“We believe there's margin improvement, headroom at Gulfstream, and we'll continue to pursue that.”

In context

“year. I mean should we think of this as kind of a multiyear investment that needs to be made? Or is this more something that will kind of revert to more normalized levels in '27 and beyond? Phebe Novakovic: Thanks. We'll continue to invest, year over year. In our businesses because we have a long-term growth there, and it's embedded in our backlog. We believe that that's appropriate. So the investments year over year in CapEx may vary a bit. But you should expect that strategy going forward. Matt Akers: Great. Thank you. Phebe Novakovic: We'll move next to Myles Walton at Wolfe Research. Myles Walton: Thanks. Good morning. You've previously given medium-term margin expansion sort of color for Aerospace. I was curious if you could maybe update those margin outlook targets. Phebe Novakovic: We believe there's margin improvement, headroom at Gulfstream, and we'll continue to pursue that. You know, it's not about necessarily pursuing growth that's in our backlog, but it's about execution, execution. That's throughout the whole company. It's really a strategy Gulfstream and Jet Aviation are no different. So we all continue to push margin, and we see high probability of improved margins over time. Myles Walton: Is mid to high teens still reasonable for '27? Phebe Novakovic: Well, I think as we execute this backlog, we'll continue to push margins. We've got lots of puts and takes in this business as you all know and how all of the costs and the pricing opportunities play out over the next couple of years will drive it. But you should expect significant and consistent margin improvement over time. Throughout our plan period. Myles Walton: And is the Combat growth in '26 absorb”