CLAIM #25556 · GD (GD) · 2024Q3 earnings call · Oct 23, 2024 · due Dec 31, 2025
“So I would say that we're pretty optimistic over -- starting about next year and into the future of the margin performance at Aerospace.”
Phebe Novakovic · CEO
In context
“ry timing stabilized, we'll continue to have out of station work. That, however, should be behind us before too terribly long let's talk about the 700. So the 700 we've talked throughout the year about some of the margin pressures of the first lot, but when we look forward, as we've talked about before, we see gross margin improvement of about 600 to 700 basis points, that remains the same. As I look forward in the Aerospace Group, we see very, very strong margins going forward and we'll see good margins in Q4, not as high as we expected because a lot of 700s was into next year, but we'll have very nice margin expansion as we go through into next year. With respect to the 800, we expect it to come out of the blocks pretty good and have some nice margin impacts over the course of its year. So I would say that we're pretty optimistic over -- starting about next year and into the future of the margin performance at Aerospace. Seth Seifman: Okay, thanks. And maybe just a follow-up on Combat, with the -- understand the growth trajectory kind of slowing down here in the second half, how much of that reflects kind of the end of the facilitization process for the 155-millimeter shells and how do we think about kind of the interplay of growth and margin going forward, it would seem that the backlog here would allow this to be, as we look across the industry, maybe one of the faster growing businesses across the industry, is that a fair assessment? And then have we -- has this quarter indicated that some of the margin pressure from facilitization is behind us? Phebe N. Novakovic: So look, if we look at our backlog and the threat environment and the performance at Combat in general, over time, I think we expected in o”
Verify independently
SEC filings for GD ↗ · Claim quote is verbatim from the 2024Q3 earnings call.