Unisys Corp (UIS) 2025 Q3 法說會逐字稿

Good day and welcome to the Unisys Corporation 3rd quarter 2025 financial results conference call.

各位朋友，大家好，歡迎參加優利系統公司2025年第三季財務業績電話會議。

All participants will be in listen-only mode.

所有參與者將處於唯讀模式。

Should you need assistance, please signal a conference specialist by pressing the key, followed by 0.

如果您需要協助，請按此鍵，然後按 0，向會議專家發出信號。

After today's presentation, there will be an opportunity to ask questions.

今天的報告結束後，將有機會提問。

To ask a question, you may press star, then one on your telephone keypad.

若要提問，您可以按星號鍵，然後按電話鍵盤上的數字鍵 1。

To withdraw your question, please press 2.

若要撤回您的問題，請按 2。

Please note this event is being recorded.

請注意，本次活動正在錄影。

I would now like to turn the conference over to Michaela Pewarski, Vice President of Investor relations. Please go ahead.

現在我將把會議交給投資人關係副總裁米凱拉·佩瓦爾斯基。請繼續。

Thank you, operator. Good morning, everyone.

謝謝接線生。各位早安。

Thank you for joining us. Yesterday afternoon, Unisys released its third quarter 2025 financial results. Joining me to discuss those results are Mike Thomson, our CEO and President, and Debra McCann, our CFO.

感謝您的參與。昨天下午，Unisys 發布了 2025 年第三季財務業績。與我一起討論這些結果的有我們的執行長兼總裁麥克湯姆森和我們的財務長黛布拉麥肯。

As a reminder, today's call contains estimates and other forward-looking statements within the meaning of the securities laws. We caution listeners that current expectations, assumptions, and beliefs forming the basis of these statements include factors beyond our ability to control or precisely estimate. This could cause results to differ materially from expectations.

提醒各位，今天的電話會議包含證券法意義上的估計和其他前瞻性陳述。我們提醒聽眾，構成這些陳述基礎的當前預期、假設和信念包含一些我們無法控製或精確估計的因素。這可能導致結果與預期有重大差異。

These items can be found in the forward-looking statement section of yesterday's earnings release furnished on Form 8K and in our most recent Forms 10K and 10Q filed with the SEC.

這些內容可以在昨天發布的 8K 表格收益報告中的前瞻性聲明部分以及我們最近向美國證券交易委員會提交的 10K 表格和 10Q 表格中找到。

We do not assume any obligation to review or revise any forward-looking statements in light of future events.

我們不承擔因未來事件而審查或修改任何前瞻性陳述的義務。

We will also refer to certain non-GAAP financial measures such as non-GAAP operating profit or adjusted EBITDA that excludes certain items such as post-retirement expense, cost reduction activities, and other expenses the company believes are not indicative of its ongoing operations as they may be unusual or non-recurring. We believe these measures provide a more complete understanding of our financial performance, however, they are not intended to be a substitute for GAAP.

我們也會參考一些非公認會計準則財務指標，例如非公認會計準則營業利潤或調整後的 EBITDA，這些指標不包括某些項目，例如退休後支出、成本削減活動以及公司認為不能反映其持續經營狀況的其他支出，因為這些支出可能不尋常或不經常發生。我們認為這些措施能夠更全面地反映我們的財務業績，但它們並非旨在取代公認會計準則。

Reconciliations for non-GAAP measures are provided within the presentation. Slides for today's call are available on our investor website, and with that, I'd like to turn the call over to Mike.

本簡報中提供了非GAAP指標的調節表。今天電話會議的幻燈片已發佈在我們的投資者網站上，接下來，我將把電話會議交給麥克。

Thank you, Michaela, and good morning and thank you for joining us to discuss the company's 3rd quarter 2025 financial results.

謝謝 Michaela，早安，謝謝您參加本次會議，與我們討論公司 2025 年第三季的財務表現。

We continue to demonstrate our steady focus on improving delivery and operational efficiency, which is helping us successfully navigate the macroeconomic uncertainty in the market and other headwinds impacting revenue.

我們持續專注於提高交付和營運效率，這有助於我們成功應對市場宏觀經濟的不確定性以及其他影響收入的不利因素。

We remain on track to meet or exceed the midpoint of the improved non-GAAP operating profit margin guidance of 8% to 9% provided last quarter as we expect to generate $110 million of pre-pension, free cash flow for the full year.

我們仍有望達到或超過上季給出的改善後的非GAAP營業利潤率指引值8%至9%的中點，因為我們預計全年將產生1.1億美元的退休金前自由現金流。

We're on track to meet our increased L&S expectations of $430 million for the current year, $40 million above our original expectations, supported by strong retention and consumption trends in our high value software ecosystem.

我們預計將實現今年 L&S 收入增加至 4.3 億美元的預期目標，比我們最初的預期高出 4,000 萬美元，這得益於我們高價值軟體生態系統中強勁的客戶留存率和消費趨勢。

These trends have now helped generate upside in each of the past 3 years, and we're increasing our projection for out years to approximately $400 million of average annual L&S revenue for the 3 years of 2026 through 2028.

這些趨勢在過去 3 年中都帶來了成長，我們將 2026 年至 2028 年這三年的平均年度 L&S 收入預測提高到約 4 億美元。

The quarter also reflects our commitment to executing the pension strategy we laid out and the realization of the benefits we said we would achieve.

本季也體現了我們對執行既定退休金策略的承諾，以及我們承諾實現的收益。

We said we would remove substantially all market volatility from our aggregate US pension contributions, and those have remained stable. Our pension debt has come down with our quarterly contributions, and we executed an annuity purchase in September to remove more than $300 million of US pension liabilities, over half of our stated $600 million target, by the end of 2026.

我們曾表示，我們將大幅減少美國退休金繳款總額的市場波動，而這些繳款總額也一直保持穩定。隨著季度繳款的增加，我們的退休金債務有所下降。 9 月份，我們購買了年金，到 2026 年底，我們將消除超過 3 億美元的美國退休金負債，超過我們設定的 6 億美元目標的一半。

While revenue was light relative to the color provided last quarter, much of this was related to timing, including a shift of a large license and support renewal which closed early in the 4th quarter.

雖然與上個季度相比，收入略顯疲軟，但這很大程度上與時間安排有關，包括一筆大型許可證和支援續約交易在第四季度初完成。

Timing on Excel and S hardware pass through also contributed to the quarterly miss on top-line.

Excel 和 S 硬體傳遞的時間安排也是季度營收未達預期的原因之一。

Additionally, market dynamics affecting the PC cycle and IT budgets continue to cause clients to pause or delay project initiation, slow the pace of transition for some new business, and limit market penetration of newly introduced solutions.

此外，影響個人電腦週期和 IT 預算的市場動態持續導致客戶暫停或推遲專案啟動，減緩一些新業務的轉型步伐，並限制新推出的解決方案的市場滲透率。

Some of the early signs of improvement we've seen at the US state and local clients lost some steam as concerns about federal funding returned leading up to the ongoing US government shutdown.

在美國政府持續停擺之前，我們在美國州和地方客戶那裡看到的一些早期改善跡象，隨著人們對聯邦資金的擔憂再次出現，勢頭有所減弱。

Our revised full year outlook reflects some additional revenue timing elements, including a shift in expected 4th quarter revenue recognition from upfront to overtime, which will generate future revenue.

我們修訂後的全年展望反映了一些額外的收入時間因素，包括預計第四季度收入確認方式從預付改為加時確認，這將產生未來的收入。

We could see some of the headwinds that challenge Ex-L&S growth this year persist for a few quarters, so we're acting quickly to adjust our approach to mitigate those impacts.

我們預計今年阻礙 Ex-L&S 成長的一些不利因素可能會持續幾個季度，因此我們正在迅速採取行動調整我們的方法，以減輕這些影響。

At the same time, feedback from clients, partners, and industry analysts have only increased our confidence in the positioning of our solutions and our ability to establish baseline Ex-L&S growth over time.

同時，來自客戶、合作夥伴和產業分析師的回饋只會增強我們對自身解決方案定位的信心，以及我們隨著時間的推移建立基準 Ex-L&S 成長的能力。

Meanwhile, we're still delivering on profit dollars and free cash flow priorities.

同時，我們仍在努力實現利潤和自由現金流的優先事項。

The most important elements required to achieve that success are the continued execution of our L&S solution, which we continue to outperform, and the efficiency gains in Ex-L&S delivery where we're stepping up our efforts.

實現這一成功的關鍵要素是繼續執行我們的 L&S 解決方案（我們在這方面一直表現出色），以及提高 Ex-L&S 交付的效率（我們正在加強）。

We've already made significant improvement in our Ex-L&S gross margin and have identified incremental opportunities within workforce optimization and the application of AI-driven productivity solutions.

我們在 Ex-L&S 毛利率方面已經取得了顯著進步，並且已經發現了在勞動力優化和應用人工智慧驅動的生產力解決方案方面還有進一步發展的機會。

Looking at all these factors, we believe we're on a path to improving our growth profile over time, continuing to enhance profit, chip away at the pension deficit and liabilities, and ultimately fully remove our US pension liabilities.

綜合考慮所有這些因素，我們相信我們正在朝著改善成長前景的方向前進，不斷提高利潤，逐步減少退休金赤字和負債，並最終徹底消除我們的美國退休金負債。

Looking at client signings, 3rd quarter total contract value increased 15% year over year, driven by a strong quarter in Ex-L&S renewals.

從客戶簽約情況來看，第三季合約總價值年增 15%，主要得益於 Ex-L&S 續約業務的強勁表現。

New business TCV of 124 million was in line with the solid levels of new business in the second quarter.

新業務總合約價值為 1.24 億，與第二季穩健的新業務水準相符。

Year-to-date, our new business signings are slightly positive relative to 2024, which was a strong year for new business signings, some of which are still building up their full revenue run rates and are showing expansion opportunities.

今年迄今為止，我們的新業務簽約量與 2024 年相比略有增長，2024 年是新業務簽約量強勁的一年，其中一些業務仍在逐步實現其全部收入運行率，並顯示出擴張機會。

The pricing environment remains competitive, which is not unusual. Clients want to share in the AI cost savings, and in some cases their expectations may be unrealistic.

價格環境依然競爭激烈，這並不罕見。客戶希望分享人工智慧帶來的成本節約，但在某些情況下，他們的期望可能不切實際。

We've also seen some competitors undercutting on price based on aggressive assumptions for the size and pace of future AI related efficiencies, and we think that they're taking on a high degree of risk in those cases.

我們也看到一些競爭對手基於對未來人工智慧相關效率的規模和速度的激進假設而降低價格，我們認為他們在這種情況下承擔了很高的風險。

We are seeing these dynamics on a handful of renewals and in certain cases have been willing to accept certain attrition, especially at clients prioritizing cost over value and offering limited potential for us to expand in higher value solutions.

我們在一些續約合約中看到了這些動態，在某些情況下，我們願意接受一定的客戶流失，尤其是一些客戶優先考慮成本而非價值，這限制了我們在更高價值解決方案方面的拓展潛力。

We continue to take a disciplined approach aligned to our priorities of profit dollars and cash flow, and we believe clients are beginning to adjust their expectations as they're gaining knowledge on how the use of the emerging technology applies to their ecosystems, which allows us to build competitive advantages in our portfolio.

我們繼續採取嚴謹的方法，以利潤和現金流為優先事項，我們相信，隨著客戶逐漸了解新興技術如何應用於他們的生態系統，他們也開始調整他們的期望，這使我們能夠在投資組合中建立競爭優勢。

We have large new business opportunities within our extensive existing client base, and many of our 3rd quarter wins highlight our ability to expand those relationships. In many cases, our wins reflect a close alignment between solution development and our clients' efficiency priorities.

我們在龐大的現有客戶群中擁有龐大的新業務機會，第三季的許多成功案例都凸顯了我們拓展這些關係的能力。在許多情況下，我們的成功反映了解決方案開發與客戶效率優先事項之間的緊密契合。

For example, in digital workplace solutions, we signed a renewal with a global industrial manufacturing client that included significant new scope to transform and streamline IT support. As part of this engagement, we will transition existing service desk to our next generation service experience accelerator. And we'll also deploy virtual tech cafes and migrate IT service management capabilities to a new platform to streamline IT support without sacrificing quality.

例如，在數位化工作場所解決方案方面，我們與一家全球工業製造客戶續簽了合同，其中包括對 IT 支援進行轉型和簡化的重大新範圍。作為此次合作的一部分，我們將把現有的服務台過渡到我們的下一代服務體驗加速器。我們還將部署虛擬技術咖啡館，並將 IT 服務管理功能遷移到新平台，以簡化 IT 支持，同時又不犧牲品質。

This engagement also includes new scope and CA&I solutions such as automating network operations monitoring to both improve process and reduce costs.

此次合作還包括新的範圍和 CA&I 解決方案，例如自動化網路營運監控，以改善流程並降低成本。

In cloud application and infrastructure solutions, we've signed an expansion deal expected to drive significant cost savings for a public sector client in Australia.

在雲端應用和基礎設施解決方案方面，我們簽署了一項擴展協議，預計將為澳洲一家公共部門客戶節省大量成本。

Leveraging our deep multi-cloud expertise, we proactively identified an opportunity to optimize their hybrid infrastructure by eliminating a high-cost platform, resulting in migration, project work, and ongoing managed services revenue for us, and millions of dollars of annual cost savings for our clients.

憑藉我們深厚的多雲專業知識，我們主動發現了一個優化其混合基礎設施的機會，透過消除高成本平台，為我們帶來了遷移、專案工作和持續管理服務收入，並為我們的客戶節省了數百萬美元的年度成本。

During the quarter, we renewed one of our largest public sector infrastructure managed services contracts, a 7-year extension to manage data center environments for a large US state government.

本季度，我們續簽了我們最大的公共部門基礎設施管理服務合約之一，將為美國某大型州政府管理資料中心環境的合約延長了 7 年。

We also introduced a new cyber bolt solution to protect critical infrastructure used by all of the state's cabinet-level agencies spanning revenue, public health, transportation, and more.

我們還推出了一種新的網路安全解決方案，用於保護該州所有內閣級機構（涵蓋財政、公共衛生、交通等）使用的關鍵基礎設施。

The enterprise computing solutions, we signed a new scope contract with a large European financial services client to consolidate some core systems onto one of our platforms.

在企業運算解決方案方面，我們與一家大型歐洲金融服務客戶簽訂了一份新的範圍合同，將一些核心系統整合到我們的一個平台上。

We will provide transformation services through our proven migration factory to accomplish this project and help our client execute their simplification and rationalization program.

我們將透過我們成熟的遷移工廠提供轉型服務來完成這個項目，並幫助我們的客戶執行其簡化和合理化計劃。

Our deep expertise in financial services sector has been a key driver of new business in ECS segments. And in the 3rd quarter, that also included a noteworthy new logo win for our modern core banking industry solution with a financial institution in Latin America.

我們在金融服務領域的深厚專業知識一直是推動電子清算系統（ECS）領域新業務發展的關鍵因素。第三季度，我們也與拉丁美洲的金融機構合作，為其現代核心銀行業解決方案贏得了一個值得關注的新標誌。

Branch banking remains an important channel in the region, and we've developed a differentiated offering that integrates branch and digital banking with central core banking technology, incorporating capabilities from our recent partnership with Thought Machine.

在該地區，分公司銀行仍然是一個重要的管道，我們開發了一種差異化的產品，將分行和數位銀行與中央核心銀行技術相結合，並融入了我們最近與 Thought Machine 合作所取得的成果。

Our innovative end to end offering will consolidate legacy systems for customer management, deposits, loans, accounting, treasury, and compliance into a single secure scalable solution that will become the backbone of our clients' financial operations.

我們創新的端到端解決方案將客戶管理、存款、貸款、會計、資金和合規等傳統系統整合到一個安全可擴展的解決方案中，這將成為我們客戶財務營運的支柱。

I now want to discuss our solution portfolio, including some trends we're seeing in client demand and where we're focusing our investment, innovation, and partnership efforts.

現在我想討論我們的解決方案組合，包括我們看到的客戶需求的一些趨勢，以及我們將投資、創新和合作努力的重點領域。

We allocate a significant portion of our capital expenditures to our clear path forward solution in the ECS segment, which we discussed in more detail in an investor education session earlier this quarter, a recording of which is available on our investor website.

我們將相當一部分資本支出分配給了我們在 ECS 領域的明確發展路徑解決方案，我們在本季度早些時候的投資者教育會議上對此進行了更詳細的討論，該會議的錄像可在我們的投資者網站上找到。

A core element of our Clear Path Forward 2050 strategy is the continued evolution of our operating systems and surrounding ecosystem of products, industry solutions, and modernization services.

我們「清晰前進之路 2050」策略的核心要素是不斷改進我們的作業系統以及相關的產品、產業解決方案和現代化服務生態系統。

We are continually expanding several dimensions of clear path forward, including speed, security, and resilience to maintain strong value proposition that has allowed us to retain clients for decades and support increasing consumption.

我們不斷拓展前進道路上的多個維度，包括速度、安全性和韌性，以保持強大的價值主張，這使我們能夠留住客戶數十年，並支持不斷增長的消費。

In the 3rd quarter we released updates to one of our Clear path forward operating systems, expanding cloud compatibility and made significant post-quantum cryptography security algorithm enhancements.

第三季度，我們發布了 Clear 前瞻作業系統的更新版本，擴展了雲端相容性，並對後量子密碼安全演算法進行了重大改進。

Looking at our industry solutions portfolio and travel and transportation, we completed the integration of our in transit system to our cargo portal, which means our platform now allows detailed tracking across the cargo journey in accordance with International Air Transport Association standards.

縱觀我們的行業解決方案組合以及旅行和運輸領域，我們已完成將我們的在途系統與貨物門戶網站的集成，這意味著我們的平台現在可以按照國際航空運輸協會的標準，對貨物運輸全程進行詳細跟踪。

In banking and financial services, we're seeing client interest in quantum enhanced fraud detection for financial transactions, a topic on which members of our ECS team recently published research accepted by the International Conference on Quantum Artificial Intelligence following a rigorous peer review.

在銀行和金融服務領域，我們看到客戶對量子增強型金融交易詐欺偵測技術表現出濃厚的興趣。我們 ECS 團隊的成員最近就此主題發表了研究成果，該成果經過嚴格的同行評審後被國際量子人工智慧會議接受。

In DWS and CA&I, we continue to invest in our AI driven portfolio that's based on technology-led delivery models.

在DWS和CA&I領域，我們繼續投資於以技術驅動的交付模式為基礎的人工智慧驅動型產品組合。

This is beginning to allow us to show up in the market with higher value offerings at better price points, making us more competitive in the market.

這讓我們能夠以更優惠的價格向市場提供更高價值的產品，從而增強我們在市場上的競爭力。

This puts pressure on the top-line growth but allows for reduced cost of delivery and better margin profile.

這會對營收成長帶來壓力，但可以降低交付成本，提高利潤率。

In digital workplace solutions we're already seeing this in the uptake of our service experience accelerator.

在數位化工作場所解決方案領域，我們已經從服務體驗加速器的普及中看到了這一點。

During the quarter we rolled out this solution to additional clients and continued to see roughly 40% deflections away from human support to automated support handled by our generic AI agents.

本季度，我們將此解決方案推廣到更多客戶，並繼續看到約 40% 的客戶從人工支援轉向由我們的通用 AI 代理處理的自動化支援。

Data from early client adopters also indicates an improvement in the end user experience.

早期客戶採用者的數據也表明，最終用戶體驗有所改善。

In a service where marginal change has meaning, we're seeing a substantial 28% increase in user engagement and a 24% decrease in abandonment on average.

在一項即使是微小變化都意義重大的服務中，我們看到用戶參與度平均大幅提升了 28%，而用戶放棄率平均下降了 24%。

Our knowledge management capabilities are identifying gaps in approximately 10% of support tickets and addressing them with automated content generation to improve accuracy of the training data and the effectiveness of our genic AI agents.

我們的知識管理能力能夠識別大約 10% 的支援工單中的不足之處，並透過自動內容生成來解決這些問題，從而提高訓練資料的準確性和我們基因人工智慧代理的有效性。

In field services we've invested in Salesforce's agent Force technology which leverages Agentic AI to automate scheduling, rescheduling, and pre and post work summaries while continuously learning and making autonomous decisions to improve and optimize dispatch efficiency over time.

在現場服務方面，我們投資了 Salesforce 的 Agent Force 技術，該技術利用 Agentic AI 實現自動安排、重新安排以及工作前後的總結，同時不斷學習並做出自主決策，以隨著時間的推移提高和優化調度效率。

During the quarter, Unisys became an authorized Apple product reseller, adding MacBooks and iPads to our existing device subscription service, which provides comprehensive life cycle management with intelligent device refresh and a flexible, predictable cost model.

本季度，Unisys 成為蘋果授權產品經銷商，將 MacBook 和 iPad 添加到我們現有的裝置訂閱服務中，該服務提供全面的生命週期管理，包括智慧型裝置更新和靈活、可預測的成本模式。

This partnership enables client decision making based on the users' needs rather than supplier limitations.

這種合作關係使客戶能夠根據用戶需求而不是供應商的限制來做出決策。

And cloud applications and infrastructure solutions, our application factory is taking shape and yielding a growing pipeline of new opportunities.

隨著雲端應用和基礎設施解決方案的逐步完善，我們的應用工廠正在形成，並產生越來越多的新機會。

Application development is a bright spot within public sector, with clients remaining interested in modernizing inefficient platforms, including for criminal justice information, identity access management, and licensing and permitting.

應用程式開發是公共部門的一大亮點，客戶仍然對實現低效平台的現代化感興趣，包括刑事司法資訊、身分存取管理以及授權和批准等。

We also continue to cross sell and upsell new opportunities for our CA&I solutions at existing enterprise computing solution clients, primarily related to clear path forward clients seeking to modernize their application layer and expand digital capabilities.

我們也繼續向現有企業運算解決方案客戶交叉銷售和向上銷售 CA&I 解決方案的新機會，主要與尋求對其應用層進行現代化改造和擴展數位能力的明確前進方向的客戶有關。

We're also making a push to cross sell CA&I solutions into our base of ECS clients in the financial services and public sectors that use our business process solutions where we believe our workflow and process knowledge combined with industry expertise is a unique combination.

我們也在努力將 CA&I 解決方案交叉銷售給我們在金融服務和公共部門的 ECS 客戶群，這些客戶使用我們的業務流程解決方案，我們相信我們的工作流程和流程知識與行業專業知識相結合，是一種獨特的組合。

In both DWS and CA&I, we continue to view the market of mid-sized enterprises, those with $1 billion to $5 billion of annual revenue, as a relatively untapped market opportunity where we have all the ingredients to effectively compete and source significant new revenue.

在DWS和CA&I，我們仍然將年收入在10億至50億美元之間的中型企業市場視為一個相對未開發的市場機會，我們擁有有效競爭和獲取重大新收入的所有要素。

These clients typically value personalized service which they're not receiving from larger providers and have less organizational complexity, allowing them to establish a relationship with us at a higher level and more quickly.

這些客戶通常重視個人化服務，而大型供應商無法提供這種服務；此外，他們的組織結構也相對簡單，這使得他們能夠與我們建立更高層次、更快速的合作關係。

Given our digital workplace solutions are market leading even for the largest enterprises, we see the mid-market commercial sector as a larger opportunity to build leadership and differentiation, particularly within our CA&I solutions.

鑑於我們的數位化工作場所解決方案即使對於最大的企業來說也是市場領先的，我們認為中端市場商業領域是一個更大的機會，可以建立領導地位和差異化優勢，尤其是在我們的 CA&I 解決方案方面。

A top priority heading into year end is defining more clearly a set of CA&I solutions tailored for this segment of the market and with a streamlined and repeatable sales motion.

臨近年底，首要任務是更清楚地定義一套針對該細分市場量身定制的 CA&I 解決方案，並採用精簡且可重複的銷售流程。

This involves solidifying preferred partners and building more standard architectural solutions and delivery frameworks just as we've done in IT service management with FreshWorks and EasyVista and in licensing and permitting with clarity.

這包括鞏固首選合作夥伴，並建立更標準的架構解決方案和交付框架，就像我們在 IT 服務管理方面與 FreshWorks 和 EasyVista 合作，以及在許可和審批方面清晰地開展工作一樣。

We are already enhancing our cybersecurity portfolio in this manner, an area where our pipeline is growing and where we're seeing strong secular growth tailwinds in market demand.

我們已經在以這種方式增強我們的網路安全產品組合，在這個領域，我們的業務正在成長，我們看到市場需求方面存在強勁的長期成長動力。

We're leaning in with partners like Dell and Microsoft to develop end to end security managed service playbooks, integrating security tooling, standardized solution frameworks, and repeatable sales motions.

我們正與戴爾和微軟等合作夥伴緊密合作，開發端到端的安全管理服務手冊，整合安全工具、標準化解決方案框架和可重複的銷售流程。

We've also begun designing a standard architecture for Unisys intelligent operations specific to mid-size enterprises that can also incorporate private AI clouds. Running AI Workloads exclusively in public cloud.

我們也開始為 Unisys 智慧營運設計一個標準架構，專門針對中型企業，該架構還可以整合私有 AI 雲。完全在公有雲上運行 AI 工作負載。

Environments is very expensive and cost prohibitive for mid-market clients.

環境設計非常昂貴，對於中端市場客戶來說成本過高。

We're exploring potential technology partners with OEM, Data centers and GPU as a service providers so we can offer our clients alternate private AI frameworks with Unisys service providers to bring down those costs.

我們正在探索與 OEM、資料中心和 GPU 服務提供者的潛在技術合作夥伴，以便我們可以為客戶提供由 Unisys 服務提供者提供的替代私有 AI 框架，從而降低成本。

Before turning the call over to Deb, I want to provide an update on the industry recognition, including the growing acknowledgment in higher growth areas of the market.

在將電話交給黛布之前，我想就行業認可度提供一些最新信息，包括在市場高增長領域日益增長的認可度。

In the 3rd quarter we received a new leader ranking in cloud services for mid-market enterprises.

第三季度，我們在面向中型企業的雲端服務領域獲得了新的領導者排名。

We were also recognized for the first time or appear in new reports in cybersecurity, agentic AI services, and AI-driven application development.

我們在網路安全、智能體人工智慧服務和人工智慧驅動的應用程式開發等領域首次獲得認可或出現在新的報告中。

This was in addition to maintain leader positions in a number of updated reports put out in multi-cloud, digital workplace, and generative AI services.

此外，該公司還在多份關於多雲、數位化工作場所和生成式人工智慧服務的最新報告中保持領先地位。

These recognitions come from highly respected firms such as Avisant, Everest, IDC and ISG and give credence to our strategic focus on application development, AI services, and penetration of the mid-market.

這些認可來自 Avisant、Everest、IDC 和 ISG 等備受尊敬的公司，證明了我們專注於應用開發、人工智慧服務和中端市場滲透的策略是正確的。

The majority of the clients and prospects rely on industry experts in some manner when choosing IT service providers, so our steady rise in many quarters should open up new business opportunities in areas of the market we want to penetrate to support Ex-L&S growth in our new solutions.

大多數客戶和潛在客戶在選擇 IT 服務提供者時都會在某種程度上依賴行業專家，因此，我們在許多季度的穩定成長應該會在我們想要滲透的市場領域開闢新的商機，以支援 Ex-L&S 在我們新解決方案中的成長。

Finally, I want to mention that Unisys was named to Time Magazine's 2025 list of world's best companies for the first time, recognizing us amongst global organizations that exemplify excellence in today's corporate landscape.

最後，我想提一下，Unisys 首次入選《時代》雜誌 2025 年全球最佳公司榜單，這讓我們躋身於當今企業界卓越典範的全球組織之列。

Our investments in upscaling and development opportunities for our employees is an important component of that excellence and supports a stable workforce maintaining our low voluntary attrition, which was 11.7% on a trailing 12 month basis. With that, I'll turn the call over to Deb to go through our financials in more detail.

我們對員工的提升和發展機會的投資是實現卓越的重要組成部分，並支持穩定的員工隊伍，從而保持較低的自願離職率，過去 12 個月的自願離職率為 11.7%。接下來，我會把電話交給黛布，讓她更詳細地介紹我們的財務狀況。

Thank you, Mike and good morning everyone. As a reminder, my discussion today will reference slides from the supplemental presentation posted on our website. I will discuss total revenue growth both as reported and in constant currency and segment growth in constant currency only. I will also provide information excluding license and support or Ex-L&S to allow investors to assess the progress we are making outside the portion of ECS where revenue and profit recognition is tied to license renewal timing, which can be uneven between quarters. To echo Mike's comments, we remain in a good position to achieve our increased profitability and free cash flow outlooks to maintain our strong liquidity position.

謝謝你，麥克，大家早安。再次提醒大家，我今天的討論將參考我們網站上發布的補充簡報中的幻燈片。我將討論按報告匯率和以固定匯率計算的總收入成長情況，以及僅以固定匯率計算的各業務板塊成長情況。我還會提供不包括許可和支持（Ex-L&S）的信息，以便投資者評估我們在 ECS 部分之外取得的進展，ECS 部分的收入和利潤確認與許可續期時間相關，而許可續期時間在不同季度之間可能不一致。正如麥克所說，我們仍然處於有利地位，能夠實現不斷增長的獲利能力和自由現金流預期，從而保持強勁的流動性。

And we took another step forward on the journey to removing our US pensions with the annuity purchase we executed in September. While we have faced some Ex-L&S revenue headwinds, our license and support cash engine is being powered by our base of high-quality clients who continue to commit to and increase consumption on our platforms. At the same time, we are fine tuning our strategy to ensure we capitalize on the advantages offered by technology like Gentech and generative AI and quantum encryption to expand the scope of our efficiency initiative and deliver innovation that advances our clients' efficiency goals. Looking at our results in more detail, you can see on slide 4 that third quarter revenue was $460 million a decline of 7.4% year over year, or 9% in constant currency.

我們在取消美國退休金的道路上又向前邁進了一步，我們在 9 月購買了年金。雖然我們在 Ex-L&S 收入方面面臨一些不利因素，但我們的授權和支援現金流引擎得到了我們高品質客戶群的持續支持，這些客戶不斷致力於並增加在我們平台上的消費。同時，我們正在不斷調整策略，以確保我們能夠充分利用 Gentech、生成式人工智慧和量子加密等技術帶來的優勢，擴大我們提高效率計畫的範圍，並提供能夠推進客戶效率目標的創新。從更詳細的結果來看，您可以在第 4 張投影片中看到，第三季營收為 4.6 億美元，年減 7.4%，以固定匯率計算下降 9%。

We had an approximate $12 million impact from the shift in timing on a license and support renewal that closed just outside the quarter, which will benefit L&S fourth quarter revenue. Excluding license and support. third quarter revenue was $377 million down 3.9% or 5.8% in constant currency. This is below our expectation of $390 million we shared with you last quarter due to foreign exchange movement and dynamics I will cover now as I discuss constant currency segment revenue.

由於許可證和支持續約的時間安排發生了變化，導致本季末結束的續約合約金額約為 1200 萬美元，這將有利於 L&S 第四季度的收入。不計許可和支援費用，第三季營收為3.77億美元，年減3.9%，以固定匯率計算下降5.8%。由於外匯波動和動態因素，這低於我們上季度與您分享的 3.9 億美元的預期，我現在將在討論固定匯率部分的收入時詳細介紹這些因素。

Digital workplace solutions revenue was $125 million in the quarter, down 5.8% year over year. Year-to-date, DWS revenue is down 2.9%. The 3rd quarter decline was driven in part by the shift of low margin hardware revenue, some in the 4th quarter and some into 2026. Volumes in some of our traditional PC field services were also lighter than we expected, and a pickup in PC refresh activity was dampened by Microsoft's extension of security support for the significant number of devices still running on Windows 10.

本季數位化工作場所解決方案營收為 1.25 億美元，年減 5.8%。今年迄今為止，DWS 的收入下降了 2.9%。第三季下滑的部分原因是低利潤率硬體收入的轉移，一部分轉移到第四季度，一部分轉移到 2026 年。我們的一些傳統 PC 現場服務的業務量也低於預期，而 PC 更新活動的回升則因微軟延長了對大量仍在運行 Windows 10 的設備的安全支援而受到抑制。

Third quarter cloud applications and infrastructure solutions revenue was $180 million a 6.8% decline compared to the prior year period. This segment has our highest public sector exposure, where activity levels have already been suppressed, and the uncertainty around federal funding heading into the government shutdown caused incremental slowing. That impact continues to be primarily concentrated at US state and local governments, so we were pleased to secure a meaningful renewal TCV with some of these clients at an improved margin. Year-to-date, CA&I revenue is down 5% due to volumes in the public sector. Enterprise computing Solutions revenue was $133 million in the third quarter, a 13.9% year over year decline due to the cadence of LMS renewal signings, which have a higher fourth quarter concentration than last year.

第三季雲端應用和基礎設施解決方案營收為 1.8 億美元，比上年同期下降 6.8%。該板塊是我們公共部門敞口最大的板塊，而公共部門的活動水平已經受到抑制，加上政府停擺前聯邦資金的不確定性，導致經濟活動逐漸放緩。這種影響仍然主要集中在美國州和地方政府，因此我們很高興能夠與其中一些客戶達成有意義的續約總合約價值 (TCV)，並且利潤率有所提高。今年迄今為止，由於公共部門業務量下降，CA&I 收入下降了 5%。第三季企業運算解決方案營收為 1.33 億美元，年減 13.9%，原因是 LMS 續約簽約的節奏，而 LMS 續約簽約的集中度比去年同期更高。

Within the segment, L&S revenue was $83 million compared to $105 million in the prior year quarter.

在該業務板塊中，L&S 的收入為 8,300 萬美元，而去年同期為 1.05 億美元。

Specialized services and next generation compute solutions revenue through 1.7% benefiting from new business and application services we are delivering for clients in both travel and transportation and financial services.

專業服務和下一代運算解決方案收入成長 1.7%，這得益於我們為旅遊運輸和金融服務業的客戶提供的新業務和應用服務。

Trailing 12 month signings of approximately $2 billion translates to a book to bill of 1.1 tons for both the total company and our exMS solutions, and we exited the quarter with a backlog of $2.8 billion flat year over year. As Mike touched on, the complexity and pace of negotiations have continued to elongate cycles on some renewals in DWS and CA&I.

過去 12 個月的簽約額約為 20 億美元，相當於公司整體和 exMS 解決方案的訂單出貨比為 1.1 噸，本季末的積壓訂單與去年同期持平，為 28 億美元。正如麥克所提到的，談判的複雜性和速度導致DWS和CA&I的一些續約週期不斷延長。

Moving to slide 6, 3rd quarter gross profit was $117 million a 25.5% gross margin, down from 29.2% a year ago as a result of the cadence of L&S renewals. Ex-L&S gross profit was $70 million and Ex-L&S gross margin was 18.6%, up 70 basis points year over year, largely due to lower cost reduction charges in the quarter.

翻到第 6 張投影片，第三季毛利為 1.17 億美元，毛利率為 25.5%，低於去年同期的 29.2%，這是由於 L&S 續約節奏所致。扣除物流和銷售費用後，毛利為 7,000 萬美元，毛利率為 18.6%，較去年同期成長 70 個基點，這主要是由於本季成本削減費用降低所致。

Excluding that benefit, we continued to make incremental gains in delivery efficiency to maintain profitability despite revenue decline.

撇開這項收益不談，儘管收入下降，我們仍然透過不斷提高交付效率來維持獲利能力。

Our investments in workforce optimization are helping us H1 in on incremental opportunities to improve delivery, and we plan to act quickly to capitalize on those. I will now touch briefly on segment gross profit. DWS gross margin was 16.2% in the third quarter, essentially flat year over year. As Mike discussed, we are leaning heavily into technology to automate delivery. CA&I gross margin was 19.6% in the third quarter, relatively flat year on year. We were pleased to maintain profitability, especially given the higher margin profile of CA&I solutions being impacted by public sector uncertainty.

我們在勞動力優化方面的投資正在幫助我們抓住逐步改善交付的機會，我們計劃迅速採取行動來利用這些機會。接下來我將簡單談談分部毛利。DWS第三季毛利率為16.2%，與去年同期大致持平。正如麥克所說，我們正在大力利用科技來實現配送自動化。CA&I 第三季毛利率為 19.6%，與去年同期大致持平。我們很高興能夠保持獲利，尤其是在公共部門不確定性影響下，CA&I 解決方案的利潤率普遍較高的情況下。

Segment margins continue to benefit from automation and optimizing workforce and labor markets, as well as synergies we are achieving from centralizing application capabilities.

自動化和優化勞動力及勞動市場，以及集中應用能力所帶來的綜效，都持續提升了各業務部門的利潤率。

ECS gross margin was 46.2% in the third quarter, down from 58.2% a year ago, which was due to the timing of L&S renewals and mix from integrated system sales. As a reminder, our L&S solutions have a fairly fixed cost base, and the very high concentration of license renewals is expected to drive a significant sequential increase in fourth quarter ECS growth margin.

第三季 ECS 毛利率為 46.2%，低於去年同期的 58.2%，這是由於 L&S 續約的時間安排以及整合系統銷售的組合所致。需要提醒的是，我們的 L&S 解決方案成本基礎相當固定，而且許可證續期集中度非常高，預計這將推動第四季度 ECS 成長利潤率環比大幅增長。

Moving to slide 7. Third quarter GAAP operating loss is $34 million which included a $55 million non-cash goodwill impairment in the DWS segment related to the near-term industry dynamics, challenging volumes, and the pace of client signings. Non-GAAP operating profit was $25 million a 5.4% non-GAAP operating margin, which is in line with our expectations for mid-single-digits.

切換到第7張投影片。第三季 GAAP 營業虧損為 3,400 萬美元，其中包括 DWS 部門因近期行業動態、業務量挑戰和客戶簽約速度而產生的 5,500 萬美元非現金商譽減損。非GAAP營業利潤為2,500萬美元，非GAAP營業利益率為5.4%，符合我們對個位數中段利潤率的預期。

SG&A in the 3rd quarter declined slightly year over year and is down 8% year-to-date, driven by our initiatives to streamline corporate functions, real estate, and technology. We are pushing to accelerate the remaining cost takeouts and increase our overall rationalization program to maximize savings in 2026.

第三季銷售、一般及行政費用較去年同期略有下降，年初至今下降 8%，主要得益於我們精簡公司職能、房地產和科技的舉措。我們正在努力加快剩餘成本削減的步伐，並擴大整體合理化計劃，以在 2026 年最大限度地節省成本。

We had a third quarter net loss of $309 million which included an approximate $228 million one-time non-cash pension expense related to the annuity purchase transaction in the quarter. As we previously discussed, this is an important element of our pension removal strategy.

第三季淨虧損 3.09 億美元，其中包括與本季年金購買交易相關的約 2.28 億美元的一次性非現金退休金支出。正如我們之前討論過的，這是我們退休金移除策略的重要組成部分。

The quarter also included a $4 million foreign exchange loss. As we mentioned last quarter, we ended our hedging program on intercompany loans which removed the cash impact of the hedge settlements but increases P&L FX volatility, impacting GAAP net income.

該季度還包括400萬美元的外匯損失。正如我們上個季度提到的，我們終止了公司間貸款的對沖計劃，這消除了對沖結算的現金影響，但增加了損益表的外匯波動性，從而影響了 GAAP 淨收入。

Adjusted net income was negative $6 million or a loss of $0.08 per share.

調整後淨利為負600萬美元，即每股虧損0.08美元。

Turning to slide 8, capital expenditures totaled approximately $18 million in the third quarter and $59 million year-to-date, relatively flat year over year. A significant portion of capital expenditures relates to relatively steady levels of solution development for our L&S platforms while we maintain a capital light strategy in our Ex-L&S solutions.

翻到第 8 張投影片，第三季資本支出總額約 1,800 萬美元，年初至今為 5,900 萬美元，與去年同期相比基本持平。相當一部分資本支出與我們的 L&S 平台解決方案開發相對穩定的水平有關，而我們對 Ex-L&S 解決方案則保持輕資本策略。

Pre-pension, free cash flow, which is free cash flow prior to pension and post retirement contributions, with $51 million in the third quarter and $15 million year-to-date. We generated $20 million of free cash flow in the third quarter, an improvement from $14 million in the prior year period.

退休金前自由現金流（即扣除退休金和退休後繳款前的自由現金流）第三季為 5,100 萬美元，年初至今為 1,500 萬美元。第三季我們產生了 2,000 萬美元的自由現金流，比去年同期的 1,400 萬美元有所改善。

During the quarter, we made $30 million of contributions to our global pension plans and received a $25 million one-time payment related to a favorable legal settlement in the fourth quarter of 2024.

本季度，我們向全球退休金計畫繳納了 3,000 萬美元，並於 2024 年第四季收到與一項有利的法律​​和解相關的 2,500 萬美元一次性付款。

Moving to slide 9, cash balances were $322 million as of September 30th compared to $377 million at year end, reflecting our use of $50 million cash on hand as part of our $250 million discretionary pension contribution.

翻到第 9 張投影片，截至 9 月 30 日，現金餘額為 3.22 億美元，而年末為 3.77 億美元，這反映出我們使用了 5,000 萬美元的現金作為 2.5 億美元可自由支配退休金繳款的一部分。

Our liquidity position is strong with no major debt maturity until 2031, and our recently renewed $125 million asset-backed revolver remains undrawn.

我們的流動性狀況良好，2031 年之前沒有重大債務到期，而且我們最近續簽的 1.25 億美元資產支持循環信貸額度尚未動用。

Our net leverage ratio is 1.8 times and 3.7 times, including pension deficit. We expect lower net leverage at year end given the strong profit contribution we expect from L&S renewals and expect leverage to gradually come down over time as we contribute to our pensions, though not in a straight line.

我們的淨槓桿率為 1.8 倍，若計入退休金赤字，則為 3.7 倍。鑑於我們預期 L&S 續約將帶來強勁的利潤貢獻，我們預計年底淨槓桿率將降低，隨著我們繳納退休金，槓桿率預計會隨著時間的推移而逐漸下降，儘管不會呈直線下降。

I will now provide an update on our global pension plans. Each year end we provide detailed estimated projections for expected global cash pension contributions and GAAP deficit relative to our quarterly updates. These projections change based on factors including funding regulations and actuarial assumptions. The deficit is also impacted by our planned contributions, some of which go directly towards deficit reduction.

接下來我將介紹我們的全球退休金計畫的最新情況。每年年底，我們都會提供相對於季度更新的全球現金退休金繳款和 GAAP 赤字的詳細估計預測。這些預測會根據資金規定和精算假設等因素而改變。赤字也受到我們計劃捐款的影響，其中一部分捐款將直接用於減少赤字。

After the upsized senior notes issuance in June and one-time $250 million contribution, the pro forma 2024 year-end US pension deficit was approximately $500 million.

在 6 月增發高級票據和一次性 2.5 億美元注資後，2024 年底美國退休金缺口預計約為 5 億美元。

As of September 30th, we estimate the deficit to be approximately $470 million. We are forecasting approximately $360 million of remaining cash contributions to our global pension plans in aggregate through 2029, which includes approximately $24 million of pension contributions in the fourth quarter, including both US and international.

截至9月30日，我們估計赤字約為4.7億美元。我們預計到 2029 年，全球退休金計畫剩餘現金繳款總額約為 3.6 億美元，其中包括第四季約 2,400 萬美元的退休金繳款，包括美國和國際繳款。

Of the $360 million of contributions we are forecasting through 2029, approximately $230 million are associated with our US qualified defined benefit plans, relatively unchanged from last quarter.

在我們預測到 2029 年將獲得的 3.6 億美元繳款中，約有 2.3 億美元與我們在美國的合格固定收益計劃有關，與上個季度相比基本沒有變化。

As we discussed on last quarter's call and during our dedicated pension investor education event, the historical pension contribution volatility that was primarily in our US qualified defined benefit plans was substantially removed by increasing fixed income allocations of plan assets to match duration of plan liabilities.

正如我們在上個季度的電話會議和專門的退休金投資者教育活動中討論的那樣，主要存在於我們美國合格固定收益計劃中的歷史退休金繳款波動性，透過增加計劃資產的固定收益配置以匹配計劃負債的久期，已基本消除。

As a result, our contributions through 2029 are not expected to fluctuate more than 3% in aggregate per annum, providing a high degree of certainty as to our future funding requirements.

因此，預計到 2029 年，我們的捐款總額每年波動不會超過 3%，從而為我們未來的資金需求提供了高度的確定性。

During the quarter we completed an annuity purchase that removed approximately $320 million of pension liabilities, more than half of the $600 million we aim to remove before the end of next year. This involves transferring $320 million of liabilities and a similar amount of planned assets to a third-party insurer. Annuity purchases reduce ongoing maintenance costs and allow us to remove liabilities at lower premiums than would be paid on a full takeout.

本季我們完成了一筆年金購買，消除了約 3.2 億美元的退休金負債，超過我們計劃在明年年底前消除的 6 億美元的一半。這涉及將 3.2 億美元的負債和類似金額的計劃資產轉移給第三方保險公司。購買年金可以降低持續的維護成本，並使我們能夠以比完全終止負債更低的保費消除負債。

I will now discuss our full year of financial guidance and additional color provided on slide 10.

接下來我將討論我們全年的財務指導，第 10 頁將提供更多細節。

For the full year we now expect constant currency growth of 4% to 3%, which equates to a reported revenue decline of 3.6% to 2.6%, which continues to assume full year license and support revenue of approximately $430 million. This implies fourth quarter revenue of approximately $570 million which assumes $185 million to $190 million of L&S revenue.

我們現在預計全年以固定匯率計算的成長率為 4% 至 3%，這意味著報告收入將下降 3.6% 至 2.6%，這仍然假設全年授權和支援收入約為 4.3 億美元。這意味著第四季營收約 5.7 億美元，其中 L&S 營收為 1.85 億美元至 1.9 億美元。

We expect to come in at or above the midpoint of our upwardly revised non-GAAP operating margin guidance range of 8% to 9%, implying fourth quarter non-GAAP operating margin in the mid-teens due to the concentration of L&S revenue we expect. We are pleased that this translates to non-GAAP operating profit that is slightly above our original full year guidance. This stems from the strength and stability in our Clear Path Forward software ecosystem, as well as diligent execution to enhance delivery and operational efficiency and foreign exchange favorability.

我們預期第四季非GAAP營業利潤率將達到或超過我們上調後的非GAAP營業利潤率預期範圍8%至9%的中點，這意味著由於我們預期的L&S收入集中，第四季度非GAAP營業利潤率將達到15%左右。我們很高興，這意味著非GAAP營業利潤略高於我們最初的全年預期。這源自於我們清晰前進之路軟體生態系統的實力和穩定性，以及為提高交付和營運效率以及外匯優勢而進行的認真執行。

We will continue to act with agility to remove additional costs where needed to align with revenue levels in certain areas of the business. We continue to expect to generate approximately $110 million of pre-pension free cash flow. This reflects full year assumptions listed on slide 10. As a reminder, pre-pension-free cash flow is difficult to predict with precision, as the exact timing of some larger L&S collections and how those fall around year end. And shift collections between 4th quarter and 1st quarter of 2026. Operator, please open the line for questions.

我們將繼續靈活應對，在必要時削減額外成本，以使某些業務領域的收入水平與這些成本保持一致。我們仍然預計會產生約 1.1 億美元的退休金前自由現金流。這反映了第 10 頁列出的全年假設。需要提醒的是，扣除退休金之前的現金流量很難精確預測，因為一些較大的 L&S 收款的具體時間以及這些收款在年底前後的情況都難以確定。並將收款時間調整為 2026 年第四季至第一季。接線員，請開通提問線。

We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.

現在開始問答環節。若要提問，您可以按星號鍵，然後按電話鍵盤上的數字鍵 1。如果您正在使用免持通話，請在按鍵前拿起聽筒。

To withdraw your question, please press star, then 2.

若要撤回您的問題，請按星號，然後按 2。

At this time we will pause momentarily to assemble a roster.

此時我們將稍作停頓，整理一份名單。

And our first question will come from Rod Borges of Deep Dive Equity Research. Please go ahead.

我們的第一個問題將來自 Deep Dive Equity Research 的 Rod Borges。請繼續。

Okay, great.

好的，太好了。

Thank you. I could ask a long-winded question on AI but I'll make it short winded. How are you seeing AI's impact overall on your P&L?

謝謝。我可以問一個關於人工智慧的冗長問題，但我還是長話短說吧。您認為人工智慧對貴公司損益表的整體影響如何？

Hey Rod, it's Mike.

嘿，羅德，我是麥克。

Thanks so much for joining in the question, really appreciate it. Although.

非常感謝您參與提問，真的非常感激。雖然。

Short-winded question may be a long-winded answer.

簡短的問題，可能需要冗長的回答。

Lot, lots of, as you would expect, lots of, impacts, in regard to the application of AI.

正如你所預料的那樣，人工智慧的應用會產生很多很多影響。

In general.

一般來說。

What I would say to you is that, the impact of our transformation of our delivery model which allows us to continue to deliver our solutions in a more, I'll say, cost friendly way or reducing our delivery cost, certainly helps our margin profile. We've seen a lot of Green Shoots.

我想說的是，我們交付模式的轉型使我們能夠以更具成本效益的方式繼續交付解決方案，或者說降低交付成本，這無疑有助於提高我們的利潤率。我們已經看到了很多積極的跡象。

In that regard as I mentioned in some of my prepared remarks and Deb did.

在這方面，正如我在事先準備好的演講稿中提到的那樣，黛布也提到了這一點。

As well, there's a knock-on impact to top-line for that, right?

此外，這也會對總收入產生連鎖反應，對吧？

So typically the AI component of a lower delivery cost means that you know our clients are seeing some of the benefit of that and we share some of that savings with our clients, but it makes us, obviously a lot more profitable and allows us to be a lot more competitive from a pricing pers. Perspective, so you know we think that's the right way to approach that in regards to the new solution uptake and then, obviously as we continue to grow and add new logos to the mix.

因此，通常情況下，人工智慧帶來的較低交付成本意味著我們的客戶從中受益，我們會與客戶分享部分節省下來的成本，但這顯然使我們更有獲利能力，並使我們能夠在定價方面更具競爭力。從這個角度來看，我們認為這是推廣新解決方案的正確方法，而且隨著我們不斷發展壯大，並不斷增加新的標誌，情況顯然也會如此。

The application of those new logos certainly have an uplift that is much more top line and bottom line accretive because we've already baked that into our model. We're seeing.

這些新標誌的應用無疑會帶來更大的提升，從而提高營收和利潤，因為我們已經將其融入我們的模式中。我們看到了。

As within our L&S business. Increases in our consumption rate, we think that's pretty much driven by the application of AI across the board, right? So this whole data abstraction layer and AI compute layer, we, we're seeing some nice improvements in our HPC business. So, clearly that clear path forward consumption, we've increased that guidance, as and we're actually talking about the increase of the out years 2026 through 2028.

正如我們在L&S業務中所做的那樣。我們認為消費率的成長很大程度上是由人工智慧的全面應用所推動的，對嗎？因此，在整個資料抽象層和人工智慧運算層方面，我們看到高效能運算業務取得了一些不錯的進展。所以，很明顯，我們已經提高了對未來消費的預期，並且我們實際上是在談論 2026 年至 2028 年的成長。

I think we started that dialogue s couple of years back thinking that would be about 360 million per annum, and now we're talking about 400 million on average per annum for that 3 years. So significant uptick in L&S related to consumption that we think is AI related. Certainly AI in our delivery efficiency and hitting those you know, real strategic objectives of increasing our profitability and our delivery.

我認為我們幾年前開始進行這項對話時，認為每年大約需要 3.6 億美元，而現在我們討論的是未來三年平均每年 4 億美元。因此，與消費相關的 L&S 出現顯著成長，我們認為這與人工智慧有關。當然，人工智慧可以提高我們的交付效率，並幫助我們實現提高獲利能力和交付效率的真正策略目標。

And in some of those cases too Rod, by the way, it's not only about just margin improvement in those accounts, we're looking at expansion and new scope and kind of growing those accounts in a bigger way through the application of this kind of technology led delivery and so the scale is one part. Of it, but certainly the volume is the other part. So, we, we're obviously, huge believers. We, we've talked for a while that we think this is, exponentially helping us to continue to compete in greater and greater scale with some of our competitors, and, we've got it essentially sprinkled in throughout our delivery, whether that's in intelligence. Operations embedded in just AI management and orchestration of compute within CA&I.

羅德，順便說一句，在某些情況下，這不僅僅是提高這些帳戶的利潤率，我們還在考慮擴張和新的範圍，並透過應用這種技術主導的交付方式，以更大的方式發展這些帳戶，因此規模是其中一部分。其中一部分是，但數量肯定是另一部分。所以，我們顯然都是堅定的信徒。我們討論過一段時間，我們認為這將極大地幫助我們繼續與一些競爭對手展開越來越大規模的競爭，而且，我們已經將其融入到我們的交付流程中，無論是在情報方面。CA&I 內部僅 AI 管理和計算編排中的操作。

Whether it's embedded in ECS from a Clear Path Forward Delivery and navigation and whether it's in field services and or service desk inside of DWS, all of our solutions essentially have that baked in and continue to grow in that manner.

無論是透過清晰的交付和導航嵌入到 ECS 中，還是在 DWS 內部的現場服務和/或服務台中，我們所有的解決方案基本上都內建了這項功能，並繼續以這種方式發展。

Okay, and then I guess there's an extension of that and applying it to the results for the quarter. Despite the revenue shortfall, you seem on track to meet your margin and free cash flow targets. So I'd like to ask what, what's enabling the margin performance to come through even though revenues are coming in less than planned.

好的，那麼我想還可以將此方法延伸並應用於本季的業績。儘管收入有所下降，但您似乎有望實現利潤率和自由現金流目標。所以我想問一下，是什麼因素使得即使收入低於預期，利潤率依然能夠維持良好水準？

Yeah, great.

好的，太棒了。

Great question, Rob. Thanks for that. Well, look, the first and most obvious is the increase in L&S, right? So that's obviously a higher profit component and we're seeing a step up, in that which is giving us margin pull through. The second and probably less obvious is there are plenty of green shoots embedded in XL and S for our new solutions, right? We've had quite a bit of Renewal activity this year. It's probably an unusually high renewal activity coming through in the year and being able to sign those accounts with our new solutions at a better margin profile. And in a lot of cases being able to expand either expansion of the work that we're doing or add new scope to those renewals are also benefiting us from a margin profile. So I think what you're really seeing here on the top-line is you're seeing some reduction or accretion in top-line related to either contracts that have traded off or the slowness of some of the PC Cycle or some hardware shifting, but all three of those are lower margin accreted off and what we're adding is higher margin, addition. So right now the top-line is suffering a little bit from the accretion being a little higher than the addition, but we feel like that's the right path from our perspective and you know we've tried our best here to fully. Lever what the risk is for the remainder of the year for the impacts that we've been seeing over time, whether that's the PC refresh cycle, whether that's, slowdown in the adoption of Microsoft 10 to 11, or whether that's just the uptake in project work in public sector due to, the prevailing issues there in the US with the government shutdown and others.

問得好，羅布。謝謝。嗯，你看，首先也是最明顯的就是 L&S 的增加，對吧？所以這顯然是利潤中佔比更高的部分，我們看到這部分正在成長，從而提高了利潤率。第二點，可能不太明顯，那就是 XL 和 S 中蘊藏著許多我們新解決方案的潛力，對吧？今年我們進行了相當多的更新活動。今年續約活動異常活躍，我們能夠以更高的利潤率透過我們的新解決方案贏得這些客戶，這可能是個好消息。很多情況下，擴大我們正在進行的工作範圍，或為這些續約增加新的範圍，也使我們的利潤率有所提高。所以我認為，從營收方面來看，你看到的是營收的減少或成長，這與合約的到期、PC週期的放緩或硬體的轉變有關，但這三者都是利潤率較低的因素造成的，而我們新增的則是利潤率較高的因素。所以目前由於成長略高於新增，總業績受到了一些影響，但我們覺得從我們的角度來看，這是正確的方向，而且你知道，我們已經盡了最大的努力。考慮到我們長期以來所看到的各種影響，包括個人電腦更新周期、微軟系統從 10 到 11 的普及速度放緩，以及由於美國政府停擺等問題導致公共部門項目工作量減少，今年剩餘時間裡存在的風險，我們需要評估這些風險。

So a little bit of a balance, but in general, it's allowed us and I think proves our margin, continued improvement in our new solution delivery. I mean just as a reminder over the course of the last 3 years we've improved that gross margin in Ex-L&S by almost 600 basis points, and we continue to see opportunity to continue to see that expansion regardless really on what's going-on on the top-line.

所以，這多少有點平衡，但總的來說，這讓我們能夠，而且我認為這證明了我們的利潤空間，在新解決方案的交付方面不斷改進。我的意思是，需要提醒的是，在過去的三年裡，我們已將除物流和銷售以外的毛利率提高了近 600 個基點，而且無論營收情況如何，我們都繼續看到毛利率繼續擴張的機會。

And also Rod, this is Deb just to add we've also increased, some of the SG&A savings we talked about at Investor they we're accelerating some of those were through 2026. We've accelerated some of those into 2025 and we're, ramping up our efforts overall on rationalizing and are cost based.

還有，Rod，我是Deb，補充一下，我們還增加了一些我們在投資者會議上討論過的銷售、一般及行政費用節省，其中一些節省的期限原定到2026年。我們將其中一些計劃提前到 2025 年實施，並且我們正在加強進行整體合理化和成本控制。

So. Yeah, look, I think Deb mentioned too in her prepared remarks around, kind of the variability of that workforce. So clearly we're going to take, some level of action to make sure that we continue the margin improvement that we've been seeing over the last couple of years.

所以。是的，你看，我想黛佈在她準備好的演講稿中也提到了勞動力的多樣性。所以很顯然，我們將採取一些措施，以確保我們能夠繼續保持過去幾年來利潤率不斷提高的勢頭。

All right, and then just a final quick one here as inputs to the modeling, can you give your view on the pace of your delivery improvement going forward and how that would impact Q4 cost reduction charges specifically? Thanks.

好的，最後再問一個問題，作為建模的輸入，您能否談談您對未來交付改進速度的看法，以及這將如何影響第四季度的成本削減費用？謝謝。

Yeah, thanks, Rod. So look I mean, we're We've always been and continued to refine our delivery costs and so there's some level of kind of BAU cost reduction that you normally see. I would expect that you'll see some of that increment in Q4, and the cadence probably be a little higher in Q4, just to kind of mirror the variability in the workforce, I don't think it's going to be like a crazy significant increase in that, but there certainly will be actions taken to mitigate the exposure that we've seen on top-line or or some of the, de-risking efforts that we're going to do to maintain the margin profile.

謝謝你，羅德。所以你看，我的意思是，我們一直以來都在不斷改進我們的交付成本，因此通常會看到一定程度的日常營運成本降低。我預計第四季度會有一些成長，而且第四季的成長速度可能會更快一些，以反映員工隊伍的波動。我認為不會大幅成長，但肯定會採取措施來減輕我們在營收方面看到的風險敞口，或採取一些降低風險的措施來維持利潤率。

Got it.

知道了。

Thank you.

謝謝。

Thanks, Rob.

謝謝你，羅伯。

The next question comes from Mayank Tandon of Needham and Company. Please go ahead.

下一個問題來自 Needham and Company 的 Mayank Tandon。請繼續。

Hi, this is, Brandon on for my unca. Thanks for taking my question. I guess I just was wondering what are you guys seeing on the demand front in client spending, particularly on the AI front. I know you guys mentioned like increased competition, but I guess what are you guys doing to navigate those increased competition dynamics that you guys are seeing?

嗨，我是布蘭登，代表我的叔叔。謝謝您回答我的問題。我只是想了解各位在客戶支出方面，特別是人工智慧領域的需求。我知道你們提到了競爭加劇的問題，但我想知道你們是如何應對這種日益激烈的競爭局面的？

Hey Brandon, thanks for the question and thanks for participation in the call.

嗨，布蘭登，謝謝你的提問，也謝謝你參與電話會議。

Look, the demand is certainly there. I will tell you I was just on the road, frankly, in Europe and met with a whole host of clients and just had a what we call a CIO and CTO forum and had a big discussion with, you know 20 some odd potential clients and existing clients in that forum. So, clearly the demand is there for the application of AI. I think what we're, what we're bumping up against is the application of that technology into an ecosystem that is very sensitive, right. There are many attributes that need to be addressed, security being one of the primaries involved with that. So there's money there certainly to be spent. The demand is there we continue to get validation from clients and industry analysts that our solutions are there and what they want and as I mentioned, the competition continues to be, fairly aggressive in that. So, We've got to really make sure from a defensive posture that education is key and really having those dialogues around what that output looks like and why, you know, our client centricity model and being, I'll think a little bit pragmatic in how it gets adopted, where it gets adopted in the time adoption is really important. So, there's an equal amount of hype as there is an equal amount of practicality in the adoption of these AI of these AI models, right? And I think from our perspective we're taking a tack to really try to be very conscious around setting the right expectations with our clients. Not promising things we can't deliver, and in some cases where those expectations aren't met, then we have to attribute that potential, client opportunity, because we, we're not looking for a race to the bottom here. We're really talking about adding value and experience, to our clients and, one of the stats I like to use when having discussions with our, with our clients and potential clients is, for our top 50 on average. We've serviced those clients for, you know, roughly 20 years you don't have that level of experience with the client base because you're looking at a short-term adoption of a technology, we really like to think our technology is state of the art, and we want to talk about the future and how we get our clients to the future. So, the demand is certainly there. Our solutions certainly meet that demand and the key is really about client education and setting an adoption roadmap.

你看，需求是肯定存在的。坦白說，我剛剛在歐洲出差，會見了一大批客戶，還舉辦了一場我們稱之為首席資訊長和首席技術官論壇的活動，與大約 20 位潛在客戶和現有客戶進行了深入的討論。顯然，人工智慧的應用需求是存在的。我認為我們現在遇到的問題是，如何將這項技術應用到一個非常敏感的生態系統中，對吧。有很多方面需要考慮，其中安全性是首要考慮因素之一。所以那裡一定有錢可以花。市場需求一直存在，我們不斷從客戶和產業分析師那裡得到驗證，證明我們的解決方案符合他們的需求。正如我所提到的，這方面的競爭仍然相當激烈。所以，我們必須從防禦姿態出發，確保教育是關鍵，並圍繞產出形式和原因展開對話，你知道，我們的客戶中心模式，我認為在如何採納、在何處採納以及何時採納等方面要務實一些，這非常重要。所以，在人工智慧或人工智慧模型的應用方面，炒作和實用性是相等的，對吧？我認為從我們的角度來看，我們正在採取一種策略，努力有意識地與客戶建立正確的期望。我們不會承諾我們無法實現的事情，在某些情況下，如果這些期望沒有得到滿足，那麼我們就必須放棄這個潛在的客戶機會，因為我們不想陷入價格戰。我們真正想做的是為客戶增加價值和體驗，而我喜歡在與客戶和潛在客戶討論時使用的一個統計數據是，我們前 50 名客戶的平均水平。我們已經為這些客戶服務了大約 20 年，你知道，你沒有那種程度的客戶群經驗，因為你看到的只是技術的短期應用，我們真的認為我們的技術是最先進的，我們想談談未來，以及我們如何帶領客戶走向未來。所以，市場需求是存在的。我們的解決方案完全可以滿足這一需求，關鍵在於對客戶進行教育並制定推廣路線圖。

Okay, thank you, that's super helpful, and then I know you guys last quarter you guys touched on, the public sector, I think specifically for the cloud business. I was wondering if you guys mentioned the call a little bit, but, any update on that, on with the government shutdown in terms of, client conversations and client demand, with the shutdown.

好的，謝謝，這非常有幫助。我知道你們上個季度也談到了公共部門，我想特別是雲端運算業務方面。我想問你們有沒有稍微提到過那通電話，但是，關於政府停擺對客戶溝通和客戶需求的影響，有什麼最新進展嗎？

Thank you. Yeah.

謝謝。是的。

Great question. Thanks, Brandon. So yeah, we did talk about that last quarter. In fact, last quarter we mentioned that we started to see a little bit of green shoots in public sector and thought that sector was coming around a bit from a project orientation, that has reverted, right? That I'll say influx of project work is basically really quiet now. Deb mentioned in her remarks and I think it's important we've got a lot of renewals and have had a lot of renewals this year in public sector and are doing well to renew, those particular accounts, but we're not seeing the uptick in the project work that we had started to see. So there are a couple areas where we're leaning in. We talked about that a little bit on the call, but you know. We talk about the justice system, we talk about access management and things like that there are what I would consider non-discretionary areas in public sector where the demand is fairly constant and there's some project work in that space, but clearly there continues to be a pause in project work in public sector specifically related to US Public sector. I wouldn't say that holds true across the board, we mentioned on the call about an Australian client that we had some good success with and expansion in other regions, but US public sector is also where a good chunk of our CA&I business is allocated, so there's definitely been kind of a pause in project work there and so the green shoots that we started to see in Q2. Have really subsided and you know I think there's a little bit of a wait and see approach here and we expect that that's going to continue for a couple of quarters. So you know I, we're we're we're kind of sitting tight, we're having good conversations with folks, but there's a lot of uncertainty there.

問得好。謝謝你，布蘭登。是的，我們上個季度確實討論過這個問題。事實上，上個季度我們提到，我們開始看到公共部門出現了一些復甦的跡象，並認為該部門正在逐漸擺脫專案導向，但現在情況又回到了原點，對吧？我想說，現在專案工作量基本上已經大幅減少了。黛佈在她的演講中提到，我認為很重要的一點是，我們有很多續約，今年公共部門有很多續約，而且我們在續約方面做得很好，但是我們沒有看到我們開始看到的專案工作量的增長。所以，我們將重點放在以下幾個領域。我們在電話裡稍微談了一下，你知道的。我們談論司法系統，我們談論准入管理等等，我認為公共部門中存在一些非自由裁量領域，這些領域的需求相當穩定，並且有一些項目工作，但顯然，公共部門的項目工作，特別是與美國公共部門相關的項目工作，仍然處於停滯狀態。我不會說這種情況普遍存在，我們在電話會議上提到過一位澳洲客戶，我們與他的合作取得了不錯的成功，並在其他地區實現了擴張，但美國公共部門也是我們CA&I業務的重要組成部分，因此那裡的專案工作肯定出現了一些停滯，所以我們在第二季度開始看到了復甦的跡象。目前情況確實有所緩和，而且我認為現在大家都在採取觀望態度，我們預計這種情況還會持續幾個季度。所以你知道，我們現在都處於觀望狀態，我們和各方人士進行了良好的溝通，但仍然存在許多不確定因素。

Thanks. That's super helpful.

謝謝。這太有幫助了。

Thanks, guys.

謝謝各位。

Thank you.

謝謝。

The next question comes from Anja Soderstrom of Sidoti. Please go ahead.

下一個問題來自 Sidoti 的 Anja Soderstrom。請繼續。

And thank you for taking my questions. A lot of them have been covered already, but, can you just, I think you mentioned you're starting to see pricing pressure.

感謝您回答我的問題。很多問題都已經討論過了，但是，你能再說一下嗎？我想你之前提到過，你開始感受到價格壓力。

Is that something you only started to see now in the third quarter, or can you talk a little bit more about that?

這是你直到第三季才開始注意到的現象嗎？還是你能再詳細談談這方面的狀況？

Hey Anya, good to talk to you again.

嗨，安雅，很高興再次和你聊天。

Yeah, no, we did mention that. I wouldn't say it's something we're just seeing in the 3rd quarter, as this is a highly competitive space that we're in. I would say in the 3rd quarter and especially as we go through renewal cycles with clients. There's more and more players, in that Renewal cycle and, frankly in a couple of instances we've seen competitors really just undercut pricing to, in my mind. Levels that we're just not willing to go to, right? I. We've made a commitment as a management team that we're going to stay disciplined in the contracts that we're signing we know we've got value we know that we can bring that value to our clients but you know we're not just going to sign contracts to maintain a top-line if it's not helping our bottom line you know our objectives were very clear and we continue to follow them, we're trying to grow profit dollars. We want that margin percentage to increase. We're increasing cash flow or, obviously moving positively in the cash flow arena, and we think that's the better way to drive shareholder value. And so, that that pricing pressure, I think, is, certainly relevant and continues to be relevant in our discussions, but please don't take that comment to think that we're not competitive in pricing. We are, we're right there in every deal that we're talking about, but there's a limit to how far we're willing to go. And from our perspective, if the client doesn't have the capability for us to grow or the capability or want to move to our next gen solutions. We're really not interested in just resigning a contract at lower values for the old delivery model.

是的，我們確實提到過這一點。我不認為這只是我們在第三季才看到的現象，因為我們所處的領域競爭非常激烈。我認為在第三季度，尤其是在我們與客戶進行續約週期的時候。在續約週期中，參與者越來越多，坦白說，在某些情況下，我們看到競爭對手真的只是透過降價來搶佔市場。我們絕不會去往的境地，對吧？一、作為管理團隊，我們已經承諾，我們將嚴格遵守我們簽署的合約。我們知道我們擁有價值，我們知道我們可以為客戶帶來這種價值，但是你知道，如果合約不能幫助我們提高利潤，我們就不會為了維持營收而簽署合約。你知道，我們的目標非常明確，我們將繼續遵循這些目標，我們正在努力增加利潤。我們希望利潤率能夠提高。我們正在增加現金流，或者說，顯然我們在現金流方面取得了積極進展，我們認為這是提升股東價值的更好方法。因此，我認為價格壓力無疑是我們討論中的一個重要因素，並且會一直存在，但請不要誤解我的意思，認為我們在價格方面沒有競爭力。我們確實參與了每一筆我們正在討論的交易，但我們願意走的路也是有限的。從我們的角度來看，如果客戶沒有能力讓我們發展壯大，或沒有能力或意願遷移到我們的下一代解決方案。我們真的不感興趣以較低的價格續簽舊交付模式的合約。

Okay, thank you. And then also here, just maybe go over some puts and takes for the free cash flow for 2026.

好的，謝謝。此外，這裡還可以簡單看一下 2026 年自由現金流的一些看漲和看跌期權。

Sure, Gab, we don't take that.

當然，Gab，我們不接受。

So as far as you know for 2026, we're not, giving guidance at this point for 2026 and we'll discuss that when we report fourth quarter, but there are, to your point, a lot of moving pieces. So obviously, with the capital, market transformation we did, right, we lowered our pension contributions, but the interest expense will move higher and. So, there are moving parts that as we're formulating our plan for 2026, we'll lay out to you when we report that next quarter. But I think the key thing is, the biggest driver, L&S is clearly a big driver at 70% margin. So, as we finalize what that number, we said on average $400 million, and those are 70% margins. So those, are a big impact. But I think what's most important is we feel we have a really strong liquidity position. So as we go into 2026, right now our cash balance is $320 million, and if you look at the cash color we've given, to hit about $110 million pre pension, that puts us about $390 million of cash by the end of the year so we feel like, we'll be entering 2026 in a good place from a liquidity perspective. And we also have that $125 million ABL we just renewed that's also undrawn. So, we feel good from a liquidity position, and you know as we shape the algorithm what that's going to look like in 2026 you know we feel confident in that.

所以就您所知，對於 2026 年，我們目前還沒有給出任何指導意見，我們會在發布第四季度財報時討論這個問題，但正如您所說，有很多不確定因素。顯然，透過我們進行的資本和市場轉型，我們降低了退休金繳款，但利息支出將會上升。因此，在製定 2026 年計畫的過程中，有許多因素在變化，我們將在下個季度向大家報告。但我認為關鍵在於，最大的驅動因素是物流和倉儲，其利潤率高達 70%，顯然是重要的驅動因素。所以，當我們最終確定這個數字時，我們說平均為 4 億美元，利潤率為 70%。所以這些影響很大。但我認為最重要的是，我們感覺我們擁有非常強大的流動性。因此，進入 2026 年，我們目前的現金餘額為 3.2 億美元，如果你看看我們給出的現金預期，在支付養老金之前達到約 1.1 億美元，那麼到年底我們將擁有約 3.9 億美元的現金，所以我們覺得，從流動性的角度來看，我們將以良好的狀態進入 2026 年。此外，我們還有一筆剛續約的 1.25 億美元的資產抵押貸款，這筆貸款也尚未提取。所以，從流動性角度來看，我們感覺良好，而且你知道，隨著我們不斷完善演算法，展望 2026 年的發展前景，我們對此充滿信心。

Okay, thank you. And then also, if I understand right, the lower L&S this quarter was due to some being pushed into the 4th quarter and into 2026. Can you just elaborate on that a little bit and what you're seeing there?

好的，謝謝。另外，如果我理解正確的話，本季 L&S 的下降是因為一些 L&S 被推遲到第四季和 2026 年。能再詳細說說你​​在那裡看到了什麼嗎？

Yeah, so just to be clear, the push in the quarter got signed in the early days of Q4 for L&S, so that's not anything into 2026. That is really just a shift of something we thought was going to sign by September 30th, signed in October. All of it was signed. All of it is In-house. So no real issue from an L&S cash perspective, just a quarterly timing. Deb anything?

是的，所以說清楚一點，本季的推進計劃是在第四季度初由 L&S 簽署的，所以這與 2026 年無關。這實際上只是把原本我們以為會在 9 月 30 日簽署的事情推遲到了 10 月簽署。全部都已簽署。全部都是公司內部開發的。所以從L&S的現金流角度來看，沒有真正的問題，只是季度時間表的問題。黛布，有什麼事嗎？

Yes, no, that's just all within this year.

是的，不，那隻是今年內的所有事情。

Okay, great.

好的，太好了。

Thank you.

謝謝。

That was all for me.

這就是我全部的內容了。

Great, thanks, Anya.

太好了，謝謝你，安雅。

Once again, if you would like to ask a question, please press star, then one, and our next question will come from Arun Seshadri of Forza. Please go ahead.

再次提醒，如果您想提問，請按星號，然後按數字 1，我們的下一個問題將來自 Forza 的 Arun Seshadri。請繼續。

Everyone, thanks for taking my questions. Just a couple from me. It sounds like the book to build is still pretty strong. So, does that reflect confidence in the, I guess, whether the timing impacts in Ex-L&S as well, and sort of what are you, what are you seeing in terms of that renewal? Activity you you talked a little bit about renewal activity being, enhanced this year is that I guess those two are potentially related, but any color there and then secondly, if you could, is there any way you could size that renewal in L&S that moved over to Q4, that would be helpful.

感謝各位回答我的問題。我這裡也有幾個例子。聽起來這本書的寫作水準依然很高。那麼，這是否反映了您對 Ex-L&S 的時間安排是否會產生影響的信心？您在續約方面看到了什麼？您剛才稍微談到了續約活動，今年有所加強，我想這兩者可能有關，但具體情況如何？其次，如果您可以的話，能否估算 L&S 續約活動轉移到第四季度的情況，這將很有幫助。

Thanks.

謝謝。

Yeah, so I'll start that and Deb, I'll ask you to kind of chime in here with some color as well.

好的，那我先開始，黛布，我也請你補充一些內容。

So, you're right, well so, you're right, the book to Bill, I think we're at 1 is what we're talking about on book to bill and clearly that's a solid book to bill and happy that and aligned to kind of our, contracting models and our normal modeling for forecasting.

所以，你說得對，嗯，你說得對，賬面價值，我認為我們現在討論的是賬面價值與賬單價值之比為 1，顯然這是一個可靠的賬面價值與賬單價值之比，我很高興這一點，並且與我們的合同模型和我們正常的預測模型相一致。

So, the renewal cycle that I talked about, I mean, and I was actually talking more about Ex-L&S.

所以，我剛才談到的更新周期，我的意思是，我實際上更多是在談論 Ex-L&S。

We've talked about the renewal cycle quite a bit and, as we've indicated that renewal cycle is actually increasing our L&S expectations over the next 3 years. So, I'm going to discount that for a second and based on your question and really speak about Ex-L&S. So, for this year, just to give you a sample. The Ex-L&S renewal cycle for this year is about 3 time what it will be for next year right? So, it gives you a sense of the baseline that we're actually renewing this year and if you think about that, the resources it takes to go after of that renewal is also, obviously put some pressure on the work that we're able to do in new logo acquisitions. So, there's a pretty high renewal cycle this year. We've been very successful in that renewal cycle. Now I'm not saying we've renewed every single contract that was out there, and a couple of them as I've mentioned we didn't because the investment that the client was looking for us to make was not conducive to the pricing that we expected to get. So, a couple of those contracts we did not renew, but the lion's share we did and for many of those we've actually renewed them at better margin profiles and have increased some scope and or expansion in those account. So we've been pleased so far with the ability to renew those and to renew that work under our new delivery model, right? That that's really key that we're converting these clients upon renewal to the delivery Model. That's technology based and that's an important element of that cycle because that brings in the enhanced margin profile. So, get happy with the current book to bill, happy with the progress we're making on renewals. We have quite a bit of renewals coming up in Q4 progress on those have been very good.

我們已經多次討論過續約週期，而且正如我們所指出的，續約週期實際上提高了我們對未來 3 年 L&S 的預期。所以，我先忽略這一點，根據你的問題，真正談談 Ex-L&S。所以，今年就先舉個例子吧。今年的 Ex-L&S 續約週期大約是明年的 3 倍，對嗎？所以，這讓你對我們今年實際續約的基準線有所了解，如果你考慮到這一點，為了實現續約所需的資源，顯然也會給我們在新標誌收購方面能夠開展的工作帶來一些壓力。所以，今年的續約週期相當高。我們在這次更新周期中取得了巨大的成功。我並不是說我們已經續簽了所有合同，而且正如我之前提到的，有幾份合約我們沒有續簽，因為客戶希望我們投入的資金與我們預期獲得的價格不符。因此，我們沒有續簽其中幾份合同，但大部分合約我們都續簽了，而且對於其中許多合同，我們實際上以更好的利潤率續簽了合同，並增加了這些帳戶的範圍或擴張。所以到目前為止，我們對能夠續簽這些合約並在我們新的交付模式下繼續進行這項工作感到滿意，對吧？關鍵在於，我們要在續約時將這些客戶轉化為交付模式。這是以技術為基礎的，也是該週期中的重要因素，因為它帶來了更高的利潤率。所以，對目前的帳目和續約進度感到滿意吧。第四季我們有許多續約專案即將啟動，目前進展非常順利。

So again, kind of pleased with where we're at there. Would I like to win every single one and get them at higher margin? Sure. Is that a realistic assumption? Probably not. Deb, do you have anything you want to add to it?

所以，我對我們目前的進展感到比較滿意。我希望每場都贏，利潤更高嗎？當然。這種假設現實嗎？可能不會。黛布，你還有什麼要補充的嗎？

No, just that as you can see, I mean the TCV year-to-date, right? Ex-L&S renewals is $572 million versus last year $321 million, so it's 78% increase over last year just to demonstrate kind of the how big our, the renewal cycle's been this year and then related to your one on the, L&S renewal that shifted out that was just a few days, after the quarter that was about $12 million we had mentioned. Of revenue that that shifted out one quarter, but it won't impact, it will not impact the full year.

不，正如你所看到的，我指的是今年迄今為止的 TCV，對吧？除 L&S 續約外，續約金額為 5.72 億美元，而去年為 3.21 億美元，比去年增長了 78%，這足以說明我們今年的續約週期有多大。另外，關於您提到的 L&S 續約，它在季度結束後幾天就發生了變化，金額約為 1200 萬美元，我們之前已經提到過。雖然這導致部分收入推遲了一個季度，但不會對全年業績產生影響。

Got it. And then, but also you also have a fairly significant expectation, I think, for, Q4 that's factored into the numbers and sounds like your confidence is pretty high in terms of that, Ex-L&S renewals in Q4?

知道了。而且，我認為你對第四季也有相當高的預期，這已經體現在數據中了，聽起來你對第四季的 Ex-L&S 續約情況信心十足？

Yeah, I think Deb's comment on the renewals was the L&S component, and of course we're super confident in the L&S component and we're also confident in the Ex-L&S component of renewals. So, look, everything that we're not confident about has been baked into kind of our, updated guidance. So, we feel pretty good about what's out there to close, and obviously. At this point in the year have pretty good insight to, how the next couple months are going to close out. Yeah.

是的，我認為黛布對續約的評論指的是L&S部分，當然我們對L&S部分非常有信心，我們對續約中剔除L&S部分的部分也充滿信心。所以，你看，所有我們不確定的事情都已經融入我們更新後的指導方針中了。所以，我們對即將關閉的門市感覺相當不錯，這很顯然。到了今年這個時候，我對接下來幾個月的走勢已經有了比較清晰的了解。是的。

But to your point, in the L&S renewals, right, one a few day slip, right, can shift and so we mentioned that throughout the script, right, that we do have high expectation for Q4 which we feel confident in, but you know there is always that slip of an element.

但正如您所說，在L&S續約中，幾天的延誤可能會影響結果，所以我們在整份文件中都提到了這一點，我們對第四季度抱有很高的期望，並且充滿信心，但您也知道，總會有一些因素出現延誤。

Yeah, Wonderful point, deb, and really if you think about it, Arun.

是的，黛布，你說的很有道理；阿倫，你仔細想想也是。

Our talk on that has always been around not if but when right? So, we're really confident that it's going to renew and we're very confident that it's going to renew in the timing that we expect it to, but, as we've just seen in this quarter, a shift of a couple of days makes a difference.

我們一直以來討論的都是何時而不是是否會發生這個問題，對吧？所以，我們非常有信心它會續約，而且我們非常有信心它會在我們預期的時間續約，但是，正如我們在本季度所看到的，幾天的時間差就會產生影響。

Thank you so much.

太感謝了。

Thanks, Arun.

謝謝你，阿倫。

The next question comes from Matthew Galinko of Maxim Group. Please go ahead.

下一個問題來自 Maxim Group 的 Matthew Galinko。請繼續。

Hey, thanks for taking my quick question. If we see the other side of the government shutdown, in the relatively near future, do you expect like a quick return on board momentum on project work that's been gummed up, or, how quickly do you see the market responding to things opening up?

嘿，謝謝你回答我的問題。如果政府停擺在不久的將來結束，您預計先前停滯的專案工作會迅速恢復勢頭嗎？或者，您認為市場對經濟復甦的反應速度會有多快？

Hey Matt, thanks.

嘿，馬特，謝謝。

Thanks for the question. Good to talk to you again.

謝謝你的提問。很高興能再次和你聊天。

Look, I don't think our expectations are that it's going to be a light switch effect where the government opens back up and all of a sudden, all this project work starts to open up immediately.

你看，我不認為我們期望的是政府重新開放後，所有這些專案工作會立即像打開電燈一樣立刻開始。

As we indicated last quarter, we just started seeing some green shoots on that work and then it shut back down. So we, we think that's going to linger frankly for, a couple of quarters. So, do I think it's going to be like a Q1 recovery if the government opens up before then? No, I do not, right? I, we've got to kind of re-engage. They've got to reassess what the outputs of that government work is. The focus is going to be on non-discretionary work first and then project work second. So, we, we're kind of baking into our expectation that that's going to be several quarters prolonged.

正如我們上個季度所指出的那樣，我們只是開始看到這項工作出現了一些好轉的跡象，然後它又停滯了。所以我們認為，坦白說，這種情況可能會持續幾個季度。所以，如果政府在此之前開放，我認為經濟復甦會像第一季那樣嗎？不，我沒有，對吧？我覺得，我們得重新開始合作。他們需要重新評估政府工作的產出。首先，工作重點將放在非自主性工作上，其次才是專案工作。所以，我們基本上已經預料到這種情況會持續好幾個季度。

Great, thank you.

太好了，謝謝。

Thanks, Matt.

謝謝你，馬特。

This concludes our question-and-answer session. I would like to turn the conference back over to Mike Thomson for any closing remarks.

我們的問答環節到此結束。我謹將會議交還給麥克·湯姆森，請他作總結發言。

Thank you, operator.

謝謝接線生。

Before we wrap up, I just want to reiterate a few key points we hope you take away from today's call. First, the trends remain strong in our most powerful profit and cash driver which is L&S Support Solutions.

在結束之前，我只想重申幾個我們希望您能從今天的電話會議中記住的關鍵點。首先，我們最強大的利潤和現金驅動因素——L&S 支持解決方案——的發展趨勢仍然強勁。

We plan to meet our increased expectation of $430 million for this year and have increased our expectations for the average annual L&S revenue in out years from 2026 to 2028 to $400 million per year.

我們計劃實現今年 4.3 億美元的預期目標，並將 2026 年至 2028 年的 L&S 平均年度收入預期提高至每年 4 億美元。

Second, while the market dynamics posted headwinds in our Ex-L&S business that we don't expect to dissipate overnight. We're adjusting our approach to mitigate those impacts and importantly, we're continuing to deliver on our profit and cash flow objectives.

其次，儘管市場動態為我們的 Ex-L&S 業務帶來了不利影響，但我們預計這些不利影響不會在一夜之間消失。我們正在調整策略以減輕這些影響，更重要的是，我們將繼續實現利潤和現金流目標。

And then lastly, we're building momentum in our AI-led solutions with technology first delivery models. This is making us more competitive, supporting our margins, enabling us to scale our most differentiated innovation more quickly, and we're seeing more and more clients and industry analyst's support the belief in that momentum. So, I'd like to just make sure we take away those three points from today's call and Operator, thank you for your time and you can close the call

最後，我們正在透過技術優先的交付模式，大力推動以人工智慧為主導的解決方案。這讓我們更具競爭力，提高了利潤率，使我們能夠更快地擴大最具差異化的創新規模，我們看到越來越多的客戶和產業分析師也支持這種發展勢頭。所以，我想確保我們能從今天的通話中記住這三點。接線員，感謝您的時間，您可以結束通話了。

The conference has now concluded.

會議已經結束。

Thank you for attending today's presentation, and you may now disconnect.

感謝您參加今天的演講，現在可以斷開連接了。