“Well, that will happen. I don't have exact clarity on when those gross margin improvements will happen, but I think relatively soon and over the course of potentially the next year, we have to see some really nice margin expansion.”

In context

“Yes, fair. I guess can you help us with the underlying production rate? Phebe N. Novakovic: Yes. So I try to be as explicit as I could be for the remainder of the year. Some of these airplanes will go into next year, that will help next year. And then we'll give you a lot of clarity around what next year looks like in our ordinary course when we give you our guidance in January. The airplane is performing very well. But we still, as I've noted, frequently, we still got out of station work, that needs to get behind us. Ronald Epstein: Okay. And I'll try one more. I don't know if this is just an accounting question, but you called out all the elevated cost on paint interiors component replacement on G700. How does the 600 to 700 basis point margin step-up remain intact? Phebe N. Novakovic: Well, that will happen. I don't have exact clarity on when those gross margin improvements will happen, but I think relatively soon and over the course of potentially the next year, we have to see some really nice margin expansion. We're seeing it in the fourth quarter right off the bat. And I expect to see that margin expansion continue throughout next year and beyond. Operator: We'll go next to Jason Gursky at Citi. Jason Gursky: Hello there, good morning everybody. I was wondering if you could just step back for minute and maybe talk a little bit about the things that you're most excited about and where you are kind of spending the most amount of your time as it relates to technology investments and the business development pipeline across...? Phebe N. Novakovic: In technology? Jason Gursky: In -- across the defense business as a whole. Phebe N. Novakovic: Yes. So I would say that we need to continue to capitalize on the very strong growth profile we see going forward in the Marine Group. We spend an awful lot of”