Textron (TXT) 25 Apr 242024 Q1 Earnings call transcript

Thank you for standing by. Welcome to the Textron First Quarter 2024 Earnings Call. [Operator Instructions] This conference is being recorded for digitized replay and will be available after 10 a.m. Eastern Time today through April 25, 2025.

You may access the replay by dialing (866) 207-1041 and enter the access code 8546032.

to Investor conference Relations. like Rosenberg, to now President, Vice Please would turn over the David I go ahead.

good and Leah, morning, Thanks, everyone.

discussing in statements release. are I'd we to today's various during Before press to which subject filings call future are and factors, be in detailed our forward-looking begin, expectations SEC estimates These we today. risk and our like will mention also

Donnelly, Textron's our On Chairman CEO; have the call Connor, Officer. today, and Chief Scott Financial we Frank and

can in found presentation Relations Investor in quarter our in quarter of million, was call year's from billion, the section earnings Our last $XXX first profit of up be the XXXX. the Revenue quarter. in $X website. Segment $XX billion quarter the first million were up $X.X from

income pension operations first quarter. quarter, use reflected $X.XX cash first share During was share $X.XX $XXX million year's before first year's of provided in of quarter compared million last of in this flow contributions year's from last cash continuing in to the per $XX compared a to cash Manufacturing adjusted quarter. per

that, turn With to call Scott. I'll over the

of $XXX growth in X% billion. growth strong last and lines Textron in Aviation, Thanks, see backlog and strong we to saw utilization resulted the Aviation to commercial turboprops, at of fleet first first remained last first David, Systems. XX quarter. to contributing compared everyone. year's the quarter, up good segment aftermarket delivered quarter. million profit continues At product first demand last across and the higher XX year's we at year, XX morning, In innovations the our in Aviation jets, XX quarter, Bell from as in quarter, down quarter from revenue $X.X that

revenues the ramp the we saw Bell, FLRAA growth supporting of volume, the reflecting program. delivery higher up factory, the in and our QX, attained continued year. remainder chain the At driven continued by in quarter military of throughout Throughout hours were supply in improvements the

the milestone design program progress continue program, and entrance through to expect later complete which FLRAA the B, for phase engineering summer. we this the preliminary On of development the to allows manufacturing reviews and into

delivery Also an XX XXXX. enacted during aircraft includes in V-XX, X of the helicopters. AH-XZ FY production the Bell scheduled recently Nigeria for the 'XX award in for received budget quarter, additional delivery

On the year's from XX we first down XX side commercial of Bell, in helicopters last quarter. delivered

the continued later toward to During quarter, we expected certification progress year. on XXX FAA the this

its XX Equinor, helicopters first recently company. Bell for XXX order from received state energy Norwegian

was first Systems, versus was Textron up year's to flat quarter. revenue last margin and Moving

to notification During Army of currently shadow winding the Tactical with the the from Army's We're the the we the Reconnaissance on we that quarter, of termination selected competitor design, Also the manufacture for notification Autocannon and develop were and competitors awarded program. the two X Vehicle systems received for next-generation in surveillance quarter, need fulfill system to organic options with Corps. one of we UAS remain XX-millimeter received shadow one FTUAS the of down. This reconnaissance. the down prototype a working intelligence, U.S. decision this we customer Future was reflects program our month, and transition and from this Marine this program. program, Advanced other to government of X Earlier

provides effort combat for mobile will protective that vehicle marines. an innovative X-year This firepower develop the

XMXX program's 'XX for of X design development. Phase preparation vehicle of budget the combat the FY testing funds the Army's ground the request in X prototype portion and build in addition, and In the

flat in lower the saw the We quarter, revenues Industrial. volume lower by largely to specialized revenues vehicles. Kautex in driven and and quarter. Moving mix were

is the in in demand where hybrid space trends experiencing hybrid customer industry recent platforms. investments by increased and encouraged are We OEM

granted over XXXX. all call to by U.S. their turn an in use delivered will training Velis Frank. quarter, this Pipistrel was the schools which up aircraft flight pilot for the FAA Also the allow in airworthiness I'll Pipistrel With XX XX exemption the that, electric from in to aircraft Electro quarter, Aviation, its during trainer programs.

Thanks, Scott, morning, everyone. good and

how Aviation. Revenues $X $X.X at Textron lower Let's and the higher each the Aviation up million contributed, segments $XX starting million quarter were mix of of billion first review of with of pricing XXXX, $XX of reflecting the from volume million. a Textron Segment ago, profit favorable was of billion. from a impact quarter, $X.X of million Backlog year from the up quarter net at segment in reflecting ended $XXX inflation first million $XX in million. and pricing the $XX

reflecting Segment and a H-X $XX performance million million which from of by impact up was costs. million $XX includes profit primarily volume up ago, on driven research from Bell. $XXX quarter, Revenues volume FLRAA offset the and the $XXX program. a programs. of to This of development primarily lower related partially million lower first $XX last year million military V-XX to from year's were higher by Moving million, was million, $XX $XX of favorable

quarter. from $XX first the Backlog of by largely the partially ended quarter. in and the Vehicles Backlog quarter last Specialized revenues $X.X was Textron volume billion. first from flat principally were $XX down $XXX at last mix the offset in were quarter million the year's $XX year's year's of $X.X billion. profit reflecting Industrial revenues pricing million, with million, $XX million in in at Segment the line, first million, segment. up quarter, million, At higher product $XXX last lower Systems, segment segment $X ended million

segment $XX loss $XX vehicles. million and $XX first of in million XXXX XXXX, $XX and of at first $X of first Textron related to were was from of due was higher and the eAviation quarter profit revenues segment costs. and mix Segment loss $XX million million million quarter $X profit segment compared research million volume were primarily XXXX, the in a of the was down with million. segment primarily Finance revenues to development quarter specialized lower

quarter special million. was $X $XX Net the were the non-service LIFO of provision charges we and postretirement $XX million. the under first expenses of component interest the largely head of was income Intangible improve incurred expense cancellations XXXX, of count Corporate was FARA and amortization Systems in structures quarter. million. of million to reductions $XX $XX profit. segment below the pension XXXX and restructuring and million. to in light asset was related plan, Textron Bell the million the Moving $XX cost In inventory shadow in segments programs the

Industrial We $XX quarter expect $XX incur related million the additional range head the of costs second to million in to the in in count segment. reductions to largely severance

shares, range XXXX $XXX a million. from million cash of approximately range has charges pretax quarter, to to result, Textron plan its returning million restructuring $XXX special million the shareholders. In to As $XXX to in X.X a expanded of in $XXX previously repurchased million a announced we million $XXX

to share wrap earnings a $X.XX up guidance, are our be range per To with we of per to year full in share. reiterating adjusted $X.XX expected

year also expect billion. cash $X We million before flow pension full manufacturing contributions $XXX of to

prepared That concludes our remarks.

can line So for up Leah, questions. the we open

Instructions] with David with Barclays. And we'll [Operator Strauss start

-- Scott, you the maybe if little the in the a quarter. could bit on just in deliveries dig in

mix relatively inventory. you strong the of a was but and think flat lot year-over-year I pretty build

off doing? want to ended just think how supply we how XXX deliveries up last And about could Did deliver more how of year? doing? the maybe than much airplanes this do is So you chain year you grow

training year-over-year The post the certainly hours we chain to improve. continue of get to are I expect productive nice and basis. see in does continue on look we're David, that growth think supply Sure. hours hours terms does able number the labor factory that that to in to a improve of whatnot

things progressed So I think how through about we the good feel pretty quarter.

always or throughput to like definitely efficiency productivity in some they sure, just improved trend as we gotten in in didn't get and few through factory we where terms to could a things have quarter our transfer that we got had But of the the aircraft that Look, the late would in worked way time. and delivered. quarter. for have the We

So we about good, in momentum our a think not are than I in big again, increase basis. of And guide year-over-year certainly still but a feeling terms have on little bit liked number. probably a a good the very volume would we and is nice lighter

Robert Vertical to go line Research. the we Next, of Stallard with

there start given we is finally its here. a a seeing forecast division softness are But rolling we'll U.S. the I nature. maybe to QX. short-cycle know with tough Industrial, this Scott, bit over of Thanks in consumer

soften talked think year to and than see recreational transportation, towards that. I of the little in look, our high-end last expected. personal softer we sort of and we we stuff Robert bit that seeing It's even a we're Well, consumer of dollars, year the have would end expected guide probably sort

certainly that but softened. think in stable, There are fine. the those fine, discretionary automotive items high-dollar have are business doing pretty segment is I is which certainly pieces some the vehicle

As higher are been. they financed. you than know, have costs those Finance certainly often are

softer, It out be what situation So PTV a put on that we part would to where been us. a little have softer than restructuring was much we our some plan we'll a we avoid has of bit field. additional business, great dial have the that's top our expected, expected and and of do in in to initial which too business it to inventory for

maybe Frank. then for And one Right.

restructuring to And to of impact restructuring revised to charge? expect be do you savings that equivalent you do plan, expect roughly On through? how cash the the -- the flow do the you

Yes.

rate restructuring, guidance million well. for roll of kind area and incremental cash for that 'XX amount will our as that fair into in into restructuring to million just million and end the area of will but savings XXXX, we'll a by overall of or for we'll $XX basis $XXX a $XX the think I about the the is in be is on that run the absorb additional in cash million. ultimately 'XX $XX of of so cash 'XX realize the The and that

million -- additional So had $XX we been. versus where but

Next, to Jefferies. we Sheila move with on Kahyaoglu

million if with at the Scott, up off Can start of to of maybe Bell, points Bell margins, despite XX% XXX $XXX expanded contribution on we they top basis look maybe line. large we

pieces think XX.X%? to So to X.X% to get about to the moving do we how for year profitability the

range, Well, that I of property-related as had But up noted quarter. a boost we did a in there, a I would think We little have, well. bit QX, in on strong say we'll end lawsuit performing team probably us initial that a the We is the still obviously. settlement Sheila. gave

the appropriate program, with and were to We count us to As deal of loss some move up. of actions in the to of you try ramp know, FARA program did able that program. FARA take helped cases the over to a which we engineering number restructuring the that

the that actions, But quantities. start it Obviously, to going line to and where of in will as we X of the on -- above of loss take we'll a result some we certainly as as some is of lower V-XX, latter help that that HX program back of original certainly gets the the also production the Nigerian which add, see some of the well both is FARA a year. through cost flow part the the up nice the start had extra as some of program to flow in again, us record see and

strong end side up towards very think Bell I to mix well. So on they're think with deal on But guidance to the a the quarter. much high focus the We're clearly issues cost of there. Bell, continuing I performing had we'll

Great. you seeing any pretty well, above then from Maybe orders one up ask on you're if And your if color what on Xx. customers. held I Aviation, could provide could book-to-bill

you that? If competitors are orders? on of comment prohibiting just One your interest could noted rates potentially

Sheila, much business. strength product we in to the lines see continue real the pretty across all good

pretty now. feeling from these deliver order we're aircraft lot to a flow of years good going the couple a So about of are

-- positive. much as financing I from guess standpoint, activity the here but staying So we order about is I strong, very was don't don't a pretty that, know,

Myles we Research. Next, go with to Wolfe Walton

Obviously, on could light wondering chain And but on seasonally usually your that helos commercial more XXX the the you you heads certification? confidence comment been for that getting on made level I also Bell. certification had wonder then Scott, I supply the into at the year-end. I was touch the confident also if that, down XQ year-on-year. if within you Could of quoted business on is year-end. your know the comment

of guide think Sure. chain We're as think to or supply that. that are parts sort But number in way, a about problem of Look, in year. manage continues children. general, improve. don't surprising the say, the to Bell I that I to course would I there's work would We And we able continuing our any anything of are through our Bell think the way through volumes have, new affect always that. we commercial have

commercial And the remains deliveries QX, We also very so have obviously, QX, and but shape. did think a expected in maybe very I good order activity strong lighter healthy. we we're a than there on little in

I into is FAA a test in portion, The So testing XXX that. very flight think good flight well. is Bell going place. we're well

We hours of we go more flight few test and XXX of is reliability have what through about a flying. call FNR, they performance just then sort which durability

as very you guys flying It's durable, reliable we've a long to be proven aircraft obviously, And for been that know, time. aircraft.

I through there. issues So any going have think we'll don't

and we we final up processing say So before as we'll certification. of bit midyear. we stuff know, kind And about that to good and should But year as feel of pretty have all testing there's wrap fair where is. this final get you the flight documents to paperwork point, that a at go it I'd

the the years? rate sort over be would next what you that certified, few were it if target of And production

Yes.

the We XXX. haven't production on rate released a

question Arment And our from Baird. comes with next Peter

Scott, in affected the margins settlement the what that nice Bell results. this Did was the quarter? you quantify

a not but didn't. I in quarter. number, mean, we No, helped it's margin a that huge little the the rate not Peter, it's bit

Okay.

Okay.

I then just quick want clarify for And that. you, So Frank. one a just to

higher in expenses QX. corporate We you would that expected have

the just thinking target? we from calibrate of perspective evenly more spread of year the rest wondering, the Just million Are Street. $XXX for The for modeling your a balance

Yes.

around As year. certainly kind on price may of the is, volatile as volatile of that be but we bounces the it depending for expected, you as be not will know, rest share or not the where

we're for full still same target with the So the year. we'll see. yes, But sticking

von TD Cowen. with Cai from question Rumohr a have we Next,

Yes.

So longer Gulfstream closer struggle. to in that, because Wichita And to higher to guys to people they're And geography are than jet to. of guys going and fight we're trying to had related basically going have part competitors, that are is you a maybe Spirit this that deliveries to kind you of to to be. and others where slog biz they ramp your you get Embraer expected and to yet continue Is therefore, with be see?

always are. I doing feel We good pretty about and get and Cai, feeling I would thought there, mean jets think I where like deliveries. but of we're couple to pretty we good we our good here about another

be. labor the On where we front, to expect it

just amount don't I with our terms situation has a churn. challenged of in So been problem labor turnover think [indiscernible] I which the everybody in see higher of rates by

a impacts efficiency one most the feel are seeing that's And been come us is have rotate macro that. -- in But It's have people and we to of where think no, that we productivity problem. we number all certainly to really of significantly. out, frankly, number biggest is the I on The back don't employees like side I needed be. improved don't the industries, of a but we unsolvable think companies in

I deliveries said, I to And year. as -- ramp we'll we on the expect a through continue we will see go as

Great.

going to maybe of question. sort And back Myles'

market. prices energy is up clearly So that targeting are XXX

early year? relatively see start build good to on do some pretty You've that start So next delivery got an program? XX, we for order could

ramping side to of be to of deliveries 'XX program production frame. start up sort will but the those deliveries, meet I we're already time suspect the in the Well, late

were applications, in, think place are oil primarily several are you positive I offshore now. I'd company, is in and negotiations a terms cycle, we're who we the for in the at latter to. and gas Obviously, have alluded customers an very those stage market gas of as other energy and that and right good oil say, aimed Equinor

it And place a market. nice through certainly that to in certification. getting be a time favorable these I think it's fits So things end

to with go we Seth Seifman JPMorgan. Next,

we compared Aviation, likely get queue. the relatively the about pricing see I to to EBIT that much. rest some compares you for have the at high year of the we I probably guess, about think a out harder? the those pricing to get more level of Good visibility the from Scott, called here. we're about for like in contribution see million being we'll tougher know looks morning, year-on-year the given components should somewhat Should other $XX everyone. what It from you growth the backlog into and Thanks very pricing compares think here,

Yes.

think very to stable they're year. things do the what's backlog. spread the of pricing the I have is in pricing because through net inflation. over course us of good is obviously side pretty important kind it we to visibility of all Obviously, mean the to that maintain I of

the around the so base managing really as inflation course year the work is of that's through go And most numbers of things supply and like that. just the we

the -- over So to price of see expect course but positive through would year. the inflation I

Okay.

potentially think about I good where And they're a the guidance like Bell. the you Bell about in looks where at overall when probably gaps? I mean earlier being first to and upside talked shape fill of getting Okay. Or quarter guidance it time just follow-up, in Aviation. we is, a in, tough industrial came at in I and that... about and have the some going talked then the company maintaining that those to to Aviation guidance for think then

I industrial probably would think a I business, we than the look, revenue our guide. yes, -- little the think bit lower that original anticipate being

that I the and how think the performance probably on we're upside think the why guide But doing we're terms for comfortable the in of company. and our I we have -- hold range. margin holding in which the we'll sufficient Bell overall is front aviation

that. Sorry about

with We will Goldman go the to Noah next Sachs. line Poponak of

Scott, Frank.

a good quarter. the mean, on in Aviation incremental the staying it's Just pretty I margin,

We easier units of I a what are think it was a doing. sense little an bit and kind price of compare.

been some Is and internal that an behind move think kind inflation, that hurdle. XXXX? operating supply also is And longer but performance, input a had you as cost no you've tailwind through just that year-over-year? now? chain issue that's maybe Is you've a of I you cited

you'll inventories, in I some think Remember, No. second are lot see is cost inventory. these a aircraft lot a still quarter. pressure that of of

of year and in usually half saw performance to this productivity in takes the first the in bleed year So the back the the case. it XXXX levels of previous half levels that out in we

So I still for that. think we some see pressure

There's is But starting some look the I'd nature, things efficiencies, we and that benefits see say the to the impact expect the to of production supplier disruption, in see the so some in to when that factory address that we try productivity business less metrics are onboarding, doing things those of good training. and a to issues. is stable less more at the of lot environment, the of on fewer we news a

do going through I we'll that have that think QX. the the you're over rates as do you still release, to drag of of get year, margin So course have some to particularly inventory continue that improve but

Or medium continue how term at or Okay. the That guess run do of then Is kind I ramp term. in what the market, exit the in discussed in know year, also I amount. rate on off keeps the guess, I is sort a than medium the 'XX, was run FLRAA of the of decent year it just ramped term? that Bell and out And to first just And in the the But just it's in to rate you'll the guess, ramping there as mean I makes pretty it 'XX a margin different I achieved a follow-up this you you see sense. dollar revenue is compression will the margin this amount FLRAA? margin. I Bell still hanging 'XX, of margin in And get kind close quarter. medium table? this outperforming. the that think

levels, think V-XX, would FY originally have that the over $XXX doing the of front above also team in X helpful. FIDAE the I well. sort one at cost FLRAA FARA is production money elimination all and FY of was guess things you on We're where [ to may 'XX with order, seen, the additional out the in like mean, can again, 'XX there the performing everything things we money are Well, Nigerian allocations these the million what lower if years deal the look, I note the I is the goes, and request, you of look of ]. of on budget I

So quite to FLRAA. going on I we're that ramping do nicely -- we're think

the of see might get increase of expected actually [ FLRAA in We'll ]. that we probably into FIDAE we the on terms XXXX as have revenues what above number originally on

dollar get as another we revenue year. that's hundred million probably into of So couple step next

guide programs. that to perform think said, continue And stay we'll cost guide certainly of I'm January, drive side the this 'XX in the executing against and of and us and guide back FY sometime on year, margin very look, I these So we'll the on for get February. -- to focused side the higher -- revenue the to will you as sorry, all part I the

are corporate full like tax decent land or a updating compared finance basis? amount lot interest, year the guess, looking on full on below I Aviation kind you all implied different year originally If items to in they at segment embedded did guidance? even. Frank, And what it a the rate. had manufacturing of were those in segment what a range the Or of the still Okay. did earnings quarter what in look rate, pretty run EBIT the of I the Is quarterly worth just a

will that type significantly this finance expense was what quarter range performance. thought. in higher to had the we range. of kind we'll due of corporate of think kind Well, talked first But I share price with be about of that We stick

don't probably relative -- $XX we I relative guide I to, interest to a on million but the what expense on our know little do what I better excuse interest interest depending interest really me, -- for the didn't we're expense, expense, rates think year. guess,

had kind talked continuing range of we probably the benefit what so interest there. But rates, there's given a than in higher other is the better had we little a thought is cash in investment Our about. of the stuff

Harned have with we Doug from a question Next, Bernstein.

this ahead book look get longer to This aviation. be inflation in with can wanted the have order story pricing when expect and try of you inflation. I'd look rates? to what you I you and go to this, of continue? to a this around to say back kind to pricing is pricing has you you do converge as is outside now. great going and right discussion at come When term, at back at able with have But been continuing to plan of something eventually Or your

I don't speaking, would mean, obviously, level, close. Jeez, inflation time, up generally know. of very probably I at say I a long periods over macro end pretty price

certainly we of think years this in industry just way a number were went products the where doesn't make I through under sense. prices mean were the it where I price.

catch So price. I mean, up significant we had in a

is I much go-forward think a a And on to see should that. market basis. think going is we And I'm of we forecast to also price demand you're period continue not expectation still our seeing the to But environment closer got the back they And we're them long and and is over pricing beyond I sure solid. inflation mean pricing that, go-forward doing to to strong in time. see on where then to a well. expect be. increasing is basis, obviously, how

as fact guided, in you well. increase, down come the think said, but you see price couple talked some also to as of -- about when I starting I the As significant as absolute price last you wouldn't we inflation a saw see we years, that

that So us, anyway over have net pricing is inflation. positive what's for we important

margins. again, on -- Okay. Bell over a And on then just moment switching to for

of past, as headed trajectory But ], you dilutive. forward, now very margins expect, that is to expect think you I one I to of you the sense B expect Milestone a look how initially, when proceed? long this in a accretive once FLRAA that You've program the at give full you're talked us would [ term, you're production. in kind is toward Can contribution would line of time you're and FLRAA's moving rate

this large through that's mean, would as any these right? for I that of you out what think described, you defense contract very goes I EMD phase into the kind So expect XXXX. of big is nominally programs, FLRAA -- of a thing program, Well,

to Now suspect initial production you'll start lots. see, would I

We of out years much have happen negotiated several the to frame. production time some XXXX, very next but certainly, is But be that EMD start LRIP program. out lots you'll that deliveries in the follow-on in by dominated the see

Okay. that be And period. in dilutive that would

Yes. Correct.

to Citigroup. the line with we Gursky Jason Next, go of

on on morning, Good got of update us and going little provide how things eAviation. business I the was a time bit bit on everybody. going in spend you you've wondering that development a if little are that could that there? of few -- Maybe an trend like years kind all you of And development next here what years to EBIT the product couple the for how over the on going for and us next backdrop? revenue is look given

Sure.

seeing So think There's look, right? We're in we doing I the saw couple deliveries is here, significant -- are which here in that think there's in obviously of well. pieces of business, a a Pivotal QX. I increase the number

demand strong. products those is for think I

good pretty is. where about feel So that we

an mentioned, a FAA ability flight on I on training aircraft. training to the electro, Bell's which do get we fundamentally did exemption the As is

we've those been It's sell can for I markets. that seen as U.S. the in volume now up in help So the international domestic and nice market. accepted, growth think those we use pick will already us and training

products in have think product I that we'll We of are line, new couple well. that a in do that

So good that's I how think about very are we the feel doing performing. how guys Pipistrel and

see we of which probably progressing the doing we're we're what's and of already say, is really that We'll sort driving Most this flight year. expectation the the are on in, later an segment, of probably That fly year We're probably the integration -- the have see first and ground well. done. financials testing Parts of coming would progressing the also, the with test dominant on to Nexus already. program we first On that R&D, craft. testing build doing which sometime full next program, supplier We'll I'd evaluation the that the front. in Nexus well. piece is airframe selections starting is

So financial that's the really what drives side.

Now off. I would into to that is level programs of making say right probably now -- the we're going investment level that those we're

from increase those going as So level we probably to guided, spending to that -- out going and saw significant 'XX now saw forward. to 'XX of level is a we've 'XX -- 'XX and we

start Pipistrel increased the we'll So EBIT contribution to see product some sales on side.

that's clearly segment loss have the but we're in that continue going the a in investments next years. few a and think us stabilizes it Nexus position, I probably going out to So newer to in the program,

And after, the of about think expect that investment size going putting the what to against market as you're be dollars you volumes. you you're

on I'm so payback you start the of when just expect curious, And these to kind period investments do you're making? that

Okay.

I at out I there's very a that, that of do think industry bit there's viable things, There's mega determined. that the unknown. this there that other a side to sure a our on the eVTOL The plenty you lot much from to I when and still market. this to work is exact of work, still of of meet in of technical it's work front products look an mission. mean, So be that to little noise timing perspective, plenty technical regulatory is make studies think,

So relatively could of that about how out here mind huge in be. Keep data modest. as market spending third-party independent there again, there's perspectives plenty I is has think that our

the that of in lot think and talent I of we cost and taking company. have a capability structure advantage and cost we're already

prove So if would to market be investment. parties what would proves on say a be, it's be going the return third market the to to massive

to Next, with Shapiro go Shapiro Research. we George

recognize that said XX%? to rest will run benefit get got objective in your so given somewhat the kind revenue that XX%. probably were somewhat Aviation, year inflation was, won't this differences are than I pretty much as of of mean, Scott, of And people But you for Why similar the those distorted. talking the price I incrementals can quarter. that the higher the about be like somewhat incremental numbers margin you small,

I I look, think, what's did higher out the cost when have George, right. do come and we I look at going for margin you're conversion going are but look course on inventory to certainly a higher like, year. the the think that's I mean it's, expect QX, Well, think would rates what we than of to We the and of certainly,

course is is inflation it, through terms at like, like, performance think we in sure to I to point, our as of which, And what long-term measurement guide going year look there, is look which as the it's expectations we'll we've generally as that's of I the towards said, at get the of plant as I So where think XX% for kind guided that side what is for this be. we improving business. range, going the of a high look what

quick Frank. you, for one Okay. one And

this opportunistic? of bought year? You of stock guess than was might I that the you a lot quarter, X.X% X% like the it do we first pretty in expect for buy more Or outstanding

that of about but was we talked also in to have a capital. excess kind and Well, liquidity about our the we going guidance, return talked fact position, we're we X% strong

in did from -- to probably be quarter. of So for higher that amount that kind I We'll here. buy fair a on we the think the of X% continue We'll first the side year.

Ron to with Next, America. of of Bank we the line go Epstein

there yesterday. there for give Just there that Is maybe you the of stuff in in potentially look got I you've in what's have or defense mean at sense for circling -- back can the Bell? looked guys? Systems obviously you it, a us just but you on passed supplemental business

I No, bullet business. in and there's haven't in guns the we really the not. mean been

replenishments stuff you So things opportunities at Ukraine not I of other directly for is have. over supplementals. things not that that's possibilities time most and are do that some that there's Bell but to systems, these on think in something tied look we when of things

window this stuff of other then shortage is that's Got or of to there back chain airplanes supply kind oddly like stuff of things random is it. that, doing I mean of those. just that? to Got supply. how One I've there's short it. And the in heard just like screens, for a is kind enough kind windshields Broadly, aviation. of in

look, for a Well, problem. big right? said, and it's It's say, absolutely been for is the us production better, right. customers. Ron, And big change they terms -- And for But as problem been us been of crazy, probably over I'd frankly, time. part problem what of you're our it's, it's us it's we Windshields in a of a drives have a been getting but now in years. problem several builds. terms It's randomness

but of us service. in and it's an the damaged a not also been industry, lot If of somebody OEMs our has the area like ability a just dissatisfaction spares for provide in windscreen for to

been category. So of and remains it one problem certainly the top by has -- is items

Yes. I was shut astonished, other down the suppliers supplier, yes, but heard When current I that I the guess whatever.

Next, we Morgan go to Liwag Stanley. with Kristine

to those aviation? Couriers earlier the Can pistons Scott, And about weakness or in the you the customer products profile similarities like buyers? high-end customer you're for MX you are or mentioned on profile talk industrial, there if incremental how of in consumer. seeing

customer But expect So strong, se. demand of deliveries the availability, is very that stuff. but all have remains of that you I strong for demand last over environment in per that terms of at exactly if don't strong for system way down we to year, kind think and I even XXX, to The look piston. demand the know categorization very

products are I consumer I line. demand look they're what see the certainly, product seeing other strength think we And too that don't strong. customer at of same if But terms maybe in perhaps. companies. now we're think mean across these we or -- same and you I the look the

everything much course, categories bigger, light the of to from I whether suppose. did certainly not, more If you're based not. that which product slowed that. PTVs, but up business And further same slowed pistons important consumer seen year, in I down customer RVs, on clearly last and on down a categorize doing good, slowing business some boats, that's has and slowed They into or recreational make vehicles, is jets yes, down. to how don't we've that, has adjustments we it's have the But much those but of know us,

go UBS. we with Gavin to Next, over Parsons

are heard I at just if initial million, And think $XX confirm to I plan the $XXX million. want there? just the restructuring given I the number was savings expected what's better driving

rate The the actions FARA That's focused original through Yes. all. really really Industrial impairment had And at then additional we count by on of it. the it in are the head some a it's asset addition when get Shadow, unanticipated and kind reductions. driven where restructuring full of run head count

bigger run getting so of a a And those to kind savings activities. rate result as rightsize of reductions those we're much

it. Got

from shadow what time over look and revenue FTUAS transition terms of to like frame? of the margins is in What kind Okay.

Shadow on which look, late an dates in when an as think option determined when Street be we dates, to move still hear they to now Well, Army FTUAS, pulling where probably early I calendar think, more of the on X ultimate don't which that but early year, good. to come year bit awards that's even which program. aren't, would have of and is They as little this about aggressively the be put we EMD sounds I formally There the award, wanted canceled X, that out seen did The a the published say to the forward RFP that RFP they'll decisions, for they're lead great. terms like production 'XX that out should in could

therefore, just exact the size is point. revenue margin this at So scope to the visibility don't and that and the and -- we have

April a.m. Time through XX, available after being conference for XXXX. digitized today is recorded XX Eastern and be will This replay

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