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CLAIM #25386 · GD (GD) · 2023Q3 earnings call · Oct 25, 2023 · due Dec 31, 2024

we would expect at that point, that’s one of the factors that will really drive over time the margin improvement in the shipyard

Jason Aiken · CFO

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versus commitment · official band 5 percent
Committed
we would expect at that point, that's one of the factors that will really drive over time the margin improvement in the shipyard
Reported
earnings of $935 million are up 7%

In context

and I think we expect it to remain what I’d call fragile. I don’t think that that’s going to get back to what we saw pre-pandemic for the foreseeable future, but the fact is the team at mission systems has fully incorporated that new reality into their outlook, and so I expect their future to be a lot more stable and predictable as they’ve incorporated the new normal, if you will, on supply chain on the electronic side for them. In terms of the labor side on marine systems, as I mentioned earlier, I think we’ve seen stabilization in both attraction and retention of labor in the shipyards at a faster rate than we anticipated, so that’s an encouraging sign. That drives the throughput in the yard, and over time as those new shipbuilders become more tenured, more experienced, more proficient, we would expect at that point, that’s one of the factors that will really drive over time the margin improvement in the shipyard, so it’s an encouraging start for them. We’ve just got to see that play out, because as you know, shipbuilding is a long term venture. Operator: We will take our next question from Scott Deuschle with Deutsche Bank. Your line is open. Scott Deuschle: Hey, good morning. Jason Aiken: Morning. Scott Deuschle: Jason, can you walk through some of the high level puts and takes for aerospace incremental margins next year, and I guess maybe to ask another way, are the right things to focus on from our perspective the G700 mix, less out-of-sequence work, the learning curve on G700, and then presumably R&D either leveling off or coming down, or is there anything else here that we should be considering? Thank you. Jason Aiken: I’d say you nailed most of the high level items there for next year, and

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SEC filings for GD · Claim quote is verbatim from the 2023Q3 earnings call.