“You will see a gradual increase in pricing over the next few months to quarters.”

In context

“u talk about what the strategy is for aeroderivatives and what the upside opportunity could be there for repricing and volume? Thanks. Rahul Ghai: Yeah. So, Myles, on aeroderivatives, as you know, we provide the engine and then our partners in the JV take the product to market. They do the system integration and add some controls—there is work done by both parties. What you saw in our disclosure is basically the fact that we are burning the pre-spin backlog. That was backlog that we had sold when we were part of one company that had different agreements. Post-spin, the pricing to the JV has been revised substantially, and we are working our way through the old backlog. We should transition to the orders that we have won post-spin over the next, I would say, eighteen to twenty-four months. You will see a gradual increase in pricing over the next few months to quarters. Overall, it is a great business. We are sold out through the early 2030s, so that is one leg of the stool. And then, obviously, everything that you are seeing with now CFM56 getting added potentially to the power generation capacity—that gives another level of growth toward the CFM56 platform, be it through spare parts sales to third parties who are developing that product, or some other form of collaboration. We are exploring all those things. Overall, the aeroderivative business is in a really good spot in the market, both with the existing product that we have and potential new entrants to that market. H. Lawrence Culp: And, Myles, we moved it over from CES into DPT really to give the commercial team the opportunity to focus exclusively on the airliners, the airlines, the airframers. A”