“9X losses should also peak by the time we get to 2028, given that we are driving a 50% production cost reduction in 9X.”

In context

“ns were actually up year over year. That was a positive trend. We are not baking that in for the full year—full year, we are expecting service margins to be flat—but it is a good start to the year. That positive drop-through from services is getting offset by the OE growth that we saw. For the full year, we expect deliveries to be up 15%. While both spare engines and installed engines are going to be up for the year, the growth is primarily going to be driven by installed engines, and then we have 9X shipments. Put all that together, and we expect flattish margins for the year for CES. As you go outside the year, we spoke about the LEAP margin trajectory earlier to Scott’s question. We expect LEAP margins to approach overall CES levels of service profitability in the next couple of years. 9X losses should also peak by the time we get to 2028, given that we are driving a 50% production cost reduction in 9X. So LEAP margins improving and 9X headwinds peaking in 2028—beyond that is when we expect both accelerated profit and margin expansion in the business. Operator: Our next question comes from Gavin Eric Parsons with UBS. Gavin Eric Parsons: Good morning. Thanks, guys. This is Joel Santos filling in for Gavin Parsons. Thanks for taking my question. Moving to defense—strong results in 1Q, solid margins, stronger order environment. As we look through the rest of 2026, how should we think about the sustainability of growth and margins in the segment? Rahul Ghai: For DPT, you saw our revenue growth in the first quarter. We are expecting high-teens revenue growth for the full year. Overall, if you look at the results for the first quarter, they keep us on pace for what we have guided for the full”