“Yeah. Look. We think margins are going to continue to improve. As you said, you know, we're up about 70 basis points in '26 versus '24.”

In context

“arket expense for this year. Phebe Novakovic: Because you're breaking up a bit. Are you about margin? Seth Seifman: Yeah. Sorry. Can you hear me a little bit better now? Phebe Novakovic: Yeah. That's better. Thank you. Seth Seifman: Oh, okay. Great. Thanks. So she could say it again because Yeah. So We got every other word. Seth Seifman: Cool. Aerospace profitability, I guess, now that we're through the product transitions, you know, there's some improvement expected in '26 here, but I think the hope is that those margins become more robust. And so how do you think about getting there? And is it the supply chain that's the chief impediment as you know, we're seeing in some other places as well, and what are the plans to mitigate that? Danny Deep: Yeah. I can take that. This is Danny here. Yeah. Look. We think margins are going to continue to improve. As you said, you know, we're up about 70 basis points in '26 versus '24. Think we'll see some improved pricing, improved efficiencies, some lower overheads, and some lower research and development costs, so that will be helpful. I think right now, we have headwinds around tariffs. Some of the cost increases that we've incurred in the supply chain happened before we're able to reflect them in our increased pricing. And we do have the opportunity to increase pricing, but that's often in periods to when the cost increase has been incurred from the supply chain. But we continue to expect improvement there. Seth Seifman: Alright. Okay. Okay. Great. And then maybe if you can update us on your expectations for future submarine contracts? For both Columbia and Virginia that would be great in terms of timing and in terms of how they are different than in the past. Pheb”