“As I just noted, we anticipate a 13.7% operating margin for the year, quite a bit stronger in the first quarter, but weaker in the second and third quarters, followed by a strong fourth quarter.”

In context

“taxes and pension contributions are expected to increase. Turning now to income taxes. Our 2024 full year rate ended up at 16.7%. Looking ahead to 2025, we expect the full year effective tax rate to increase to around 17.5%. Phebe, that concludes my remarks. I'll turn it back over to you. Phebe Novakovic: Thank you, Kim. So let me provide our operating forecast for 2025 with some color around our outlook for each business group and then the company-wide roll-up. In 2025, we expect aerospace revenue around $12.650 billion , up around $1.4 billion over 2024. Operating margin is expected to be up 70 basis points to 13.7%. This should result in an 18.5% increase in earnings, up between $270 million to $275 million. Gulfstream deliveries will be 150, materially over the 136 delivered in 2024. As I just noted, we anticipate a 13.7% operating margin for the year, quite a bit stronger in the first quarter, but weaker in the second and third quarters, followed by a strong fourth quarter. Given the delivery challenges we have had with the G700s in 2024, we have taken a less aggressive planning posture in 2025. In Combat Systems, we expect revenue to be up slightly to about $9.1 billion, coupled with a 30 basis point improvement in operating margin of 14.5%. This should lead to improved earnings 3.5% to 4% better than in 2024. As I noted earlier, the Marine Group has been on a remarkable growth journey. It will continue in 2025, albeit at a slightly lower rate. Our outlook for this year anticipates revenue of around $15 billion with operating margin improvement to 6.8%, which should result in 10% or better improvement in earnings in 2025. In Technologies, 2025 revenue is expected to be $13.5 billion. Within the group, GDIT will be up low single digits and Mission Systems wi”