Triumph Group Inc (TGI) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Triumph Group's Second Quarter Fiscal 2025 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加凱旋集團 2025 財年第二季財報電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Tom Quigley, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係副總裁湯姆奎格利 (Tom Quigley)。請繼續。

Thank you. Good morning, and welcome to our second quarter fiscal 2025 earnings call. Today, I'm joined by Dan Crowley, the company's Chairman, President and CEO; and Jim McCabe, Senior Vice President and CFO of Triumph.

謝謝。早安，歡迎參加我們的 2025 財年第二季財報電話會議。今天，公司董事長、總裁兼執行長 Dan Crowley 也加入了我的行列。吉姆‧麥凱布 (Jim McCabe)，凱旋資深副總裁兼財務長。

As we review the financial results for the quarter, please refer to the presentation posted on our website this morning. We will discuss our adjusted results. Our adjustments and any reconciliation of non-GAAP financial measures to comparable GAAP measures are explained in the earnings press release and in the presentation.

當我們審查本季度的財務業績時，請參閱今天早上在我們網站上發布的簡報。我們將討論調整後的結果。我們的調整以及非公認會計原則財務指標與可比較公認會計原則財務指標的調節均在收益新聞稿和簡報中進行了解釋。

Certain statements on this call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Triumph's actual results, performance or achievements to be materially different from any expected future results, performance or achievements expressed or implied in the forward-looking statements.

本次電話會議的某些陳述構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些前瞻性陳述涉及已知和未知的風險、不確定性和其他因素，可能導致凱盛的實際結果、業績或成就與前瞻性陳述中明示或暗示的任何預期未來結果、業績或成就存在重大差異。

Dan, I'll turn it over to you.

丹，我會把它交給你。

Thanks, Tom, and welcome, everyone, to Triumph's second quarter call. Turning to slide 3. We had a very good second quarter, capping a solid first half. This sets the stage for an even stronger second half driven by favorable seasonality and operating leverage.

謝謝湯姆，歡迎大家參加凱旋第二季度的電話會議。轉到投影片 3。我們第二季表現非常出色，為上半場的表現畫下了圓滿的句點。這為下半年在有利的季節性和營運槓桿的推動下更加強勁奠定了基礎。

Four key highlights from the quarter include strong cash performance and working capital management. We exceeded our cash guidance by $35 million in the quarter and derisked our full year free cash flow target. We remain committed to delivering positive cash flow for the year.

本季度的四個主要亮點包括強勁的現金表現和營運資本管理。我們本季的現金指引超出了 3500 萬美元，並降低了全年自由現金流目標的風險。我們仍致力於今年實現正現金流。

Secondly, we accelerated aftermarket growth. Leasing expert aircraft expects this trend to continue through at least 2030. This older aircraft return to service, the legacy fleet is extended and the next-generation fleet enters its heavy maintenance cycles.

二是加速後市場發展。飛機租賃專家預計這一趨勢至少會持續到 2030 年。這架舊飛機重新投入使用，傳統機隊擴展，下一代機隊進入了繁重的維護週期。

We restored our interiors business to profitability in Q2 through a settlement with Boeing and deep cost reductions to rightsize the business. These actions put our interiors business on track to achieve higher historical levels of profitability as commercial OEM volumes return.

透過與波音公司達成和解以及大幅削減成本以調整業務規模，我們的內裝業務在第二季度恢復了盈利。隨著商業 OEM 銷售的回升，這些行動使我們的內裝業務走上了歷史更高的盈利水平。

Operational excellence improved across all four of our operating companies, results are better than last year. This led to year-over-year sales growth as we mark our tenth consecutive quarter of organic growth. This progress enables us to raise our fiscal '25 guidance for both profitability and cash flow, consistent with the multiyear guidance we updated in May of '24, which Jim will detail.

我們所有四家營運公司的卓越營運均得到改善，業績優於去年。這導致銷售額年增，我們迎來了連續第十個季度的有機成長。這項進展使我們能夠提高 25 財年盈利能力和現金流的指導，與我們在 24 年 5 月更新的多年指導一致，吉姆將對此進行詳細介紹。

Turning to slide 4. You can see that aftermarket grew substantially in the quarter, surging 13% year-over-year and contributing over 60% of our profit based on strong spares and repairs from our systems & support segment across both commercial and military end markets. This more than offset commercial OEM softness.

轉到投影片 4。您可以看到，售後市場在本季度大幅增長，同比飆升 13%，基於我們在商業和軍事終端市場的系統和支援部門提供的強大備件和維修服務，貢獻了超過 60% 的利潤。這足以抵消商業 OEM 的疲軟。

The aftermarket deliveries on the CH-47 Chinook in Q2 were particularly strong, reflecting the importance of improving fleet readiness and an uncertain geopolitical environment. Notably, we shipped 46 shipsets of T-55 engine FADECs on the Chinook as part of our first wave of a five-year IDIQ program. The program will result in the upgrade of the entire T-55 fleet at a rate of approximately 200 units per year, totaling more than $250 million for the entire upgrade program.

第二季 CH-47 支奴干的售後市場交付量尤其強勁，反映出提高機隊準備狀態和不確定的地緣政治環境的重要性。值得注意的是，作為我們第一波五年 IDIQ 計畫的一部分，我們在支奴干上運送了 46 套 T-55 引擎 FADEC。該計劃將以每年約 200 輛的速度對整個 T-55 機隊進行升級，整個升級計劃的總投資超過 2.5 億美元。

Commercial aftermarket growth was 34%, driven by the rising average fleet age. Commercial aftermarket sales in the quarter included 787 landing gear actuation spares and repairs from our Yakima site, which will benefit from a multi-decade stream of higher-margin 787 spares and repairs.

在平均機隊年齡不斷增長的推動下，商業售後市場增長了 34%。本季的商業售後市場銷售包括我們亞基馬工廠的 787 起落架驅動備件和維修，該工廠將受益於數十年來利潤率較高的 787 備件和維修。

Triumph generated gross margins of 57% in the aftermarket segment. We expect aftermarket revenue to grow due to the shortage of new aircraft entering the fleet and the emerging 787 landing gear overhaul cycle. As legacy aircraft like the 737NG are extended to fill the slots created by delays in new aircraft deliveries, our spares and repair businesses are well positioned to support the demand.

凱旋在售後市場領域的毛利率為 57%。由於新飛機進入機隊的短缺以及 787 起落架大修週期的出現，我們預計售後市場收入將會成長。隨著 737NG 等傳統飛機的擴展，以填補新飛機交付延遲造成的空缺，我們的備件和維修業務已做好充分準備來滿足需求。

Our military aftermarket sales benefited from the CH-47 spares and repairs, which carry strong margins in both production and aftermarket, helping to offset the short-term declines in the V-22 actuators overhaul due to temporary flight restrictions on the Osprey fleet. Triumph closed a small IP sale for an end-of-life military program in Q2 as we continue to fine-tune our product and services portfolio.

我們的軍用售後市場銷售受益於CH-47 備件和維修，這些備件和維修在生產和售後市場都有強勁的利潤，有助於抵消因魚鷹機隊臨時飛行限製而導致的V-22 執行器大修的短期下降。隨著我們繼續微調我們的產品和服務組合，凱旋在第二季度完成了一項報廢軍事項目的小規模智慧財產權銷售。

While backlog growth in quick-turn MRO is not typical, Triumph's total aftermarket backlog worth approximately $100 million is up 12% from the fiscal year-end. This was made possible by significant orders for spares and repairs orders on the 787 landing gear program.

雖然快速週轉 MRO 的積壓訂單成長並不常見，但 Triumph 的售後市場積壓訂單總額價值約 1 億美元，比財年末增加了 12%。這得歸功於 787 起落架專案的大量備件訂單和維修訂單。

Turning to our OEM results. Military OEM revenues were up across several of the programs in the fiscal second quarter. These sales represented over 20% of our total revenue and contributed a similar amount to our profitability. Military backlog grew 4% in the first half.

轉向我們的 OEM 結果。第二財季多個項目的軍事原始設備製造商收入均有所成長。這些銷售額占我們總收入的 20% 以上，並對我們的獲利能力做出了類似的貢獻。上半年，軍事積壓訂單增加了 4%。

Highlights for the quarter included multiple wins on the GE F110 derivative engine for new fuel pump and actuator products and $7 million in new orders for the Global Hawk and Triton gearboxes and $4 million to overhaul AWACS ray dome gearboxes. Befitting our status as the largest independent provider of aerospace gearboxes, Triumph has five new gearboxes that are transitioning to production, including an aircraft mounted accessory drive for the T-7A Red Hawk. And after these gearboxes enter service, they will begin to drive new spares and repairs activities.

本季度的亮點包括在用於新燃油泵和執行器產品的GE F110 衍生發動機上獲得多項勝利，為全球鷹和Triton 變速箱贏得700 萬美元的新訂單，以及為檢修AWACS 射線穹頂變速箱贏得400 萬美元的新訂單。與我們作為最大的航空航天齒輪箱獨立供應商的地位相稱，凱旋有五種新齒輪箱正在過渡到生產，其中包括用於 T-7A 紅鷹的飛機安裝附件驅動器。這些變速箱投入使用後，將開始推動新的備用零件和維修活動。

Commercial OEM revenues included sales across more than 30 different programs for rotorcraft, regional jets, business jets and commercial fixed-wing platforms, well beyond the Airbus and Boeing narrow-body programs. This end market contributes 40% to our total sales, but only 13% of the company's total profitability in the second quarter. Margin upside potential exists as the market recovers based on operating leverage.

商業 OEM 收入包括 30 多個不同項目的銷售，包括旋翼機、支線飛機、公務機和商用固定翼平台，遠遠超越空中巴士和波音窄體飛機專案。這個終端市場貢獻了我們總銷售額的40%，但僅占公司第二季總獲利的13%。隨著市場基於經營槓桿的復甦，利潤率存在上行潛力。

The profit in our commercial OEM end market increased over 60% from the prior year, due to overall improved pricing as well as increased volumes for the 787. We expect this trend will continue as we secure further pricing in the 787 ramps. In addition, Airbus announced aggressive build rates, and they are a top 3 customer for Triumph.

由於整體定價的改善以及 787 銷量的增加，我們的商用 OEM 終端市場的利潤比去年增長了 60% 以上。我們預計，隨著我們確保 787 坡道的進一步定價，這一趨勢將持續下去。此外，空中巴士公司宣布了積極的建造速度，他們是凱旋的三大客戶。

In the commercial OEM end market, we are a supplier on the 737 MAX, the 767 and the 777 programs, which represented just 5% of total sales for the quarter. While our backlog on these Boeing programs declined $60 million since March due to selective pushouts of deliveries beyond 24 months, total backlog for these three programs remains high at $350 million.

在商用 OEM 終端市場，我們是 737 MAX、767 和 777 專案的供應商，這些專案僅佔本季總銷量的 5%。儘管由於選擇性推遲交付超過 24 個月，自 3 月以來，我們對這些波音項目的積壓訂單減少了 6,000 萬美元，但這三個項目的積壓訂單總額仍高達 3.5 億美元。

Now that Boeing workers are returning to work, we expect growth from Boeing to begin. We continue to make deliveries to Boeing commercial at reduced levels, consistent with their portal demand. And backlog on all other commercial OEM programs has increased almost $40 million, providing alternative production backfill during this period.

現在波音員工正在重返工作崗位，我們預計波音將開始成長。我們繼續以較低的水平向波音商業飛機交付，以滿足他們的門戶需求。所有其他商業 OEM 計劃的積壓訂單增加了近 4000 萬美元，為這一時期的生產提供了替代方案。

Overall, there's a lot to be excited about this quarter as Triumph's four operating companies are firing on all cylinders. Our growing aftermarket segment is benefiting systems, electronics and controls and actuation products and services operating companies. GE LEAP orders are stable, and we are transitioning new gearbox programs into production.

總體而言，本季有很多令人興奮的事情，因為凱旋的四家營運公司正在全力以赴。我們不斷成長的售後市場領域使系統、電子和控制以及驅動產品和服務營運公司受益。GE LEAP 訂單穩定，我們正在將新的變速箱項目投入生產。

And we reached a positive inflection point within our interiors business because of cost reductions, including reduced labor costs from over 700 job cuts and contract relief including a favorable commercial resolution with Boeing. This commercial resolution will bring the interiors profitability and cash flow in line with or above our full year expectations.

由於成本降低，我們的內部業務達到了積極的拐點，其中包括因裁員 700 多人而降低了勞動力成本，以及與波音公司達成有利的商業解決方案等合約減免。這項商業決議將使內裝獲利能力和現金流達到或高於我們的全年預期。

I'd like to touch on our continued efforts to modernize and upgrade our production capabilities in support of our new product technology plans. Triumph's investments in new development labs and test facilities, upgraded machinery and equipment and enhanced IT systems will enable us to deliver on our commitments and engage our customers to solve their most difficult challenges.

我想談談我們為實現生產能力現代化和升級以支援我們的新產品技術計劃所做的持續努力。凱旋對新的開發實驗室和測試設施、升級的機械和設備以及增強的 IT 系統的投資將使我們能夠兌現我們的承諾，並讓我們的客戶解決他們最困難的挑戰。

On slide 5, we highlight one of our strategic investments, our new thermal solutions development center in West Hartford, Connecticut, which officially opened on October 15. Recall Triumph acquired Fairchild Controls from Airbus Defense and Space 2015, and moved the business from Maryland to West Hartford, Connecticut, leading to cost and efficiency improvements, which will help boost our systems & electronics controls business results.

在幻燈片 5 中，我們重點介紹了我們的一項戰略投資，即位於康涅狄格州西哈特福德的新熱解決方案開發中心，該中心於 10 月 15 日正式開業。回想一下，Triumph 於2015 年從空中巴士防務與航太公司收購了Fairchild Controls，並將業務從馬裡蘭州遷至康乃狄克州西哈特福德，從而提高了成本和效率，這將有助於提升我們的系統和電子控制業務績效。

With the establishment of our new thermal product center, we are responding to emerging requirements from our military customers for both new applications and upgrade programs in special mission pods, high-power electronics and environmental control systems. I want to thank Governor Ned Lamont of Connecticut and the state's congressional delegation for their support of this project without which, this facility would not exist today.

隨著新熱產品中心的建立，我們正在滿足軍事客戶對特殊任務吊艙、高功率電子設備和環境控制系統的新應用和升級計畫的新需求。我要感謝康乃狄克州州長內德·拉蒙特和該州國會代表團對該計畫的支持，沒有他們，就不會有今天的設施。

Importantly, the facilities upgraded electrical power system enables us to test high-power pumps and thermal compressors. This will help us bring high-capacity vapor cycle cooling systems to market that will enhance our OEM and aftermarket results. Case in point, the thermal lab will begin testing a new high-capacity thermal compressor for Lockheed Martin in Q3 and has strong interest from other OEMs.

重要的是，設施升級的電力系統使我們能夠測試高功率泵和熱壓縮機。這將有助於我們將高容量蒸汽循環冷卻系統推向市場，從而提高我們的 OEM 和售後市場表現。舉個例子，熱實驗室將於第三季開始為洛克希德馬丁公司測試新型大容量熱壓縮機，並引起了其他原始設備製造商的濃厚興趣。

Interest in solutions to address expanding cooling and heat transfer needs has never been higher, including in support of IT data centers. West Hartford's cyber-enabled modular processing system will be the basis for an expanding range of electronic control products and applications. We look forward to providing announcements on this in the future.

人們對滿足不斷擴大的冷卻和傳熱需求的解決方案（包括支援 IT 資料中心）的興趣空前高漲。西哈特福德的網路模組化處理系統將成為不斷擴大的電子控制產品和應用範圍的基礎。我們期待將來就此發佈公告。

Our gears business is developing a family of engine and aircraft-mounted accessory gearboxes, which will be flown on the T-7A, which just flew their first production gearbox in the quarter. Congratulations to the Korean KF-21 team, which received their first order for 20 aircraft in June with the first aircraft to be delivered in 2026. Triumph is currently working to fill those orders of which there will be two AMADs per aircraft. Our actuation business is delivering new smart uplocks to Airbus with embedded sensors to ensure positive up and down lock. Through Q2, we grew backlog 20% in support of this program.

我們的齒輪業務正在開發一系列發動機和機載附件變速箱，這些變速箱將在 T-7A 上飛行，T-7A 在本季度剛剛試飛了他們的第一個生產變速箱。恭喜韓國KF-21團隊，他們在6月收到了第一份20架飛機的訂單，第一架飛機將於2026年交付。凱旋目前正在努力滿足每架飛機配備兩架 AMAD 的訂單。我們的驅動業務正在為空中巴士公司提供新型智慧上鎖裝置，其中包含嵌入式感測器，以確保積極的上鎖和下鎖。透過第二季度，我們支持該計劃的積壓訂單增加了 20%。

To sum up, our focus on organic growth by expanding our solutions in addressable markets is driving our financial progress towards the targets we set during our September 23 Investor Day.

總而言之，我們透過在潛在市場中擴展我們的解決方案來專注於有機成長，這正在推動我們的財務進展，實現我們在 9 月 23 日投資者日設定的目標。

As noted on slide 6, total backlog continues to rise, up 7% year-over-year to $1.9 billion, as military and other commercial platform growth offset the pushout of narrow-body orders. On the repair side of the business, we were awarded a five-year spares contract for a C-5 main landing gear door actuator and the V-22 Pylon Conversion Actuator MRO package for fiscal '26.

如投影片 6 所示，由於軍事和其他商業平台的成長抵消了窄體機訂單的推出，總積壓訂單持續增加，年增 7%，達到 19 億美元。在維修業務方面，我們獲得了 26 財年 C-5 主起落架門執行器和 V-22 掛架轉換執行器 MRO 包的五年備件合約。

We're also benefiting from our classified program gearboxes, 787 composite ECS ducting, Safran electronic engine controls and Anduril's engine-driven hydraulic pumps as well as the GE F110 derivative main engine fuel pump for the F-15EX. Growth across all our markets, especially aftermarket is encouraging and gives us confidence in our long-range targets.

我們還受益於我們的分類程序變速箱、787 複合 ECS 管道、賽峰電子發動機控制裝置和 Anduril 的發動機驅動液壓泵以及用於 F-15EX 的 GE F110 衍生主發動機燃油泵。我們所有市場（尤其是售後市場）的成長令人鼓舞，讓我們對長期目標充滿信心。

I want to acknowledge all the dedicated team members of Triumph who make this progress possible. Their work has positioned the company to capitalize on strong demand across a diversified customer base and end markets as we continue to gain share with our new products, MRO services and takeaways. Their engagement, performance and commitment to continuous improvement underpinned Triumph's success.

我要感謝 Triumph 的所有敬業團隊成員，是他們讓這項進步成為可能。他們的工作使公司能夠利用多元化客戶群和終端市場的強勁需求，繼續透過新產品、MRO 服務和外送贏得市場份額。他們的參與、績效和對持續改善的承諾支撐著凱旋的成功。

Jim will now review our financial results.

吉姆現在將審查我們的財務表現。

Thanks, Dan, and good morning, everyone. Q2 results exceeded our expectations. Our strong performance was driven by double-digit growth in commercial aftermarket revenue, coupled with lower costs and higher prices in interiors. The most significant development in the quarter is the interior settlement which has contributed to restoring that segment to profitability. We took the necessary cost actions to rightsize our capacity, and we settled with our customer on equitable adjustments for the year. Interiors' profitable again. Importantly, throughout this process, interiors has continued to maintain its very high level of product quality and on-time delivery.

謝謝丹，大家早安。第二季業績超出了我們的預期。我們強勁的業績得益於商業售後市場收入的兩位數成長，以及內裝成本的降低和價格的上漲。本季最重要的進展是內部解決方案，這有助於恢復該部門的獲利能力。我們採取了必要的成本行動來調整我們的產能，並與客戶就今年的公平調整達成了協議。內裝再次盈利。重要的是，在整個過程中，interiors 一直保持著極高水準的產品品質和準時交貨。

Let's start with our excellent consolidated second quarter results on slide 7. Every financial measure is higher than last year, and it is all organic growth. As Dan mentioned, 30% growth in aftermarket revenue more than offset the temporary OEM revenue headwinds, yielding a net increase in consolidated revenue over last year to $287 million. Adjusted operating income of $36 million is up $11 million or 44%. Adjusted operating margin of 11% expanded 338 basis points over 8% last year. Adjusted EBITDAP of $43 million increased $9 million or 26%. An adjusted EBITDAP margin of 15% expanded about 300 basis points over 12% last year.

讓我們從幻燈片 7 上出色的第二季綜合業績開始。各項財務指標均高於去年，且都是有機成長。正如 Dan 所提到的，售後市場收入 30% 的成長足以抵消 OEM 收入的暫時阻力，使去年的合併收入淨增長至 2.87 億美元。調整後營業收入為 3,600 萬美元，增加了 1,100 萬美元，即 44%。調整後營業利益率為 11%，比去年的 8% 擴大了 338 個基點。調整後的 EBITDAP 為 4,300 萬美元，增加了 900 萬美元，即 26%。調整後的 EBITDAP 利潤率為 15%，比去年的 12% 擴大了約 300 個基點。

Now you might be wondering if OEM demand is down, how is Triumph accelerating its profitable growth? The majority of Triumph's profit comes from the sale of its spares and repairs to the growing aftermarket. But didn't Triumph sell its aftermarket business? No, Triumph did not sell its to aftermarket business. Triumph sold the third-party aftermarket business, which was focused on the repair of other companies' parts.

現在您可能想知道，如果 OEM 需求下降，凱旋如何加速其獲利成長？凱旋的大部分利潤來自於向不斷增長的售後市場銷售備件和維修服務。但凱旋不是賣掉售後業務了嗎？不，凱旋並沒有將其出售給售後市場業務。凱旋出售了第三方售後市場業務，該業務專注於其他公司零件的維修。

We've been able to turn our focus to our own proprietary aftermarket spares and repairs business. The timing could not have been better in this regard. Our aftermarket business represents 33% of Triumph's sales in the quarter, up from 29% of sales last year. Triumph's aftermarket revenue only a third of total revenue, delivered 61% of our profit in the quarter.

我們已經能夠將重點轉向我們自己的專有售後備件和維修業務。在這方面，時機再好不過了。我們的售後市場業務佔凱旋本季銷售額的 33%，高於去年的 29%。凱旋的售後市場收入僅佔總收入的三分之一，但貢獻了我們本季利潤的 61%。

Our growing installed base of proprietary products drives our profitable aftermarket growth, presents upgrade opportunities, and enhances our content on next-generation platforms. We expect this current strong commercial aftermarket demand to continue for years to come. The $4 million non-GAAP adjustment this quarter is part of our restructuring, primarily to reduce cost in interiors.

我們不斷成長的專有產品安裝基數推動了售後市場的獲利成長，提供了升級機會，並增強了我們在下一代平台上的內容。我們預計當前強勁的商業售後市場需求將持續數年。本季 400 萬美元的非 GAAP 調整是我們重組的一部分，主要是為了降低內裝成本。

Now we'll look at our Q2 commercial revenue on slide 8. Commercial aftermarket revenue was up about $10 million or 26%, largely on spares and repairs across the Boeing commercial platforms. The bow wave of 787 landing gear overhauls is just beginning and evident in the growth in the quarter. Commercial OEM revenue of $119 million included increases from 787 volumes, which were tempered by lower revenue from 737 MAX and other platforms. Now that Boeing workers are returning to work, we expect improvements in our Boeing OEM business. In addition, Airbus announced aggressive build rate ramps on both narrow-body and wide-body models.

現在我們將在幻燈片 8 上查看第二季的商業收入。商業售後市場收入成長了約 1,000 萬美元，即 26%，主要來自波音商業平台的備用零件和維修。787 起落架大修的浪潮才剛開始，本季的成長很明顯。1.19 億美元的商業 OEM 收入包括 787 銷量的成長，但受到 737 MAX 和其他平台收入下降的影響。現在波音工人正在重返工作崗位，我們預計波音 OEM 業務將會有所改善。此外，空中巴士也宣布大幅提高窄體和寬體機型的建造速度。

Shown on slide 9 is our Q2 military revenue. Military aftermarket revenue of $44 million was about the same as Q2 last year. Spares and repairs on CH-47 and AH-64 programs as well as an IP sale of about $5 million, were offset by lower V-22 aftermarket sales. Our aftermarket sales are important to maintaining fleet readiness, and the T-55 engine FADEC upgrade program will support this end market for the next several years.

投影片 9 顯示的是我們第二季的軍費收入。軍用售後市場收入為 4,400 萬美元，與去年第二季大致持平。CH-47 和 AH-64 項目的備件和維修以及約 500 萬美元的 IP 銷售額被 V-22 售後市場銷售額的下降所抵消。我們的售後市場銷售對於維持機隊準備狀態非常重要，T-55 發動機 FADEC 升級計劃將在未來幾年內支援該終端市場。

Military OEM revenue was $64 million in Q2, a $3 million increase over the prior year as volumes on CH-53K, CH-47, AH-64 and F-35 programs offset expected decreases on V-22 production rates. The diverse set of programs in this end market span the aircraft life cycle and provide predictable margins and cash.

第二季軍事 OEM 收入為 6,400 萬美元，比前一年增加 300 萬美元，因為 CH-53K、CH-47、AH-64 和 F-35 項目的銷量抵消了 V-22 生產率的預期下降。該終端市場的多樣化計劃涵蓋飛機的整個生命週期，並提供可預測的利潤和現金。

As seen on slide 10, our cash flow was better than we guided by about $35 million due to stronger-than-expected commercial aftermarket revenue. For Q2, we build up our working capital and had free cash use of $45 million. This included a $42 million semi-annual interest payment and $6 million of capital expenditures. This cash use in the quarter is, of course, driven by the timing of the interest payment, but also by seasonally higher working capital, timing of OEM rate ramps, and supply chain challenges, all of which are improving in the second half. Our interest payment is $27 million lower than last year due to the significant debt reduction since then.

如投影片 10 所示，由於商業售後市場收入強於預期，我們的現金流量比我們預期的約 3,500 萬美元要好。第二季度，我們增加了營運資金，並擁有 4,500 萬美元的自由現金使用。其中包括 4,200 萬美元的半年度利息支付和 600 萬美元的資本支出。當然，本季的現金使用是由利息支付時間推動的，但也受到季節性較高的營運資本、OEM 利率上升的時間以及供應鏈挑戰的推動，所有這些都在下半年得到改善。由於自去年以來債務大幅減少，我們的利息支出比去年減少了 2,700 萬美元。

Additionally, in Q1, we redeemed $120 million of the first lien 9% 2028 notes, reducing them to $959 million. That led to the credit upgrades for both Moody's and S&P that we reported early in the quarter.

此外，在第一季度，我們贖回了 1.2 億美元的第一留置權 9% 2028 年票據，將其減少至 9.59 億美元。這導致我們在本季度初報告的穆迪和標準普爾的信用升級。

On slide 11 is our net debt and liquidity. At the end of the quarter, net debt was $868 million. That's $644 million were 43% lower than Q2 last year. Our leverage is now down to 5.5 times or 2.8 turns less than 8.3 times last year. Liquidity totaled $148 million, including $105 million of cash and is sufficient for our planned working capital needs. As a reminder, our combined debt reduction across fiscal '24 and '25 year-to-date will yield $55 million of annual interest savings, and our remaining notes are not due until 2028.

第 11 張投影片是我們的淨債務和流動性。截至本季末，淨債務為 8.68 億美元。這一數字為 6.44 億美元，比去年第二季下降了 43%。我們的槓桿率現在已降至 5.5 倍，比去年的 8.3 倍少了 2.8 倍。流動資金總額為 1.48 億美元，其中包括 1.05 億美元現金，足以滿足我們計劃的營運資金需求。提醒一下，我們在 24 財年和 25 財年迄今的合併債務削減將帶來 5,500 萬美元的年度利息節省，而我們剩餘的票據要到 2028 年才到期。

Moving to slide 12. Let's discuss the increase in our FY25 guidance. We're increasing both our earnings and cash flow guidance based on the continuing strength of our aftermarket sales, the cost reductions and commercial resolution in interiors, net of the temporary near-term commercial OEM headwinds. We continue to expect net sales of approximately $1.2 billion. We've increased our EBITDAP estimate from $182 million to a range of $190 million to $195 million for an EBITDAP margin of 16%, that's up about 400 basis points compared to 12% last year. We've also increased our free cash flow estimate and now expect $20 million to $30 million of cash generation in FY25.

轉到投影片 12。讓我們討論一下 2025 財年指引的增加。基於我們的售後市場銷售的持續強勁、成本的降低和內飾的商業解決方案（扣除短期的商業 OEM 逆風），我們正在提高我們的盈利和現金流指引。我們仍然預計淨銷售額約為 12 億美元。我們將 EBITDAP 預期從 1.82 億美元上調至 1.90 億至 1.95 億美元，EBITDAP 利潤率為 16%，與去年的 12% 相比上升了約 400 個基點。我們也提高了自由現金流預測，目前預計 2025 財年將產生 2,000 萬至 3,000 萬美元的現金。

Looking ahead to the second half, in addition to normal seasonality, we anticipate increased sales and margin compared to last year, from our continued strong aftermarket demand and greater contribution from the $75 million of incremental pricing we planned for and have already exceeded for the year. Free cash flow in the third quarter is expected to be positive, supported by improving margins and partially offset by working capital timing due to temporary OEM headwinds. We also forecast rapid working capital burn-off in the fourth fiscal quarter, consistent with our full year free cash flow guidance and the prior year trend.

展望下半年，除了正常的季節性因素外，我們預計銷售額和利潤率將比去年有所增長，因為我們持續強勁的售後市場需求以及我們計劃並已超過今年的7500 萬美元增量定價的更大貢獻。第三季的自由現金流預計將為正值，這得益於利潤率提高的支撐，以及由於 OEM 暫時不利而導致的營運資金安排的部分抵消。我們也預測第四財季營運資金將迅速消耗，這與我們的全年自由現金流指引和前一年的趨勢一致。

In summary, our second quarter results exceeded our expectations. Revenue, operating income, EBITDAP and cash flow all improved over the prior year. Interiors has returned to profitability, and commercial aftermarket demand remains strong, all leading to the raise in our FY25 earnings and cash flow guidance.

總而言之，我們第二季的業績超出了我們的預期。收入、營業收入、EBITDAP 和現金流均較上年改善。內裝已恢復獲利，商業售後市場需求依然強勁，所有這些都導致​​我們上調了 2025 財年獲利和現金流指引。

Now I'll turn the call back to Dan. Dan?

現在我將把電話轉回給丹。擔？

Thanks, Jim. Overall, we had a solid first half that positions us to exceed our fiscal '25 objectives and stay on the trajectory we shared at our Investor Day, 14 months ago. The actions we've taken to strengthen our balance sheet, streamline our business, and focus our product portfolio position Triumph to deliver enhanced value for our shareholders. Triumph has become an aftermarket-driven company that benefits from a robust inventory of IP-based products. The strength of the aftermarket demand is more than offsetting short-term softness in some commercial programs.

謝謝，吉姆。總體而言，我們上半年的業績表現強勁，使我們能夠超越 25 財年的目標，並保持在 14 個月前投資者日所分享的軌跡上。我們為加強資產負債表、簡化業務和集中產品組​​合而採取的行動使凱旋能夠為股東創造更高的價值。Triumph 已成為一家以售後市場為導向的公司，受益於基於 IP 的產品的強大庫存。售後市場需求的強勁足以抵消一些商業項目的短期疲軟。

Along with the improvement in the aftermarket, the increasing contribution of our negotiated price ups and our seasonally strong second half give us confidence in achieving the updated outlook. Our team remains excited about our new facilities and products for future aircraft and engines and look forward to playing a key role on the next-gen fleets.

隨著售後市場的改善，我們協議漲價的貢獻越來越大，下半年的季節性強勁使我們對實現更新的前景充滿信心。我們的團隊對我們用於未來飛機和發動機的新設施和產品仍然感到興奮，並期待在下一代機隊中發揮關鍵作用。

We're happy to answer any questions you have.

我們很樂意回答您的任何問題。

(Operator Instructions) Sheila Kahyaoglu, Jefferies.

（操作員說明）Sheila Kahyaoglu，Jefferies。

I enjoyed Jim's one-on-one Q&A just now, too, with the questions about the aftermarket. But I wanted to focus in on the guidance and just the raise because it seems like you have a lot of confidence, and Dan, you just mentioned sequentially better second half. But you did raise EBITDA -- adjusted EBITDA to imply 20% margins in the second half, up from 15% in Q2 despite the two one-timers. So how do we think about the drivers of that profitability? How much does the Boeing contract reset help?

我也很喜歡吉姆剛才的一對一問答，詢問有關售後市場的問題。但我想專注於指導和加註，因為看起來你很有信心，丹，你剛剛提到了下半場的連續更好。但你確實提高了 EBITDA——調整後的 EBITDA 意味著下半年的利潤率為 20%，高於第二季度的 15%，儘管有兩家一次性公司。那我們如何看待獲利能力的驅動因素呢？波音合約重置有何幫助？

Thanks, Sheila. I'll start, and Dan can add in. The settlement with Boeing is important to interiors, and you can see that as a separate segment. And it's just a resolution of changes in costs that we had rights to negotiate and achieved. So it's been a long time coming. We've been working on it for a while, and we're happy to put that in place.

謝謝，希拉。我先開始，丹可以補充。與波音的和解對內裝來說很重要，你可以將其視為一個單獨的部分。這只是我們有權談判並實現的成本變化的解決方案。所以已經等了很久了。我們已經為此努力了一段時間，我們很高興將其落實到位。

But the aftermarket is really the story here. And that's why I did ask myself a question, too, because I've been getting that question a lot from people who forgot that we didn't sell our own aftermarket. And it's very important because the aftermarket of our products, we get all the spares because they're proprietary. And right now, the aftermarket demand is solid, double-digit growth and it's -- there's no end in sight for it. So it's not -- it's only 33% of our sales and 61% of our profit in the quarter. So I think it's the unheard story that people need to pay attention to is the strength of the installed base and the aftermarket and the spares it drives. And that's what's driving the profitability in the second half as well.

但售後市場才是真正的故事。這就是為什麼我也問自己一個問題，因為我經常從那些忘記我們不賣自己的售後市場的人那裡得到這個問題。這非常重要，因為在我們產品的售後市場，我們可以獲得所有備件，因為它們是專有的。目前，售後市場需求強勁，呈現兩位數成長，而且看不到盡頭。所以它不是——它只占我們本季銷售額的 33% 和利潤的 61%。因此，我認為人們需要關注的聞所未聞的故事是安裝基礎和售後市場及其驅動的備件的實力。這也是推動下半年獲利能力的原因。

Then maybe can I just ask on cash. It's possible that free cash flow guidance was raised by $8 million, but it still seems like a pretty steep climb, $180 million implied, I believe, in the second half. So how do we think about the moving pieces of working capital that are helpful there?

那也許我可以只要求現金。自由現金流指引可能會提高 800 萬美元，但這似乎仍然是一個相當陡峭的攀升，我相信下半年會達到 1.8 億美元。那麼，我們該如何看待那些有幫助的流動資金呢？

Yes. And you know that cyclicality historically has been very strong fourth quarter, and it's no change this year. The cash use is primarily building working capital in the first half of the year and we forecast to be cash positive in the second half, but the majority of that cash coming in the fourth quarter. It's bolstered by the increase in profitability from the equitable adjustment we got in interiors and from the strong aftermarket, which has quick turns on collecting cash.

是的。你知道，從歷史上看，第四季的周期性非常強，今年也沒有變化。上半年的現金使用主要用於建立營運資金，我們預計下半年現金將為正，但大部分現金將來自第四季。我們在內飾方面進行的公平調整以及強大的售後市場帶來的盈利能力的提高支撐了這一點，售後市場可以快速收回現金。

Sheila, I'll just add in the 140 days we have left in the year, we don't have to win any new work to hit those numbers. We have it all in backlog, it's all in flow. The parts that are either on hand or in the pipeline and every operating company in every site knows exactly what they have to ship by the end of the year. So it is -- it's a steep climb. It always is. This one is not materially higher than prior year. So we're confident we can do it.

希拉，我只想補充今年還剩下 140 天，我們不需要贏得任何新作品來達到這些數字。我們的一切都在積壓中，一切都在流動中。無論是現有的還是在管道中的零件，以及每個地點的每個營運公司都清楚地知道他們在年底之前必須運送什麼。確實如此——這是一次陡峭的攀登。總是如此。這一數字並不比去年有實質提高。所以我們有信心能夠做到。

David Strauss, Barclays.

大衛‧史特勞斯，巴克萊銀行。

With regard the equitable adjustment on interiors, was there a onetime adjustment in the quarter? And then what is the prospect, I guess, the pricing adjustment that you have for this year, what's the potential for that to extend beyond this year?

關於內裝的公平調整，本季是否有一次性調整？那麼，我想，今年的價格調整的前景是什麼？

Sure, David. Without getting into details of customer contracts, there's provisions for big changes in volume and extraordinary inflation. So those are negotiated and settled on a regular basis. The one right now is settling them for this year, but that's something going forward as volumes and inflation changes that we would renegotiate.

當然，大衛。在不涉及客戶合約細節的情況下，其中有針對交易量大幅變動和異常通貨膨脹的規定。因此，這些都是定期進行談判和解決的。目前正在解決今年的問題，但隨著數量和通膨的變化，我們將重新談判，這是未來的事情。

Okay. I think you also have some -- go ahead, sorry.

好的。我想你也有一些——繼續吧，抱歉。

Go ahead, David.

繼續吧，大衛。

I was just going to ask a follow-up there on -- with Airbus, I think you also have a fair amount of business on the interiors side. Has there been any sort of adjustment with Airbus? Or are you talking to Airbus about any adjustments there?

我只是想問一個後續問題——對於空中巴士公司，我認為你們在內飾方面也有相當多的業務。空中巴士是否進行了任何調整？或者您正在與空中巴士公司討論那裡的任何調整嗎？

We are talking to them because some of the same inflationary impacts that Jim mentioned or the use of directed sources for the input materials where you really can't compete the work and prices have gone up at the lower tiers, we have discussions on equitable adjustments.

我們正在與他們交談，因為吉姆提到的一些相同的通貨膨脹影響或使用直接來源的投入材料，你確實無法競爭工作和價格在較低層上漲，我們就公平調整進行了討論。

And both discussions, Boeing and Airbus are very much joint problem solving. They're not in denial that these kinds of inflationary impacts are happening. They certainly want to substantiate it. In fact, Jim and I met the Boeing team down in Mexico last May to review the operations and they were impressed with the operations. Our interiors business performs very well, on-time delivery, quality. They're one of the few sites -- factories that can do high volume, high-mix production. So the issue is not performance. It's really the external cost that hit those businesses for both Boeing and Airbus. So yes, we reached agreement with Boeing in the quarter, and we're in discussions with Airbus as well.

波音和空中巴士的這兩次討論都是在共同解決問題。他們並不否認此類通膨影響正在發生。他們當然想證實這一點。事實上，吉姆和我去年五月在墨西哥會見了波音團隊，審查了營運情況，他們對營運印象深刻。我們的內裝業務表現非常好，交貨準時，品質優良。它們是為數不多的能夠進行大批量、多品種生產的工廠之一。所以問題不在於效能。對波音和空中巴士來說，真正影響這些業務的是外部成本。所以，是的，我們在本季與波音公司達成協議，並且我們也在與空中巴士公司進行討論。

Okay. I want one quick follow-up. You talked about reiterating the Investor Day targets, I believe, but those were given prior, I believe, to the sale of product support. So could you just remind us, at least from a EBITDA margin perspective and maybe free cash flow margin perspective, what exactly the targets are now?

好的。我想要一個快速跟進。我相信，您談到了重申投資者日目標，但我認為，這些目標是在銷售產品支援之前給出的。那麼您能否提醒我們，至少從 EBITDA 利潤率和自由現金流利潤率的角度來看，現在的目標到底是什麼？

Sure. And we update those when we gave our guidance for this year back in May to exclude the product support business that was divested. And -- so I would refer you back to that, but I believe it should have been over 20% margin for the terminal year, and the free cash flow conversion, it was approaching 10%.

當然。我們在五月給出今年的指導時更新了這些內容，以排除被剝離的產品支援業務。所以我想請您回頭看看，但我相信最終年度的利潤率應該超過 20%，而自由現金流轉換則接近 10%。

Michael Ciarmoli, Truist.

邁克爾·恰莫利，真理主義者。

Nice results. Just maybe back to Sheila's question. I guess the underlying second half EBITDA margins implied are about 20%. You've never done that run rate before?

不錯的結果。也許回到希拉的問題。我猜下半年的 EBITDA 利潤率大約是 20%。您以前從未完成過該運行率嗎？

And I guess if I try to maybe unpack the margins, it seems like the underlying OEM have been bouncing between maybe 3% and 8%. So is the bulk of the margin lift really coming from the OEM margins improving on just the settlement?

我想，如果我嘗試提高利潤率，那麼底層 OEM 的利潤率似乎一直在 3% 到 8% 之間波動。那麼，大部分利潤提升真的來自於 OEM 利潤僅因和解而改善嗎？

And maybe a third question in there, what are your underlying production rates? I mean there's still definitely some supply chain pressures out there. So maybe just a little bit more color.

也許還有第三個問題，你們的基本生產力是多少？我的意思是，供應鏈肯定仍然存在一些壓力。所以也許只是多一點顏色。

So mix is a big part of it because we have a higher mix of the aftermarket, which is higher margin, but the margins are up year-over-year expected to be primarily driven by mix. But certainly, the equitable adjustment is helping in the interiors segment as well.

因此，混合是其中的重要組成部分，因為我們擁有更高的售後市場組合，這意味著更高的利潤率，但利潤率同比成長預計主要是由混合驅動的。但可以肯定的是，公平的調整也對內裝領域有所幫助。

Okay. Okay. I mean does the -- just a follow-up on that. The aftermarket, I mean, do you guys envision the growth accelerating from here? It looked like the revenues were actually flat sequentially on the commercial side?

好的。好的。我的意思是——只是對此的後續行動。我的意思是，你們認為售後市場的成長會從這裡開始加速嗎？看起來商業方面的收入實際上是環比持平？

So in the aftermarket, too, I guess I would make sure you remember that the 787 bow wave is happening, so we're seeing much more of the repairs on 787 landing gear components and spares. That's going to help, too.

因此，在售後市場上，我想我也會確保您記住 787 的弓波正在發生，因此我們看到了更多 787 起落架組件和備件的維修。這也會有幫助。

Seth Seifman, J.P. Morgan.

賽斯‧塞夫曼，摩根大通。

So just wanted to kind of level set now in interiors in terms of what we saw in the quarter in terms of sales and EBITDA and how we can think about this going forward? We should -- should we expect interiors to be kind of profitable in this kind of single-digit million range on a go-forward basis?

因此，我只想根據我們在本季度看到的銷售和 EBITDA 方面的情況來確定室內設計的水平，以及我們如何考慮未來的發展？我們應該——我們是否應該期望內裝在未來的基礎上能夠在這種個位數的百萬美元範圍內實現盈利？

And also just in terms of the sales, I think I recall last quarter that last year, you guys have been delivering ahead of where Boeing was producing. And obviously, the rates have decelerated since then. And so should we expect -- where do we expect revenue to go in interiors off of the $38 million in the second quarter?

而且就銷售而言，我想我記得去年上個季度，你們的交付量一直領先於波音的生產量。顯然，自那時以來，利率已經放緩。那麼，我們是否應該預期，第二季內裝收入為 3,800 萬美元，我們預計該收入將走向何方？

Yes, I'll take that one, Seth. So we had a relook at our multiyear forecast for the whole business, and we increased what systems, electronics and controls is going to contribute both on OEM and aftermarket, and we reduced interiors because we just decided to be more conservative for the reasons that you mentioned, which is they have some buffer stock and the rates are depressed in the short term. But what we did in the quarter that's meaningful is that we rightsized the business to reflect the true demand. So about 2,000 employees was reduced to about 1,200 in the quarter.

是的，我會接受那個，賽斯。因此，我們重新審視了對整個業務的多年預測，我們增加了系統、電子設備和控制裝置對 OEM 和售後市場的貢獻，並減少了內飾，因為我們決定更加保守，因為您提到的，那就是他們有一些緩衝庫存，利率在短期內被壓低。但我們在本季所做的有意義的事情是我們調整了業務規模以反映真實的需求。因此本季約 2,000 名員工減少至約 1,200 名。

Secondly, we consolidated it with -- management-wise with our gears business so we had savings on the SG&A side. And then the Boeing settlement was huge. I mean I flew to Seattle. I met with all the senior leaders. We discussed the rights that we're entitled to under the contract related to inflationary impacts. And Boeing was very reasonable in our discussions. Certainly, they're interested in maintaining the workforce there. When they're at rate, these factories produce 1 million blankets a year and tens of thousands of composite ducting, so it's a key supplier to Boeing.

其次，我們在管理方面將其與我們的齒輪業務進行了整合，因此我們在銷售、管理和管理方面節省了開支。然後波音公司的和解金額是龐大的。我的意思是我飛往西雅圖。我會見了所有高階領導。我們討論了我們根據合約享有的與通貨膨脹影響相關的權利。波音公司在我們的討論中非常合理。當然，他們有興趣維持那裡的勞動力。當他們達到生產速度時，這些工廠每年生產 100 萬條毛毯和數萬條複合材料管道，因此它是波音公司的主要供應商。

In the short term, the rates are down. You asked about the margins. The second half of the year is going to be definitely profitable now with the price relief. The full year is going to be around 6% EBITDAP margins in interiors. And then year-over-year, we will certainly get back to double digits, but we've assumed both double-digit margins and dollars of EBITDAP over our fiscal '26 to '29 in long-term plan. And we'll update that as Boeing burns off its on-hand inventory and steps the rates up.

短期來看，利率是下降的。你問的是邊距。隨著價格的下調，今年下半年肯定會有利可圖。全年內裝業務的 EBITDAP 利潤率約為 6%。然後，與去年同期相比，我們肯定會回到兩位數，但我們在長期計劃中假設 26 至 29 財年的利潤率和 EBITDAP 都將達到兩位數。當波音公司消耗其現有庫存並提高費率時，我們將更新這一點。

Okay. Excellent. That's very helpful. And then just on the aftermarket, just seeing 787 up over 200%, some nice increases on 777 and NG as well. I guess -- but the overall aftermarket growth was 25%. And so are there pieces -- are there other pieces of the aftermarket -- significant pieces of the aftermarket that are down year-on-year?

好的。出色的。這非常有幫助。然後就售後市場而言，787 的漲幅超過 200%，777 和 NG 也有一些不錯的漲幅。我猜——但售後市場的整體成長率為 25%。那麼售後市場的其他部分是否有年減的重要部分？

So -- and there are certain programs in the aftermarket that are near end of life that have temporary pauses like the V-22, kind of the military spares were flat. But the ones that you highlighted are some of the key drivers for the growth is 787, 777 and NG.

因此，售後市場上的某些項目已接近生命週期終點，會暫時停止，例如 V-22，軍事備件的供應量持平。但您強調的成長的一些關鍵驅動因素是 787、777 和 NG。

And overall, the market is growing at double digits, and we see that continuing for not only quarters, but years to come. And the V-22 is mostly due to the temporary flight restriction limiting the use of the aircraft following a crash unrelated to our products. So we expect that aftermarket to come back in time.

總體而言，市場正在以兩位數的速度成長，我們看到這種成長不僅持續幾個季度，而且持續數年。V-22 主要是由於與我們產品無關的墜機事件後臨時飛行限制限制了飛機的使用。因此，我們預計售後市場將及時恢復。

Ronald Epstein, Bank of America.

羅納德·愛潑斯坦，美國銀行。

This is Mariana Perez Mora on for Ron today. So I wanted to ask a question about like future portfolio shaping strategy. Are there any assets that remain to be divested that are meaningful enough? Or how should we think about that going forward?

這是瑪麗安娜·佩雷斯·莫拉今天為羅恩做的節目。所以我想問一個關於未來投資組合塑造策略的問題。是否還有任何足夠有意義的待剝離資產？或者我們該如何思考未來的發展？

So no, we're not actively seeking to sell any of our operating companies or our sites. We've arrived at the future state portfolio. We want certainly getting interiors back up to volume is going to help on that business.

因此，我們不會積極尋求出售我們的任何營運公司或網站。我們已經得出了未來的國家組合。我們希望內裝恢復到正常量肯定會對這項業務有所幫助。

But the core value, as Jim noted, is driven out of our SEC and APS business predominantly aftermarket. So we're very happy with what we have there. These are both businesses that are growing organically, very nice year-over-year, and that's where our CapEx investment is going as well. So the big value lever is in those two businesses.

但正如 Jim 指出的那樣，核心價值來自我們的 SEC 和 APS 業務（主要是售後市場）。所以我們對我們所擁有的感到非常滿意。這兩項業務都在有機成長，逐年成長非常好，這也是我們資本支出投資的方向。因此，最大的價值槓桿在於這兩項業務。

We also expect gears to improve. Right now, gears is running about 10%. But there's four or five development programs I mentioned that as those transition to production margins and gears will pick up as well. What we are doing is if there's any sort of end-of-life programs that we don't see meaningful aftermarket flow on, we'll monetize those. But that's a very small contributor to our financials.

我們也期望齒輪能夠改進。目前，齒輪運轉約 10%。但我提到了四、五個開發計劃，隨著這些計劃向生產利潤和裝備的過渡，這些計劃也會加快。我們正在做的是，如果有任何類型的報廢項目我們看不到有意義的售後市場流動，我們會將其貨幣化。但這對我們的財務貢獻很小。

And of course, our leverage is now down to 5.5 times, and we have strong cash and liquidity. So there's no need to do any kind of divestiture for that reason. We took advantage of the third-party aftermarket opportunity to delever more rapidly than we even planned at our prior Investor Day.

當然，我們的槓桿率現在已降至5.5倍，而且我們擁有強勁的現金和流動性。因此，沒有必要因此而進行任何形式的剝離。我們利用第三方售後市場的機會，以比我們先前投資者日計畫的速度更快的速度去槓桿化。

And then my follow-up is on the commercial OE. You mentioned the inventories and Boeing going through like burning off inventories was critical for them to start ramping up their demand of your products. Do you have any sense of how much inventories do they have on your parts?

然後我的後續工作是商業 OE。您提到庫存和波音公司經歷的銷毀庫存對於他們開始增加對您產品的需求至關重要。您知道您的零件有多少庫存嗎？

We do. It varies by product across actuation. The inventories are lower, interiors is a little bit higher. And what Boeing did is when they went into the production pause, and then they went through a period where they were doing a temporary ship hold. They had time to go in an inventory all their on-hand inventory and they began to share that information with us, but it didn't lead to a production stop in our factories because Boeing doesn't want that. They know that restarting a line has all kinds of consequences of lost learning, sawtooth in the learning curve and the trading of key skills. So we continue to produce, albeit at low rates in those plants.

我們做到了。它因驅動過程中的產品而異。庫存較低，內裝較高。波音公司所做的就是當他們進入生產暫停階段，然後他們經歷了一段臨時停船的時期。他們有時間清點所有現有庫存，並開始與我們分享這些信息，但這並沒有導致我們工廠停產，因為波音不希望如此。他們知道，重新啟動一條生產線會帶來各種後果，包括失去學習、學習曲線出現鋸齒、關鍵技能的交換。因此，我們繼續生產，儘管這些工廠的產量較低。

And what Boeing is going to do is they're going to update their portals over the next several months as they finalize their ramp to 38 a month, next year sometime. And they'll let us feather in new production with the burn off of the inventory. So we're not concerned about it.

波音公司要做的是，他們將在接下來的幾個月內更新他們的入口網站，並在明年某個時候最終確定每月 38 個入口網站的數量。他們將讓我們透過庫存的消耗來增加新的生產。所以我們不關心這個。

I'll remind you that the total impact of all the Boeing production pauses and strikes and the temporary shipment holds for Triumph for the full year is only 5% of sales. So we've done a lot to diversify our customer base and platforms. And I think there was a lot of speculation about deep impacts to Triumph because of this, it's not the case at all.

我要提醒您的是，所有波音生產暫停和罷工以及凱旋全年臨時裝運的總影響僅佔銷售額的 5%。因此，我們做了很多工作來實現客戶群和平台的多元化。我認為因此有很多關於對凱旋產生深遠影響的猜測，但事實並非如此。

Cai von Rumohr, TD Cowen.

蔡·馮·魯莫爾，TD·考恩。

Great quarter, guys. Did I hear you say 6% adjusted EBITDAP margins for interiors because that would imply mid- to high-teens margins in the second half?

很棒的季度，夥計們。我是否聽說過您說內裝調整後的 EBITDAP 利潤率為 6%，因為這意味著下半年的利潤率將達到中雙位數？

Yes, that's right. In the 5% to 6% range for the full year. We just took a lot of expenses out of that business, and we're going to see the benefit of those in the second half of this year.

是的，沒錯。全年增幅在5%至6%之間。我們剛從該業務中扣除了大量費用，我們將在今年下半年看到這些費用的好處。

Got it. And then if I look at the pattern last year, your aftermarket was down sequentially in both commercial and military. A fair amount in the third quarter and then it spiked up in the fourth quarter. Should we expect that similar type of pattern this year?

知道了。然後，如果我看看去年的模式，你的售後市場在商業和軍事方面都連續下降。第三季的數量相當可觀，然後在第四季激增。我們是否應該期待今年出現類似的模式？

So in absolute dollars, they're going to continue to be growth and similar to the year-over-year growth last year. I think because OEM is coming back, that may moderate that as a percentage of sales. But both are going to be positive for fourth quarter, and that's going to be our strongest quarter again this year.

因此，以絕對美元計算，它們將繼續增長，並且與去年的同比增長類似。我認為，由於 OEM 正在回歸，這可能會降低其佔銷售額的百分比。但第四季度這兩個季度都將是積極的，這將再次成為我們今年最強勁的季度。

But will they be up -- down sequentially as they were last year?

但它們會像去年一樣連續上升還是下降嗎？

We don't anticipate that. One thing that's different about this year from last year is last year, I think people were still doing fleet planning based on receipt of new aircraft. And now they've sort of given up on that. and they recommitted to the legacy fleet.

我們預計不會發生這種情況。今年與去年不同的一件事是去年，我認為人們仍在根據新飛機的接收情況進行機隊規劃。現在他們已經放棄了。他們重新致力於遺留艦隊。

In fact, they've been bringing aircraft out of storage into the fleet and having to spend money to bring them up to date. So I think part of the difference year-over-year is that people are relying on these legacy aircraft more than they were a year ago.

事實上，他們一直在將飛機從庫存中取出並加入機隊，並且必須花錢對其進行更新。因此，我認為同比的部分差異在於，人們比一年前更依賴這些老式飛機。

(Operator Instructions) Myles Walton, Wolfe Research.

（操作員說明）Myles Walton，Wolfe Research。

Dan, there was reports of Triumph exploring strategic options. I was hoping you could elaborate on the extent of those alternatives being looked at, maybe any decision, timing that you're thinking about?

丹，有報道稱凱旋正在探索戰略選擇。我希望你能詳細說明正在考慮的這些替代方案的範圍，也許是你正在考慮的任何決定和時間安排？

Yes. Thanks, Myles. We can't really control the rumors that are out there, and we don't comment on them. I take this kind of coverage as a compliment. We read the same articles that you did. To me, it's a testament to the success of all the hard work that Jim and I and the leadership team, the workforce has been doing and the progress we've made.

是的。謝謝，邁爾斯。我們無法真正控制外面的謠言，我們不會對其發表評論。我將這種報道視為一種讚美。我們讀了與您相同的文章。對我來說，這證明了吉姆和我以及領導團隊、員工所做的所有辛勤工作以及我們所取得的進步的成功。

What I can say is that my team and I remain committed to creating shareholder value. And building all the success we've had, we've now achieved peer-like profitability. I remember when we were running 6% EBITDAP margins, and we've set a goal for 16%, which was the peer average at the time and we're now hitting that number this year, and we're not done. All the profit you see kicking in from price negotiations, people forever want to know, are you getting price and when are we going to see it? Well, you're seeing it in fiscal '25, and that will continue in the years ahead. Our backlog is growing. Our balance sheet is stronger and all those things, I think fuel rumors, speculation about will Triumph be acquired.

我能說的是，我和我的團隊仍然致力於創造股東價值。憑藉我們所取得的所有成功，我們現在已經實現了與同行相當的盈利能力。我記得當我們的 EBITDAP 利潤率為 6% 時，我們設定了 16% 的目標，這是當時的同行平均水平，我們今年正在達到這個數字，但我們還沒有完成。你看到的所有利潤都是從價格談判中獲得的，人們永遠想知道，你能得到價格嗎？嗯，你會在 25 財年看到這一點，這種情況將在未來幾年繼續下去。我們的積壓訂單正在增加。我們的資產負債表更加強勁，所有這些事情，我認為都會助長有關凱旋是否會被收購的謠言和猜測。

So what I really like investors to take away from our results is that we're in a really good position of strength and we've weathered the issues with Boeing as a partner with them during the last year, we're an attractive supplier in a growing market, a lot of folks do speculate this will be the start of another super cycle. We've got a huge installed base. We've got a robust aftermarket sales, and we've got a great IP-based product line -- pipeline of products.

因此，我真正希望投資者從我們的業績中得到的信息是，我們處於非常好的實力地位，去年我們作為合作夥伴與波音公司一起解決了問題，我們是一家有吸引力的供應商一個不斷增長的市場，很多人確實猜測這將是另一個超級週期的開始。我們擁有龐大的安裝基礎。我們擁有強勁的售後市場銷售，並且擁有出色的基於 IP 的產品線——產品管道。

In fact, after I finish this call today, we're going to do two days of strat planning review. So we're focused on the future. We feel like we've got a great runway for the business over the next several years, and we're just going to continue to drive value in whatever form that takes.

事實上，在我今天完成這個電話會議後，我們將進行為期兩天的策略規劃審查。所以我們專注於未來。我們覺得未來幾年我們的業務已經擁有了良好的跑道，我們將繼續以任何形式推動價值。

Okay. And Dan, you commented on geared solutions. I think you mentioned management combination with interiors for cost reduction efforts. I'm curious, under the surface within geared solutions as a business, I know you've had to deal with the V-22 production declines.

好的。丹，您評論了齒輪解決方案。我想您提到了管理與內裝的結合以降低成本。我很好奇，在齒輪解決方案作為企業的表面之下，我知道您必須應對 V-22 產量下降的問題。

And then I'm curious also about the LEAP gearbox production given the LEAP volumes, obviously, have been low. Is that business poised for a significant inflection? Have you troughed on V-22? And what does your LEAP output look like?

然後我也對 LEAP 變速箱的生產感到好奇，因為 LEAP 的產量顯然很低。該業務是否準備好迎來重大轉變？你在V-22上經歷過低潮嗎？你的 LEAP 輸出是什麼樣的？

Yes. Thanks, Myles. So gears has been a labor of love for me for the last several years. We cleaned up a number of development programs that they have. Those are now going to be the foundation for several new franchises in support of aircraft-mounted accessory drives. We're on the V-21. We're on C-7A. We're on KF-21. So although it was painful in terms of margins, those businesses will benefit -- that business will benefit from those programs going forward.

是的。謝謝，邁爾斯。因此，在過去的幾年裡，齒輪一直是我熱愛的工作。我們清理了他們的一些開發計劃。這些現在將成為支援機載附件驅動器的幾個新特許經營權的基礎。我們在 V-21 上。我們在 C-7A 上。我們在 KF-21 上。因此，儘管利潤率方面很痛苦，但這些企業將從中受益——這些企業將從未來的這些計劃中受益。

V-22 has been an anchor tenant in that business. It's both OEM and aftermarket, it's really helped a lot. So when they reduce the delivery rate on the OEM side and brought MRO down a little bit, it did hit the numbers, but we're looking forward to that coming back. And these aircraft are going to continue to fly for a long time, just like legacy F-16 and the A-10, you name it.

V-22 一直是該行業的主要租戶。無論是OEM還是售後，確實幫了很大的忙。因此，當他們降低 OEM 方面的交付率並稍微降低 MRO 時，確實達到了目標，但我們期待這種情況的回歸。這些飛機將繼續飛行很長一段時間，就像傳統的 F-16 和 A-10 一樣，凡是你能想到的飛機。

In terms of the LEAP, we've won an 80-20 work share with GE's own incumbent gearbox plant and the relationships with GE are very strong. We looked at deliveries the past year, I think they've approached 1,700. This year, it will be about 1,600. We discussed with GE the importance of maintaining throughput in that shop and recently reached an agreement where we'd be allowed to do that. And so even though there are deliveries of engines and there's some finished good engines at Boeing, they're letting us stay at a fairly high rate. So we're not going to see a dip in production.

就 LEAP 而言，我們贏得了 GE 現有變速箱工廠 80-20 的工作份額，並且與 GE 的關係非常牢固。我們查看了去年的交付量，我認為已經接近 1,700 輛。今年，這一數字約為1,600。我們與 GE 討論了維持該車間吞吐量的重要性，並在最近達成了一項協議，允許我們這樣做。因此，儘管波音公司已經交付了發動機並且有一些成品好的發動機，但他們讓我們保持在相當高的速度。因此，我們不會看到產量下降。

In terms of the longer-term forecast for gears, I think it's going to be an incremental year-over-year improvement. It's not going to be the rapid swing in profitability we saw in interiors, but we also don't expect further troughing.

就齒輪的長期預測而言，我認為這將是逐年遞增的改進。這不會是我們在內飾領域看到的盈利能力的快速波動，但我們也預計不會進一步陷入低谷。

Noah Poponak, Goldman Sachs.

諾亞·波波納克，高盛。

Jim, I guess, you had the multiyear free cash flow outlook at the Investor Day a little while back. And then as you mentioned in the fourth quarter last year, you revised that. You had the product support sale and I think a few other moving pieces. I guess today, if you're raising the '25, you have this improvement in the interiors margin outlook. It seems like maybe a few other positives. Is the base case still just what you provided in the fourth quarter deck or is it something in between Investor Day and fourth quarter deck?

吉姆，我猜，您在不久前的投資者日上對多年自由現金流前景進行了展望。然後正如您在去年第四季度提到的那樣，您對此進行了修改。你們進行了產品支援銷售，我認為還有其他一些令人感動的事情。我想今天，如果你提高'25，你的內裝利潤率前景就會有所改善。看起來也許還有其他一些正面因素。基本情況仍然是您在第四季度甲板上提供的內容，還是介於投資者日和第四季度甲板之間的內容？

Well, the achievements we've had this year, the deleveraging to reduce interest expense, the profitability, the strong aftermarket, the settlement on interiors, all give us much higher confidence in those targets than we had before.

今年我們取得的成績，去槓桿降低利息支出，獲利能力，強勁的售後市場，內裝的解決，都讓我們對這些目標比以前更有信心。

We haven't updated those targets yet. We're in the middle of a strat planning process right now, then we'll get into budgeting for next year. And normally, it would be an annual cycle where we would update our multiyear targets. But certainly, it should give everyone much more confidence that they're highly achievable. And remember, those targets don't include any capital structure improvements because we have this 9% note that's trading at 105 right now that the no-call period ends in four months, and we'll be able to look at options opportunistically because that's not due until 2028 to even further reduce interest expense.

我們尚未更新這些目標。我們現在正處於策略規劃過程中，然後我們將開始製定明年的預算。通常，我們會以年度為週期更新多年目標。但當然，它應該讓每個人更有信心，相信他們是可以實現的。請記住，這些目標不包括任何資本結構的改進，因為我們有這張9% 的票據，目前交易價格為105，無贖回期將在四個月後結束，我們將能夠機會主義地考慮選擇權，因為那是直到 2028 年才能進一步減少利息支出。

And right now, we have really more working capital than we should need long-term because of some of the disruption in demand. As that stabilizes, we're going to have even more tailwinds for cash flow in the coming year.

目前，由於需求受到一些幹擾，我們的營運資金確實超出了長期所需。隨著這種情況的穩定，來年我們將有更多的現金流順風。

Okay. And within the 2026 and 2028, the 4% and the 10% free cash as a percentage of sales, can you speak at all to what would now roll into that for the interiors segment margin?

好的。在 2026 年和 2028 年，4% 和 10% 的自由現金佔銷售額的百分比，您能否談談現在內裝部門的利潤率會變成多少？

So that's the consolidated target, and I can't give any specific details of what part is interior and what part of the systems & support until we finish our cycle this year of planning. And we'd always planned on getting equitable adjustments in that business. We've now achieved them. So I think those targets are intact, but with higher confidence.

這就是綜合目標，在我們完成今年的規劃週期之前，我無法給出任何關於內部部分以及系統和支援部分的具體細節。我們一直計劃在該業務中進行公平的調整。我們現在已經實現了這些目標。所以我認為這些目標完好無損，但信心更高。

And of course, we're always looking to improve the moving forward. So hopefully, you can tell from the numbers speak for themselves this quarter. We really hit on all cylinders, and we're looking forward to following through so we can hit all these targets and maybe higher.

當然，我們一直在尋求改進前進的方向。因此，希望您能從本季的數字中看出一切。我們真的全力以赴，我們期待著堅持到底，這樣我們就可以實現所有這些目標，甚至可能更高。

Okay. And Dan, you talked about the MAX and kind of ramping back up here and working through the inventory. I guess just curious your view just given how close you are to the situation of Boeing's ability to ramp back up at the total program level. On their earnings call, they, I think, were pretty cautious and sort of alluded to that taking a long time.

好的。丹，你談到了 MAX 以及這裡的恢復和庫存工作。我想只是好奇你的觀點，因為你距離波音公司在整個專案層面上恢復能力的情況有多近。我認為，在他們的財報電話會議上，他們相當謹慎，並暗示這需要很長時間。

You mentioned that a lot of the supply chain kept going. The September progress that they had shown looked pretty good. So obviously, they need to balance the right product quality and safety, but they also have their own balance sheet and an entire supply chain that's waiting for them to deliver to demand. So I'm just curious from your perspective, how quickly do you think they should and could ramp back up the MAX?

您提到許多供應鏈仍在繼續運作。他們所展示的九月的進展看起來相當不錯。顯然，他們需要平衡正確的產品品質和安全性，但他們也有自己的資產負債表和整個供應鏈，等待他們滿足需求。所以我只是從你的角度好奇，你認為他們應該並且能夠以多快的速度恢復 MAX？

So as I mentioned, I was out there in the quarter, I met with Esam M. who runs the Boeing commercial supply chain, and I have a lot of confidence in him he's somebody that understands the customer's perspective, having run the business development function. He lived at Spirit after some of their quality escapes to help them put in place the controls they needed. And we talked about their on-hand inventory.

正如我所提到的，我在本季會見了負責波音商業供應鏈的 Esam M.，我對他很有信心，他了解客戶的觀點，負責業務開發職能。在他們的一些品質問題發生後，他住在Spirit，以幫助他們實施所需的控制。我們討論了他們的現有庫存。

And I think one of the silver linings of the production pause and the strike is that a large number of commodity parts have caught up and they have robust buffer stocks. So I don't think they're going to be limited in the ramp by part availability as they were in prior quarters sort of post-COVID quarters.

我認為生產暫停和罷工的一線希望之一是大量商品零件已經迎頭趕上，它們擁有強勁的緩衝庫存。因此，我認為他們不會像前幾季或新冠疫情後的季度那樣受到零件供應量的限制。

In terms of the workforce engagement, I'm optimistic with Kelly Ortberg's leadership style, with the favorable settlement with the IM is that they're going to come together. And in fact, my comment to Boeing was the partnership with the workforce is ultimately more important than the economics of the settlement. And I know that they are really focused on training since a lot of their employees are less experienced. And I think people who predict that they're going to struggle are going to be proven wrong. I think they're going to get back on it and they'll have better parts support.

在員工敬業度方面，我對 Kelly Ortberg 的領導風格持樂觀態度，與 IM 達成的有利和解是他們將走到一起。事實上，我對波音公司的評論是，與員工的夥伴關係最終比和解的經濟效益更重要。我知道他們非常注重培訓，因為他們的許多員工經驗不足。我認為那些預測自己會陷入困境的人將被證明是錯誤的。我認為他們會重新開始，並且會得到更好的零件支撐。

So I can't comment on the shape of that ramp other than Boeing does typically do it in steps. They don't do it in a month over month, they do it for a period of time. So I'd just say watch for those steps and know that the supply chain is ready to push the throttles forward.

因此，我無法評論該坡道的形狀，除非波音公司通常是逐步進行的。他們不會一月又一月地做，他們會做一段時間。因此，我只想說，請注意這些步驟，並知道供應鏈已準備好推動前進。

This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節到此結束。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。