, we own and operate proprietary aerospace businesses with significant aftermarket content. Second, we utilize a simple, well-proven, value-based operating methodology. Third, we have a decentralized organizational structure and a unique compensation system closely aligned with shareholders. Fourth, we acquire businesses that fit the strategy where we see a clear path to PE-like returns. And lastly, our capital structure and allocations are a key part of our value creation methodology.

具體來說，我們遵循一致的長期策略。首先，我們擁有並經營專有的航空航太業務，其中包含大量售後市場內容。其次，我們採用簡單、經過充分驗證的以價值為基礎的營運方法。第三，我們擁有去中心化的組織架構和與股東緊密結合的獨特薪酬體系。第四，我們收購符合策略的企業，我們看到了實現類似 PE 回報的明確途徑。最後，我們的資本結構和配置是我們價值創造方法的關鍵部分。

Our long-standing goal is to give our shareholders private equity-like returns with the liquidity of a public market. To do this, we stay focused on both the details of value creation as well as careful allocation of our capital. As you saw from our earnings release, we had a strong start to our fiscal year. During the quarter, we saw a healthy growth in the revenues for both our commercial aftermarket and defense market channels. As expected, Commercial OEM revenues were modestly down this quarter compared to prior year, which Joe will discuss further in his market's commentary.

我們的長期目標是為股東提供類似私募股權的回報和公開市場的流動性。為了實現這一目標，我們既注重價值創造的細節，也注重資本的謹慎分配。正如您從我們的收益報告中看到的，我們的財年開局強勁。本季度，我們看到商業售後市場和國防市場通路的收入均實現了健康成長。正如預期的那樣，本季商業 OEM 收入與去年同期相比略有下降，Joe 將在其市場評論中進一步討論這一點。

Bookings in Q1 expanded for all three of our major market channels. Commercial aerospace market trends remain favorable. The commercial aftermarket has returned to normalization as global air traffic has surpassed pre-pandemic levels and robust demand for travel persists. In the commercial OEM market, there is still much progress to be made for OEM rates and our results continue to be adversely affected by OEM performance. Airline demand for new aircraft remains high and the OEMs are working to increase aircraft production.

第一季我們三個主要市場管道的預訂量均有所擴大。商業航空市場趨勢依然良好。由於全球空中交通量已超過疫情前的水平且旅行需求持續強勁，商業售後市場已恢復正常。在商業 OEM 市場，OEM 率仍有很大進步空間，我們的業績持續受到 OEM 性能的不利影響。航空公司對新飛機的需求仍然很高，原始設備製造商正在努力增加飛機產量。

However, Boeing aircraft production rates remain well below pre-pandemic levels as the lingering effects of last fall's nearly two month-long machine of strike and its ongoing impact to the supply chain continue to be felt. The strike has pushed the OEM recovery further to the right and time will tell how this plays out. Our EBITDA, as defined margin, was 52.9% in the quarter. Contributing to this strong Q1 margin is the continued strength in our commercial aftermarket along with diligent focus on our operating strategy, which is allowing margin performance to expand across all segments.

然而，由於去年秋季持續近兩個月的罷工及其對供應鏈的持續影響持續存在，波音飛機的生產率仍遠低於疫情前的水平。罷工進一步推動了原始設備製造商的復甦，時間將告訴我們結果如何。本季度，我們的 EBITDA（定義利潤率）為 52.9%。我們第一季利潤率強勁，得益於我們商用售後市場的持續強勁成長以及對營運策略的專注，這使得所有部門的利潤率得以擴大。

Additionally, we had strong operating cash flow generation in Q1 of over $750 million and ended the quarter with almost $2.5 billion of cash. We expect to steadily generate significant additional cash throughout the remainder of 2025.

此外，我們第一季的營運現金流強勁，超過 7.5 億美元，本季末的現金流接近 25 億美元。我們預計在 2025 年剩餘時間內將穩定產生大量額外現金。

Next, an update on our capital allocation activities and priorities. During Q1, we opportunistically deployed just over $300 million of capital via open market repurchases of our common stock. This equates to approximately 250,000 of our shares at an average price of $1,249 per share. We view these repurchases like any other capital investment and expect this will meet or exceed our long-term return of (inaudible).

接下來，我們來更新我們的資本配置活動和優先事項。在第一季度，我們透過公開市場回購普通股，投機性地部署了超過 3 億美元的資金。這相當於我們的約 25 萬股股票，平均價格為每股 1,249 美元。我們將這些回購視為任何其他資本投資，並預計這將達到或超過我們的長期回報（聽不清楚）。

Regarding the current M&A activities and pipeline, we continue to actively look for M&A opportunities that fit our model. As we look out over the immediate time horizon, we continue to see an expanding pipeline of potential M&A targets, and we do not see this environment slowing in the near term. As usual, the potential targets are mostly in the small and mid-size range, but larger deals may also be actual. I cannot predict or comment on possible closings, but we remain confident that there is a long runway for acquisitions that fit our portfolio.

關於目前的併購活動和管道，我們將繼續積極尋找適合我們模式的併購機會。放眼短期，我們將繼續看到潛在併購目標不斷擴大，我們認為這種環境在短期內不會放緩。像往常一樣，潛在目標大多是小型和中型企業，但也可能有較大的交易。我無法預測或評論可能的交易，但我們仍然相信，適合我們投資組合的收購還有很長的路要走。

The capital allocation priorities at TransDigm are unchanged. Our first priority is to reinvest in our business; second, do accretive disciplined M&A; and third, return capital to our shareholders via share buybacks or dividends. The fourth option paying down debt seems unlikely at this time, though we do still take this into consideration. We are continually evaluating all of our capital allocation options, but both M&A and capital markets are difficult to predict. As always, we continue to closely monitor the capital markets and remain opportunistic.

TransDigm 的資本配置優先順序維持不變。我們的首要任務是對我們的業務進行再投資；第二，進行有紀律的增值型併購；第三，透過股票回購或股利向股東返還資本。第四種選擇是償還債務，目前看來可能性不大，儘管我們仍在考慮這一點。我們正在不斷評估所有的資本配置方案，但併購和資本市場都很難預測。像往常一樣，我們將繼續密切關注資本市場並把握機會。

As mentioned earlier, we ended the quarter with a sizable cash balance of almost $2.5 billion. We have significant liquidity and financial flexibility to meet any likely range of capital requirements or other opportunities in the readily foreseeable future.

如前所述，本季末我們的現金餘額接近 25 億美元。我們擁有充足的流動性和財務靈活性，可以滿足可預見的未來任何可能的資本需求或其他機會。

Moving to our outlook for fiscal '25. The guidance assumes no additional acquisitions or divestitures and is based on current expectations for continued performance in our primary commercial end markets throughout fiscal '25. Although we saw strong first quarter results, we are not changing our full year revenue and EBITDA as defined guidance for fiscal 2025 at this time. We are also maintaining our previously issued full year market channel growth rate assumptions for commercial OEM, commercial aftermarket and defense as underlying market fundamentals have not meaningfully changed for any of these markets.

轉向我們對25財年的展望。該指引假設不會進行任何額外的收購或資產剝離，而是基於對我們在 25 財年主要商業終端市場持續表現的當前預期。儘管我們看到了強勁的第一季業績，但目前我們不會改變 2025 財年的全年營收和 EBITDA 預期。我們也維持先前發布的商業 OEM、商業售後市場和防禦全年市場通路成長率假設，因為這些市場的基本面均未發生重大變化。

Additionally, uncertainty remains around the commercial OEM production rate progression and supply chain impact as Boeing recovers from the machine strike. We will continue to closely monitor the situation and respond as needed with commercial OEM production ramp up certainty and only one quarter of data, it's too close to call on making changes to our primary end market guidance at this time.

此外，隨著波音公司從機器罷工中恢復過來，商業 OEM 生產力進展和供應鏈影響仍然存在不確定性。我們將繼續密切關注情況，並根據需要做出反應，鑑於商業 OEM 產量提升的確定性和僅有一個季度的數據，目前還無法決定是否對我們的主要終端市場指導做出更改。

Our guidance can be found on Slide 6, in the presentation, and I will reiterate it here. The mid-point of our fiscal '25 revenue guidance is $8.85 billion or up approximately 11%. The revenue guidance is based on the following market channel growth rate assumptions. Commercial OEM revenue growth in the mid-single-digit percentage range, which is highly dependent on the evolution of the production rates in the commercial OEM environment. Commercial aftermarket revenue growth in the high single-digit to low double-digit percentage range and defense revenue growth in the high single-digit percentage range.

我們的指導可以在簡報的第 6 張幻燈片中找到，我將在這裡重申。我們對 25 財年營收預期的中間值為 88.5 億美元，成長約 11%。收入指引基於以下市場通路成長率假設。商業 OEM 收入成長率處於中等個位數百分比範圍內，這高度依賴商業 OEM 環境中生產力的變化。商業售後市場收入成長率在高個位數至低兩位數百分比範圍內，國防收入成長率在高個位數百分比範圍內。

The mid-point of fiscal 2025 EBITDA is defined guidance is $4.685 billion, or up approximately 12% with an expected margin of around 52.9%. This guidance includes about an additional 70 basis points of margin dilution from recent acquisitions compared to fiscal '24. While we had a strong EBITDA margin result in the first quarter of '25, margins can be lumpy and may fluctuate over the next few quarters. The mid-point of adjusted EPS is increasing versus our prior guide to reflect the lower outstanding share count resulting from the share repurchases discussed earlier.

2025 財年 EBITDA 中點預期為 46.85 億美元，或成長約 12%，預期利潤率約 52.9%。與 24 財年相比，該指引包括最近收購帶來的額外約 70 個基點的利潤率稀釋。雖然我們在 25 年第一季的 EBITDA 利潤率表現強勁，但利潤率可能會不穩定，並且可能會在接下來的幾季出現波動。調整後每股盈餘的中點相對於我們先前的指引有所增加，這反映了先前討論的股票回購導致的流通股數量減少。

The midpoint of adjusted EPS is now expected to be $36.47 or up approximately 7%. Sarah will discuss in more detail shortly, the factors impacting EPS, along with some other fiscal '25 financial assumptions and updates. We believe we are well positioned for the remainder of fiscal '25. As usual, we will continue to closely watch how the aerospace and capital markets continue to develop and react accordingly.

調整後的每股盈餘中點預計為 36.47 美元，或上漲約 7%。莎拉很快就會詳細討論影響每股收益的因素以及其他一些 25 財年的財務假設和更新。我們相信，我們已為25財年剩餘時間做好了準備。像往常一樣，我們將繼續密切關注航空航天和資本市場的發展並做出相應反應。

Let me conclude by stating that I'm very pleased with the company's performance this quarter. We remain focused on our value drivers, cost structure and operational excellence. We look forward to the remainder of fiscal '25 and providing the value you come to expect from us.

最後，我要說的是，我對公司本季的業績非常滿意。我們仍然專注於我們的價值驅動因素、成本結構和卓越營運。我們期待 25 財年的剩餘時間能為您提供我們所期望的價值。

Now let me hand it over to Joel Reiss, our TransDigm Group Co-COO, to review our recent performance and a few other items.

現在，讓我將主題交給 TransDigm 集團聯席營運長 Joel Reiss，來回顧我們最近的表現和其他一些事項。

Good morning. I'll start with our typical review of results by key market category. For the remainder of the call, I'll provide commentary on a proforma basis compared to the prior year period in 2024. That is assuming we own the same mix of businesses in both periods. The market discussion includes the 2024 acquisitions in both periods.

早安.我首先將從主要市場類別的典型績效回顧開始。在本次電話會議的剩餘時間裡，我將以與 2024 年上一年同期相比的形式提供評論。這是假設我們在兩個時期擁有相同的業務組合。市場討論包括兩個時期的 2024 年收購。

In the commercial market, which typically makes up close to 65% of our revenue, we will split our discussion into OEM and aftermarket. Our total commercial OEM revenue decreased approximately 4% in Q1 compared with the prior year period. Commercial transport OEM, this is largely Boeing and Airbus was down 1%. (inaudible) and helicopter OEM revenue was down 8%. Sequentially, total commercial OEM revenues contracted by 17% in Q1. Bookings in the quarter were solid, up both sequentially and against prior year Q1.

在商業市場中，這通常占我們收入的近 65%，我們將把討論分為 OEM 和售後市場。與去年同期相比，我們第一季的商業 OEM 總收入下降了約 4%。商業運輸原始設備製造商，主要是波音，空中巴士下降了 1%。 （聽不清楚）直升機 OEM 收入下降了 8%。與上一季相比，商業 OEM 總收入下降了 17%。本季的預訂量穩健，季比和去年同期相比都有所成長。

Our commercial OEM business was impacted in the quarter by the Boeing machine of strike, which affected at 737 max, 767 and 777 production lines. In total, the strike and subsequent production restart lasted roughly 12 weeks, specific to TransDigm since we shipped direct as well as through sub-tiers on the affected platforms. The impact across our businesses is uneven and varied.

本季度，我們的商用 OEM 業務受到波音公司罷工的影響，737 Max、767 和 777 的生產線受到影響。總體而言，罷工和隨後的生產重啟持續了大約 12 週，具體到 TransDigm 而言，因為我們在受影響的平台上直接發貨以及透過子層發貨。對我們業務的影響是不均衡且多種多樣的。

Boeing's receiving docks were closed during the strike, while some sub-tiers continue to drive consistent demand. This will likely cause further commercial OEM impact into the balance of the year. It is too soon to determine how much of an impact the strike will have what is a fragile supply chain recovery, precisely predicting the ramp-up and the flow through to the supply chain is tough. However, the commercial OEM guidance we are reiterating today contains what we believe is an appropriate level of risk around the 737 max, 767 and 777 production build rates for the 2025 fiscal year.

罷工期間，波音公司的接貨碼頭關閉，但一些分部繼續推動穩定的需求。這可能會對今年餘下時間的商業 OEM 造成進一步影響。現在判斷罷工將對脆弱的供應鏈復甦產生多大影響還為時過早，準確預測產量上升和流入供應鏈的流量也很困難。然而，我們今天重申的商業 OEM 指引包含了我們認為 2025 財年 737 max、767 和 777 生產建造率的適當風險水準。

As we noted on our last earnings call, shortly after the strike began, we proactively initiated cost reduction initiatives across our operating units to rightsize our structure to account for the lower 2025 OEM production environment. These cost reduction initiatives span furloughs, headcount reduction, hiring freezes, acceleration of productivity projects and a range of other actions aimed at reducing expenses.

正如我們在上次財報電話會議上指出的那樣，罷工開始後不久，我們便積極主動地在整個營運部門啟動成本削減舉措，以調整我們的結構，以適應 2025 年較低的 OEM 生產環境。這些降低成本的措施包括休假、裁員、凍結招募、加速生產力項目以及一系列其他旨在降低開支的行動。

These initiatives enabled us to beat our Q1 and active productivity target and put us in a good position for the year. In addition, as is typical for us, we will add resources judiciously as we see the higher ramp rate materialize. The business jet helicopter (inaudible) in quarter one versus prior year is primarily timing related, but we were also impacted by the 4-week Textron strike. Bookings were up nicely in Q1 over the same period last year, which should set us up for growth in the balance of the year.

這些舉措使我們超額完成了第一季和積極生產力的目標，並為我們今年的經營狀況創造了良好的條件。此外，正如我們的慣例，當我們看到更高的產量上升率時，我們將明智地增加資源。第一季與去年同期相比，商務噴射直升機（聽不清楚）的變化主要與時間有關，但我們也受到了為期四週的德事隆罷工的影響。與去年同期相比，第一季的預訂量大幅成長，這為我們今年全年的成長奠定了基礎。

Now moving on to our commercial aftermarket business discussion. Total commercial aftermarket revenue increased by approximately 9% compared with the prior year period. Sequentially, total commercial aftermarket revenues grew by about 4% compared to Q4 '24. Commercial aftermarket bookings were solid compared to prior year.

現在我們繼續討論商業售後市場業務。商業售後市場總收入與去年同期相比增長了約 9%。與 24 年第四季相比，商業售後市場總收入成長了約 4%。與去年同期相比，商業售後市場的預訂量穩健。

Bookings and shipments are running in line with our expectations, and continue to support our unchanged 2025 commercial aftermarket guidance of high single-digit to low double-digit revenue growth. As a reminder, and as we've said many times before, the commercial aftermarket can be lumpy and when forecasting our commercial aftermarket, we always focus on 12-month trends, not quarterly trends.

預訂量和出貨量符合我們的預期，並持續支持我們對 2025 年商業售後市場收入成長保持不變的預期，即高個位數至低兩位數的收入成長。提醒一下，正如我們之前多次說過的，商業售後市場可能會不穩定，在預測商業售後市場時，我們始終關注 12 個月的趨勢，而不是季度趨勢。

Our commercial aftermarket is made up of four submarkets, passenger, interior, freight and business jet. This quarter, the growth across the four submarkets was vary, but not significantly disconnected from what we had anticipated. All four submarkets revenue increased versus Q1 of last year. Business Jet was stronger and freight weaker than the total commercial aftermarket 9% growth rate.

我們的商業售後市場由四個子市場組成：客運、內裝、貨運和公務機。本季度，四個子市場的成長情況有所不同，但與我們的預期並無太大脫節。與去年第一季相比，四個子市場的收入均有所增加。公務機表現強勁，而貨運表現弱於整體商用售後市場 9% 的成長率。

The passenger submarket performed in line with the overall commercial aftermarket rate of growth. Within our passenger segment, operating units with higher engine content posted very solid growth well in excess of those with non-engine content. Additionally, quarter 1 point of sales data from our distribution partners increased well into double digits first quarter one of last year. These factors give us confidence we will achieve the commercial aftermarket growth rate guidance for fiscal 2025.

乘用車子市場的表現與整體商業售後市場的成長率一致。在我們的客運領域，擁有較高引擎含量的營運單位實現了非常穩健的成長，遠遠超過沒有引擎含量的營運單位。此外，我們的分銷合作夥伴的第一季銷售數據較去年第一季大幅成長了兩位數。這些因素使我們有信心實現2025財年商業售後市場成長率預期。

Turning to broader market dynamics and referencing the most recent IATA traffic data for December. Global revenue passenger miles have continued to surpass pre-pandemic levels since February of 2024. 2024 air traffic increased 10.4% above 2023 and is about 3.8% above prepaid debit (inaudible). RPKs in December were up 8.6% versus prior year. While ASKs were up 5.6% as passenger load factor is a near record highs of 84%, driving the additional upside. IATA currently expects traffic to reach 113% of 2019 levels in 2025 and to surpass prior year traffic by 8%.

轉向更廣泛的市場動態並參考 12 月最新的國際航空運輸協會 (IATA) 交通數據。自 2024 年 2 月以來，全球收入客運里程持續超過疫情前的水平。（聽不清楚）。 12 月份 RPK 較上年同期上漲 8.6%。由於客座率接近 84% 的歷史最高水平，可用座位公里數 (ASK) 上漲 5.6%，從而推動了額外的上漲。國際航空運輸協會目前預計，2025 年的客運量將達到 2019 年水準的 113%，比前一年成長 8%。

Domestic travel also continues to surpass pre-pandemic levels. In the most recently reported traffic data, global domestic air traffic was up 5.7% compared to 2023 and 9.7% compared to 2019. Domestic air travel growth has been driven significantly by outsized growth in China, where air travel was up 20.2% compared to 2019. International traffic continues to trend upwards and has been above pre-pandemic levels for the past few months in the most recently reported data for 2024, international travel was about 0.5% above 2019 levels.

國內旅遊也持續超過疫情前的水準。在最近報告的交通數據中，全球國內航空交通量與 2023 年相比增長了 5.7%，與 2019 年相比增長了 9.7%。國內航空旅行的成長主要受到中國高速成長的推動，與 2019 年相比，中國航空旅行成長了 20.2%。國際交通量持續呈上升趨勢，過去幾個月一直高於疫情前的水平，根據最近報告的 2024 年數據，國際旅行量比 2019 年的水平高出約 0.5%。

Most international markets saw stable growth with Asia Pacific, the major driver of the increase. Shifting to our defense market, which is traditionally is at or below 35% of our total revenue. The defense market revenue, which includes both OEM and aftermarket revenues, grew by approximately 11% compared with the prior year period.

大多數國際市場都實現了穩定成長，其中亞太地區是成長的主要推動力。轉向我們的國防市場，該市場傳統上占我們總收入的 35% 或以下。國防市場收入（包括 OEM 和售後市場收入）較去年同期成長約 11%。

Q1 defense revenue growth was well distributed across our businesses and customer base. We saw similar growth in both the OEM and aftermarket components of our total defense market, with the aftermarket running slightly ahead of OEM.

第一季國防收入成長在我們的業務和客戶群中分佈均勻。我們發現，在整個國防市場中，OEM 和售後市場都實現了類似的成長，但售後市場的成長速度略高於 OEM。

Defense bookings for the quarter were healthy compared to the prior year and continue to support our unchanged 2025 defense guidance of high single-digit revenue growth. However, as you know, defense sales and bookings can be lumpy and forecasting them with precision on a quarterly basis is difficult. Similar to my commercial aftermarket commentary, the defense growth rates could also be uneven over the individual quarters of 2025.

本季的國防訂單與去年相比表現良好，並繼續支持我們對 2025 年國防收入保持高個位數成長的不變預期。然而，如您所知，國防銷售和預訂量可能不穩定，因此很難按季度進行準確預測。與我的商業售後市場評論類似，2025 年各季度的國防成長率也可能不均衡。

In addition, we continue to see steady improvements in on-time delivery and other key customer performance metrics, which are now approaching 2019 levels with improving supply chain performance, we are on track to surpass those levels later this year. We also saw good new business awards and bookings in the quarter in both commercial and defense markets.

此外，我們繼續看到準時交貨和其他關鍵客戶績效指標的穩定改善，目前已接近 2019 年的水平，隨著供應鏈績效的提高，我們預計將在今年稍後超越這些水平。本季度，我們也在商業和國防市場中看到了良好的新業務獎勵和訂單。

Corey Electronics was selected by a major OEM as the provider of a flight deck control panel systems for a new derivative platform. As the incumbent on other platforms with this customer, Corey was well positioned to be responsive to their time line, providing the right technology, customization and capability required in an exceptionally short period of time. In addition to Corey Electronics, we had solid awards during the quarter at Airborne Systems North America, Armtec, Cellspan and (inaudible) within the quarter.

Corey Electronics 被一家大型 OEM 選定為新衍生平台的駕駛艙控制面板系統供應商。作為該客戶其他平台的現任負責人，Corey 能夠很好地回應他們的時間表，並在極短的時間內提供所需的正確技術、客製化和功能。除了 Corey Electronics 之外，我們在本季還獲得了 Airborne Systems North America、Armtec、Cellspan 和（聽不清楚）等多項大獎。

During the quarter, we saw our succession planning at work with one executive EVP retirement and two EVP promotions. Pete Palmer, after an impressive 25-year career with TransDigm has retired. Pete began as a product line manager of (inaudible) Wiggins and evolved into a key leader within our organization. His contribution span multiple areas, including mergers and acquisitions, serving as President of several business units, playing a pivotal role in the Esterline integration and spearheading our TransDigm University leadership development program in partnership with the University of Southern California.

在本季度，我們的繼任計畫取得了進展，一位執行副總裁退休，兩位執行副總裁晉升。皮特帕爾默 (Pete Palmer) 在 TransDigm 工作了 25 年，成績斐然，現已退休。皮特最初是 (聽不清楚) 威金斯的產品線經理，後來逐漸成為我們組織內的關鍵領導者。他的貢獻涉及多個領域，包括併購、擔任多個業務部門的總裁、在 Esterline 整合中發揮關鍵作用以及與南加州大學合作帶頭開展我們的 TransDigm 大學領導力發展計劃。

We extend our heartfelt thanks to Pete for his dedication and wish him a well-deserved relaxing retirement. With Pete's retirement and the acquisitions made in 2024, we promoted 2 accomplished leaders to Executive Vice President roles. Jason Marlink, who joined us has accumulated 17 years of experience across several TransDigm operating units. His most recent role was as President of Champion Aerospace and Liberty, South Carolina. Jason was promoted in October, and now we'll oversee 6 operating units.

我們向皮特的奉獻精神表示衷心的感謝，並祝福他享受當之無愧的輕鬆退休生活。隨著 Pete 的退休和 2024 年的收購，我們將 2 位傑出的領導者提拔為執行副總裁。加入我們的 Jason Marlink 在多個 TransDigm 營運部門累積了 17 年的經驗。他最近的職位是南卡羅來納州 Champion Aerospace 和 Liberty 公司的總裁。傑森在十月升職了，現在我們將負責管理 6 個營運部門。

Similarly, Chris Blackford, who has served with TransDigm for 11 years was promoted in November. Chris has held leadership roles across multiple units, including his most recent position as President of Airborne Systems North America. Like Jason, Chris will be responsible for over six operating units. We are confident that both Jason and Chris will continue driving operational excellence and value creation across the organization.

同樣，在 TransDigm 任職 11 年的克里斯布萊克福德 (Chris Blackford) 於 11 月獲得晉升。克里斯曾在多個部門擔任領導職務，最近擔任的是北美機載系統總裁。與傑森一樣，克里斯將負責六個以上的營運部門。我們相信 Jason 和 Chris 將繼續推動整個組織的卓越營運和價值創造。

Lastly, I'd like to wrap up by expressing how pleased I am by our operational performance in the first quarter. There was a very good start to our fiscal 2025. As we progress further into fiscal '25, our management teams remain focused on our consistent operating strategy and servicing the strong demand for our products.

最後，我想表達一下我對第一季營運表現的滿意。我們的 2025 財年有一個非常好的開始。隨著我們進一步進入25財年，我們的管理團隊仍然專注於我們一致的營運策略並滿足對我們產品的強勁需求。

With that, I would like to turn it over to our Chief Financial Officer, Sarah Wynne.

接下來，我想將發言權交給我們的財務長 Sarah Wynne。

Thanks, Joel, and good morning, everyone.

謝謝，喬爾，大家早安。

I'll recap the financial highlights for the first quarter and then provide some more information on the guidance. First, on organic growth and liquidity. In the first quarter, our organic growth rate was 6.6%, driven by our commercial aftermarket and defense market channels, as Kevin and Joel have just discussed. On cash and liquidity, free cash flow, which we traditionally defined as EBITDA less cash interest payments, CapEx and cash taxes was over $800 million for the quarter.

我將回顧第一季的財務亮點，然後提供更多有關指引的資訊。首先，關於有機成長和流動性。正如 Kevin 和 Joel 剛才所討論的，第一季我們的有機成長率為 6.6%，這主要得益於我們的商業售後市場和國防市場通路。在現金和流動性方面，本季的自由現金流（我們傳統上將其定義為 EBITDA 減去現金利息支付、資本支出和現金稅）超過 8 億美元。

This is higher than our average free cash flow conversion due to the timing of our interest and tax payments. This will normalize throughout the year as our interest and tax payments will pick up next quarter. For the full fiscal year, our free cash flow guidance is unchanged. We continue to expect to generate free cash flow of approximately $2.3 billion in fiscal '25. Below the free cash flow line, net working capital usage was neutral for the quarter.

由於我們的利息和稅款支付時間，這高於我們的平均自由現金流轉換率。由於我們的利息和稅款支付將在下個季度增加，因此這種情況將在全年內正常化。對於整個財年，我們的自由現金流指引保持不變。我們繼續預計在25財年產生約23億美元的自由現金流。在自由現金流線以下，本季淨營運資本使用情況維持中立。

For the full year, we expect working capital to end roughly in line with historical levels as a percentage of sales. We ended the quarter with approximately $2.5 million of cash on the balance sheet, and our net debt-to-EBITDA ratio was 5.3x, up from 4.5x at the end of last quarter after paying out the $75 dividend earlier in Q1. While we don't target a specific amount of cash that we like to have on hand, we have sufficient capital available through both cash on hand as well as incremental debt capacity to support all potential M&A activity in the pipeline.

我們預計，就全年而言，營運資本佔銷售額的百分比將與歷史水準大致一致。本季末，我們的資產負債表上有大約250 萬美元的現金，我們的淨債務與EBITDA 比率為5.3 倍，高於上一季末的4.5 倍（當時我們在第一季早些時候支付了75 美元的股息）。雖然我們沒有設定希望手頭上持有的特定現金金額，但我們透過手頭現金和增量債務能力擁有足夠的資本來支持所有潛在的併購活動。

As a reminder, we are comfortable operating in the 5% to 7% net debt-EBITDA ratio range. And while we are currently sitting on the low end of this range, our go-forward strategy, capital deployment has not changed. Our EBITDA to interest expense coverage ratio ended the quarter at 3.4x, which provides us comfortable cushion versus our target of 2 times to 3 times.

提醒一下，我們可以在 5% 至 7% 的淨負債-EBITDA 比率範圍內輕鬆營運。雖然我們目前處於該範圍的低端，但我們的未來策略和資本配置並沒有改變。本季末，我們的 EBITDA 與利息費用覆蓋率達到 3.4 倍，與我們 2 倍至 3 倍的目標相比，這提供了舒適的緩衝。

Regarding our debt, our nearest term maturity is 2027, and we remain approximately 75% hedged on a total $25 billion gross debt balance through our fiscal 2027. This is achieved through a combination of fixed rate notes, interest rate caps swaps and collars. This provides us plenty of protection at least in the medium term.

至於我們的債務，最近的到期日是 2027 年，到 2027 財年，我們對總計 250 億美元的總債務餘額仍保持約 75% 的對沖。這是透過結合固定利率票據、利率上限互換和利率區間來實現的。這至少在中期為我們提供了充足的保護。

As Kevin mentioned, during the quarter, we opportunistically re-purchased approximately 250,000 shares, deploying just over $300 million of cash. We continue to seek the best opportunities for providing value to our shareholders through our leverage strategy. On a go-forward basis, we expect to continue to both proactively and prudently manage our debt maturity steps, which for us is pushing out any near-term maturities well in advance of the final maturity date.

正如凱文所說，在本季度，我們趁機回購了約 25 萬股，投入了超過 3 億美元的現金。我們繼續透過槓桿策略尋求為股東提供價值的最佳機會。從未來來看，我們預計將繼續積極、審慎地管理我們的債務到期步驟，對我們來說，這將使任何近期到期債務在最終到期日之前得到推遲。

With regard to guidance, as Kevin mentioned, we maintained our prior guidance for sales and EBITDA. Our adjusted EPS guidance is up slightly, now at $36.47 compared to the prior guidance of $36.32. The increase is due to the approximately 250,000 shares we repurchased during the quarter. As we sit here today, from an overall cash liquidity and balance sheet standpoint, we think we remain in good position with adequate flexibility to pursue M&A or return cash to our shareholders via dividends or share repurchases.

關於指引，正如凱文所提到的，我們維持了先前的銷售額和 EBITDA 指引。我們的調整後每股收益預期略有上調，目前為 36.47 美元，而先前的預期為 36.32 美元。成長的原因是本季我們回購了約 25 萬股。今天，從整體現金流動性和資產負債表的角度來看，我們認為我們仍然處於良好地位，擁有足夠的靈活性來進行併購或透過股利或股票回購向股東返還現金。

With that, I'll turn it back to the operator to kick off the Q&A.

說完這些，我會把話題轉回給接線生，開始問答環節。

Thank you. (Operator Instructions)

謝謝。（操作員指令）

Myles Walton, Wolf Research.

邁爾斯·沃爾頓，沃爾夫研究公司。

Thanks. Good morning. In the first quarter margins were expected to be down sequentially. They were obviously, they were up sequentially. Curious if you can comment on that. And also the contract loss amortization was running pretty hot. What's causing that to sort of go up in level? And then what's the expectation for the full year? Thnaks.

謝謝。早安.預計第一季利潤率將環比下降。顯然，它們是連續上升的。好奇您是否可以對此發表評論。而且合約損失攤銷也相當激烈。什麼原因會導致這種程度的上升？那麼對全年的預期是什麼呢？謝謝。

Sure, Myles, this is Sarah. I'll take those. So in Q1, the higher EBITDA margin obviously is primarily driven from the significant mix shift we had in the quarter for commercial OEM to commercial aftermarket. And then also, we have good productivity projects, but the mix is the primary piece of that. On the lost contracts, I think you obviously saw that in the table there. These are some of those contracts that we purchased with Esterline. So they're still lumpy as they flow out. There's been no new bus contracts nothing else added to it, but that's what you see flowing out and there was just some timing on some of that in Q1 for this quarter for this year.

當然，邁爾斯，這是莎拉。我會接受這些。因此，在第一季度，較高的 EBITDA 利潤率顯然主要得益於我們在本季從商業 OEM 到商業售後市場的重大組合轉變。而且，我們也有良好的生產力項目，但組合是其中的主要部分。關於丟失的合同，我想您顯然已經在表格中看到了。這些是我們與 Esterline 購買的一些合約。所以當它們流出來的時候，它們仍然是塊狀的。沒有新的公車合同，也沒有其他附加內容，但這就是您所看到的流出內容，並且今年第一季的一些時間安排而已。

Okay. And just a quick one. The sale -- the gain on sale, what was sold in the quarter?

好的。這只是一個簡單的例子。銷售額－銷售收益，本季銷售了什麼？

We had a Mass business --

我們有一個大眾業務--

Sorry, on the gain on sale, yeah. We sold a small piece called Mass Systems in the quarter. We bought it a few years ago, much to improve it and sold at a profit.

抱歉，是的，關於銷售收益。我們在本季出售了一個名為 Mass Systems 的小部分業務。我們幾年前買了它，對它進行了大量改進，然後以盈利的方式賣掉它。

It came along with --

它伴隨著--

(inaudible)

（聽不清楚）

Yeah, another acquisition, very close to the Russian border and it made mass -- communication mass for troops on the ground, and it really wasn't a business we wanted to be in.

是的，另一項收購，非常靠近俄羅斯邊境，它為地面部隊提供了大規模通信，這真的不是我們想從事的業務。

Thank you.

謝謝。

Noah Poponak, Goldman Sachs.

高盛的諾亞·波波納克（Noah Poponak）。

Hey, good morning everyone. Maybe just staying on the margins since they were up nicely year-over-year. I guess the guidance for the year at the midpoint would imply that, that EBITDA margin is essentially flat through the rest of the year. And I think you usually have some seasonality where it expands through the year. Your recently acquired revenue would become less recently acquired. What would drive the margin to be flat through the year?

嘿，大家早安。由於年復一年的良好成長，或許只是保持邊緣水平。我猜測，今年中期的指引意味著，EBITDA 利潤率在今年剩餘時間內基本持平。我認為通常會有一些季節性，它會在一年內不斷擴展。您最近獲得的收入將會減少。哪些因素會導致利潤率全年保持穩定？

But we have to factor in the acquisitions we made are certainly averaging us down. I think that mixes us down up to 1% about -- we saw a special situation in the first quarter with the strike and OEM being down quite surprisingly from where we forecast. But I think it's -- we aim to be conservative. So hopefully, we're conservative and it might look like we are once again. But we don't try to get out over our skis too much on forecasting the future. We'll see how it unfolds.

但我們必須考慮到，我們所做的收購肯定會降低我們的平均值。我認為這會讓我們的預測下降 1% 左右——我們在第一季看到了一種特殊情況，即罷工和 OEM 的下降幅度比我們預測的要大得多。但我認為——我們的目標是保守。因此希望我們是保守的，而且看起來我們可能再次是保守的。但我們並不會過度冒險地預測未來。我們將拭目以待事情將如何發展。

Okay. And then, Kevin, just wanted to ask about the commercial transport aftermarket. I guess are you surprised to have two quarters in a row of up seven seat miles are still growing a little faster than that. seems like pricing is still nicely positive year-over-year. Can you talk about a little more about what you're seeing there? Is it just random? Or is it just the compares? I know the compares get a decent amount easier for the rest of the year?

好的。然後，凱文，我只想問一下商業運輸售後市場的情況。我想你會對連續兩個季度七座英里的航空運輸量增長速度仍然稍快一點感到驚訝嗎？與去年同期相比，定價似乎仍然保持良好的正面動力。您能否進一步談談您在那裡看到的情況？它是隨機的嗎？還是只是比較而已？我知道今年剩餘時間的比較會變得容易得多？

Yeah, some of it probably is comparison we're up 33% from Q1 of FY23 in commercial transport. We're kind of seeing some very pieces. We talked about in the submarket, our freight continues to be a bit of a drag, although bookings were up significantly, and we think the freight's kind of bottomed out at this point. our engine businesses we have are doing significantly better than what the kind of the overall numbers.

是的，其中一些可能是比較，我們的商業運輸量比 23 財年第一季成長了 33%。我們看到了一些非常碎片。我們談到，在子市場中，我們的貨運量仍然受到一些拖累，儘管預訂量大幅增加，但我們認為貨運量此時已經觸底。我們的引擎業務表現比整體數字好得多。

It's just right now kind of just the kind of mix of where we're at. It was slightly better than what we had anticipated when we were putting out the initial kind of look last quarter. So for us, it's roughly in line. It's part of the lumpiness of what we expect the commercial aftermarket to be.

這正是我們現在所處的混合狀態。這比我們上個季度推出初步版本時預期的效果要好一些。所以對我們來說，這大致是一致的。這是我們預期的商業售後市場不平衡現象的一部分。

Thank you.

謝謝。

Robert Stallard, Vertical Research.

羅伯特‧斯托拉德 (Robert Stallard)，垂直研究。

Thanks so much. Good morning. Maybe I'll ask Noah's question in a slightly different way. You got the [12] actuals here. But if you look at these various subcomponents of the aerospace aftermarket, where do you expect there to be improvement that would get you to that low double-digit number for the full year?

非常感謝。早安.也許我會以稍微不同的方式問諾亞的問題。您在這裡獲得了 [12] 個實際值。但如果您看一下航空航太售後市場的各個子組件，您預計哪些方面會有所改進，從而使全年的銷售額達到兩位數的低水平？

So we don't provide the specific guidance into the submarkets. Having said that, I think as we've highlighted before, freight, we think, is kind of bottomed out and expect that to continue to improve. The interim business has continued. I would think, to continue to do well. Beyond that, I think we're going to see the -- I think the way we look at it as all of the sectors continue to have the right kind of components behind it of good passenger traffic and an aging aircraft marketplace. I think we'll continue to see kind of the growth across all of the submarkets.

因此，我們不為子市場提供具體的指導。話雖如此，我認為正如我們之前強調的那樣，我們認為貨運量已經觸底，並預計會繼續改善。中期業務仍在繼續。我想，會繼續做得好。除此之外，我認為我們將看到——我認為我們看待這個問題的方式是，所有行業都繼續擁有良好的客運量和老化的飛機市場等正確的要素。我認為我們將繼續看到所有子市場的成長。

And then one for Kevin, tariffs. I was wondering what sort of exposure trends that I might have with regards to tariff that could be through Europe, we got the Canada and Mexico ones as well. And what sort of plans do you put in place as a contingency.

接下來是凱文 (Kevin) 的問題，關稅。我想知道對於通過歐洲的關稅我可能會有什麼樣的曝光趨勢，我們也得到了加拿大和墨西哥的關稅趨勢。您制定了什麼樣的應急計劃？

Thank you.

謝謝。

So we've looked at this across our business. The good news is TransDigm is a domestic manufacturer. We don't import a lot of products to manufacture. So that's to our advantage in this. We've analyzed and I guess it depends on how you answer the question where the tariff is going to be implemented.

所以我們在整個業務範圍內研究了這個問題。好消息是TransDigm是一家國內製造商。我們不進口很多產品來製造。這對我們來說是有利的。我們已經分析過了，我想這取決於你如何回答關稅將在何處實施的問題。

It seems like Mexico and Canada are on a delay. And China is being implemented. We don't do a lot in China any longer. We have, I think, relocated production out of China where possible and don't utilize that location a lot. So we think tariffs for us across the board will be de minimis to the corporation. Again, we're largely a domestic manufacturer.

看起來墨西哥和加拿大正在拖延。中國也正在實施中。我們在中國不再做太多的事情了。我認為，我們已盡可能將生產遷出中國，並且不會大量使用該地區。因此我們認為，我們所有公司的關稅將是最低的。再說一遍，我們主要是國內製造商。

Thank you.

謝謝。

David Strauss, Barclays.

巴克萊銀行的戴維·施特勞斯（David Strauss）。

Thanks, morning. Kevin, I think you had -- on the last call, you had mentioned that Q1 would be the weakest aftermarket quarter. Did the aftermarket end up coming in a little bit better than you would have thought back then?

謝謝，早安。凱文，我想你在上次通話中提到第一季將是售後市場最疲軟的季度。售後市場最終的表現是否比您當時想像中的好一點？

Yeah. I think it did come in a little bit stronger, which was a pleasant surprise to us. It's always difficult to forecast this as Joel and Mike will always say aftermarket is book and ship largely. So it's difficult to forecast.

是的。我認為它確實變得更強勁了，這對我們來說是一個驚喜。預測這一點總是很困難，因為喬爾和麥克總是說售後市場主要是訂單和運輸。所以很難預測。

Okay. And on aftermarket volumes, can you give us -- I know you've given us kind of at a high level where you think it is relative to 2019. Can you give us any idea by the different submarkets where you think volumes are relative to 2019?

好的。關於售後市場銷量，您能否給我們提供——我知道您已經給出了與 2019 年相比的高水平數據。您能否向我們介紹不同子市場的銷售量與 2019 年相比的情況？

I think as everything is above pre-pandemic levels, except for probably our interior businesses. Interiors is driven a lot by the refurb market and refurb really has not come back to where it was back in 2018, 2019. I think as we've talked about this a few times in the last year or so, we keep thinking it's going to happen that it slides a little bit to the right. The refurb programs we've seen announced are generally smaller than what was then back happening in 2018, 2019.

我認為一切都高於疫情前的水平，除了我們的內部業務。室內設計在很大程度上受到翻新市場的推動，而翻新市場實際上還沒有恢復到 2018 年和 2019 年的水平。我想，正如我們在過去一年中談論過這個問題幾次一樣，我們一直認為它會稍微向右滑動。我們看到的已宣布的翻新計劃通常比 2018 年和 2019 年的翻新計劃規模要小。

Freight had come back in 2020 during the pandemic. 2021, I think, was a peak year until this year. So I think freight is doing well. BizJet is is well above where it was pre-pandemic levels as the overall market. So I think as we look at it, really the only area that's lagging today is the interior ease and exactly when that will come back, it's real, just going to be dependent, I think, around when the refurb market comes back when you see the larger OEM -- the larger airlines refreshing their interior.

2020 年疫情期間，貨運量已回升。我認為，2021 年直到今年都是巔峰之年。所以我認為貨運表現良好。與整體市場一樣，BizJet 的股價遠高於疫情前水準。因此，我認為，從我們的角度來看，目前唯一滯後的領域是室內裝修的便利性，而什麼時候才能恢復，這是真的，只是取決於，我認為，當翻新市場恢復時，你會看到較大的 OEM——較大的航空公司正在更新其內部。

Okay, and so, can you remind us how much grade is of your total aftermarket?

好的，那麼，您能提醒我們一下你們的售後市場總體水平是多少嗎？

It is about. 15% or so, 15%, 20% range, it kind of varies, it bounces around, but that's a general range.

它是關於。 15％左右，15％，20％範圍，它有點變化，它會波動，但這是一個大概的範圍。

That's a total or a commercial?

這是總數還是商業廣告？

Of commercial, sorry, yeah, commercial, yeah.

商業的，對不起，是的，商業的，是的。

Thank you. Scott Mikus, Melius Research.

謝謝。米庫斯（Scott Mikus），Melius Research。

Good morning. Kevin, Joel, Sarah, Boeing's has laid out a fairly aggressive production ramp post strike at least the targets day and Airbus both have a track record of not hitting their stated production rate. So I'm just curious, are your operating units receiving orders from Boeing that support a ramp to 38 per month or higher in the back half of this year on the 737?

早安.凱文、喬爾、莎拉，波音公司在罷工後至少在目標日制定了相當積極的生產提升計劃，而空中巴士公司都有未能達到其規定生產率的記錄。所以我很好奇，您的營運部門是否收到波音公司的訂單，支持今年下半年 737 的產量增加到每月 38 架或更高？

So we're typically not getting orders out for what would be the back end of the year yet or lead times are typically shorter than that. We're certainly optimistic that Boeing is going to get back up to the rate of 38. Today, we're probably seeing about half of that we're optimistic that, as I said, the number will move up during the year, and we're prepared to do that. We'll add people as necessary and -- since we're hopeful they can hit their numbers.

因此，我們通常還不會收到年底的訂單，或者交貨時間通常比年底更短。我們非常樂觀地認為波音公司的產量將恢復到 38 噸。今天，我們可能看到了其中的一半左右，我們對此持樂觀態度，正如我所說的，這個數字將在今年上升，我們已做好準備去做到這一點。我們會根據需要增加人員——因為我們希望他們能夠達到他們的人數。

Okay. And then you mentioned the M&A pipeline remains active. But in the quarter, you bought back $316 million of stock. So just curious, are valuations for acquisition targets just too elevated relative to the quality of the assets? Or do you think that your stock is trading at a very attractive price?

好的。然後您提到併購管道仍然活躍。但在本季度，你們回購了價值 3.16 億美元的股票。所以只是好奇，相對於資產品質而言，收購目標的估值是否過高？或者您認為您的股票交易價格非常有吸引力？

Yeah, we're always looking to opportunistically return capital to our shareholders. There was a lot of turmoil in the market, stock fell, we took it opportunistically to buy back some shares. That's really all there is (inaudible). It doesn't say anything about the M&A market, and it wasn't a lot of cash that we used. It was just an opportunity to quickly return cash to -- or capital to the shareholders.

是的，我們一直在尋求機會向股東返還資本。當時市場動盪，股價下跌，我們就趁機回購了一些股票。這就是全部了（聽不清楚）。它沒有提到任何有關併購市場的事情，而且我們使用的現金也不多。這只是一個向股東快速返還現金或資本的機會。

Thank you.

謝謝。

Ken Herbert, RBC Capital Markets.

加拿大皇家銀行資本市場部的肯‧赫伯特 (Ken Herbert)。

Hi, good morning. Can you remind us what percent of aftermarket engine represents? And maybe how much over the up 9 was the engine in the first quarter?

嗨，早安。您能提醒我們售後引擎佔多少百分比嗎？也許第一季的上漲 9 有多大？

So it bounces around for us. It's not immaterial. It was up significantly more than the 9%.

所以它對我們來說是反覆出現的。這並不是不重要的。漲幅遠超 9%。

Okay. And obviously, as we think about that, we think about Champion Jason's business, but is it fair to say that your engine exposure is market weighted? Or are you disproportionately have disproportionately higher content on any engine types?

好的。顯然，當我們考慮到這一點時，我們會考慮冠軍傑森的業務，但可以說您的引擎曝光率是市場加權的嗎？或者您是否在任何引擎類型上擁有不成比例的較高含量？

No, we think we're market weighted across the board.

不，我們認為我們的市場權重是全面性的。

Great. And are you seeing any incremental pressure in -- on pricing across any of the submarkets within the aftermarket relative to maybe where you were 3 months ago?

偉大的。與 3 個月前相比，您是否看到售後市場中任何子市場的定價出現了增量壓力？

I don't think hearing anything specific different from pricing. Our typical approach to pricing is unchanged. We're basically looking to cover our inflationary costs and then a little bit more. And I don't know that we've seen anything significantly different than that.

我認為沒有聽到任何與定價不同的具體內容。我們的典型定價方法並沒有改變。我們基本上希望彌補通貨膨脹的成本，然後再稍微多一點。我不知道我們是否看到與此有顯著不同的東西。

Scott Deuschle, Deutsch Bank.

德意志銀行的 Scott Deuschle。

Hey, good morning. Kevin, did the OEM contract renegotiation you've seen about in the recent past conclude, or is that contract still being negotiated?

嘿，早安。Kevin，您最近看到的 OEM 合約重新談判結束了嗎，還是該合約仍在談判中？

Yes. We successfully closed out the contract Patrick Murphy, one of our EVPs led the negotiation, and we were able to close it out. I think it was in December.

是的。我們成功完成了合同，我們的執行副總裁之一帕特里克·墨菲 (Patrick Murphy) 領導了談判，並最終完成了合約。我認為那是在十二月。

Okay. And were there any retroactive developments to that negotiation that would have helped OE pricing in the quarter just concluded?

好的。該談判是否有任何追溯性進展，從而有助於剛結束的本季的 OE 定價？

No, the contract, it was expiring at the end of December. So the new contracts started January 1. So there was no retroactive aspect to it.

不，合約將於 12 月底到期。因此新合約從 1 月 1 日開始生效。因此，它不具有追溯力。

Okay. And then just to clarify, is the duration of the new contract the same as the duration of the contract that it's replacing? Or did you move to something shorter term in nature?

好的。然後需要澄清的是，新合約的期限與其替代合約的期限相同嗎？還是你已經轉向了一些短期的事情？

Thank you.

謝謝。

Sheila, Jefferies.

希拉，杰弗里斯。

Hey, good morning guys. Maybe just on that last question, Joel. I think it was you or Kevin. If we -- just how do we think about profitability overall, just the flattening out? Is it OE coming back up from down four to mid-single digits? And does the new contract have any changes in your profitability profile?

嘿，大家早安。也許只是關於最後一個問題，喬爾。我認為是你或凱文。如果我們－我們如何看待整體獲利能力，如何趨於穩定？OE 會從下降 4 位回升到中個位數嗎？新的合約會對你們的獲利狀況產生什麼變化嗎？

Our -- I think the contract and OEM business is already in our forecast. So I don't -- there's not going to be any incremental improvements or anything. Anything else to share on that, Joel?

我認為合約和 OEM 業務已經在我們的預測之中。所以我不認為會有任何漸進式的改進或什麼的。喬爾，還有什麼可以分享的嗎？

Then that's right.

那就對了。

Okay. And then maybe if I could ask one on the aftermarket. Interiors, I think that's the only subsegment below 2019 levels. How can we think about what's driving that when you expect that to improve? Does it come in a wave? Or should we see it just a gradual improvement?

好的。然後也許我可以向售後市場的人詢問一下。內飾，我認為這是唯一一個低於 2019 年水平的子細分市場。當您期望情況有所改善時，我們該如何思考推動這種情況的因素？它是一波一波地來的嗎？或者我們應該將其視為一種逐步的改善？

I'm not sure that I could give you any great extra insight. Really it will be is when you see the airlines start announcing a refurb program. I mean it's not the refurb business here. It's well below the kind of typical levels. There are several programs we're hearing about. The question will be is what will drive the numbers of multiple programs for us at the same time as opposed to this is sort of a slow wave of what that looks like. But the lead times will be long, I'm sure we'll be -- we'll have seen that coming, and we'll be able to provide some color as that's coming back. I don't know that today, we see that it's within the next quarter or two.

我不確定我是否可以給你任何額外的見解。當你看到航空公司開始宣布翻新計劃時，這才是真正的翻新。我的意思是這裡不是翻新業務。這遠低於典型水平。我們聽說過幾個項目。問題在於，什麼因素會同時推動我們開展多個項目，而不是像現在這樣呈現一種緩慢的浪潮。但我確信，交貨時間會很長——我們已經預見了這一點，並且能夠在其回來時提供一些資訊。我不知道今天我們看到的是在接下來的一個或兩個季度內。

I think it's also difficult to take planes out of service to refurbish interiors when you don't have enough claim deliveries from the OEMs. So I think all these things kind of were complicated. Yes, that's sort of a complicated relationship.

我認為，當沒有從原始設備製造商獲得足夠的索賠交付時，讓飛機停止運行以翻新內飾也很困難。所以我認為所有這些事情都很複雜。是的，這是一種複雜的關係。

Thank you.

謝謝。

[Seth Seman, JP Morgan]

[Seth Seman，摩根大通]

Hey, thanks very much and good morning everyone. Just maybe go back a little bit to the aftermarket point we touched on a little earlier, things being a little stronger in the first half -- in the first quarter, I think you talked about the first quarter being the lowest of the year and particularly in the fourth quarter, start to get easier. Does anything change in your view of the rest of the year? Or should we still think that there's no reason why we wouldn't see growth below there's no reason we should see growth below what we saw in the first quarter and growth should ascend from here?

嘿，非常感謝，大家早安。也許我們稍微回顧一下我們之前提到的售後市場，上半年的情況要好一些——在第一季度，我認為你說的第一季度是今年以來的最低點，特別是到了第四節，開始改變得容易起來。您對今年剩餘時間的看法有什麼改變嗎？或者我們是否仍應認為，沒有理由我們不會看到低於第一季的成長率，也沒有理由看到低於第一季的成長率，而且成長率應該從現在開始上升？

So I don't think we have anything to kind of change from the guidance we provided to you before. But what we say all the time is the aftermarket is lumpy. I mean the vast majority of our orders book and ship in the same quarter. So we try to look at what the trends are, and there's nothing in the market dynamics today that make us think there's a significant change from what we're seeing today.

因此，我認為我們不需要改變先前向您提供的指導。但我們一直在說售後市場不穩定。我的意思是我們的絕大多數訂單都是在同一季度預訂和發貨的。因此，我們嘗試去觀察趨勢，但當今的市場動態並沒有什麼讓我們認為與今天的情況相比發生了重大變化。

Okay. Okay. And then I guess if you were ever to make an acquisition from one of your customers, would there ever be an opportunity to pay for that acquisition, pay for a portion of that acquisition in the form of pricing rather than cash?

好的。好的。然後我想，如果您要從您的某個客戶那裡進行收購，是否有機會以定價而不是現金的形式支付該收購的一部分？

Certainly hasn't ever come up --. We're opportunistic in everything we do, but that's not our usual process.

當然從來沒有出現過--.我們所做的一切都充滿機會，但這不是我們通常的流程。

Thank you.

謝謝。

Ron Epstein, Bank of America.

美國銀行的羅恩愛潑斯坦 (Ron Epstein)。

Hello everyone. This is Mariana on for Ron today. So in the prepared remarks, you talked about the M&A pipeline and how you have a mix of like Smith cap names and also some large opportunities. Like could you mind discussing what is the mix of like our space and defense companies versus other industrials? And where are you really seeing opportunities in M&A?

大家好。今天由瑪麗安娜代替羅恩表演。因此，在準備好的評論中，您談到了併購管道，以及如何混合像史密斯 (Smith) 這樣的大公司以及一些大型機會。例如，您介意討論一下我們的太空和國防公司與其他工業公司的組成嗎？您真正看到併購機會在哪裡？

This is all aerospace and defense. We are looking outside of aerospace and defense. So small, medium and large opportunities come along, a lot less on the large side. If something is in the market on the aerospace and defense side, we're going to look at it quite seriously. And that's all I can probably comment on the M&A pipeline there. It's very busy, much like last year. There's probably even more EBITDA in the pipeline this year than last year, but you just can't predict how things are going to close.

這都是航空航太和國防領域的。我們的目光已轉向航空航太和國防之外的領域。因此，小型、中型和大型的機會都會出現，但大型的機會就少得多。如果某些東西出現在航空航太和國防領域，我們就會認真考慮它。這就是我對那裡的併購管道所能評論的全部內容。非常忙碌，就像去年一樣。今年的 EBITDA 可能比去年還要多，但你無法預測事情會如何結束。

Thank you. And then after the OE slow down this quarter, and with your more like aggressive or not aggressive, but like you have a good view and outlook for the year on OE, what are your channel checks saying you about like inventories in the supply chain? Like how do you address that uncertainty about like item-by-item inventories in the supply chain?

謝謝。然後在本季 OE 放緩之後，無論您是採取更積極還是不積極的態度，但您對今年的 OE 有良好的看法和展望，您的管道檢查對供應鏈中的庫存有何看法？例如，您如何解決供應鏈中逐件庫存的不確定性？

We don't get -- we've never had much visibility to inventory in the supply chain. The only thing we see is our distribution partners on the aftermarket side. The OEM partners, they don't give us much inventory visibility. So we're simply guessing, listening to people, getting feedback. It does seem like there's been some inventory buildup over time that is working its way through in certain pieces, and we're just going to have to see how this plays out.

我們不明白——我們對供應鏈中的庫存從來沒有太多的了解。我們唯一看到的是售後市場的經銷合作夥伴。OEM合作夥伴並沒有提供我們太多的庫存可見性。所以我們只是猜測，聽取人們的意見，獲取回饋。隨著時間的推移，似乎確實有一些庫存積累，並且正在對某些產品產生影響，我們只需要看看這種情況將如何發展。

We don't have any additional visibility except the orders that we received from our customers. We fulfill them quickly. We're a reliable supplier, high quality, high delivery accuracy. So our customers know they can count on us.

除了從客戶收到的訂單外，我們沒有任何其他視覺資訊。我們很快就完成了它們。我們是可靠的供應商，高品質，高交貨準確性。因此我們的客戶知道他們可以信賴我們。

Thank you.

謝謝。

Jason Gursky, Citi.

花旗銀行的傑森古爾斯基 (Jason Gursky)。

Hey. Good morning, everybody. Kevin and others. Just a quick question on the refurbishment work to put a finer point on this. Can you -- I don't want to put words in your mouth, but I would maybe want to get you to comment on the cycle there.

嘿。大家早安。凱文和其他人。我只是想就翻新工程問一個簡單的問題，以便更詳細地闡述這一點。你能——我不想把話塞到你嘴裡，但我可能想讓你對那裡的周期進行評論。

So it does seem like it is going to be tied to airlines getting more consistent supply from their OEM partners so that they can do some fleet planning and maybe take some aircraft out of service to go do this. refurbishment work. I just want to confirm that, that's what you're thinking. And then how big is this for you all? Is this going to be a meaningful contributor to your aftermarket growth once the cycle actually picks up.

因此，這似乎將與航空公司從其 OEM 合作夥伴處獲得更穩定的供應掛鉤，以便他們可以進行一些機隊規劃，並可能讓一些飛機停止服務以實現這一目標。整修工程。我只是想確認一下，這就是你的想法。那麼這對你們來說有多大？一旦週期真正開始回升，這是否會對您的售後市場成長產生有意義的貢獻？

So I think yes, (inaudible) first answer your question, the beginning part, certainly, the airline's ability to take planes out of service is a key aspect to it, and you can't pull cleanout to do the work as you'd rather have it flying. I think it's -- you'll see the interior percentage jump up significantly. But in terms of total for our business, I don't think this is a significant piece to the total. It's just the one piece remaining of our commercial aftermarket that just kind of continues to lag below the 2019 levels.

所以我認為是的，（聽不清楚）先回答你的問題，開始的部分，當然，航空公司讓飛機停止服務的能力是一個關鍵方面，你不能像以前那樣抽調清理人員來完成這項工作而是讓它飛起來。我認為——你會看到內部百分比大幅上升。但就我們業務的整體而言，我認為這並不是一個重要的部分。這是我們商業售後市場剩下的一個部分，其表現仍然低於 2019 年的水平。

Okay. Got it. And then, look, I know you're saying that you don't track inventory levels with a great level of detail and specificity. But your comment about you're shipping into Boeing at production rates that are half where they are today. They talk about the need to wind down inventory. They're carrying too much given the fact that they ingested so much last year and weren't sitting out nearly as much as they were ingesting.

好的。知道了。然後，看，我知道你說你沒有以很高的細節和具體性來追蹤庫存水準。但您提到，您向波音公司出貨的生產力只有目前的一半。他們談論減少庫存的必要性。由於他們去年攝取了太多食物，而且沒有像攝取量那樣坐在外面，所以他們攜帶的食物太多了。

You just went through a big contract negotiation with them. I'm wondering if you just can't give us a little bit more insight on what you're hearing from your major customers on inventory unwinds because they've been pretty public about it. And how long that might last and impact you all?

您剛剛與他們進行了一次大型合約談判。我想知道您是否無法向我們提供更多有關您從主要客戶那裡聽到的有關庫存解除的消息，因為他們對此已經非常公開了。這會持續多久並影響到你們所有人？

Well, that's, I would just start to answer. I mean, this is why our commercial OEM forecast was lower at mid-single digits than maybe some would have expected as this has all led to this somewhat confusion in the supply chain. I don't think we're getting as directed clear input from some of the OEM suppliers as some in the market would think there's not a lot of clear communication. They're working through a lot of challenges right now.

好吧，那我就開始回答了。我的意思是，這就是為什麼我們的商業 OEM 預測比一些人預期的要低中等個位數，因為這一切都導致了供應鏈的混亂。我認為，我們沒有從某些 OEM 供應商那裡獲得明確的指導意見，因為市場上的某些人認為溝通不良。他們目前正在努力克服許多挑戰。

Yeah. What I was going to add is, our operating units.

是的。我要補充的是我們的營運單位。

At a detailed level, roughly know how many units of each product they have that goes on a plane. And so they work to build up a bottoms-up forecast based on what we believe the OEM build rate will be and so they're trying to take into account if they've been over shipping last year. They were over shipping in this quarter, what it looks like over the balance of the year. So we don't have a top-down piece, but each of our units works to pull that together, and that's what ultimately drove our guidance for the balance of the year, as Kevin said.

從詳細層面來說，大致了解每款產品有多少單位可以裝上飛機。因此，他們根據我們對 OEM 建造率的預測，努力建立自下而上的預測，並試圖考慮去年是否有超額出貨的情況。他們本季的出貨量過剩，與全年的出貨量相比，情況大致相同。因此，我們沒有自上而下的部分，而是我們每個部門都努力將其整合在一起，正如凱文所說，這最終推動了我們對今年平衡的指導。

Thank you.

謝謝。

Gautam Khanna, TD Cowen.

高塔姆·卡納（Gautam Khanna），TD Cowen。

Yeah, thanks. Good morning guys.

是的，謝謝。大家早安。

Morning.

早晨。

I was wondering if you could comment as you have in prior quarters about what you're seeing in the distribution channel into the aftermarket point-of-sale data relative to what you guys were experiencing on the manufacturing side?

我想知道您是否可以像前幾季一樣評論一下您在分銷管道中看到的售後銷售點資料與您在製造方面經歷的情況相比的情況？

It's running ahead. Joel, you want to --

它正在向前奔跑。喬爾，你想--

Yeah. It's currently running ahead. It's a different mix. We looked at the mix of TransDigm commercial aftermarket versus the mix of our distribution. They're not quite the same as we look at it into each of the submarkets, it's roughly in line with what we would expect it to be. But it is in total running above what our overall commercial market is. As I said in the opening remarks, it's running into the double digits versus our 9%.

是的。目前它正處於領先地位。這是一種不同的混合。我們研究了 TransDigm 商業售後市場的組合以及我們的分銷組合。當我們觀察每個子市場時，它們並不完全相同，但大致上與我們的預期一致。但總體而言，它的運作水準超出了我們整體商業市場的水平。正如我在開場白中所說的那樣，它的成長率已經達到兩位數，而我們的成長率為 9%。

Got you. And that's a couple of quarters now, right, where it's been running ahead. And that's more of again.

明白了。現在已經有好幾個季度了，它一直在向前發展。這還有更多。

Several quarters. So we think of it as a -- it should be a good leading indicator. It's where we have visibility on inventory and POS sales granular. So yes, it should be a good indicator of future.

幾個季度。因此我們認為它應該是一個很好的領先指標。在這裡我們可以詳細了解庫存和 POS 銷售情況。所以是的，它應該是一個很好的未來指標。

Great. And then my last one, just on the new administration and how is TransDigm kind of working constructively with them and your thoughts on dodge and I'll just leave it open ended, but.

偉大的。然後我的最後一個問題是關於新政府，TransDigm 如何與他們進行建設性合作，以及你對躲避的看法，我將保持開放式的回答，但是。

That's a great question. I anticipated this earlier, I think, in the Q&A. Dodge is -- it's a great opportunity for the US to improve and streamline what they're doing, specifically with government DoD, DLA procurement. We think this is a really good thing. We've been engaging with the DoD over the past several years and have suggested a number of improved forecasting inventory management and improved buying practices that would save the government money and save us time and energy and production. So we invite all inquiry and assistance.

這是一個很好的問題。我認為我早在問答環節就預料到了這一點。道奇——這對美國來說是一個絕佳的機會來改進和簡化他們的工作，特別是政府國防部和國防後勤局的採購。我們認為這真是一件好事。過去幾年來，我們一直與國防部合作，並提出了一系列改進預測庫存管理和採購實踐的建議，這將節省政府資金，並節省我們的時間、精力和生產力。因此，我們歡迎所有詢問和幫助。

I've met with some of the dodge folks in DC. It's important to remember that TransDigm is a very small supplier. I think we're 0.3% of the DLA budgets and this amounts to less than 1% or somewhere around 1% of our revenue, are these types of products that would fall under a concern of Dodge. We see this only as an opportunity for TransDigm, the government, the DoD to improve what we're doing together. So we warrant any and all inquiries and work together to come up with a stronger solution in the future.

我與華盛頓特區的一些道奇人見過面。重要的是要記住，TransDigm 是一家非常小的供應商。我認為我們佔 DLA 預算的 0.3%，這相當於我們收入的不到 1% 或大約 1%，這些類型的產品屬於道奇公司關注的範圍。我們認為這只是 TransDigm、政府和國防部改善共同工作的一個機會。因此，我們保證接受所有詢問，並在未來共同努力找到更強有力的解決方案。

So that's really where we're at. It's a small part of our business is supplying spare parts to the government. The bulk of what we do is either falls under Tenet today, which is fully cost disclosed? Or is commercial of the type or competitive that's the bulk of our business falls under those three categories. So we invite the work that we need to do together to improve how we work together with the government. So that's, I guess, our answer.

這正是我們目前的情況。向政府供應備件只是我們的業務的一小部分。我們所做的大部分工作都屬於當今 Tenet 的範疇，也就是完全揭露成本的領域？或者是商業類型或競爭類型，我們的業務大多屬於這三個類別。因此，我們邀請大家共同進行必要的工作，以改善我們與政府的合作方式。我想，這就是我們的答案。

Thank you. I would now like to turn the call back to Jamie for closing remarks.

謝謝。現在我想請傑米作結語。

Thank you all for joining us today. This concludes today's call. We appreciate your time. Have a good rest of your day.

感謝大家今天的參與。今天的電話會議到此結束。我們非常感謝您抽出時間。祝您今天剩餘的時間過得愉快。

That concludes today's conference. Thank you for your participation. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連線。