Textron (TXT) 24 Oct 242024 Q3 Earnings call transcript

Thank you for standing by. Welcome to the Textron Third 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 running through October 24, 2025.

You may access the replay by dialing 866-207-1041 and entering the access code of 1480019.

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

good and Kelly, 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 our of call section earnings Our be the website.

last up Revenues third in $X.X were the quarter from billion, $X.X billion in quarter. year's

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

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

good David, everyone. Thanks, morning, and

strike with caused its aviation of upon experienced expiration the aircraft towards Wichita disruption IAM. During the in facilities. production and a quarter, our the service agreement Work labor existing stoppage

new On strike. contract, IAM the ratified X-year October a ending a XX, X-week

financial As work employees and XXXX production activities resulting return disruptions our impact and recover, will delivery to results.

as from Aviation and our year's from year-to-date aftermarket XX quarter, jets, to third were turboprops, XXXX, year. versus compared revenues X% the prior quarter quarter. year, delivered the grew commercial XX Aftermarket XX and XX In third last last up down in X% up for revenues

billion. orders. quarter, quarter $X.X the grew ending over Aviation $XXX third see continues $X billion in to Backlog in new demand booking strong the at million,

jet this since service aircraft Latitude the in Citation delivered portfolio. Citation it in was Aviation of and reflecting At Cessna updates CJX the the this product in X quarter, Aviation NBAA XXXX. Latitude. CJX, the into week, has also Gen been During MX, XXXth investments introduced the continued best-selling segment announced midsized the

up $XX segment $XX to the year, up At third million over million million, year. was quarter Bell, revenues compared $XXX profit last last million, and were $XXX as

B quarter, for the the Milestone program. approval FLRAA of the During U.S. Army announced

This transition software the a hardware for Bell includes and design This and planned and modeling, record proceeds and hardware established fabrication as to phase. manufacturing program phase of review significant development the as FLRAA as detailed engineering design milestone continued to first XXXX. of program and critical digital the flight

EMD As a backlog grew subsequent result the $X.X the now Milestone billion by award, of totaling $X.X and B quarter, billion. in Bell's

delivered side, quarter. in helicopters, commercial third On Bell quarter. Bell last up year's activity the the order saw XX XX in increased from

slightly systems demonstration. flight Systems and Army's year. Textron a conformance compared revenues major and program, modular milestones the last approach were lower In to quarter, a prototype evaluation the profits Systems completed open X FTUAS in aircraft

representative evaluation. team of includes production its for with testing will X awards now new option expanded X program, which a The system of Army Navy sites delivery U.S. new Systems maritime for and competitor X proceed sites. the to aircraft operations land-based Aerosonde

Robotic robotic select to Combat Also The in Army for is Ripsaw U.S. delivered the X Systems as in production vehicles prototype Phase for part X to Phase Vehicle X expected and the quarter, prototype mid-XXXX. testing X representative down of of the program. Army

with take in operating segment lower vehicles the specialized the and driven Industrial, to revenues continuing action by end cost profit to to continued in lower has volumes. quarter, Moving experienced production Specialized softness markets. vehicles align

aircraft's preparations for integration continued conducted on which the this the Nuuva power XXX testing, run team a flight, in is now flight hover system focused eAviation, full is including year. of on simulation quarter. to first expected The Moving this and QX

is [indiscernible] assemblies of station, of the on in expected wing eVTOL preparation and continued program testing, the ground XXXX. progress the which flight for Nexus Also during the quarter, outfitting start to control and begin the to

are we executive yesterday, changes announced at making we as Textron. some important Finally,

Frank current President company our Executive Investor the Dave President on notified CFO, Financial Officer, XX, Relations, Rosenberg, in February has and he Our Chief Frank. XXXX. from new as that Vice Vice our retire succeeding us to has intends Connor, been elected

than aviation industry of the years Beechcraft and of a Aviation, experience at and predecessor strategy in has more positions has and Dave its in companies. Textron XX series served finance

contributions In Frank addition, Both during effective to to Investor President has to XX for ] years [ Hegstrom and Scott the replacing and ] his appointments. want congratulate Vice X, Dave [ been outstanding Dave. I new Scott thank Relations, March are of XXXX. leadership elected elections significant and on Textron

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

everyone. morning, good and Scott, Thanks,

review segments with contributed, each Let's starting of Aviation. Textron how the

Revenue offset at higher Textron flat lower $X.X of the were of with third million, XXXX, the Textron the quarter with quarter $XX mostly by billion by IAM profit essentially Aviation's and revenues from XXXX, million. segment $XX resulting Aviation third and about performance with unfavorable of by $XX lowered along In delayed pricing million mix million. deliveries of of $XX around aircraft volume strike

million million the $XXX quarter down million from was profit ended million. from second the in billion, mix volume a in Backlog segment to the quarter $XXX of up the $XX due quarter. largely ago, $X.X $XX Segment year and third lower at

to million, program, Moving mix last FLRAA million, volume volume to and million. military and commercial primarily higher mix higher $XXX deliveries. of up increase in million, $XX and mix related Bell, of the million were year, and reflecting reflecting $XXX an of largely higher included $XX $XXX revenues from Volume volume

Backlog year's $XX quarter, the from $XX of $XX million net million inflation up of from $X.X segment and quarter impact favorable billion. a $XX performance was due ended pricing third profit to million favorable at last of largely million. Segment of

million year's billion. Backlog lower year down volume. quarter, quarter revenues $XXX last profit the was Segment of $X million million million, down largely from Textron from $XX third due in Systems, ended a at $X segment were to $X.X this At ago.

Specialized of the was third principally $XX of product million Industrial volume revenues million third volume year's Vehicles due the million $XXX to mix. lower Segment and $XX mix from XXXX, from due in profit down quarter, quarter million, of were down to last mainly primarily $XX lower line. and million, $XX

of $XX in in million. segment Finance the XXXX. $X of and third million third Textron revenues $XX profit were with the quarter million loss of segment segment were eAviation quarter XXXX loss segment revenues and $XX was $X compared was a million million

profit, Moving $XX expenses income $XX corporate the $X and components interest Intangible inventory below million. and non-service provision million. million. pension asset $XX the Net $XX segment postretirement LIFO of of were was million million. expense group amortization was from was manufacturing

repurchased have shares, $XXX returning In million to $XXX X.X returning shareholders. in to in million cash approximately shareholders. XX.X the quarter, repurchased we million we shares, Year-to-date, approximately cash million

include a on its of the to $X.XX impact share, outlook now per earnings strike of results. per to $X.XX expects operations Textron the from $X.XX outlook full-year adjusted Aviation its adjusting share the to is down to from $X.XX in range per expected be share. of continuing financial Textron XXXX previous

be outlook billion, pension now expected to of $XXX about the to to contributions its $XXX contributions before million as flow of cash with $XX is planned million pension $X Manufacturing million of in $XXX to range previous compared million.

our Aviation, with revenue margin improved in expected outlook estimated margin to while to revenue XX%. top At original now segment is the range Systems, the unchanged of At the is to XX%. slightly year segment an XX% range segment guidance $X.X billion with expect outlook unchanged, end at about Looking a margin revenue year around an Bell, of XX.X% above of we XX%. total we of total or expect

$XX an Industrial, with Finance, to At now segment we loss to $XX segment million. revenue expect Looking to of with expect revenue be with $XX around now million. million, around $X.X now about we X%. about of be margin be revenues around billion unchanged segment expected a margin expect to at about we At margin million $XX eAviation, of

now around interest $XXX expect about be million XX.X%. be to corporate we of expenses million, a expense and profit, segment to tax rate $XX Below

concludes prepared That remarks. our

questions. can So open for operator, line we

line the [Operator Instructions] And Barclays. with Strauss we'll of David go to

you Dave. forecast you maybe terms and what and of in touch of on -- at restarting jet updated going have things Congrats, how you $X.X Frank had production the revenue are [ kind for in in ] terms Aviation? think just I could or restarting billion assumed Aviation deliveries. in of Scott,

Sure, David.

the contract. terms under back very So come days ratification up X to look, last important to mean, in. weekend, the has the obviously, we workforce got I of The which was

are we back get place. ramp and things in to So starting

workforce I talked think I was back had the yesterday. about that Ron in to of XX% yesterday, we probably

We Monday. on to expect and continue clearly ramp representation expect that at to to full be

revenue when up So of $X.X as and that. X-week factor really ramping and get then get and we X not the quarter. the all get think we back like here got kind fourth It's That's we drop. the in a in about weeks, line to more why ] the it's billion strike, we've running the [ numbers,

X-year the We I'd us. that's a guess news on, we're focused I for But say, that's good deal in David, is for good good right? place what employees. It's have

total focus and been X up. Our chain who the work here make current. to sure getting of or over continuing is last X back our parts suppliers things time getting that We've coming spent weeks, with obviously late now supply to a right are ramped to are in lot to have PO

getting everybody we the flow. is over and the door it's get and and than few part years the hopefully in more now better efficient right as back factory focus complete past up our So been running

$XXX year, previously -- flow it forecast million the million lower from hit had of flow maybe accounts looks Okay. earnings. bit of I is million the like it -- $XXX losing for for side. What on And looks like think, lower Frank, a forecasted. you're additional you in than cash about lower terms little free the for cash $XXX the CapEx, free

inventory Yes, of to and the kind kind the with here some production. the of of impact associated we're headwinds going ramp-up slower have

X-week a a chain Scott said, impact. kind standpoint. to it's want from supply As healthy We of get

mitigating this. we make healthy come but we looked to So want impact the sure as of we of that we out of the at certainly kind also cash strike, were

burn the So then have to And impact. that that's we'll inventory, through obviously, sell and in 'XX. really

next go Jefferies. Kahyaoglu line Sheila with the We'll to of

Congratulations, Frank, of course.

the but of that's How think about, QX to the to do guess, is about then into think and offset. back year? $X.XX, we Bell at is given Aviation also XXXX X% exit headwind, $X.XX, cut Industrial, I EPS I margin $X.XX Industrial exiting a going just just So a

-- front, been all we've seen each Industrial about that quarter. We've we've the softness talked Sheila, On year.

we're color, specific guidance, some I giving the trying the each just to So beyond as we've to guys you segments. give one think of revised

that And continue. market softnesses to think now are right that so our is end I those going expectation in

just talked perspective are we've and going we're get quarters, don't way view in channel the want in I to market. channel. we put better in until end think out in their the about terms volume. things things back and rates As of dealers where on want production previous cutting don't on stuff We interest

of kind the up just I we're on that our view guide firming segment. on So was this think just -- total

these The the We're inventory the us, in to is obviously, ramp again we in have here, got bigger we're to out -- for back of talked delays normally issue carry process some work out as end given of of we've year deliveries, coming up more the get Aviation the about. the of Frank going would through than certainly business QX.

I guess, to to going we're these aren't note, I these lost, sales But mean these right? aircraft. and ultimately important deliver pushed, are

as clearly revenue going XXXX, was. our expect see So think what we over guide about progression we original to XXXX we're

quarter, all now ramp. position recover about momentum into optimistic the a on more We're clearly, I that workforce, And in contract XXXX. better with we're supplier go have seeing think I us, parts. in we as continuing tough one think to we'll stability good And to but it's behind

on as we increase? wage about in think just we factor the XXXX in contract, the do And how the headwind

was costs. was we more than a into largely labor -- that the about it's little baked direct expected, plans. of deal our is our No, Look, XX% but bit

and focus for we compensate I making can that. will productivity the efficiency So right mean, this our be point at drive to sure

think this in again, best job. workforce. I employees. it's -- want retain job in And need to fair good town. be a like it's town. we We for view deal, And this I to we think people, us it's the think be our We hugely these a our is jobs best the look, But makes And important that we'd to need good is them. best

it's So trade a good for us.

Robert of Stallard We'll to line go Research. the Vertical with next

fairly like to really chain anyone the off. want you that turned approach David's sounds follow up haven't supply proactive taken recovery It on managing Just to a question the plan. you've and

Is inventory. In analysis? things you've and fact, that this kept you just up going fair a built

that a are inefficiencies has Yes. smaller problem, continuing mean, Look, just and problematic, of numbers still a number it I while significant still to that be of I work for a improved lot industry. the It's the a part drive last the everybody out-of-station over part years, been to think, they're few in shortages, in problem, gotten has but was factory. and

nobody certainly, So our not a and to we're try look, strike, strike. was during go resolve suppliers thing. is committed a to work period view to the The continue good strike wins of with But we that problem. those

from which we so ourselves perspective, get this going that situation is more how all and back be move and forward. parts and efficient in, expecting So our of again, better forward put these about we'll terms back would in the can in workforce happening you a now things is that we shops

inventory but So cost of yes, bit to turn going all going inventory, that us that's little airplanes. into a is to

that. worried particularly about not I'm So

having been Have the seen What as Okay. some European auto that Industrial, a about on softening mentioned challenges. ]? Caltex front? demand have vehicles And any follow-up on you then [ you specialty

auto we probably for most the world. the is have. Well, down sure, challenged I European is market. around mean,

we But to volumes are of pricing. and through like somewhat the So and with that below does that really frankly, offsetting with would good managing and team productivity a where dealing them be. job

Caltex the quite so has have performing well. [ actually ] And think I been

to Baird. with of go Arment the Peter we'll next, And line

maybe to NBAA. about talk heels on just just the Scott, of

still your saw obviously for talk some what models? you're demand seeing Can the this You maybe seems guys about a nice environment, quarter. bookings of on lot favorable very obviously you just

I think billion QX. here had I Yes, over has. Peter, $X in we mean it

of of is quieter. July, the ones, the usually you usually right, summer, kind As know, is one August QX historically lighter

it a the in good new very MX, quarter that the think of activity. order refreshes team both the is encouraged We're putting I was out with CJX, CJX.

have coming Ascend, we well. long, course, announced very along that's the Of which we too

strong across of pretty particularly are platforms number safety, significant ] with of single-pilot jet updates, is all [ the So Autoland launching aircraft those capability demand. driving in terms and the which of

is I to end good. good. the think continues flow So market Order activity feel is --

where think I feeling still about we're is. good So the industry

the just as done is environment net I And assume, have demand that pricing, healthy? guys a there? just the guess, I latest follow-up What's inflation, well. on Yes. you I of -- given pretty

the right? Pricing think big factories got in the we've What inflation. so talked price to about, maintain be is good, we've to I still price as marketplace. compressing, driving over productivity not number to mean see contributions in But Yes. really doing to I I inflation the necessary expect that momentum. continue Peter, efficiency would is and is and

banking as testing inflation before, is had So we to drive and coming good, But that's problem. the But going good of forward. again, really efficiencies dynamic kind performance that drive not be and you will old-fashioned We've got productivity margin that not that need And spreads. a this talked on about to pretty -- on see that price volume. we're to will that we've down. significant

inflation through that quarter net The and the for other only and where SG&A this structure, on comes price that is essentially puts price of the add aircraft, but cost inflation. thing is not and next the which all across volume, things; just pressure versus of lower with I'd on quarter, aspects

by So certainly for that it's volume the the this quarter and impact have with in lower price as net but basis quarter, will on is versus net the the inflation well. price, a zero fourth strike, an associated that impacted on

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

for with and David, relationship and we all Cessna abnormal CFO. recovery? congrats Thanks the in the retirement. the the on many are congrats the the given jet the How years. the over deliveries quarter, And Frank, strike fourth the becoming backdrop expecting help on

never given number No. yet. we've I a mean

to just $X.X significant. of we'll billion what's accounts adjustment, really getting pretty out obviously, but game, is that this probably duration yes, think and I then revenue of and just of the which up the be for turning to time at and kind X-week it's stage strike of ramped back it a a going. just So I revenue, mean, the stick But I inefficiencies think

Okay.

could in it's rate you're X, pretty disruption Jan run be that year, we Okay. much there beginning the 'XX when had I year? smooth the planned a and should that add line? And out what starting guess a you're Or bleeds out XXXX, Scott, clean production then, that anticipate recovered of into 'XX slip longer for over of period or it does a of the we previously expect time? of kind aircraft to And should you

first so we've December October, here in January Well, of and at X, rate. mean. get things I November, a got normal to here all, certainly smoothly. by expect smooth We're we're we and running operating late ramped productivity

year, the well. So I expect factory be will stable by the doing of the certainly and start

of I if probably said where no, going while certainly in of doing 'XX as good, were -- expect guide we're be only in guided I our ready and yet. we what we XXXX mean, is revenue in -- were the issue expectations XXXX what not you But think the kind at and I guess, do we in in 'XX. ramp XXXX to I to terms production healthy we an originally obviously above growth to see look impacted,

Okay. that should How Or in the just margin incremental productivity the now we And different referenced there to over all at be contemplate term? the Or on margin is opportunity still should just the cost Aviation, front? lastly framework is of we on you've lot a medium then enough? past? continue about thinking the

percent as margin Look, of business still at the given in to of we terms business. mix kind the this the gross XX-plus revenue, converting think about of across

guide. think, still, I long-term that's an appropriate So

we Wolfe go Walton of Next, Research. Myles to the with line

Combat not a growth those Systems And long, Vehicle. to to going wondering It's and been could whether long can mentioned that Is a are X start talk year decided time. real profile? flattish for or being critical how contracts obviously an X dictate Systems, those Robotic was are and basically you on you outcome the if the I FTUAS programs? next

mean, programs position are They Look, the programs, business long we've factors I to are that key of a ourselves. Absolutely. in these investing other future. time There's growth obviously. for the for been driving

extraordinarily We of not pulled think, XXXX, Shadow fact, you did at frankly, business service. did getting performing look well. if year, around anticipate of the a we In is beginning at I which the that out take hit the

trivial businesses have was of within high offset to businesses as course And the even on margins. of going original hit, over guide us, to terms to the the revenue, they're and Other that. to in a not year help their of we said, their be Systems with grown are side hitting which the

think I So the of yes, programs in those like team course, there's RCV, the the future. like Systems growth well. are key But performing ARV very year out, such is of in and drivers FTUAS absolutely, and

one. And one is XQ? Is for Or quick slipping that 'XX? track still just on the into XXX

put -- don't dates actually were Look, hate FAA I I is I good. there just is that, with test down it's -- mean relationship because out we're program flight and on right? going to work yesterday. say, I'd the there the continuing. we certify the

Flight say, put flow guess, and official documentation that obviously to is need gets test this would it of I of I because just to through and would before it if XXXX paperwork there. the well. were number the TC on gets approvals Whether of sheer program amount going year, slip just into

do we work have on to on that side. the So and the do continue to test we all flight work our the

on a lot aircraft capabilities of kits various to over its be cycle. we're and to course, moving need into life already added the of resource And that

the So go parallel -- with process. on will and work in that certification

go of with Seth we'll line Seifman next to JPMorgan. the And

about ask margin I Congratulations, Frank to Dave. in and Aviation. the wanted

seeing exceptionally point there step down quarters? anything why being with was we which like we've range, QX range And of and quarter-to-quarter strong, to year. in strike, accustomed below about variability looks of but I kind talked in it there's guidance so to was out versus regard the know for what to recent kind you the mid-XX% saw just there ex it the a of become the kind

back overhead mean, volumes total you rates. I strikes go look impacts a you liquidation look, and assumed rates Well, facility and bit and idle and right, messy, year are at when and

the -- of in a significantly So quarter lot volume to is got the and in part cost, which not sudden of year is of variable. of what some factor which a you've lot all of with you're lower seeing a

of QX And why so updated drag that's in both for as year. see that in well our you the part guidance as full

Okay.

Bell this about see thinking can this maybe I at And thinking it. Got margin continues of improvement still maybe year, expectations to profitability is but to profit kind Okay. declines? given Or in growth coming should we here, continue maybe ahead elsewhere? guess grow, performance the about rate you then and some dollar as of be margin FLRAA where something

growth. great, will fairly had to that Yes. as drive which obviously. the dollar margin know, growing is and lower trying But But next strong. Look, still The FLRAA the to a commercial we're program you year grow mix. is market profit -- is continue is significantly,

So to that's us. helpful

Nigeria, X, is HX the in is couple win grow -- The which original the actually helpful. next over here going volumes obviously X equipment to years

helping. So years. that But mix-wise the that growth our are make program, in there how there we continue we're think given still do the really the significant be focus are growing in and FLRAA accretive is sure subsequent to dollars I margin things again, of some

the line Doug with Bernstein. We'll Harned next of go to

Dave. and Frank to Congrats

Aviation where with from forward you you are be focusing look there that to respect X the going to see thinking investing specific in over on and really you're areas do years how next and evolving? CapEx, be the say, you If And here, intend R&D what to about there? side profile

making I change. think us Well, mean, big look, I that a I don't see

programs to the expect very years say, front occasional I'd I well about for clean would product last mix number as And of talked healthy drives we which, growth. existing that with I and the what our future portfolio, we new of a we've do sheet customer continue to in. earlier, think doing been on nice received, in drops upgrade is the it's

continue to that for formula and I a that. worked So think that make we'll has is us,

of terms kind margin tailwind talked -- this course we've or our on basis. of year. percent Part fixed about slight front that is of we've -- end -- a is a perspective, doing challenge making the you're what of the the you're in sales assume the of of the on R&D towards over R&D an fairly year From at you

that you of a bit. of a lose So that's unusual But you big if I hurts obviously, little mean, kind strike, revenue, chunk the circumstance in obviously. an

I it So terms and stable the to have right business we'll percent while think we we'll generally programs that right fairly be making a we investments raise invest. I'd see appropriately view growing speaking, the it when should R&D, to say, the But keep for in sales of a of the business. tailwind

that then the really supply separately, for respect supply the the seemed with go chain. if the -- be And been just we to the when make able strike put moment, said chain XXXX is really it may and is limiting to you've It aside the in not factor that for you you it some really strike, into demand. we during progress Aviation

there's issues So within where issues? supply factor you've when the longer bottlenecks if to can some the able can principal point with And are back where the you you been if is chain, the now, bottlenecks? to a think the see world the you no get narrow limiting a you dealing -- describe supplier

I track, delivering we think that I some interruptions XXXX, think plans that critical capacity the mean, here fact revenue staffing the in our that XXXX, about that in a Well, in you'll and our ramp. it of -- in things. trusting you I I I on has been that, look that here think product, resourcing had increasing despite despite more our think and XXXX, I production still XXXX. But when factor own been limited said, we've had at and thesis how is as and It's supply the terms expanding the see

'XX plan had and So And suppliers still expect that's and was we the place, that internal 'XX resourcing should you with guidance. a revenue that's own why growth we'll staffing. have see and above think coordinated our I in in original that ramp

the of Citi. to go next We'll Jason Gursky with line

Frank, with look working luck more congrats that to well you And closely next on -- good Dave, the phase. I and in deserved. congratulations, forward role. with

quick Scott, you. for questions couple of

to the earlier productivity maybe costs mentioned to we historic about You And curious are kind to better it where of strike. I'm versus drive if for then? where just the associated labor productivity maybe it were, return things can takes pandemic bigger maybe productivity some generalized make now and you how comments as the of we labor to labor kind higher longer picture offset back back with were to labor much do that if doing way was the some levels? a productivity, to think prior you you of

having When Well, bin, look, that's swap lot things inefficiencies, out in there parts. looking certainly certainly contributors that. and at things is stuff you of that disruption were of X major of a to you're rework in productivity line manifest largely got which holes and was themselves between supplier part start it to and running sequence from part there the your in lots factory, aircraft, doing the production and a of you've comes

supplier these fewer period that work instances what the various where we the consume have the at we the many, available try As of it don't strike line. think while the in time perfect, many, did to won't to to PO stages part of and the we to many get need I on-time production part that to delivery have said, be I through we where

a frankly, coming saw turnover. The lot we just right? of like mean, of other, most companies, out COVID, I pure is labor,

new hiring people. of of lot a have We

helping that participate train of people. in of And a not to and So just it's a clearly, lot senior inefficiencies. develop there's people lot been It's training. who drives that these new our new person,

and yes, but is it we contract employer getting stronger think makes as jobs more in retention do side. an attractive attractive on makes labor and think hopefully, us that I that it's So a GWI, behind And market. which significant these the even that -- more us.

So numbers are coming the the huge that number stabilizing towards is stable of same that, in; not just adding a it's but it part and getting people of people, a that.

town. I in much out thing, GWIs again, parts there, worked the best place. that that think critical also hourly And feel in which these to think the think or better that are our that these but is much I aircraft, retain hard last driving builds that And that so factory. jobs really in get healthier that to I that us month the with the a over not workforce about. are will efficiency and We just So productivity help I attract

philosophical was Great. then helpful. a one. more Okay. question just And of maybe That's second the

If this you the kind the North control, would you to basis a the to know do over the could what of Aviation try is to in consistent -- manage I you business, but wave always have be a Star for pretty business longer where of magic is difficult wand like What case, the this term? on to all? months and you backlog

a -- in out you to being different products months across look their their important. I to a of if think their our aircraft, One, own know manage aircraft and window customers and remarket -- speaking, at a our But product different ability a for already for is there and go it's and sell generally say, reasons. their place timeline us aircraft portfolio. XX time is when healthy of be couple very I of what little many to would bit have is XX,

line, right process, hit what's know customizations aircraft and very part aircraft when of And is of it that lot but or amount we interiors the specify latter through is what obviously, time stuff the A happen towards process. a to and smooth the the where the are configuration. standard, that that go gives aircraft there us also of

a I see can our able when volume mean it to with you and all that helps where understood, that a set dates and having being mix make months signal XX to volumes And run suppliers, delivery and have it smoothly XX to product configuration. really and business product and well consistent out can on

we'll to Parsons Gavin next line UBS. go of And the with

Frank congrats. And Dave, and

a benefit is still some place couple Industrial, Just of wanted the in of questions. to at are bridging ask point? Or this largely that seeing you restructuring? On already

sure. clearly, there's we've course through to restructuring restructuring I the Well, I'd for say think mean year, been more of but come, I the

markets, in and to be of soft a a end going the think little I be particularly business, are while. think of to soft, segments for continuing and they're couple I the

what to each maximize those business restructure we'll segments. in performance appropriate is do to continue and So we of think our

the Got have this works? us it. we you on that year, just do And cost there? accounting can some deliver performance margin on line aircraft next If remind year Aviation, how you expect headwind

] The costs, it. quarter period is performance a line, performance factory that. [ mean I the this for a got go of full in of clearly, walk Obviously, and line factory is inefficiency I if line. -- parts a variances things which performance thing I don't for moving so-called there's year, not through expensing, -- idle in I unusual us. that there, know in normal could mean, you've through manufacturing lot or there's stuff It's right? lot

And we'll go next to the Skibitski line of of Alembic. Peter

line point if since I was have you wondering Milestone that you a I put it's wonder on revenue you the approval. B back the now go finer substantial. could so just if FLRAA to

I million to put there a you last recall, increase And think about talking were thinking point year. revenue any next in Is that? on way finer you're Scott, substantial about year. this $XXX I

-- any yet. actually careful right? little a have have be million little I is Pete, bit going these of probably number at It's be I in try a always here They're I not the to just million this year. don't the think a appropriated, budget. next $XXX on mean are appropriated higher right than million We year, based that $XXX to to what's things $XXX probably around I budget.

you huge. So the budget, criticality once through ramp into as additional they next we I in as guess, some CDR would you I but we'll this. pass -- think -- talk And appropriations of support what's year. that the expect process, ] I obviously, go about full Army, at getting [ the look mean, the I see I if for there's is

that. only And happens think and increased some everybody thing with as funding are the board forward, think is with on I just keep so customer next to and -- that as we I that year, driving committed will is this

of No, are there? probably than that can the But to cabin easier guys you and think about the the viewing appreciate sort risk of then just if right I Obviously, how production. what's decision you way And Okay. in kind midstream it's the you from us schedule give sense the decision? it. to technical were in-source of Spirit, a

-- that that I team us Peter, to right, the Spirit kind the look, given it very where as was in worked and of of collaborative know, Well, and it's closely with you was, that process easy think process, made the of done. kind EMD, status starting execute, low just a highly risk, fairly

so good. So we're going that, forward. executing to on so and focused We're far

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